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Pennsylvania Commonwealth Court finds township’s local business privilege tax not fairly apportioned

The Pennsylvania Commonwealth Court recently held that a local business privilege tax imposed on fees paid by Pennsylvania 7-Eleven franchise stores to 7-Eleven’s regional office in Upper Moreland Township was unconstitutional because the tax was not fairly apportioned. Specifically, the Commonwealth Court held that the township’s apportionment methodology failed to reflect that the activity generating the fees resulted from economic activity occurring both within and outside the state. However, the Commonwealth Court remanded the case to a trial-level court to recalculate the appropriate amount of BPT due from 7-Eleven to the township.