Noting in a footnote the “potential chilling effect” its decision would have on the commonwealth, the state Supreme Court has declared the manufacturing exemption to the capital stock tax, which was designed to bolster a better climate for manufacturers in Pennsylvania, in direct violation of the Commerce Clause of the U.S. Constitution.

“By employing the manufacturing exemption to the capital stock tax as a means of inducing other business operations, i.e., manufacturing, to be performed in Pennsylvania, Section 602 unconstitutionally forecloses `tax neutral decisions’ and affords preferential treatment to corporations that engage in manufacturing activities in the Commonwealth,” wrote Justice Stephen A. Zappala in PPG Industries v. Commonwealth Board of Finance and Revenue, PICS Case No. 99-1184 (Pa. June 17, 1999) Zappala, J. (13 pages).

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]