City may not impose “business privilege tax” on charity

The City of Allentown, PA, may not impose a “business privilege tax” on the income of a charitable corporation providing services to three operating charitable subsidiaries, an appellate court has ruled.  The Commonwealth Court of Pennsylvania has affirmed a trial court decision denying the City’s effort to collect more than $788,000 in taxes for the tax years 2012 through 2016.  (See Nonprofit Issues^®, Vol. XXIX, No. 5)