Union Paving Co. v. Commissioner
United States Board of Tax Appeals
1. Petitioner is engaged under contracts in constructing and maintaining streets and highways in the Commonwealth of Pennsylvania and political subdivisions thereof. Held, that profits from such contracts should be included in taxable income. 2. Petitioner is required by its contracts to maintain for a fixed period all roads and streets which it constructs. It set apart on its books in the taxable year an amount which it designated as "Prepaid Maintenance."
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1. Petitioner is engaged under contracts in constructing and maintaining streets and highways in the Commonwealth of Pennsylvania and political subdivisions thereof. Held, that profits from such contracts should be included in taxable income. 2. Petitioner is required by its contracts to maintain for a fixed period all roads and streets which it constructs. It set apart on its books in the taxable year an amount which it designated as "Prepaid Maintenance." During such year it actually expended a much smaller sum for maintenance. Held, that the "Prepaid Maintenance" fund should be included in…
1Opinion of the Court
*528OPINION.
Lansdon:
During the taxable year the petitioner was engaged solely in the business of paving and patching streets and roads under contracts with the Commonwealth of Pennsylvania and certain municipal subdivisions thereof. It contends that, as this work was done for a State and the political subdivisions thereof, it is exempt from Federal taxation since it was income resulting from the discharge of governmental functions. It is now well established that the salaries of persons acting as officers of a State or a political subdivision thereof in the discharge of its governmental functions…
2Cases cited1 opinion
- Metcalf & Eddy v. MitchellSupreme Court of the United States · 1926
3Cited by3 opinions
- Fuller v. CommissionerUnited States Board of Tax Appeals · 1927
- Lexington Brewing Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Union Paving Co. v. CommissionerUnited States Board of Tax Appeals · 1927