Appeals from the Orders of the Court of Common Pleas of Allegheny County, in cases of Anthony J. F. O'Reilly and Susan O'Reilly, his wife v. Fox Chapel Area School District and Borough of Fox Chapel, dated May 29, 1985 and May 7, 1986.
Thomas L. Peters, with him, Arthur H. Stroyd, Jr. and Carolyn D. Duronio, Reed, Smith, Shaw & McClay, for appellants.
Ronald W. Crouch, with him, A. Bruce Bowden, Buchanan Ingersoll Professional Corporation, for appellee, Borough of Fox Chapel.
Martin W. Sheerer, for appellee, Fox Chapel Area School District.
President Judge Crumlish, Jr., Judge Palladino, and Senior Judge Narick, sitting as a panel of three. Opinion by President Judge Crumlish, Jr.
[ 106 Pa. Commw. Page 518]
Anthony O'Reilly appeals an Allegheny County Common Pleas Court order granting partial summary judgment in favor of the Borough of Fox Chapel (Borough) and the Fox Chapel Area School District (School District) (No. 1750 C.D. 1986). The School District has filed a motion to quash O'Reilly's appeal as untimely.
The Borough and School District, in turn, appeal a subsequent Allegheny County Common Pleas Court order granting O'Reilly's supplemental motion for summary judgment and barring as untimely their counterclaim for unpaid 1980 taxes (Nos. 1704 and 1751 C.D. 1986).
These appeals have been consolidated for this Court's consideration.*fn1
[ 106 Pa. Commw. Page 519]
O'Reilly, a citizen of the Republic of Ireland and a resident of the Borough of Fox Chapel, derives income from services performed in Pennsylvania and the Republic of Ireland. He brought suit against the Borough and School District in 1984 for a refund of local earned income taxes allegedly overpaid in 1980 and 1981. O'Reilly is obligated to pay these local taxes under the Local Tax Enabling Act (LTEA),*fn2 which authorizes political subdivisions such as the Borough and the School District to impose earned income tax on residents and nonresidents employed or conducting business within their borders.*fn3
O'Reilly is entitled to a tax credit if he meets the criteria established in Section 14 of the LTEA,*fn4 which provides in pertinent part:
Payment of any tax on income to any State other than Pennsylvania or to any political subdivision located outside the boundaries of this Commonwealth, by residents of a political subdivision located in Pennsylvania shall, to the extent that such income includes salaries, wages, commissions, or other compensation or net profits of businesses, professions or other activities but in such proportions as hereinafter set
[ 106 Pa. Commw. Page 520]
forth, be credited to and allowed as a deduction from the liability of such person for any other tax on salaries, wages, commissions, other compensation or net profits of businesses, professions or other activities imposed by any ...