Forbes: Tax Shelter from Hell - U.S. Steel Tower in Pittsburgh
So, I get ahead of myself. First try and get through this from Forbes last week: The Tax Shelter from Hell - U.S. Steel Tower in Pittsburgh
So remember the Steel Building's recent sheriff sale/transfer that generated no transfer tax revenue for the City of Pittsburgh? We've addressed that a bunch here in the past. Some are trying to plug this particular loophole I read, though there are others to address as well. Any progress there??? Becoming a bigger and bigger issue since by all accounts the commercial real estate market is heating up.
So what I get out of this begins with the observation that the state may in fact have a real incentive to not fix the tax loopholes that prevented the city and school district from getting the transfer tax they could get from a real estate transaction like this. Structuring this as a sheriff sale transaction prevented the city and school district from getting transfer tax revenue, but may have resulted in the state being able to collect real tax $$ that they would not have otherwise been able to get. Or so I think, I have to admit this is all a bit beyond me as well. What I think it is saying is basically everyone loses on the sheriff sale tax loophope in the transfer tax... everyone except for the state itself. And along the way they may provide a disincentive to investment across PA along the way. But to be clear, I am not sure on any of that. Sounds like even the tax lawyers don't quite agree on any of this. Still a multi-million dollar a year issue for the city of Pittsburgh that gets far less attention than things worth orders of magnitude less.
Anyway... lots of stuff in that worth reading. Thought I guess it is only for a certain jaded reader. Note that the original Forbes article there which came almost a week ago has had zero tweets.