Opinion
May 23, 1962.
June 28, 1962.
Taxation — Foreign corporations — Apartment house cooperative — Franchise tax — Foreign excise tax — Acts of June 1, 1889, P. L. 420, June 8, 1911, P. L. 710, May 16, 1935, P. L. 184 and July 25, 1953, P. L. 560.
1. In these appeals by a foreign cooperative housing corporation organized under the District of Columbia Cooperative Association Act, 54 Stat. 480, in which it appeared that it is located at 2101 Walnut Street, Philadelphia, where it owns and operates a single parcel of improved real estate consisting of a large apartment house and possesses no other real property in Pennsylvania or elsewhere, it was Held that such apartment house cooperative (1) is not a nonprofit corporation as that term is used in the exemption provisions in the foreign franchise tax Act of June 1, 1889, P. L. 420, § 20, as re-enacted May 16, 1935, P. L. 184, and amended; (2) is doing business in this state so as to be subject to the foreign franchise tax; (3) is subject to the foreign excise tax under the Act of July 25, 1953, P. L. 560; and (4) the certificates of ownership in this cooperative housing corporation are capital stock within the meaning of the franchise tax Act.
2. Nonprofit corporations which are granted an exception by the foreign franchise tax Act are only those nonprofit corporations recognized as such by the laws of this Commonwealth.
3. The basis of the excise tax imposed upon a foreign corporation by the Act of July 25, 1953, P. L. 560 (which defines a foreign corporation as one which was issued a "certificate of authority by the Department of State to do business within this Commonwealth") is the privilege of doing business in this Commonwealth; and a foreign corporation which has filed with the Secretary of the Commonwealth the power of attorney and statement provided for in the Act of June 8, 1911, P, L. 710, and has received a certificate of such filing is subject to the foreign excise tax.
Argued May 23, 1962. Before BELL, C. J., MUSMANNO, JONES, COHEN, EAGEN and O'BRIEN, JJ.
Appeals, Nos. 48 and 49, May T., 1962, from judgments of Court of Common Pleas of Dauphin County, Commonwealth Docket 1958, Nos. 423, 425, 427, 424 and 426, in case of Commonwealth of Pennsylvania v. 2101 Cooperative, Inc. Judgments affirmed.
Same case in court below: 27 Pa. D. C.2d 405, 426.
Appeals from refusal of Pennsylvania Board of Finance and Revenue to strike off corporate franchise tax and foreign excise tax liability against defendant.
Opinions filed in favor of Commonwealth, defendant's exceptions overruled and judgments entered, opinion by KREIDER, J. Defendant appealed.
William A. Kelley, Jr., with him Robert K. Greenfield, and Folz, Bard, Kamsler, Goodis Greenfield, for appellant.
Morris J. Dean, Deputy Attorney General, with him David Stahl, Attorney General, for Commonwealth, appellee.
Judgments affirmed on opinions of Judge HOMER L. KREIDER. Costs on appellant.