Adelphia House Part., et al. v. Com. , Pa. 1 Taxpayers own and operate two separate apartments buildings in Philadelphia B Sylvania House and Adelphia House. Each building contains commercial units, residential units and common areas.
Residential tenants pay a monthly rental fee that includes all utilities.
To provide utilities to tenants in its buildings, Taxpayers purchase electricity from Philadelphia Electric Company and natural gas from Philadelphia Gas Works in bulk. Therefore, the purchase of utilities by Taxpayers for the residential use of their tenants was subject to taxation. The Board affirmed the denial of Taxpayers' request for a refund and this appeal followed. It is only when the taxpayer or his property is within the general language of the statute imposing the tax that provisions relied upon to establish an exemption are to be strictly construed. Because the same exemption language relied upon by the Court in Aldine Apartments is currently part of the Tax Code, the holding of that case still applies and Taxpayers, as landlords, are not entitled to a refund for taxes paid on their purchase of utilities on behalf of their tenants and included in the tenants' monthly rental fee.