RESOLUTION OPPOSING IMPOSITION OF STATE TAX ON LEGAL SERVICES

WHEREAS, the Pennsylvania General Assembly proposed a tax on all legal services in 1991;

WHEREAS, this tax on legal services was deleted from the bill and not adopted by the General Assembly;

WHEREAS, a sales tax of 6% (7% in Philadelphia) was enacted on collection agency and credit reporting agency services as part of the revenue bill;

WHEREAS, the Department of Revenue has announced its intention to collect the tax from all entities, including lawyers, with respect to all collection activities prior to suit;

WHEREAS, a tax on legal services in the guise of a tax on collection agencies is inconsistent with the actions of the General Assembly in declining to tax legal services;

WHEREAS, the Board of Governors of the Philadelphia Bar Association has previously expressed its opposition to taxes on legal services;

NOW, THEREFORE BE IT RESOLVED

1. That the Board of Governors of the Philadelphia Bar Association strongly opposes the Pennsylvania Department of Revenue's interpretation of the provisions of Act 1991-22 with respect to imposing a sales tax on legal services;

2. That the Philadelphia Bar Association, through the Chancellor and appropriate Sections and Committees, take all necessary actions to communicate the position of the Association to the Governor, the Department of Revenue and other appropriate state officials in an effort to have the Department of Revenue reverse its position that the sales tax applies to legal services; and

3. That the Association, through the Chancellor and appropriate Sections and Committees, cooperate with the Pennsylvania and Allegheny County bar associations, the Commercial Law League of America and other groups to achieve the purposes of this resolution.

PHILADELPHIA BAR ASSOCIATION
BOARD OF GOVERNORS
ADOPTED: April 30, 1992