Marchlen v. Township of Mt. Lebanon

OPINION

ZAPPALA, Justice.

We granted allocatur in this case to consider a question of first impression, that is, whether stock options issued to an employee pursuant to a stock option plan constitute compensation to the employee that may be taxed by a political subdivision as earned income under the Local Tax Enabling Act (LTEA). 1

Pro se Appellee, Louis Thomas Marchlen, is an employee of the Aluminum Company of America (ALCOA) and a participant in ALCOA’s employee non-qualified stock option plan. 2 On July 6, 1984, Appellee was granted a non-qualified stock option 3 to buy 500 shares of ALCOA…