[Adopted 1-23-1961 by Ord. No. 847 (Ch. 24, Part 1, of the
1986 Code of Ordinances)]
[Added 2-28-1972 by Ord. No. 1114]
This article shall be known as the "Business Privilege Tax Ordinance."
[Amended 2-28-1972 by Ord. No. 1114; 4-24-1986 by Ord. No. 1356]
As used in this article, unless the context indicates clearly
a different meaning, the following words and phrases shall have the
meanings set forth below:
Carrying on or exercising, whether for gain or profit or otherwise,
within the City of Washington any trade; business, including but not
limited to financial business as hereinafter defined; profession;
vocation; service; construction, communication or commercial activity;
or making sales to persons or rendering services from or attributable
to a Washington office or place of business.
Shall not include the following: any part of a business which
is subject to the City of Washington mercantile tax; the business
of any political subdivision; any employment for a wage or salary;
any business upon which the power to levy a tax is withheld by law.
City of Washington.
The services and transactions of banks and bankers, trust,
credit and investment companies, where not prohibited by law, holding
companies, dealers and brokers in money, credits, commercial paper,
bonds, notes, securities and stocks, monetary metals, factors and
commission merchants.
Includes cash, credits, property of any kind or nature received
in or allocable or attributable to the City of Washington from any
business or by reason of any sale made, including resales of goods,
wares or merchandise taken by a dealer as a trade-in or a part payment
for other goods, wares or merchandise, or services rendered, or commercial
or business transactions had within the City of Washington, without
deduction therefrom on account of the cost of property sold, materials
used, labor, service or other cost, interest or discount paid, or
any other expenses.
Excludes:
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 and merchandise in the usual and ordinary course of his business.
In the case of a financial business, the cost of securities
and other property sold, exchanged, paid at maturity or redeemed,
and moneys or credits received in repayment of advances, credits and
loans, but not to exceed the principal amount of such advances, credits
and loans and shall also exclude deposits.
In the case of a broker, on commissions paid by him to another
broker on account of a purchase or sales initiated, executed or cleared
in conjunction with such other broker.
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 acquired the goods, wares or merchandise.
Receipts or that portion thereof attributable to interstate or foreign commerce or to an office or place of business regularly maintained by the taxpayer outside the limits of the City of Washington, and not for the purpose of evading payment of this tax, and those receipts which the City is prohibited from taxing by law. Such receipts shall be segregated as set forth in § 325-33G of this article.
Any natural person, partnership, unincorporated association
or corporation, nonprofit or otherwise. Whenever used in any provision
prescribing a fine or penalty, the word "person" as applied to partnerships
shall mean the partners thereof and, as applied to corporations and
unincorporated associations, shall mean the officers thereof.
The twelve-month period from January 1 to December 31, except
as hereafter provided.
Shall mean any business that is conducted at one location
for less than 60 consecutive calendar days.
The Treasurer of the City of Washington.
[Amended 2-28-1972 by Ord. No. 1114; 12-22-1980 by Ord. No. 1271; 12-21-2018 by Ord. No. 1914]
A.
Every person engaging in any business in the City of Washington beginning with the privilege tax year and annually thereafter shall pay an annual tax rate of four mills on each dollar or volume of the gross annual tax receipts thereof, except that the aforesaid tax shall not be imposed on the portion of a person's business that is subject to the mercantile tax, Article I of this chapter.
B.
Every person shall pay an additional tax at the reduced rate of 0.0010
on annual gross receipts in excess of $41,250,000.
[Amended 2-28-1972 by Ord. No. 1114]
A.
Every person subject to the payment of the tax hereby imposed who
has commenced his business at least one full year prior to April 1,
1961, shall compute his annual gross receipts of business for the
privilege tax year upon the actual gross amount of business transacted
by him during the preceding 12 months.
B.
Every person subject to the payment of the tax hereby imposed who
has commenced his business less than one year prior to April 1, 1961,
shall compute his annual gross receipts of business for the privilege
tax year upon the gross volume of business transacted by him during
the first full month he engaged in business multiplied by 12.
C.
Every person subject to the payment of the tax hereby imposed who
commences his business subsequent to the beginning of the privilege
tax year shall compute his annual gross receipts for such privilege
tax year upon the gross volume of business transacted by him during
the first full month of his engaging in business multiplied by the
number of months he engages in business in such privilege tax year.
D.
Every person subject to the payment of the tax hereby imposed who
engages in a business temporary, seasonal or itinerant by its nature
shall compute his annual gross receipts upon the actual gross receipts
of business transacted by him during such privilege tax year.
E.
A person whose business is in part furnishing services and in part
dealing in goods, wares and merchandise must comply with this article
with respect to that part of his business dealing with privileges
consisting of furnishing services and with the City's Mercantile Tax
Ordinance with respect to that part of his business, trade and occupation
consisting of selling goods, wares and merchandise.
F.
The tax is imposed upon any person who exercises the privilege of
carrying on certain businesses, professions and occupations within
the City of Washington and is measured by the taxpayer's entire annual
gross receipts. Receipts from any transaction are to be included if
any event forming a part of the transaction occurs within the City
of Washington.
G.
Where a receipt in its entirety cannot be subject to the tax imposed
by this article by reason of the provisions of the Constitution of
the United States or any other provision of law, including the exemptions
within this article, the Treasurer shall establish rules and regulations
and methods of allocation and evaluation so that only that part of
such receipt which is properly attributable and allocable to the doing
of business in the City of Washington shall be taxed hereunder. The
Treasurer may make such allocation with due regard to the nature of
the business concerned on the basis of millage division of the receipt
according to the number of jurisdictions in which it may be taxed,
the ratio of the value of the property or assets of the taxpayer owned
and situated in the City of Washington to the total property or assets
of the taxpayer wherever owned and situated, or any other method or
methods of calculation other than the foregoing, calculated to effect
a fair and proper allocation. Every person who ceases to carry on
a business during any tax year shall be permitted to apportion his
tax for such tax year and shall pay for such tax year an amount to
be computed by multiplying his gross receipts for the preceding full
calendar year by a fraction whose numerator shall be the number of
months such person was in business during the tax year and whose denominator
shall be 12.
H.
Every person subject to the payment of the tax hereby imposed and
who is also subject to the occupational privilege tax levied by City
ordinance may deduct said occupational privilege tax from the amount
of tax due and owing under the provisions of this article, but not
more than the amount of said occupational privilege tax. There shall
be no carry over of said credit from one year to the next, except
the occupational privilege tax paid in 1971 may be credited against
the return and tax due May 1, 1972.
I.
Tax for the period of April 1, 1972 through December 31, 1972 shall
be on the receipts during the aforesaid period of time, but for each
and every subsequent year shall be on a calendar-year basis from January
1 through December 31 of that particular year.
[Amended 5-13-1982 by Ord. No. 1293; 1-12-2006 by Ord. No. 1753]
A.
Any person subject to the tax hereby imposed shall, on or before
January 5, 2006, or prior to commencing business, register with the
City Treasurer, who shall charge of fee of $100 to cover the cost
of said registration and, having once registered with the Treasurer,
registration for any future privilege tax year is not required.
B.
The above fee shall also apply to all replacement licenses.
[Amended 2-28-1972 by Ord. No. 1114]
A.
Every person subject to the tax imposed by this article shall, on
or before May 1, 1961, file with the Treasurer a certified return,
upon a form furnished by the said Treasurer, setting forth the name,
business and business address, and such other information as may be
necessary in arriving at the amount of the tax due; except a person
who has commenced business during the privilege tax year, who shall
file said return within 40 days after commencing business.
B.
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 date he completes such business,
file a return with the Treasurer setting forth his name, his business,
and business address, and such information as may be necessary in
arriving at the actual gross receipts received by him during such
period and the amount of the tax due.
C.
The return required by this article to be filed by every person subject
to said tax for the privilege tax year of 1972, shall be filed on
or before April 15, 1973, and on April 15 of the applicable year for
each privilege tax year thereafter.
The tax hereby imposed shall be due and payable to the Treasurer
at the same time the aforesaid returns are required.
[Amended 2-28-1972 by Ord. No. 1114]
A.
It shall be the duty of the Treasurer to collect and receive the
taxes, fines and penalties imposed by this article. It shall also
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.
B.
The Treasurer is hereby charged with the administration and enforcement
of the provisions of this article and is hereby empowered to prescribe,
adopt, promulgate and enforce rules and regulations relating to any
matter pertaining to the administration and enforcement of this article,
including provision 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. Any person aggrieved by any
decision of the Treasurer shall have the right to appeal to the appropriate
Court or Courts as in other cases provided.
C.
The Treasurer or his duly appointed representative or agent is hereby
authorized to examine the books, papers and records of any return
made or, if no return was made, to ascertain the tax due. Each such
taxpayer or supposed taxpayer is hereby directed and required to give
the Treasurer the means, facilities and opportunity for such examination
and investigation as are hereby authorized.
D.
The Treasurer is hereby authorized to compel the production of books,
papers and records, and the attendance of all persons before him,
whether as parties or witnesses, whom he believes to have knowledge
of such receipts.
A.
The Treasurer may sue for the recovery of taxes due and unpaid under
this article.
B.
If for any reason the tax is not paid when due, interest at the rate
of 6% per annum on the amount of said tax, and an additional penalty
of 1% of the amount of the unpaid tax for each month or fraction thereof
during which the tax remains unpaid, shall be added and collected.
Where 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 the interest and penalties herein imposed.
[Amended 4-24-1986 by Ord. No. 1356]
Whoever makes any false or untrue statements in his return or
who refuses to permit inspection of the books, records or accounts
on any business in his custody or control and whoever fails or refuses
to file a return required by this article and whoever fails or refuses
to register when so required under this article shall, upon conviction,
be sentenced to pay a fine of not more than $300 for each offense
and/or to be imprisoned for a period not exceeding 90 days for each
offense.
[Added 2-28-1972 by Ord. No. 1114]
This article is enacted under the authority of the Act of December
31, 1965, P.L. 1257 (53 P.S. § 6901 et seq.[1]) and shall be effective after final passage and due advertising
requirements by law.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
[Added 9-9-2010 by Ord. No. 1836]
A.
Exemption from tax.
(1)
From and after the effective date of this section, new businesses
physically locating within the City of Washington, as defined in this
article, and subject to the provisions of this article shall be entitled
to abatement from business privilege taxation in accordance with the
abatement schedule contained herein. For purposes of this section,
"new business" shall be defined as any person or subsidiary of the
person carrying on or exercising, whether for gain or profit or otherwise
within the City of Washington, any trade; business, including but
not limited to financial business as hereinafter defined; profession;
vocation; service; construction, communication or commercial activity;
or making sales to persons or rendering services from or attributable
to a Washington office or place of business, which has never before
been subject to this tax. Any new business, as defined herein which
has never before been subject to this tax, shall receive abatement
of said tax in accordance with the following schedule:
(2)
Any business which qualifies for abatement under this section which
ceases or terminates its business activities in the City of Washington
within three years after entering into the abatement program under
this section shall be liable to the City of Washington for a rollback
of said tax that would have been due as if the abatement program under
this section never existed, together with the applicable interest
and penalties that would have accrued during the years that abatement
was granted.
B.
Any business seeking exemption hereunder shall apply to the City
Treasurer of the City of Washington within 90 days of locating within
the City of Washington for abatement of said tax. Requests for abatement
must be in writing and certified on forms prescribed by the City Treasurer
or other representative designated by the local taxing authority.
C.
Notwithstanding any other provision set forth in this article, requests
for abatement must be accompanied by an affidavit by the applicant
indicating that said applicant has paid all real estate taxes, earned
income taxes, mercantile license taxes, per capita taxes, public water
and sewage bill (issued by the Washington/East Washington Joint Authority),
solid waste charges and all other fees, assessments, claims or fines
imposed by the City of Washington or any department or agency thereof
which are delinquent or due at the time said application for exemption
is made. In addition, said applicant shall provide evidence of said
payments as requested by the City Clerk or other representative designated
by the local taxing authority. In the event that it is discovered
that said property owner, at the time of said application, has any
unpaid real estate taxes, earned income taxes, occupational privilege
taxes, business privilege taxes, earned income taxes, mercantile license
taxes, per capita taxes, public water and sewage bills (issued by
the Washington/East Washington Joint Authority), solid waste charges
and all other fees, assessments, claims or fines imposed by the City
of Washington or any department or agency thereof, which are due at
the time of said application, the request for abatement shall be denied
and the property owner shall not receive a tax abatement pursuant
to this article. For purposes of this article, the applicant shall
constitute the new business as defined herein. If the abatement request
is approved by Mayor and Council of the City, the abatement shall
be in force for three tax years and shall immediately and automatically
terminate thereafter.
D.
Any person doing business within the City of Washington for the sole
purpose of completing a single or series of single business transactions
lasting less than six years shall not be entitled to abatement under
the section.
