Commonwealth v. Pittsburgh School District

Opinion by

Mr. Chief Justice Schaffer,

The question presented on this appeal by the School District of the City of Pittsburgh is whether it is liable for the four mill State tax on bonds which it has issued, containing a tax free covenant, held by (1) savings institutions having no capital stock and (2) by resident corporate trustees under trusts for non-resident beneficiaries. The court below held the School District liable for the tax.

The statute imposing the tax is the Act of June 17, 1913, P. L. 507, as amended. Section 17, 72 PS §2121, provides: “. . . all bonds ... on which interest shall…