Shelly Funeral Homes v. Warrington Twp.

The issue before the Supreme Court in this case was whether an ordinance imposing a fixed tax on businesses with gross receipts over a certain threshold violated a statute prohibiting business privilege taxes "on gross receipts or parts thereof." Appellants argued that, because the ordinance imposed a flat tax for businesses earning over $1,000,000, while exempting businesses with gross receipts below that amount, it constituted a tax "on gross receipts or part thereof." The common pleas court upheld the ordinance, explaining that it imposed a flat tax with an exemption for any business earning no more than $1,000,000 in a particular year. Thus, because the tax is not levied as a percentage of a business's gross receipts, the court reasoned that it does not constitute an improper tax "on" gross receipts. The Commonwealth Court affirmed in an unpublished disposition, rejecting Appellants' contention that the ordinance levied a tax on that part of a taxpayer's annual gross receipts in excess of $1,000,000. After its review, the Supreme Court concluded that, regardless of how well intentioned, the taxing authority's actions were contrary to statute. Accordingly the order of the Commonwealth Court was reversed, and the matter was remanded for entry of judgment in favor of Appellants. View "Shelly Funeral Homes v. Warrington Twp." on Justia Law