Welcome to the AMM Law Blog, a tool to help you keep up to date on current legal developments over the broad spectrum of our practice areas. We welcome your comments and suggestions to create a dynamic forum that will be of interest to readers and participants.
On October 4, 2016, Governor Wolf signed into law new legislation that will change the separation requirement from a two year waiting period to one year. The law goes into effect on December 3, 2016. Under current law, the Divorce Code provides that in cases where only one party desires a divorce, that party must wait two years from the date of separation before they can move the matter forward. At that two year mark, the party who is seeking the divorce can move the matter forward without the non-consenting party’s agreement. The longer waiting period has often led to cases dragging on for too much time, which can lead to more animosity between the parties. For children involved in the separation, this has often had a negative impact. As a result of the passage of this new law, the hope is that cases will resolve much more quickly.
It should be noted, however, that at the one year mark from the date of separation, the case is not resolved, but rather at that time the case is permitted to proceed. It is by no means a guarantee that the process will not be lengthy from that point forward.
Stay tuned for updates as we see how the law is applied by the courts.
The Pennsylvania legislature recently enacted changes to the state sales tax code that affect computer software providers and their customers. These changes went into effect on August 1, 2016.
Under the Pennsylvania Tax Reform Code of 1971, a tax is imposed on the sale of “tangible personal property”, which is defined generally as “corporeal personal property” along with a non-exclusive list of various types of property. In 2010, the Pennsylvania Supreme Court held that the term “tangible personal property" includes canned computer software and that the licensing of such software is subject to the tax. In so holding, the Court rejected the argument made by the taxpayer (Philadelphia-based law firm Dechert LLP) that canned computer software consists of intangible intellectual property rights that are not subject to the tax. The Court noted, however, that fees paid by Dechert for software maintenance and support services did not represent the payment for the transfer of tangible personal property and were likely not taxable (though for whatever reason Dechert did not make the distinction and so it was not part of the Court’s holding).
The Pennsylvania General Assembly apparently disagreed with the Court’s categorization of maintenance and support. While the amendment in question was ostensibly intended to just capture digital downloads of property already subject to the tax (e.g., games, apps, video streaming, canned software, etc.), the language adopted by the legislature arguably broadens the scope of the tax. The definition of “tangible personal property” was modified to include video, books, apps, music, games, canned software, and other items “whether electronically or digitally delivered, streamed or accessed, whether purchased singly, by subscription or in any other manner, including maintenance, updates and support”. The highlighted language contradicts the Supreme Court’s commentary in Dechert that software maintenance and support, as services, are not subject to the tax. Nevertheless, the General Assembly has spoken and prudent software vendors should collect sales tax not only on the price of the canned software package itself, but also on digitally or electronically delivered maintenance, update and support services, at least until the interpretation of this provision is clarified by the Department or through the courts.
The Pennsylvania Department of Revenue has published a summary of this and other changes that are part of the recent amendment to the Pennsylvania tax code: http://www.revenue.pa.gov/GeneralTaxInformation/TaxLawPoliciesBulletinsNotices/Documents/State%20Tax%20Summary/2016_tax_summary.pdf
Alan concentrates his practice in Estate Planning, Estate Administration, Elder Law, Estate…
Bill concentrates his practice in the area of litigation, including Commercial Litigation,…
Donald B. Veix, Jr
With over twenty-five years of experience, Don concentrates his practice in the…
Elizabeth J. Fineman
Elizabeth Fineman concentrates her practice on domestic relations matters and handles a…
Jessica A. Pritchard
Jessica A. Pritchard, focuses her practice exclusively in the area of family…
Joanne concentrates her practice in the areas of Business Law, Business Transactions,…
John’s concentrates his legal practice in estate planning, estate administration and elder…
Michael’s practice areas include Real Estate, Municipal Law, Zoning and Land Use, Employment…
Michael W. Mills
Mike is devoted to helping businesses build value and improve working capital,…
Patty has been practicing law since 1996 in the areas of Employment…
Susan M. Gibson
Susan’s practice focuses on Family Law and Litigation. Susan has extensive experience…
Sue concentrates her practice primarily in general corporate transactional work and finance…
Thomas P. Donnelly
Tom’s practice focuses on commercial litigation and transactions. In litigation, Tom represents…