ALEXIS A. BROWN, House of Representatibes Goamonweaitti OF PENNSYLVANIA HARRISBURG Memorandum T All House Members FROM: Alexis A. Brown, cNfirotes DATE: September 8, 2008 Recent events have caused us to examine some of our current practices and procedures relating to the operation of the House. One of the practices we reviewed for possible tax consequences was members being provided meals from House accounts on days a per diem is paid to the members, We have received an advisory opinion from a tax attorney assuring us that there are no tax consequences for members receiving a per diem when the employer (the House) provides a meal for the benefit of the member on the employer's premises. Thus, when the Chief Clerk provides meals in the rear of the Chamber due to our session schedule, or when a meal is provided during a caucus or committee meeting, there are no tax consequences for members, and thus, no need to adjust any per diems received that day. However, if a Committee Chairman or Caucus Leader should take members to dinner after session at a location away from the Capitol, members are required to deduct the cost of their meal from their per diem request for that day, If they do not do so, the cost of the meal must be reported as taxable income, subject to payroll tax withholding, Therefore, effective immediately, if members receive a meal paid for from a legislative account at a site away from the Capitol, they must deduct the cost of said meal from their per diem request for that day. Committee Chairmen are advised that if they are holding committee meetings outside of Harrisburg, they may be able to provide a luncheon for thecommittee members if it is held at the site of the committee meeting, and if it is for the convenience of the committee chairman, In this instonce there is no fax consequence for ‘the members and no need to deduct the cost of the meal from the per diem. In summary, I have constructed the following chart to assist you: Event Must Reduce Per Diem ‘Meal provided by Chief Clerk while House is in Session No Meal provided while in Caucus NO Meal provided by Committee Chairman During break of the meeting NO Meal provided at offsite restaurant by Leader or yes Committee Chairman Please also keep in mind that at any meal paid for from a legislative account, legislative business must be discussed. I realize this is a complicated issue, so please feel free to contact my office if you have ‘any questions.