Commonwealth v. Peerless Paper Specialty, Inc.
| Decision Date | 23 March 1942 |
| Docket Number | 251 |
| Citation | 344 Pa. 283,25 A.2d 323 |
| Parties | Commonwealth v. Peerless Paper Specialty, Inc., Appellant |
| Court | Pennsylvania Supreme Court |
Argued April 9, 1940
Reargued January 26, 1942
Appeal, No. 251, Jan. T., 1939, from judgment of C.P. No. 5 Phila. Co., March T., 1938, No. 5306, in case of Commonwealth v. Peerless Paper Specialty, Inc. Judgment reversed.
Appeal to common pleas from Board of Mercantile Appraisers.
Appeal dismissed and judgment entered for Commonwealth, opinion by ALESSANDRONI, J., reported in 34 D. & C. 329. Defendant appealed.
Judgment reversed and here entered for defendant.
Charles A. Rothman, for appellant.
E Russell Shockley, Deputy Attorney General, with him Claude T. Reno, Attorney General, John E. Stevenson, Special Deputy Attorney General, and Harry B. Schultz, for appellee.
Before SCHAFFER, C.J.; MAXEY, DREW, LINN, STERN, PATTERSON and PARKER, JJ.
This is an appeal by Peerless Paper Specialty, Inc., appellant, from the judgment of the learned court below upholding the assessment and imposition of a mercantile license tax against it by the Board of Mercantile Appraisers of Philadelphia County for the year 1937.
The stipulation of facts filed of record by counsel discloses that appellant is "engaged in the business of converting paper to adhesive paper sealing tape and kindred products." It purchases, for use in this process of conversion, large rolls of paper and four different kinds of glue. The different types of glue are carefully mixed and blended and the resulting product is applied to one side of the paper by means of a gumming machine which also dries and rewinds the paper. The rolls of gummed paper are placed on a shearing machine which cuts them into smaller rolls of various sizes. Some are stamped on the non-adhesive side with the name of the purchaser and advertising matter. Special machinery is employed, and special care, skill and labor is required in blending the various glues and in the application of the adhesive substance to the paper in the process described. It is further stipulated that appellant has no store or warehouse apart from its factory and that its product is sold directly to the consumer through the efforts of its salesmen.
The Act of May 2, 1899, P.L. 184, as last amended by the Act of July 10, 1941, P.L. 358, under which the tax was assessed provides: "Each wholesale vender of or wholesale dealer in goods, wares and merchandise shall pay an annual mercantile license tax . . . Provided, That the provisions of this section shall not apply to the taxation for mercantile license purposes of (a) manufacturers or mechanics vending goods of their manufacture from their factories or workshops but manufacturers and mechanics shall be required to pay the mercantile license tax upon such portion of their business as is transacted at stores or warehouses apart from their factories or workshops for the purpose of vending their goods . . ." Section 2 of the amending Act provides that the exemption as to manufacturers shall operate retroactively as well as prospectively. Since it is conceded that appellant has no warehouse or store apart from its factory for the purpose of vending its goods, the sole question for determination is whether appellant is a manufacturer within the...
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