[Rules and regulations governing the collection
of the Mercantile License 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. 250. Passed 2-16-1988]
This chapter shall be known and may be cited
as the "Mercantile License Tax of the Township of Lower Gwynedd,"
or just the "mercantile license tax."
[Ord. 250. Passed 2-16-1988]
As used in this chapter, unless the context
clearly indicates a different meaning:
(a)
Collector. "Collector" means the appointed or elected
Mercantile License Tax Officer of Lower Gwynedd Township.
(b)
Gross Volume of Business. "Gross volume of business"
means and includes the gross amount of cash, credits or property of
any kind or nature received in either cash or credit transactions
allocable or attributable to the Township by reason of any sale (including
resales of goods, wares or merchandise taken by a dealer as a trade-in
or as part payment for other goods, wares or merchandise) made by
any wholesale or retail vendor or dealer or person engaged in conducting
a restaurant or other place where food, drink or refreshments are
sold. Excluded from "gross volume of business" are the following:
(1)
The receipts from a sale of goods, wares or
merchandise in which the goods are delivered 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 purchaser,
provided that such delivery is not made for the purpose of evading
this tax;
(2)
The amount of any allowance made for goods,
wares or merchandise taken by a dealer as a trade-in or as part payment
for other goods, wares or merchandise, in the usual and ordinary course
of business;
(3)
Receipts by dealers from sales to other dealers
in the same line where the dealer transfers title or possession at
the same price for which he or she acquired the goods, wares or merchandise,
provided that the other dealers are not the parent or a subsidiary
organization of the vendor and have no other cooperative arrangement
or affiliation with the vendor; and
(4)
Any other receipts excluded by the Local Tax
Enabling Act, 53 P.S. Sec. 6902(12), as amended.
(c)
Person. "Person" means any individual, partnership,
limited partnership, association, corporation, trust or other legally
recognizable entity, except such as are wholly exempt from taxation
under the Act of December 31, 1965 (P.L. 1257), as amended, 53 P.S.
Sec. 6901 et seq. Specifically exempted from taxation under this chapter
are nonprofit corporations or associations organized for religious,
charitable or educational purposes, agencies of the government of
the United States or of the Commonwealth of Pennsylvania or any "person"
vending or disposing of articles of his or her own manufacture for
shipment or delivery from the place of the manufacture thereof, or
any farmer vending or disposing of his or her own produce, or any
other "person" exempted by law.
(d)
Retail Dealer and Retail Vendor. "Retail dealer" and
"retail vendor" mean any person who is a dealer in or a vendor of
goods, wares and merchandise, except a person who is a wholesale dealer
or vendor or who is a wholesale and retail dealer or wholesale and
retail vendor, as defined in this chapter.
(e)
Tax Year. "Tax year" means the twelve-month period
beginning January 1 of each year, except that the tax year for 1988
shall be April 1, 1988, through December 31, 1988.
(f)
Taxpayer. "Taxpayer" means any person subject to tax
under this chapter.
(g)
Temporary, Seasonal or Itinerant Business. "Temporary,
seasonal or itinerant business" means any business that is conducted
at one location for less than 60 consecutive calendar days.
(h)
Treasurer. "Treasurer" means the Treasurer of the
Township or the Collector.
(i)
Wholesale and Retail Dealer and Wholesale and Retail
Vendor. "Wholesale and retail dealer" and "wholesale and retail vendor"
mean any person who sells to retail dealers or retail vendors and
to other persons.
(j)
Wholesale Dealer and Wholesale Vendor. "Wholesale
dealer" and "wholesale vendor" mean any person who sells to retail
dealers or retail vendors and to no other persons.
[Ord. 250. Passed 2-16-1988]
(a)
Every person desiring to continue to engage in or
hereafter to begin to engage in the business of wholesale or retail,
or wholesale and retail, vendor or dealer in goods, wares and merchandise,
and any person conducting a restaurant or other place where food,
drink or refreshments are sold in the Township, shall, on or before
the 75th day of the tax year or prior to commencing business in any
such tax year, apply for and procure a mercantile license for each
place of business in the Township from the Treasurer, who shall issue
the same upon payment of a fee of $10 for each wholesale or retail
license, upon payment of a fee of $10 for each license for a restaurant
or other place where food, drink or refreshments are sold, and upon
payment of a fee of $15 for each wholesale and retail license.
(b)
Each application for a license shall be signed by
the applicant, if a natural person, and, in the case of an association
or a partnership, by a member or partner thereof, and, in the case
of a corporation, by an officer thereof, or by the authorized person
of any other legal entity.
(c)
Such licenses shall not be assignable and shall be
conspicuously posted at each place of business within the Township
at all times.
(d)
In the case of loss, defacement or destruction of
any license, the person to whom the license was issued shall apply
to the Treasurer for a new license, for which a fee of $10 shall be
charged.
[Ord. 250. Passed 2-16-1988; Ord. 321. Passed 1-23-1996]
A tax to provide revenue for general Township
purposes is hereby levied, assessed and imposed upon every person
engaging in any of the following occupations or businesses in the
Township, at the rate hereinafter set forth. Such persons shall pay
a mercantile license tax for the licensed year, at such rate, subject
to the exemptions hereinafter set forth. However, in no event shall
the annual mercantile license tax herein imposed be less than $10
for each of the places of business of every such person:
(a)
Wholesale vendor or dealer in goods, wares and merchandise
of every kind, at the rate of 1/2 mill on each dollar of the gross
volume of business transacted by such person during the tax year.
(b)
Retail vendor or dealer in goods, wares and merchandise
of every kind and all persons engaged in conducting restaurants or
other places where food, drink or refreshments are sold, at the rate
of 3/4 mill on each dollar of the gross volume of business transacted
by such person during the tax year.
(c)
Wholesale and retail vendor or dealer in goods, wares
and merchandise of every kind at the rate of 1/2 mill on each dollar
of the gross volume of wholesale business transacted by such person
during the tax year and at the rate of 3/4 mill on each dollar of
the gross volume of retail business transacted by such person during
each tax year.
[Ord. 250. 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 volume of business transacted
by the taxpayer during the period for which the taxpayer is subject
to tax. Such final return shall state 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 888.06, Estimated
return and comptation of estimated gross volume of business, was repealed
2-10-1997 by Ord. No. 338.
[Ord. 250. Passed 2-16-1988; Ord. 338. Passed 2-10-1997]
On or before 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 888.05(a).
[Ord. 250. Passed 2-16-1988; Ord. 338. Passed 2-10-1997]
At the time of filing the final return, if the
full amount of the tax due from the taxpayer for the tax year has
not been paid, the taxpayer shall pay the amount of tax finally shown
to be due upon the filing of the final return for the applicable tax
year.
[Ord. 250. 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 by
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 reexamination and correction
of returns and the adjustment or refund of any overpayment of tax.
[Ord. 250. 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 (Pt. 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. 250. 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. 250. 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 volume of business determined under this chapter shall be apportioned
accordingly.
