Reed, Smith, Shaw & McClay, Carl F. Chronister, Harrisburg, for appellant.
Eugene J. Anastasio, Deputy Atty. Gen., Harrisburg, for appellee.
Jones, C. J., and Eagen, O'Brien, Roberts, Pomeroy, Nix and Manderino, JJ.
Appellant Greenville Steel Car Company is a Pennsylvania corporation which manufactures, sells and leases railroad cars and earth moving equipment. Appellant elected to be treated as a foreign corporation for purposes of paying the capital stock tax for the taxable year ending December 31, 1971. See § 602(a) of the Tax Reform Code of 1971, Act of March 4, 1971, P.L. 6, art. VI, § 602(a) as amended, 72 P.S. § 7602(a) (Supp.1975).
The election provision provides:
". . . any domestic corporation . . . may elect to compute and pay its tax under and in accordance with the provisions of subsection (b) of this section 602 . . . ."
Subsection (b) of section 602, which then becomes applicable to the domestic corporation, provides in relevant part:
"The actual value of [the corporation's] whole capital stock shall be ascertained in the manner prescribed in section 601 of this article. The taxable value shall then be determined by employing the relevant apportionment factors set forth in Article IV."
The controversy in this case concerns appellant's determination of the taxable value of its capital stock by employing "the relevant apportionment factors . . . in Article IV."*fn1
Article VI of the Tax Reform Code which allows the domestic corporation to be treated as a foreign corporation in computing its capital stock tax, does not state the method by which the electing corporation determines its taxable value through the use of apportionment factors. Article VI refers back to and ...