Borough of Wilkinsburg, PA Part 5 Business Privilege Tax

Adopted 2-13-1984 as Ord. No. 2245]

Article VI General Provisions

§ 237-60 Title.

This Part 5 shall be known as the "Business Privilege Tax and License Fee Ordinance."

§ 237-61 Definitions.

The following words and phrases, when used in this Part 5, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

BUSINESS

Any activity carried on or exercised for gain or profit in the Borough or Wilkinsburg, including but not limited to the sale or merchandise or other tangible personalty or the performance of services and the rental or personalty and/or realty.

BOROUGH

The Borough of Wilkinsburg.

CALENDAR YEAR

The period January 1 to December 31, inclusive.

LICENSE YEAR

The period from January 1 to December 31, inclusive.

PERSON

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 corporation, the officers thereof.

RETAIL RECEIPTS

Includes but is not limited to the sale of merchandise or other tangible property, or performance of services, or the rental of personalty and/or realty to the ultimate consumer as distinguished from wholesale.

TAX ADMINISTRATOR

The person duly appointed by the Council of the Borough of Wilkinsburg to administer the business privilege tax and license fee.

TAXPAYER

A person subject to the payment of the tax imposed by this Part 5.

TAX YEAR

The period from January 1, to December 31, inclusive.

WHOLESALE RECEIPTS

Includes but is not limited to the sale to retailers rather than to consumers directly of merchandise or other tangible property especially for resale as distinguished from retail.

§ 237-62 Levy of tax.

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 Borough of Wilkinsburg as follows:

A. 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 Borough of Wilkinsburg shall be 1 1/2 mills for all retail receipts. "One and one-half mills" shall mean $1.50 per $1,000 gross volume of business. 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 Borough of Wilkinsburg shall be one mill for all wholesale receipts. "One mill" shall mean $1 per $1,000 gross volume of business; provided, however, that no taxpayer shall pay, in any tax year, a business privilege tax exceeding $10,000.

B. Computation of volume of business.

(1) Every person subject to the payment of the tax hereby imposed who has commenced his or her business prior to the full calendar year prior to the tax year shall compute his or her annual estimated gross volume of business upon the actual gross amount of business transacted by him or her during said immediately preceding calendar year.

(2) Every person subject to the payment of the tax hereby imposed who has commenced or who commences his or her 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 or her estimated annual gross volume of business for the tax year upon the gross volume of business transacted by him or her during the prior calendar year, taking the monthly average during said period and multiplying the same by 12. In the event that he or she shall be in business fewer than ninety (90) days in the prior calendar year, he or she shall be permitted to use sufficient days in the calendar year in which the tax year begins to equal ninety (90) successive days after commencement of business to take a monthly average thereon, and to multiply the average by 12.

(3) Every person subject to the payment of the tax hereby imposed who has commenced or commences his or her business subsequent to the beginning of the tax year shall compute his or her estimated gross volume of business for such tax year upon the gross volume of business transacted by him or her during the period from the commencement of his or her business to the end of the tax year, taking the monthly average during the first three (3) months of business and multiplying the same by the number of months from the commencement or business to the end of the tax year. In the event that such persons shall be in business fewer than ninety (90) days in the tax year, he or she shall be permitted to use sufficient days in the next succeeding calendar year to equal ninety (90) successive days after commencement of business to take a monthly average thereon, and multiply the average by the number of months from the commencement of his or her business to the end of the tax year.

(4) Every person subject to the payment of the tax hereby imposed who engages in business temporary, seasonal or itinerant by nature shall compute the estimated gross amount of business to be transacted by him or her for the period said person engages in such temporary, seasonal or itinerant business within the borough by a method to be determined by the Tax Administrator.

(5) The Tax Administrator is hereby authorized to accept payment under protest of the amount of business privilege tax claimed by the borough in any case where the taxpayer disputes the validity of amount of the borough's claim for tax. If it is thereafter judicially determined by a court of competent jurisdiction that the borough has been overpaid, the amount of the overpayment shall be refunded to the taxpayer.

(6) The Tax Administrator is hereby authorized and directed to refund, without interest, to the taxpayer, by July 1 of the next year, amounts overpaid in the tax year when such overpayment resulted from estimated gross volume of business in the tax year, upon which paid taxes were based, which estimates exceeded gross volume of business done by the taxpayer.

C. Persons, businesses and receipts exempted.

(1) Persons and businesses. Persons employed for a wage or salary, nonprofit corporation or associations organized for religious, charitable or educational purposes, agencies of the government of the United States or 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 5.

(2) 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 and which tax or license fee has been held by the Courts of Pennsylvania to be the basis for exemption from the imposition of a business privilege tax by a municipality.

(3) Utilities. No such tax shall be assessed and collected on the gross receipts from utility service of 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.

(4) State tax on tangible property. No such tax shall be assessed and collected on the privilege or 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.

(5) Production and manufacture. No such tax shall be assessed and collected on goods, articles and products, or on by-products of manufacture, or on minerals, timber, natural resources and farm products, manufactured, produced or grown in the Borough of Wilkinsburg or on the preparation or processing thereof for use or market, or on any privilege, act or transaction relating to the business of manufacturing, the production, preparation or processing of minerals, timber and natural resources or farm products, by manufacturers, by producers and by farmers with respect to the goods, articles and products of their own manufacture, production or growth, or any privilege, act or transaction relating to the business or processing by-products of manufacture, or on the transportation, loading, unloading or dumping or storage of such goods, articles, products or by-products.

D. Determination of gross or whole volume of 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:

(1) 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.

(2) Refunds, credits or allowances given by a taxpayer to a purchaser on account or defects in goods, wares or merchandise sold or on account of goods, wares or merchandise returned.

(3) 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.

(4) Bad debts, where the deduction is also taken in the same year for federal income taxation purposes.

(5) Taxes collected as agent for the United States of America, Commonwealth of Pennsylvania, County of Allegheny or the Borough of Wilkinsburg.

E. Partial exemptions. Where gross or whole volume of business in its entirety cannot be subjected to the tax imposed by this Part 5 by reason of the provisions of the Constitution of the United States or any other provision of law, the Tax Administrator 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 borough shall be taxed hereunder.

F. Rate when same tax is imposed by two (2) taxing bodies. If any person is liable for the same tax on the same subject imposed under the Local Tax Enabling Act of December 31, 1965, Pamphlet Law 1257, and its amendments,[1] to the borough and one (1) 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 said Enabling Act permitting the imposition of such taxes.

[1] Editor's Note: See 53 P.S. § 6901 et seq.

G. Records. The taxpayer, to obtain the foregoing enumerated exclusions and deductions, shall keep books and records of his or her business so as to show clearly, accurately and separately the amount of such sales and services as are excluded from the tax and the amount of such sales and services which he or she is entitled to deduct from the gross volume of business as hereinbefore provided.

§ 237-63 Tax returns.

A. 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.

B. Every person subject to the tax imposed by this Part 5 who commenced his or her business on or before January 1 of the full calendar year previous to the beginning of any tax year shall, on or before the 31st day of July for the tax year 1984, and on or before the first day of July on all subsequent tax years, file with the Tax Administrator a return setting forth his or her name and his or her business, business address and such other information as may be necessary in arriving at the actual gross amount of business transacted by him or her during the preceding calendar year, and the amount of the tax due.

[Amended 8-13-1984 by Ord. No. 2250]

C. Every person subject to the tax imposed by this Part 5 who has commenced his or her business before the beginning of the tax year but after January 1 of the full calendar year previous to the beginning of the tax year shall, on or before the 31st day of July for the tax year 1984, and on or before the first day of July of all subsequent tax years, file with the Tax Administrator a return setting forth his or her name and his or her business, business address and such other information as may be necessary in arriving at the estimated gross amount of business transacted by him or her as calculated under § 237-62B(2) hereof, and the amount of tax due.

[Amended 8-13-1984 by Ord. No. 2250]

D. Every person subject to the tax imposed by this Part 5 who has commenced or commences his or her business subsequent to the beginning of the tax year shall, on or before the 31st day of July for the tax year 1984, and on or before the first day of July of all subsequent tax years, file with the Tax Administrator a return setting forth his or her name and his or her business, business address and such other information as may be necessary in arriving at the estimated gross amount of business transacted by him or her as calculated under § 237-62B(3) hereof, and the amount of tax due, provided that one hundred (100) days have elapsed from the commencement of the business to July 31 of the tax year 1984 and to July 1 of all subsequent tax years. If a taxpayer has not been in business for one hundred (100) days as of July 31, 1984, or July 1 of all subsequent tax years, his or her return shall be filed within one hundred (100) days of the commencement of his or her business.

[Amended 8-13-1984 by Ord. No. 2250]

E. Every person subject to the payment of the tax imposed by this Part 5 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 or her name, his or her business, his or her business address and such information as may be necessary in arriving at the estimated gross amount of business to be transacted by him or her as calculated in accordance with § 237-62B(4).

F. Any person going out of or ceasing to do business shall, within seven (7) 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 herein 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.

G. Payment of tax and penalties for late payment.

(1) The business privilege tax levied pursuant to this Part 5 for the tax year 1984 shall include the period from January 1, 1984, through December 31, 1984, inclusive.

(2) The business privilege tax shall be due and payable on the date on which the taxpayer is required to file a return. If the amount due and payable is not so paid, a penalty of five per centum (5%) shall be added thereto, plus an additional penalty of one percent (1%) per month or fractional part of a month until paid.

H. Receipt. The Tax Administrator shall, upon payment to him or her of the business privilege tax and/or business license fee, give the person paying the same a receipt therefor.

§ 237-64 License and fee.

[Amended 8-13-1984 by Ord. No. 2250; 2-11-1985 by Ord. No. 2258]

A. After the effective date of this Part 5, any person desiring to conduct or to continue any business, as herein defined, within the Borough of Wilkinsburg shall file with the Tax Administrator an application for a business privilege license and shall pay a fee as set from time to time by resolution of the Borough Council.[1]

[Amended 11-30-1994 by Ord. No. 2472]

[1] Editor's Note: See Ch. A266, Fees.

B. Application or payment for license fee shall be made on or before July 1 of each year or within thirty (30) days of commencement of business in the Borough of Wilkinsburg. If application or payment for the license is made after such date, application or payment of such fee shall be subject to a penalty as set forth from time to time by resolution of the Borough Council.[2]

[Amended 11-30-1994 by Ord. No. 2472]

[2] Editor's Note: See Ch. A266, Fees.

C. Application for a business privilege license and payment of the business privilege license fee shall be made and paid each year on July 1. These fees reasonably reflect the actual estimated cost to the borough of administering this Part 5 and other business-related borough ordinances. Professions are included. The fee applies separately to each business conducted by a taxpayer within the Borough of Wilkinsburg. The Tax Administrator shall be responsible for collecting this fee.

§ 237-65 Posting.

The license issued shall be posted in the place of business for which such license is issued and shall remain in effect for the license year or fraction of a year for which said license was issued. In those cases where more than one (1) business is conducted, a separate license shall be issued for each business conducted by a taxpayer. Any taxpayer who is in default in payment of the tax due hereunder shall be refused a license until such tax is paid in full.

§ 237-66 Violations and penalties.

[Amended 11-30-1994 by Ord. No. 2472]

Any person who shall conduct, transact or engage in any of the businesses subject to the tax imposed by this Part 5, without having first secured a Business Privilege License for the year, or any person who shall fail to file a tax return as required by the provisions of this Part 5, or any person who shall willfully file a false return, shall, upon summary conviction before any Magistrate in the County of Allegheny, be sentenced to a fine not to exceed the sum of six hundred dollars ($600.) for any one (1) offense, recoverable with costs, or imprisonment not exceeding ninety (90) days, if the amount of said fine and costs shall not be paid.

§ 237-67 Each day's violation considered separate offense.

Each day on which such person violated this Part 5 may be considered as a separate offense and punishable as such.

§ 237-68 Duties of Tax Administrator.

A. The Tax Administrator is charged with the duties of collecting and receiving the taxes, fees, fines and penalties imposed by this Part 5. It shall be his or her duty to keep a record showing the amount received by him or her from each person paying the tax and the date of such receipts.

B. The Tax Administrator and his or her duly appointed deputies under the direction of the Borough Manager are hereby empowered with the approval of the Council of the Borough of Wilkinsburg to prescribe, adopt and promulgate rules and regulations relating to any matter pertaining to the administration and enforcement of this Part 5, 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 5 and any rules and/or regulations promulgated pursuant hereto.

C. In the event the person to be assessed neglects or refuses to make a return, then in such case the Tax Administrator or his or her 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 or her deputies deem reasonable and appropriate. In all cases of assessment, the Tax Administrator or his or her 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 or license fee imposed or levied.

D. The taxpayer shall maintain such records and books of account as will enable him or her to make a true and accurate return in accordance with the provisions of this Part 5. Such accounts and records must disclose in detail the gross receipts and other data pertaining to the taxpayer's gross volume of business and must be sufficiently complete to enable the Tax Administrator or his or her deputies to verify all transactions. The Tax Administrator or his or her deputies are hereby authorized to examine the books, papers and records of any person or persons subject to or supposedly to be subject to the tax imposed by this Part 5, in order to verify the accuracy of the return made or, if no return was made, ascertain the tax due.

E. Any person aggrieved by a decision or assessment made by the Administrator may, within thirty (30) days after receipt of notice of the decision or assessment, request a tax hearing before the Tax Administrator or any person designated by him or her, and a hearing will be arranged promptly. The Administrator may, on his or her own initiative, cite a taxpayer for a hearing.

F. Any person aggrieved by the decision of the Administrator of Taxes following a tax hearing, or any person aggrieved by any other ruling of the Administrator of Taxes, may, within thirty (30) days after receipt of notice of such decision or ruling, appeal therefrom to the appropriate court. No tax hearing or appeal shall operate to suspend penalty from the due date of any tax found owing.

§ 237-69 Confidentiality of returns.

Any information gained by the Tax Administrator or any other official, agent or employee of the borough, as a result of any returns, investigations, hearings or verifications required or authorized by this Part 5, shall be confidential, except in accordance with proper judicial orders or as otherwise provided by law.

§ 237-70 Suit on collection and penalty.

A. The Tax Administrator or his or her duly appointed deputies shall have the power in the name of the borough to institute proceedings against any and all persons who violate the provisions of this Part 5.

B. 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.

§ 237-71 Jurisdiction and constitutionality.

A. Nothing contained in this Part 5 shall be construed to empower the borough to levy and collect the taxes hereby imposed on any person, or any business, or any portion of any business, not within the taxing power of the borough under the Constitution of the United States and the laws and Constitution of the Commonwealth of Pennsylvania.

B. If the tax, or any portion thereof, imposed upon any person under the provisions of this Part 5 shall be held by any court of competent power or jurisdiction to be in violation of the Constitution of the United States or of the Commonwealth of Pennsylvania or any other provision of the law, the decisions of the court shall not affect or impair the right to impose the taxes, or the validity of the tax so imposed, upon other persons as herein provided.

§ 237-72 Authority.

[Amended 11-30-1994 by Ord. No. 2472]

This Part 5 is enacted pursuant to the authority of the Local Tax Enabling Act, December 31, 1965, Pamphlet Law 1257, as amended,[1] and shall become effective January 1, 1984, and shall continue thereafter unless amended or repealed.

[1] Editor's Note: 53 P.S. § 6901 et seq.