Tax Review Board v. Lipschutz Bros.

Opinion by

Judge MacPhail,

Lipschutz Brothers, Inc. (Taxpayer) maintains a Customs Bonded Warehouse and an Internal Revenue Export Warehouse (collectively Warehouses) in Philadelphia from which it sells liquor, cigarettes and tobacco for use and consumption beyond the territorial jurisdiction of the United States on vessels that have cleared the port of Philadelphia in foreign commerce. The City of Philadelphia (City) in 1952 enacted the Philadelphia Mercantile License Tax (Tax) which imposed a tax upon the gross receipts of persons doing business in Philadelphia for the privilege of doing…