Appeals from orders of County Court of Allegheny County, Nos. A2428 and A2429 of 1960, in re appeals of Titzel Engineering, Inc. from decision and assessment of mercantile tax by David A. Smith, Treasurer of City of Pittsburgh and Treasurer of School District of Pittsburgh.
Regis C. Nairn, Assistant City Solicitor, with him David W. Craig, City Solicitor, for City of Pittsburgh, appellant.
Niles Anderson, Solicitor, and Justin M. Johnson, Assistant Solicitor, for School District of Pittsburgh, appellant.
Robert A. Rundle, with him George I. Minch, and Wright & Rundle, for appellee.
Ervin, Wright, Woodside, Watkins, Montgomery, and Flood, JJ. (Rhodes, P. J., absent). Opinion by Woodside, J.
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We have before us two appeals from orders of the County Court of Allegheny County setting aside mercantile taxes which had been imposed upon Titzel Engineering, Inc. by the City of Pittsburgh and the School District of Pittsburgh. The only question is whether the engineering company (Titzel), a Pennsylvania corporation, was engaged in manufacturing the items for the sale of which the taxes were imposed upon it as a dealer.
The school district assessed its tax under the Act of June 20, 1947, P. L. 745, as amended and re-enacted, 24 P.S. § 582.1 et seq., which exempts from the tax "any person vending or disposing of articles of his own . . . manufacture."
The city assessed its tax under an ordinance authorized by the Act of June 25, 1947, P. L. 1145, as amended, 53 P.S. § 6851 et seq., referred to as the "Tax
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Anything Act." This act withholds from the city the authority to tax goods and articles manufactured and to tax any privilege, act or transaction related to the business of manufacturing.
Although the language of the two acts differ, neither the city nor the school district is entitled to the tax if the machines sold by Titzel were manufactured by it. Koolvent Aluminum Awning Co. v. Pittsburgh, 186 Pa. Superior Ct. 233, 236, 142 A.2d 428 (1958) and cases there cited.
Titzel sells for use in steel mills various types of cranes, descaling systems, drying ovens, and other large, heavy machinery, all tailor-made according to individual specifications. The machines are designed by Titzel, who upon approval of the designs by the customer, orders the materials, fabricates a part of the machine in its own shop, and has the more massive parts of the machines made in the shop of another corporation under the direction and supervision of a Titzel engineer. The machines, only partly ...