Court Opinion

ID: 9728617
Source: CourtListenerOpinion
Date Created: 2023-08-26 14:12:37.524693+00
Date Added: 2024-06-11T18:25:50.321252
License: Public Domain

McGINLEY, Judge,
dissenting.
I respectfully dissent. As the majority recognizes, this is a case of first impression involving the interpretation of Section 8 of the Act of December 9,1982, P.L. 1057, No. 248 (Act 248) which is a limitation upon Section 3 of Act 248 *380which amends Section 806.1 of the Fiscal Code,1 72 P.S. § 806.1, a provision which authorizes payment of simple interest by the Commonwealth upon an overpayment to the Commonwealth of any tax. This amended provision indicates legislative recognition of the obvious unfairness of not allowing interest on taxpayer overpayments.
The first sentence of Section 8 of Act 248 states, “This Act shall not apply to any underpayments or overpayments of tax due and payable prior to January 1,1982.” The third sentence of Section 8 of Act 248 states, “This act shall not be construed to indicate the intent of the General Assembly with regard to the status of the law of the Commonwealth’s payment of interest prior to the effective date of this act.” The first and third sentences must be read together and are indicative of the legislature’s intent to allow interest to accrue on all overpayments held by the Commonwealth as of January 1, 1982, regardless of when the tax became due and payable.
Also, I would interpret the second sentence of Section 8 of Act 248, which states, “Nothing contained herein shall affect or impair litigation pending on the effective date of this act,” as applying only to litigation involving tax liability to determine whether an overpayment has been made. In other words, I believe that the legislative intent in enacting the second sentence is to state that whether or not interest is payable on an overpayment has nothing to do with any underlying litigation regarding tax liability.
Accordingly, I would hold that Section 8 of Act 248 does not preclude Petitioner from interest on its overpayment of sales tax accruing after January 1, 1982.

. Section 806.1 of the Fiscal Code was added by the Act of April 8, 1982, P.L. 258. Prior to the addition of Section 806.1, the Commonwealth was not liable for interest upon a tax refund. Summit House Condominium v. Commonwealth, 89 Pa.Commonwealth Ct. 68, 69, 491 A.2d 962, 963 (1985). We note that Section 3 of Act 248 amended subsection (a) of Section 806.1 by, inter alia, redefining the term “overpayment,” and substituting the terms “simple interest,” "tax," and "tentative tax" for already existing similar terms. Section 3 of Act 248 also rewrote subsection (b) regarding the computation of interest. See Historical and Statutory Notes, 72 P.S. § 806.1.