[Rules and regulations governing the collection
of the business privilege tax were formally adopted by the Board of
Supervisors by Res. 88-17, passed April 21, 1988.]
STATUTORY REFERENCES
Authority to enact — See Act.
No. 511 of 1965, Sec. 2.
Annual reenactment unnecessary — See
Act. No. 511 of 1965, Sec. 4.
Limitation on rate — See Act
No. 511 of 1965, Sec. 8(2).
Township and special tax levies — See
2nd Class Secs. 905 et seq.
[Ord. 249. Passed 2-16-1988]
This chapter shall be known and may be cited
as the "Business Privilege Tax of the Township of Lower Gwynedd,"
or just the "business privilege tax."
[Ord. 249. Passed 2-16-1988]
As used in this chapter, unless the context
clearly indicates a different meaning:
(a)
Business, Trade, Occupation and Profession. "Business,
trade, occupation and profession" means carrying on or exercising,
whether for gain or profit or otherwise, within the Township, any
trade, business (including, but not limited to, financial business,
as herein defined), profession, vocation, service, construction, communication
or commercial activity, or rendering services from or attributable
to a bona fide office or place of business within the Township. Any
person who has no office separate from his or her residence located
in the Township shall be considered as conducting his or her business,
trade, occupation or profession from his or her residence, but this
provision shall not be construed as permitting any business in a location
where zoning laws prohibit the conduct of a business.
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The term "business, trade, occupation and profession"
includes, without being limited to, any service or services rendered
by any person as follows: advertising and public relations agencies,
agents, apartment and rooming house operators, architects, barbershop
operators, beauty shop operators, bricklaying, brokers, cable television
operators, carpentry, certified public accountants, chemists, chiropractors,
cleaning, pressing and dying establishment operators, commission merchants,
consultants, contractors or subcontractors engaged in alteration,
building, construction, maintenance or repair of any kind of real
or personal property, dentists, electricians, engineers, equipment
repair, factors, funeral directors, hotel operators, insurance brokrs
and agents, laundry operators, lawyers, lessors of real and tangible
personal property for commercial or residential purposes, excepting
only the leasing of a single personal residence within the Township
for not more than a one-year term by a person domiciled within the
Township with the intent to preserve the property, management services
of any kind pertaining to any real or personal property situate within
the Township, manufacturers' representatives, motel operators, nurses,
operators of places of amusement providing either passive or active
recreation, optometrists, osteopaths, parking lot and garage operators,
pharmacists, physicians, plastering, dry wall or insulation contractors,
podiatrists, promoters, public accountants, real estate brokers, real
estate developers, shoe repair shop operators, social workers, surgeons,
tailors, teachers, therapists, travel agents, upholsterers, vending
machine operators, ventilating, veterinarians and warehouse operators.
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(b)
Collector. "Collector" means the appointed or elected
Business Privilege Tax Collector of the Township.
(c)
Financial Business. "Financial business" means services
and transactions rendered by banks, bankers, trust companies, credit
and investment banking companies, holding companies and dealers and
brokers in money, credits, commercial paper, bonds, notes, securities
and stocks, commodities, options and monetary metals.
(d)
Gross Receipts. "Gross receipts" means all gross receipts
of cash, credits or property of any kind or nature received in cash
or credit transactions, allocable or attributable to the Township,
whether derived from within or outside the Township and regardless
of the taxpayer's method of accounting, for services rendered by any
business, trade, occupation or profession, without deduction therefrom
on account of the cost of property sold, materials used, labor, services
or other cost, interest or discount paid or any other expense, except
as otherwise provided by this chapter. A receipt generally will be
considered allocable or attributable to the Township if any part of
the transaction or service giving rise to the receipt takes place
within the Township.
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The term "gross receipts" does not include:
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(1)
Refunds, credits or allowances given by a person
to a customer on account of defects in services rendered or in goods,
wares and merchandise sold or returned and deducted from the amount
of the gross receipts of the person;
(2)
Adjustments allowed to customers from gross
receipts if they are deducted on the face of the invoice as a medium
of adjusting the price or fee for the service and if they are not
reimbursed to the person by his or her supplier or some other person;
(3)
Federal, State and local taxes if they are collected
from the customer and are separately stated on the evidence of charge
or sale, or if the customer produces satisfactory proof of payment
of the Federal, State or local taxes;
(4)
Receipts from services performed from a place
of business regularly maintained outside the Township by the taxpayer
to a place of business regularly maintained outside the Township by
the customer, provided that such performance is not made for the purpose
of evading the tax. Services or deliveries to a residence located
outside the Township do not qualify for this exclusion.
(5)
In the case of a financial business, the cost
of securities and other property sold, exchanged, paid at maturity
or redeemed, or money received in payment of advances, credits and
loans (not to exceed the principal amount of such advances, credits
and loans) and deposits; and
(6)
In the case of a broker, any portion of the
fees or commission with respect to any transactions paid by him or
her to another broker, underwriter or insurer on account of a purchase
or sale of a contract for goods, commodities or insurance contract
initiated by or exercised or cleared in conjunction with such other
broker, underwriter or insurer.
(e)
Person. "Person" means any individual, partnership,
limited partnership, joint venture, association, syndication, corporation
or other entity or taxpayer of any kind engaged in a business, trade,
occupation or profession within the Township.
(f)
Service. "Service" means any act or instance of helping
or benefiting another for consideration.
(g)
Tax Year. "Tax year" means the twelve-month period
beginning January 1 each year, except that the tax year for 1988 shall
be April 1, 1988, through December 31, 1988.
(h)
Temporary, Seasonal or Itinerant Business. "Temporary,
seasonal or itinerant business" means any business that is conducted
at one location for less than sixty consecutive calendar days.
(i)
Treasurer. "Treasurer" means the Treasurer of the
Township or the Collector.
[Ord. 249. Passed 2-16-1988]
(a)
Every person desiring to engage in a business, trade,
occupation or profession within the Township shall, on or before the
seventy-fifth day of the tax year or prior to commencing business
in such tax year, make application for registration for each place
of business in the Township. If such person has no actual place of
business in the Township, then one registration is required. Such
registration shall be made by the completion of an application furnished
by the Treasurer or the Collector and the payment of a fee of $10.00.
(b)
Each application for registration shall be signed
by the applicant, if a natural person, and, in the case of an association
or a partnership, by a member thereof, and, in the case of a corporation,
by an officer thereof.
(c)
Each applicant shall receive a certificate of registration
from the Treasurer, which shall not be assignable.
(d)
In the case of a loss, defacement or destruction of
any certificate, each person to whom the certificate was issued shall
apply to the Treasurer for a new certificate, for which a fee of $2
shall be charged.
[Ord. 249. Passed 2-16-1988]
(a)
All persons required to pay a business privilege tax under the provisions of this chapter shall be exempted from paying such tax upon the same subject matter of taxation upon which such persons are required to pay a mercantile license tax under Chapter 888. Any person required to pay both a business privilege tax and a mercantile license tax may file one joint return. In addition, any portion of a taxpayer's gross receipts which is subject to a gross receipts tax under any other Township ordinance may not be taxed under this chapter.
(b)
Persons employed for a wage or salary, nonprofit corporations
or associations organized for religious, charitable or educational
purposes, agencies of the government of the United States, the Commonwealth,
the county and the Wissahickon School District 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 chapter.
(c)
No such tax shall be assessed or collected on the
gross receipts of any utility service to any person or company whose
rates of service are fixed and regulated by the Pennsylvania Public
Utility Commission or on any privilege or transaction involving the
rendering of any such public utility service.
(d)
No such tax shall be assessed and collected on goods,
articles and products, or on byproducts of manufacture, or on minerals,
timber, natural resources and farm products, manufactured, produced
or grown in the Township, or on the preparation or processing thereof
for use or market, or on any privilege, act or transaction related
to the business of manufacturing or 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 on any privilege, act or transaction relating to the
business of processing byproducts of manufacture, or on the transportation,
loading, unloading, dumping or storage of such goods, articles, products
or byproducts.
[Ord. 249. Passed 2-16-1988; Ord. 320. Passed 1-23-1996]
There is hereby imposed on every person exercising
the privilege of carrying on a business, trade, occupation or profession
within the Township an annual business privilege tax at the rate of
one mill on each person's gross receipts for each tax year. However,
such annual gross receipts shall not be taxable unless they are in
excess of $2,500 per tax year.
[Ord. 249. Passed 2-16-1988; Ord. 338. Passed 2-10-1997]
(a)
On or before April 15 after the end of the tax year,
every person subject to the tax hereby imposed shall make a return
to the Treasurer based upon the actual gross receipts from business
transacted by the taxpayer during the period for which the taxpayer
is subject to the tax. Such final return shall state the amount of
gross receipts and the amount of tax due upon the final computation.
(b)
Every return, as hereinafter required, shall be made
upon a form furnished by the Treasurer. Every person making such return
shall certify the correctness thereof under the penalties of perjury.
[1]
Editor's Note: Former Section 886.07, Estimated
return and computation of estimated gross receipts, was repealed 2-10-1997
by Ord. No. 338.
[Ord. 249. Passed 2-16-1988]
(a)
On or before the April 15 after the end of the tax year, every person subject to the tax hereby imposed shall make a final return as required by Section 886.06(a).
(b)
Any person whose gross receipts in any tax year are equal to or less than $25,000 may elect to file an estimated return under Section 886.07(d) and a final return under Subsection (a) hereof. This election is expressly conditioned upon the value of the cash, credits or property received by such person from any source allocable or attributable to any place outside the Township, or otherwise excluded from tax by operation of law, not exceeding $1,000. The Treasurer shall prepare a short form return to be filed by eligible taxpayers who elect to file under this section.
[Ord. 249. Passed 2-16-1988; Ord. 338. Passed 2-10-1997]
At the time of filing the final return, the
taxpayer shall pay the total amount due as indicated on the final
return for the applicable tax year.
[Ord. 249. Passed 2-16-1988]
(a)
It shall be the duty of the Treasurer to collect and
receive the fees, taxes, fines and penalties imposed by this chapter.
It shall also be his or her duty to keep a record showing the amount
of tax received by him or her and the date of payment. A receipt shall
be given to the person paying the tax.
(b)
If the Treasurer is not satisfied with the return
and payment of tax made by any taxpayer under this chapter, he or
she is hereby authorized to make a determination of the tax due from
such person, based upon the facts contained in the return, or upon
any information within his or her possession or that comes into his
or her possession, and for this purpose the Treasurer, his or her
deputy and his or her authorized agent are authorized to examine the
books, papers and records of any such person to verify the accuracy
of any return or payment made under the provisions thereof or to ascertain
whether the taxes imposed by this chapter have been paid. The Treasurer
is hereby authorized and directed to make and keep such records, prepare
such forms and take such other measures as may be necessary or convenient
to carry this chapter into effect and may, in his or her discretion,
require reasonable deposits to be made by licensees who engage in
a business temporary, seasonal or itinerant by its nature.
(c)
If any taxpayer neglects or refuses to make any return
and payment of tax required by this chapter, or if, as a result of
an investigation by the Treasurer, a return is found to be incorrect,
the Treasurer shall estimate the tax due by such person and determine
the amount due from such person for taxes and for penalties and interest
thereon.
(d)
The burden is hereby imposed upon any person claiming
an exemption from the payment of the tax hereby imposed to prove to
the satisfaction of the Treasurer, by clear and convincing evidence,
his or her legal right to such exemption.
(f)
Any information contained on the returns of the taxpayer
and any information obtained as a result of the examination of the
books and records of the taxpayer shall be confidential except for
official purposes and except for purposes of judicial order.
(g)
The Treasurer is hereby authorized to make rules and
regulations, consistent with the provisions of this chapter, relating
to the interpretation or application of any section of this chapter
or to any matter affecting the administration and enforcement of this
chapter, including provision for the re-examination and correction
of returns and the adjustment or refund of any overpayment of tax.
[Ord. 249. Passed 2-16-1988; Ord. 389. Passed 8-21-2001]
(a)
All taxes due and unpaid under this chapter, as well
as any applicable interest, penalties and costs of collection (including
reasonable attorney's fees), shall be recoverable by the Lower Gwynedd
Township Tax Collector and/or the Lower Gwynedd Township Solicitor
as other debts due to the Township are now by law recoverable.
(b)
To each civil complaint requesting payment for taxes,
interest and penalties under this chapter, there shall be added a
civil penalty of 10% of the tax or $300, whichever is greater, together
with the costs of suit and reasonable attorney's fees incurred by
the Township as provided by the Local Tax Collection Act, being the
Act of May 15, 1945 (P.L. 1050), Sec. 21, 72 P.S. § 5511.21
et seq. Recognizing that much additional time is required of the Lower
Gwynedd Township Tax Collector to prepare and file a civil complaint
before the local District Justice, prepare for a hearing before the
local District Justice, conduct settlement negotiations, prepare payment
plans and other additional functions necessitated by the collection
process and litigation, the Lower Gwynedd Township Tax Collector shall
be entitled to additional compensation in the amount of $300 to be
paid from the penalty portion of each fully paid settlement or judgment.
All civil penalties lawfully levied and collected which are in addition
to the minimum civil penalty of $300 shall be paid to Lower Gwynedd
Township. Nothing in this subsection shall be construed to limit the
award of attorney's fees for collection efforts.
(c)
All taxes due under this chapter shall bear interest
at the rate of 1 1/4% per month or fractional part of a month,
from the day they are due and payable until paid.
[Ord. 249. Passed 2-16-1988]
(a)
Nothing contained in this chapter shall be construed
to empower the Township to assess, 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 Township under the Constitution
of the United States and the Constitution and laws of the commonwealth.
(b)
The provisions of this chapter are severable, and
if any of its provisions or exemptions are held to be illegal, invalid
or unconstitutional, or invalid or unconstitutional as to any part
of the period designated herein as the tax year, the decision of any
court shall not affect or impair any of the remaining provisions of
this chapter, or affect or impair its application as to any other
part of such tax year, and the requirements as to the tax shall operate
as of the effective date of this chapter and the computation of tax
and payment thereof shall be applied and adjusted accordingly.
(c)
The Collector is hereby authorized to make rules and
regulations consistent with the provisions of this chapter relating
to the interpretation or application of any taxing section thereof
or with respect to any matter affecting the administration and enforcement
of this chapter, including provision for the examination and correction
of returns, and the adjustment or refund of any overpayment of tax
within the time provided by law.
[Ord. 249. Passed 2-16-1988]
The tax imposed by this chapter shall be imposed
on the gross receipts for that portion of the tax year commencing
with the effective date of this chapter (April 1, 1988), and the estimated
gross receipts determined under this chapter shall be apportioned
accordingly.
