American Airlines, Inc. v. Commonwealth

PALLADINO, Judge.

American Airlines (Taxpayer) appeals from an order of the Board of Finance and Revenue (BFR) which sustained a decision of the Board of Appeals (Board) denying Taxpayer’s request for a reassessment of Pennsylvania use tax on its purchases of food and non-alcoholic beverages for the period April 1, 1985 through January 31, 1988. We reverse.

The parties stipulated to the facts which follow. Taxpayer is a public utility engaged in providing intrastate, interstate and international passenger and freight airline service as a common carrier. In the course of providing transportation…