Appeal from the Order of the Court of Common Pleas of Philadelphia County in the case of James N. Dunn, Jr. and Martin Stein v. Philadelphia Tax Review Board, No. 982 July Term, 1979.
Leonard B. Rosenthal, Abrahams & Lowenstein, for appellants.
Ellis M. Shaw, Assistant City Solicitor, with him Augustus L. Pasquarella, Assistant City Solicitor, and Alan J. Davis, City Solicitor, for appellee.
President Judge Crumlish and Judges Blatt and Doyle, sitting as a panel of three. Opinion by Judge Blatt. Judge Mencer did not participate in the decision in this case.
[ 67 Pa. Commw. Page 432]
The appellants, James M. Dunn, Jr. and Martin Stein, appeal an order of the Court of Common Pleas of Philadelphia County which sustained a denial by the City of Philadelphia's Tax Review Board (Board) of four petitions filed by them requesting tax refunds and assessment review.
The following facts, inter alia, were stipulated to by the parties before the Board.*fn1 In 1963, James M. Dunn, Sr., the sole shareholder of Dunn, Inc., a corporation which owned and managed real estate, died leaving his 21,385 shares to a trust*fn2 for which the appellants
[ 67 Pa. Commw. Page 433]
served as trustees. Subsequently, in 1967, Dunn, Inc. was liquidated and the appellants, as trustees, in exchange for the aforementioned shares of stock, acquired the corporation's real estate which included approximately 17 properties within the City, a cottage in Wildwood, New Jersey, and a farm in Delaware. At the time of the hearing before the Board, approximately eight of the properties had been sold by the appellants while the others were leased-out.*fn3 Due to such operations, the appellants were required to pay certain taxes under the Mercantile License Tax and Net Profits Tax of the City of Philadelphia. After paying some of the taxes and being assessed approximately $2,863.00 for additional rental income and sale proceeds, the appellants, as trustees, filed petitions with the Board seeking the following relief:
1. A refund in the amount of $1,212.62 which represents the amount paid by the appellants in accordance with the Net Profits Tax for the years 1969, 1970 and 1973.
2. A refund in the amount of $1,055.37 which represents the amount paid by the appellants in accordance with the Mercantile License Tax for the years 1970 through 1976.
3. A review of the tax assessment in the amount of $2,601.07 which was based on the rental income of the properties involved, in accordance with the Net Profits Tax for the years 1969 through 1974.
4. A review of the tax assessment in the amount of $262.12 which was based on the proceeds from the sale of some of ...