No. 110 May Term, 1977, Appeal from the Order entered October 6, 1977 of the Commonwealth Court of Pennsylvania at No. 1493 C.D. 1976, Affirming the Order of the Board of Finance and Revenue at Docket No. R-1570 (1976).
Sherill T. Moyer, Harrisburg, for appellant.
Joseph F. Lynch, Deputy Atty. Gen., for appellee.
Eagen, C. J., and O'Brien, Roberts, Pomeroy, Nix, Manderino and Larsen, JJ. Larsen, J., concurs in the result.
We are here*fn1 presented with a record which demonstrates that the Commonwealth has violated the Uniform Taxation Clause, Pa.Const. art. VIII, § 1, by discriminatorily enforcing against appellant, Molycorp, Inc., that provision of the Tentative Tax Act*fn2 authorizing an additional tax to be
assessed when a taxpayer underpays its Pennsylvania Corporate Net Income Tax. We therefore reverse the order of the Commonwealth Court and strike the settlement of additional tax against Molycorp.
Four months after the beginning of any calendar or fiscal year, corporations subject to the Pennsylvania Corporate Net Income Tax must file returns for, and make payment of, their Tentative Corporate Net Income Tax for that year. The Tentative Tax Act provides corporate taxpayers a choice of two methods for calculating tentative tax:*fn3
Method I -- Application of the current tax rate to 90% of the "tax base" for the preceding calendar or fiscal year.
Method II -- Application of the current tax rate to 90% of the "taxable income" of the first three months of the current calendar or fiscal year, annualized.
The statute further provides that a corporation whose tentative tax payment for a given year is less than 95% of the 90% of its final tax liability for that year must pay an additional ...