25 Pa. Commw. 66 | Pa. Commw. Ct. | 1976
Lead Opinion
Opinion by
This case involves five appeals brought by the Philadelphia Gas Works (appellant) from a decision rendered by the Board of Finance and Revenue (Board) on May 30, 1974, granting in part and denying in part appellant’s claim for a refund of taxes paid under The Liquid Fuels Tax Act
Appeals taken pursuant to Section 1104 of The Fiscal Code
Between January 1, 1962 and December 31, 1972, appellant was operated and managed by the United Gas Improvement Company (UGI), a private corporation, in accordance with an agreement with the City of Philadelphia. On December 29, 1972, pursuant to
On April 1, 1970, an amendment to the Tax Act
The Board granted refunds, without interest, for all liquid fuels taxes paid by appellant since January 1, 1973, on which date management of appellant by PFMC began. The Board denied refunds for taxes paid between April 1, 1970 and January 1, 1973 on the ground that appellant was not, before January 1, 1973, a political subdivision entitled to an exemption under Section 4 of the Tax Act, 72 P.S. §2611d, which reads in part: “A permanent State tax of eight cents a gallon, or fractional part thereof, is hereby imposed and assessed upon all liquid fuels used or sold and delivered by distributors within this Commonwealth, . . . excepting liquid fuels delivered to the Common
Appellant raises two major objections to this decision. First, appellant contends that it was, at all times subsequent to April 1, 1970, entitled to an exemption as a political subdivision.
Taxpayers claiming exemptions from a tax must bear the burden of proving that they come within the exempted class. We have examined the stipulations before us, as well as the management contracts between the City and UGI and PFMC respectively, and find them insufficient to carry the burden of proof that appellant could in any way be considered a political subdivision during the period in question.
We begin with the proposition that words used in a statute are not lightly to be given a meaning other than their normal one. Treaster v. Union Township, 430 Pa. 223, 242 A.2d 252 (1968). This is especially true of provisions exempting persons and property from taxation. According to the Statutory Construction Act of 1972, 1 Pa. C.S. §1.928(b) (5), such provisions are to be strictly construed. See also Wanamaker v. Philadelphia School District, 441 Pa. 567, 274 A.2d 524 (1971). A political subdivision is defined as “[a]ny county, city, borough, incorporated town, township, school district, vocational school district and county institution district.” 1 Pa. C.S. §1991. Clearly, the appellant, which consists only of a collection of real and personal property, cannot qualify for the exemption as a political subdivision.
We next turn to the question of appellant’s entitlement to interest on the refunds it has already obtained. Appellant relies heavily on Cities Service Oil Company v. Pittsburgh, 449 Pa. 481, 297 A.2d 466 (1972), for the proposition that interest may be awarded on claims for refunds of taxes. We find Cities Service inapposite for two reasons. First, in Cities Service the taxing authority was a municipality and not the sovereign as in this case. The instant case is controlled by the holding in Purdy Estate, 447 Pa. 439, 291 A.2d 93 (1972), that the sovereign is not liable for interest unless a statute or contract, reasonably construed, provides for liability. In this case, we do not find statutory language which would allow such a construction. Secondly, in Cities Service the tax at issue was paid under protest and not voluntarily as in this case. This fact leads us to believe that, even if interest were properly payable, which it is not, the date on which interest would begin to run is the date of the Board’s decision, not the date of payment. 449 Pa. at 486, 297 A.2d at 469. Therefore, the amount of interest accrued would, at best, be zero.
Finally, appellant, in its brief, asks us to find a regulation, dated September 18, 1970, 1 Pa. B. 278, in
Conclusions of Law
1. For the period April 1, 1970 to December 31, 1972, Philadelphia Gas Works was not entitled to an exemption from the liquid fuels tax as a political subdivision under Section 4 of The Liquid Fuels Tax Act, 72 P.S. §2611d.
2. Appellant is not entitled to interest on refunds recovered under Section 17 of The Liquid Fuels Tax Act, 72 P.S. §2611q, for taxes paid after January 1, 1973.
Decebe Nisi
Now, this 3rd day of June, 1976, the appeals from the orders of the Board of Finance and Bevenue denying refunds of liquid fuels taxes paid by Philadelphia Gas Works are hereby dismissed, and it is directed that the Commonwealth of Pennsylvania shall refund, unless it has previously made payment as provided herein, to the Philadelphia Gas Works the sum of $37,301.76 relative to the proceeding docketed at M-607;.the sum of $4,569.84 relative to the proceeding docketed at M-608; the sum of $10,584.96, less filing fee of $1.50, relative to the proceeding docketed at M-609; the sum of $2,126.88, less filing fee of $1.50, relative to the proceeding docketed at M-816, unless exceptions be filed hereto within thirty (30) days. The Prothonotary is directed to notify forthwith the parties hereto or their counsel of this decree.
Act of May 21, 1931, P.L. 149, as amended, 72 P.S. §2611a et seq.
Act of April 9, 1929, P.L. 343, as amended, 72 P.S. §1104.
Act of March 3, 1970, P.L. 109.
By letter dated August 23, 1973, the Department of Revenue granted the appellant’s request for an exemption as a political subdivision, effective January 1, 1973. This ruling has not been appealed by the Commonwealth and is not before us.
The Court found an exemption on the ground that the Authority, a creature of the General Assembly, was cloaked with the Commonwealth’s exemption.
We note that the regulation and Section 503 do seem to he in conflict; however, we must reserve our judgment on that question for a case in which the issue is directly raised.
Concurrence in Part
I disagree with, the Court’s conclusion that Philadelphia Gas Works (PGW) is not entitled to the “political subdivision” exemption of Section 4 of the Liquid Fuels Tax Act
In Commonwealth v. Erie Metropolitan Transit Authority, 444 Pa. 345, 281 A.2d 882 (1971), our Supreme Court held that metropolitan transit authorities which were created pursuant to the Municipality Authorities Act of 1945
Article III of the Charter is entitled “Executive and Administrative Branch — Organization”. Chapter 9 of that Article establishes departmental boards and commissions. Section 3-909 states: “The Gas Commission shall be constituted and appointed in accordance with the provisions of such contract as may from time to time be in effect between the city and the operator of the city gas works, or, in the absence of a contract, in such manner as may be provided by ordinance.” The powers and duties of the Gas Com
These Charter provisions to me clearly say that the production, transmission, and rate structuring- of
The majority also has erred in relying upon Erie for the proposition that PGW has not met its heavy burden of proving that it is entitled to a tax exemption. In Erie, the Court wrote: “We are mindful of the general proposition that claims for exemption from taxation are to be strictly construed. (Citations omitted.) But in this situation, where a public instrumentality is involved, another equally important rule is controlling, viz., Ghat in the absence of a statute to the contrary, public property used for public purposes is exempt from taxation . . . and no express exemption law is needed.’ Southwestern Delaware County Municipal Authority v. Aston Township, 413 Pa. 526, 198 A.2d 867 (1964).” 444 Pa. at 349, 281 A.2d at 884. Southwestern Delaware Cownty Municipal Authority, supra, held that property owned by a municipality and devoted exclusively to public purposes is immune from any form of taxation or assessments unless a statute clearly and unequivocally expresses the legislative intent that such property shall not be immune. In my view, the majority today has
The peculiar relationship between PGrW and the City of Philadelphia must be distinguished from that of other municipalities which do not retain ownership of gas facilities and whose natural gas customers are serviced by private profit-motivated corporations. This is a significant distinction because municipal corporations which furnish natural gas or other public utilities within their corporate limits are not subject to regulation either for rates
Accordingly, I would grant PGrW a refund for liquid fuel taxes paid from the effective date of Section 4 of the Act, April 1, 1970, to the present.
As to the interest issue, I concur with the majority since, in my view, Section 17 of the Act, 72 P.S. §2611q, when read in conjunction with Section 503 of the Fiscal Code,
Act of May 21, 1931, P.D. 149, as amended, 72 P.S. §2611d.
Act of May 2, 1945, P.D. 382, 53 P.S. §301 et seq.
This was established by a stipulation oí counsel.
Section 301 of the Public Utility Code, Act of May 28,- 1937, P.L. 1053, as amended, 66 P.S. §1141.
Section 401 of the Public Utility Code, 66 P.S. §1171.
Act of April 9, 1929, P.L. 343, as amended, 72 P.S. §503.