[Adopted 6-1-1978 by Ord. No. 557 (Ch. 24, Part 3, of the
1988 Code of Ordinances)]
This article shall be known and may be cited as the "Mercantile
Tax Ordinance."
A.
BOROUGH
COLLECTOR
GROSS VOLUME OF BUSINESS
LICENSE YEAR
PERSON
RETAIL DEALER or RETAIL VENDOR
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
WHOLESALE AND RETAIL DEALER or WHOLESALE AND RETAIL VENDOR
WHOLESALE DEALER or WHOLESALE VENDOR
The following
words and phrases, when used in this article, shall have the meanings
ascribed to them, unless the context clearly indicates a different
meaning:
The Borough of Clifton Heights.
The Secretary of the Borough of Clifton Heights, or his designated
representative.
Includes both cash and credit transactions and trade-in transactions
as provided by law.
The twelve-month period beginning the first day of July 1978
and ending June 30, 1979, and each year thereafter beginning July
1 and ending June 30.
Any individual, partnership, limited partnership, association
or corporation (except such as are wholly exempt from taxation under
the Act of Assembly No. 511, as amended[1]).
Any person who is a dealer in or vendor of goods, wares and
merchandise who is not a wholesale dealer or vendor, or a wholesale
and retail dealer or vendor as hereinafter defined.
Any business that is conducted at one location for less than
60 consecutive calendar days.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and to other persons.
Any person who sells to dealers in or vendors of goods, wares,
sundries, and merchandise and not to other persons.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
B.
The definitions
of "person," "wholesale dealer," "wholesale vendor," "retail dealer,"
"retail vendor," "wholesale and retail dealer" and "wholesale and
retail vendor" in this section shall not include 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 own manufacture for shipment or delivery away from
the place of the manufacture thereof or any farmer vending or disposing
of his own produce or other transaction exempted by law.
For each license year, every person desiring to continue to
engage in, or hereafter to begin to engage in, the business of a 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 Borough shall, on
or before the first day of July of each license year, or prior to
commencing business in any such license year, apply for and procure
a mercantile license for his place of business, or, if more than one,
for each of his places of business, in the Borough from the Collector,
who shall issue the same upon payment of a fee of $25 for a wholesale
or retail license or for a wholesale and retail license for his place
of business, or, if more than one, for each of his places of business,
in the Borough for such license year. Each application for a license
shall be signed by the applicant, if a natural person, and, in the
case of an association or partnership, by a member or a partner thereof,
and, in the case of a corporation, by an officer thereof. Such licenses
shall not be assignable and shall be conspicuously posted at the place
of business or each of the places of business of every such person
at all times. In the case of loss, defacement or destruction of any
license, the person to whom the license was issued shall apply to
the Collector for a new license for which a fee of $0.50 shall be
charged.
A.
A tax to provide revenue for general Borough purposes is hereby levied,
assessed and imposed upon every person engaging in any of the following
occupations or businesses in the Borough at the rate hereinafter set
forth, and such persons shall pay a mercantile tax for the year beginning
July 1, 1978, at such rate hereinafter set forth:
(1)
Wholesale vendors, or dealers in goods, wares and merchandise of
every kind, at the rate of one mill on each dollar of the gross volume
of business transacted by him during the license year.
(2)
Retail vendors, or dealers of 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 1 1/2
mills on each dollar of the gross volume of retail business transacted
by him during the license year.
(3)
Wholesale or retail vendors in goods, wares and merchandise of every
kind at the rate of one mill on each dollar of the gross volume of
wholesale business transacted by him and 1 1/2 mills on each
dollar of the gross volume of retail business transacted by him during
the license year.
B.
The tax imposed by this section shall not apply to the dollar volume
of annual business covering the resale of goods, wares or merchandise
taken by a dealer at a trade-in or as part payment for other goods,
wares or merchandise, except to the extent that the resale price exceeds
the trade-in allowance.
The following subsections refer to the computation of the estimated
gross volume of business:
A.
Every person subject to the payment of the tax hereby imposed who
has commenced his business at least a full year prior to July 1, 1978,
shall compute the gross volume of business upon the actual gross amount
of business transacted by him during the 12 months preceding.
B.
Every person subject to the payment of the tax hereby imposed who
has commenced his business less than one full year prior to July 1
shall compute the gross volume of business by multiplying by 12 the
monthly average of the actual gross amount of business transacted
by him during the months he was engaged in business prior to July
1.
C.
Every person subject to the payment of the tax hereby imposed who
commences his business subsequent to July 1 shall compute the gross
volume of business for the license year upon the gross volume of business
transacted by him during the first month of his engaging in business,
multiplied by the number of months remaining in the license year.
D.
Every person subject to the payment of the tax hereby levied and
imposed who engages in business, temporary, seasonal or itinerant
by its nature, shall compute the gross volume of business upon the
actual gross amount of business transacted by him during the license
year.
[Amended in 1982 by Ord. No. 613]
Every return, as hereinafter required by this section, shall
be made upon a form furnished by the Collector. Every person making
such return shall furnish all information requested therein and certify
the correctness thereof under the penalties of perjury.
A.
First return.
(1)
Every person subject to the tax imposed by this article who has commenced
his business at least one full year prior to the beginning of the
license year shall, on or before the 31st day of July following the
beginning of the license year, file with the Collector a return setting
forth his name, his business and his business address and such other
information as may be necessary to compute the actual gross volume
of business transacted by him during the license year and the amount
of tax estimated to be due.
(2)
Every person subject to the tax imposed by this article who has commenced
his business less than one full year prior to the beginning of the
license year shall, on or before the 31st day of July following the
beginning of the license year, file with the Collector a return setting
forth his name, his business, business address and such other information
as may be necessary to compute the actual gross volume of business
transacted by him during the license year and the amount of tax estimated
to be due.
(3)
Every person subject to the tax imposed by this article who commences
business subsequent to the beginning of the license year shall, within
60 days from the date of commencing such business, file a return with
the Collector setting forth his name, his business and business address
and such information as may be necessary to compute the actual gross
volume of business transacted by him during the license year and the
amount of tax estimated to be due.
(4)
Every person subject to the payment of the tax imposed by this article
who engages in a business, temporary, seasonal, or itinerant by its
nature, shall, within seven days from the day he completes such, file
a return with the Collector setting forth his name, his business and
business address, and such information as may be necessary in arriving
at the actual gross amount of business transacted by him during such
period and the amount of the tax due.
B.
Final return.
(1)
On or before the 31st of July of each year, beginning in 1982, every
person subject to the tax hereby imposed shall make a final return
to the Collector, showing the actual volume of business transacted
by the taxpayer during the preceding license year. Such final return
shall state the amount of the gross volume of business as set forth
in the first tax return, the amount of tax paid at the time of filing
the first tax return, and the amount of tax due upon the final computation.
(2)
Any person ceasing to do business during the license year shall,
within 14 days from the date of ceasing to do business, file a final
return showing the actual gross volume of business conducted during
that portion of the license year in which said person was actually
in business and pay the tax as computed thereon.
A.
At the time of filing the first tax return, the person making the
same shall pay the amount of the tax estimated to be due.
B.
At the time of the filing of the final tax return, if the full amount
of the tax due by the taxpayer for the license year has not been paid,
the taxpayer shall pay the remaining balance of the tax, which will
make the difference between the amount of the tax paid at the time
of making the first return on the estimated computation and the amount
of the tax finally shown to be due.
A.
It shall be the duty of the Collector to collect and receive the
fees, taxes, fines and penalties imposed by this article. It shall
also be his duty to keep a record showing the amount of the tax received
by him and the date of payment.
B.
If the Collector is not satisfied with the return and payment of
tax made by any taxpayer or supposed taxpayer under the provisions
of this article, he is hereby authorized and empowered 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 possession or that shall
come into his possession, and, for this purpose, the Collector or
his authorized agents 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 article have been paid. The Collector 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 article into effect and may, in his 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 or supposed taxpayer shall neglect or refuse to make
any return and payment of tax required by this article or if, as a
result of any investigation by the Collector, a return is found to
be incorrect, the Collector shall estimate the tax due by such person
and determine the amount due by him for taxes, penalties and interest
thereon.
D.
The burden is hereby imposed upon any person, firm or corporation
claiming an exemption from the payment of the tax hereby imposed to
convince the Collector of his legal right to such exemption.
E.
If the final return of the taxpayer shows an overpayment of the tax
by reason of the fact that the gross volume of business as stated
in the estimated computation was less than the actual volume of business
for the year or by reason of the fact that the taxpayer did not continue
to engage in business throughout the year, the Collector shall refund
to the taxpayer, without interest, the amount of such overpayment,
which shall be the difference between the amount of tax paid upon
the filing of the first return and the amount of the tax finally shown
to be due.
Any information gained by the Collector or any other Borough
employee or official from the administration of this tax shall be
confidential, except in accordance with proper judicial order or as
otherwise provided by law, and divulgence of any information so gained
is hereby declared to be a violation of this article.
All taxes due and unpaid under this article shall be recoverable
by the Borough Solicitor as other debts due the Borough are now by
law recoverable.
The Borough shall provide tax regulations for the purpose of
clarifying applicability of the mercantile tax.
All taxes due under this article shall bear interest at the
rate of one per centum per month, or fractional part of a month, from
the day they are due and payable until paid. If any taxpayer shall
neglect or refuse to make any return or payment as herein required,
an additional 10% of the amount of the tax shall be added by the Collector
and collected.
All taxes, interest and penalties received, collected or recovered
under the provisions of this article shall be paid into the treasury
of the Borough of Clifton Heights for the use and benefit of the Borough
of Clifton Heights.
[Amended 8-15-1988 by Ord. No. 682; 9-19-1988 by Ord. No. 681]
Any person, as defined in this article, or any officer, agent,
servant or employee thereof, who shall fail, neglect or refuse to
comply with any of the terms or provisions of this article shall,
upon conviction thereof before a Magisterial District Judge, be sentenced
to pay a fine of not less than $25 nor more than $600, and costs of
prosecution, for each offense, to be collected as other fines and
costs are by law collectible, and, in default of payment of said fine
and costs, shall be imprisoned in the Delaware County Jail for a period
not exceeding 30 days. The fine imposed by this section shall be in
addition to any other penalty imposed by any other section of this
article.
