[Ord. 538, -/-/—, § 1]
This Part shall be known as the "Business Privilege Tax Ordinance."
[Ord. 538, -/-/—, § 2; as amended by Ord.
575, 2/13/1991]
The following words and phrases, when used in this Part, shall
have the meanings ascribed to them in this section, except where the
context clearly indicates a different meaning:
Any activity carried on or exercised for gain or profit in
the Township of Darby including, but not limited to the sale of merchandise
or other tangible personalty and/or realty, the performance of services,
and the rental of personalty and/or realty.
The period January 1 to December 31, inclusive.
The period from January 1 to December 31, inclusive.
Any individual, partnership, limited partnership, association,
firm or corporation. Whenever used in any clause prescribing or imposing
a penalty, the term "person" as applied to associations shall mean
the partners or members thereof, and as applied to corporations, the
officers thereof.
A person subject to the payment of the tax imposed by this
Part.
The person or firm contracted with to collect said tax.
The period from January 1 to December 31, inclusive.
Any business that is conducted at one location for less than
60 consecutive calendar days.
The Township of Darby.
Tax Collector of the Township of Darby.
Any person who sells to dealers in, or vendors of goods,
wares and merchandise and to no other persons.
[Ord. 538, -/-/—, § 3]
There is hereby levied for the tax year 1984 and annually thereafter
a tax for general revenue purposes on the privilege of doing business
as herein defined in the Township of Darby as follows:
1.
Rate and Basis of Tax — The rate of the tax on each and every
dollar of the whole or gross volume of business transacted within
the territorial limits of the Township of Darby shall be 1 1/2
mills, 1 1/2 mills shall mean $1.50 per $1,000 of gross volume
of business; except that the rate of tax on each and every dollar
of the whole or gross volume of business transacted by wholesale dealers
or wholesale vendors within the territorial limits of the Township
of Darby shall be one mill. All nonwholesale business of such wholesale
dealers or wholesale vendors shall be taxed at the general rate of
1 1/2 mills.
2.
Computation of Volume of Business.
A.
Every person subject to the payment of the tax hereby imposed who
has commenced his business prior to the full calendar year prior to
the tax year shall compute his annual estimated gross volume of business
upon the actual gross amount of business transacted by him during
said immediately preceding calendar year.
B.
Every person subject to the payment of the tax hereby imposed who
has commenced or who commences his business before the beginning of
the tax year but after the beginning of the full calendar year prior
to the tax year, shall compute his estimated annual gross volume of
business for the tax year upon the gross volume of business transacted
by him during prior calendar year, taking the monthly average during
said period and multiplying the same by 12. In the event that he shall
be in business fewer than 90 days in the prior calendar year, he shall
be permitted to use sufficient days in the calendar year in which
the tax year begins to equal 90 successive days after commencement
of business, to take a monthly average thereon, and to multiply the
average by 12.
C.
Every person subject to the payment of the tax hereby imposed who
has commenced or commences his business subsequent to the beginning
of the tax year, if there shall be less than three months from the
commencement of his business to the end of the tax year, shall compute
his annual gross volume of business upon the actual gross amount of
business transacted by him during the tax year; if there shall be
more than three months from the commencement of his business to the
end of the tax year he shall compute his estimated gross volume of
business for such tax year upon the gross volume of business transacted
by him during the period from the commencement of his business to
the end of the tax year, taking the monthly average during the first
three months of business and multiplying the same by the number of
months from the commencement of business to the end of the tax year.
D.
Every person subject to the payment of the tax hereby imposed who
engages in a business temporary, seasonal or itinerant by nature,
shall compute his estimated gross amount of business to be transacted
by him for the period said person engages in such temporary, seasonal
or itinerant business within the Township by a method to be determined
by the Tax Administrator.
E.
The Tax Administrator is hereby authorized to accept payment under
protest of the amount of business privilege tax claimed by the Township
in any case where the taxpayer disputes the validity or amount of
the Township's claim for tax. If it is thereafter judicially
determined by a court of competent jurisdiction that the Township
has been overpaid, the amount of the overpayment shall be refunded
to the taxpayer. The provisions of this section shall be applicable
to cases in which the facts are similar to those in a case litigated
in a court of competent jurisdiction.
3.
Persons, Business and Receipts Exempted -
A.
Persons and Business — Persons employed for a wage or salary,
non-profit corporations or associations organized for religious, charitable
or educational purposes, agencies of the Government of the United
States of the Commonwealth of Pennsylvania and the business of any
political subdivision, or of any authority created or organized under
and pursuant to any act of assembly are exempt from the provisions
of this Part.
B.
No such tax shall be assessed and collected on a privilege, transaction,
subject, or occupation which is subject to a state tax or license
fee has been held by the Courts of Pennsylvania to be the basis for
the exemption from the imposition of a privilege tax by a municipality.
C.
Utilities — No such tax shall be assessed and collected on
the gross receipts from utility service or any person or company whose
rates of service are fixed and regulated by the Pennsylvania Public
Utility Commission; or on any public utility service rendered by any
such person or company or on any privilege or transaction involving
the rendering of any such public utility service.
D.
State Tax on Tangible Property — No such tax shall be assessed
and collected on the privilege of employing such tangible property
as is subject to a State tax except on sales of admission to places
of amusement or on sales or other transfers of title or possession
of property.
4.
Determination of Gross or Whole Volume Business — Gross or
whole volume of business upon which the tax hereunder is computed
shall include the gross consideration credited or received for or
on account of sales made, rentals and/or services rendered, subject
only to the following allowable deductions and exemptions:
A.
The dollar volume of business transacted by wholesale and retail
dealers derived from the resale of goods, wares and merchandise taken
by any dealer as trade-in or as part payment for other goods, wares
and merchandise, except to the extent that the resale price exceeds
the trade in allowance.
B.
Refunds, credits, or allowances given by a taxpayer to a purchaser
on account of defects in goods, wares or merchandise sold, or on account
of goods, water or merchandise returned.
C.
Any commissions paid by a broker to another broker on account of
a purchase or sales contract initiated, executed or cleared with such
other broker.
D.
Bad debts where the deduction is also taken in the same year for
Federal Income Taxation purposes.
E.
Taxes collected as agent for the United States of America, Commonwealth
of Pennsylvania or the Township of Darby.
5.
Partial Exemptions — Where gross or whole volume of business
in its entirety cannot be subjected to the tax imposed by this Part
by reason of the provisions of the Constitution of the United States
or any other provision of law, the Tax Administrator with the approval
of the Board of Commissioners of the Township of Darby shall establish
rules and regulations and methods of allocation and evaluation so
that only that part of the gross or whole volume of business which
is properly attributable and allowable to doing business in the Township
shall be taxed hereunder.
6.
Rate when same Tax is Imposed by Two Taxing Bodies — If any
person is liable for the same tax on the same subject imposed under
the Local Tax Enabling Act of 1965, December 31, Pamphlet Law 1257
and its amendments, to the Township and one or more political subdivisions
of the State then, and in that event, the tax shall be apportioned
by such percentage as may be agreed upon by such political subdivisions,
but, in no event, shall the combined taxes of both subdivisions exceed
a maximum rate of tax as fixed by the Enabling Act permitting the
imposition of such taxes.
7.
Records — The taxpayer, to obtain the foregoing enumerated
exclusions and deductions, shall keep books and records of his business
so as to show clearly, accurately, and separately the amount of such
sales and services as are excluded from the tax and the amounts of
such sales and services which he is entitled to deduct from the gross
volume of business as hereinbefore provided.
[Ord. 538, -/-/—, § 4]
1.
Every return shall be made upon a form furnished by the Tax Administrator.
Every person making a return shall certify the correctness thereof
by affidavit.
2.
Every person subject to the tax imposed by this Part who commenced
his business on or before January 1 of the full calendar year previous
to the beginning of any tax year shall on or before the 15th day of
May of the tax year file with the Tax Administrator a return setting
forth his name, his business, his business address, and such other
information as may be necessary in arriving at the actual gross amount
of business transacted by him during the preceding calendar year,
and the amount of the tax due.
3.
Every person subject to the tax imposed by this Part who has commenced
his business before the beginning of the tax year but after January
1st of the full calendar year previous to the beginning of the tax
year shall on or before the 15th day of May of the tax year file with
the Tax Administrator a return setting forth his name, his business,
business address, and such other information as may be necessary in
arriving at the estimated gross amount of business transacted by him
as calculated under § 203(2B) hereof and the amount of tax
due.
4.
Every person subject to the tax imposed by this Part who commences
business subsequent to the beginning of any tax year shall within
100 days from date of commencing such business if said one-hundred-day
period ends after May 15 of the tax year and if prior thereto on May
15 of the tax year file a return with the Tax Administrator setting
forth his name, his business and business address, and such information
as may be necessary in arriving at the estimated or actual gross amount
of business transacted by him as calculated under § 203(2C)
hereof and the amount of the tax due.
5.
Every person subject to the payment of the tax imposed by this Part
who engages in a business, temporary, seasonal or itinerant by its
nature shall at the time application is made for the business privilege
license file a return with the Tax Administrator setting forth his
name, his business, his business address and such information as may
be necessary in arriving at the estimated gross amount of business
to be transacted by him as calculated in accordance with § 203(2D).
6.
Any person going out of or ceasing to do business shall, within seven
days from the date of ceasing to do business, file a return showing
the actual gross volume of business conducted and done by such person
during that tax year in which said person ceased doing business, and
pay the tax due as computed thereon at the rate as provided for at
the time of filing said return. If such tax has been previously paid
based upon estimated gross receipts, the taxpayer shall be entitled
to a refund, without interest, of any excess tax paid for the tax
year in which business was terminated.
7.
Payment of Tax and Penalties for Late Payment — The Business
Privilege Tax levied pursuant to this Part shall be due and payable
on the date on which the taxpayer is required to file a return as
set forth above and if the same is not paid on said date, 10% shall
be added thereto, plus an additional 1% per month or fractional part
thereof, until paid.
8.
Receipt — The Treasurer shall, upon payment to him of the Business
Privilege Tax, give the person paying the same a receipt therefor.
[Ord. 538, -/-/—, § 5; as amended by Ord.
573, 11/26/1990]
After the effective date of this Part, any person desiring to
conduct, or to continue to conduct, any business, as herein defined,
within the Township of Darby, shall file with the Tax Administrator
an application for a business privilege license and shall pay a fee
of $25 for an annual license and $25 for each annual renewal thereof.
[Ord. 538, -/-/—, § 6]
The license issued shall be conspicuously posted in the place
of business for which the such license is issued, and shall remain
in effect for the license year or fraction of year for which said
license was issued. In cases where more than one place of business
is conducted, a separate license shall be issued for each place of
business. Any taxpayer who is in default in payment of tax due hereunder
shall be refused a license until such tax is paid in full.
[Ord. 538, -/-/—, §§ 7 and 8; as amended
by Ord. 572, 10/10/1990]
Any person, firm or corporation who shall violate any provision
of this Part shall, upon conviction thereof, be sentenced to pay a
fine of not more than $600; and costs, or in default of payment thereof,
shall be subject to imprisonment for a term not to exceed 30 days.
Every day that a violation of this Part continues shall constitute
a separate offense.
[Ord. 538, -/-/—, § 9]
1.
The Treasurer is charged with the duties of collecting and receiving
the taxes, fines and penalties imposed by this Part. It shall be his
duty to keep a record showing the amount received by him from each
person paying the tax and the date of such receipt.
2.
The Tax Administrator and his duly appointed deputies under the direction
of the Treasurer, are hereby empowered to prescribe, adopt and promulgate
rules and regulations relating to any matter pertaining to the administration
and enforcement of this Part, including provisions for the examination
and correction of returns, and payments alleged or found to be incorrect,
or as to which an overpayment is claimed, or found to have occurred,
and charged with enforcing the provisions of this Part and any rules
and/or regulations promulgated pursuant hereto.
3.
In the event the person to be assessed neglects or refuses to make
a return, then in such case the Tax Administrator or his duly appointed
deputies shall assess said person or persons on such an amount of
whole or gross volume of business as the said Tax Administrator or
his deputies deem reasonable and appropriate. In all cases of assessment,
the Tax Administrator or his duly appointed deputies shall give the
parties assessed a notice in which shall be stated the trade, business,
occupation or class, and the amount of the Business Privilege Tax
imposed or levied.
4.
The taxpayer shall maintain such records and books of accounts as
will enable him to make a true and accurate return in accordance with
the provisions of this Part. Such accounts and records must disclose
in detail the gross volume of business, and must be sufficiently complete
to enable the Tax Administrator or his deputies to verify all transactions.
The Tax Administrator or his deputies are hereby authorized to examine
the books, papers and records of any person or persons subject to
or supposed to be subject to the tax imposed by this Part, in order
to verify the accuracy of the return made, or if no return was made,
ascertain the tax due.
5.
Any person aggrieved by any decision of the Tax Administrator shall
have the right to appeal to the Court of Common Pleas, as in other
cases.
[Ord. 538, -/-/—, § 10]
Any information gained by the Tax Administrator or any other
official, agent or employee of the Township, as a result of any returns,
investigations, hearings, or verifications required or authorized
by this Part, shall be confidential except in accordance with proper
judicial order or as otherwise provided by law.
[Ord. 538, -/-/—, § 11]
1.
The Tax Administrator or his duly appointed deputies shall have the
power in the name of the Township to institute proceedings against
any and all persons who violate the provisions of this Part.
2.
If for any reason the tax is not paid when due and suit is brought
for the recovery of any such tax, the person liable therefor, shall,
in addition, be liable for the costs of collection and interest and
penalties herein imposed.
