Earlier this week, the Pennsylvania Supreme Court issued its long-awaited decision in Dechert1, upholding the Commonwealth Court's determination that canned computer software is tangible personal property, and that licenses of such software are subject to Pennsylvania sales and use tax. The Supreme Court's decision demonstrated an extreme display of deference by the court to the statutory interpretations adopted by the state's administrative agencies. This deference sets a troubling precedent for future tax cases in which taxpayers are disputing the Department of Revenue's statutory interpretations.
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