Atlantic Refining Co. v. Van Valkenburg

Citations

• 265 Pa. 456
• 109 A. 208
• 1920 Pa. LEXIS 460

Syllabus

<p>Taxation — Mercantile tax — Corporations—Manufacturing corporations — Oil refining companies — Distribution stations — Tax on sales and deliveries at stations — Classification—Act of May 2,1899, P. L. 181¡..</p> <p>1. Where an oil refining company maintains distribution stations at various points, apart from its main plant, and from these stations sells and delivers its own products, and also products manufactured by others, it is liable under the Act of May 2, 1899, P. L. 184, for the mercantile tax on the “whole value, gross, of business transacted annually” at such stations, irrespective of the fact that orders for certain of the goods there delivered did not originate at the stations but came through its central selling force at the main plant.</p> <p>2. In such a case the company’s stations are not mere storage houses, but to a certain extent at least, are sales stores.</p> <p>3. In arranging a scheme of classification as a basis for taxation, the legislature may properly consider the “purpose” back of a given state of facts, and make the existence of such purpose the controlling element in determining tax liability.</p> <p>Mr. Chief Justice Brown filed a dissenting opinion in which Mr. Justice Walling joined.</p>