Pittsburgh's Case Challenging UPMC Tax Exemption to Stay in State Court

The city of Pittsburgh's challenge to University of Pittsburgh Medical Center's tax exemption will be heard in common pleas court upon a judge's ruling — not a federal court, as UPMC had requested — according to a Pittsburgh Post-Gazette report.

In March, Pittsburgh Mayor Luke Ravenstahl announced the city was launching a formal challenge to University of Pittsburgh Medical Center's tax-exempt status. The city filed a lawsuit with the Court of Common Pleas of Allegheny County contesting UPMC's exemption from city payroll taxes.

UPMC later had moved the case to federal court, arguing the case involved questions of federal tax exemption, the Constitution's commerce clause and constitutional rights. Pittsburgh filed a motion in May to argue that the suit should be heard in state court. 

U.S. District Judge Joy Flowers Conti ruled yesterday that the case be heard in common pleas court and closed the federal case. "UPMC is currently subject to the exemption that it seeks to challenge, which makes no distinction among entities that conduct business both in and outside the state," Judge Conti wrote, according to the report.

More Articles on UPMC's Tax Status:

City of Pittsburgh Wants UPMC Tax-Exempt Case Heard in State Court
UPMC's Amended Suit Claims Pittsburgh Mayor is Trying to Cover City Scandal
Pittsburgh Files Motion to Dismiss UPMC's Counter Suit

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