[Adopted 12-26-1976 by Ord. No. 777; readopted 10-8-1991 by Ord. No.
873 as Ch. 103, Art. VII, of the 1991 Code]
This article shall be known and may be cited as the "Business
Privilege Tax Ordinance."
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 Borough any trade, business, including but not limited
to a 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 Borough
officer or place of business.
Shall not include the following: any business which is subject
to the Borough mercantile tax; any employment for wage or salary;
or any business upon which the power to levy a tax is withheld by
law.
Pennsylvania Municipal Service Company.
[Amended 6-12-2003 by Ord. No. 952]
The services and transactions of banks and bankers, trust,
credit and investment companies, holding companies, dealers and brokers
in money, credits, commercial paper, bonds, notes, securities, and
stocks, monetary metals, factors and commission merchants, upon which
the herein imposed tax is not prohibited by law.
Cash, credits or property of any kind or nature, received in
or allocable or attributable to the confines of the Borough from any
business or by reason of any sale made, including resales of goods,
wares, or merchandise taken by a dealer as trade in or as part payment
for other goods, wares or merchandise, or services rendered or commercial
or business transactions had within the Borough, 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 expense.
Gross receipts shall exclude:
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;
moneys or credits received in repayment of advances, credits and loans,
but not to exceed the principal amount of such advances, credits and
loan; and deposits.
In the case of a broker, commissions paid by him to another
broker on account of a purchase or sales contract initiated, executed
or cleared in conjunction with such other broker.
In the case of a dealer, receipts 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,
for as long as said dealers are not the parent or subsidiary organization
of the vendor or have no other affiliation or cooperative arrangement
with the vendor.
In the case of interstate business, 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 Borough, and not for the purpose of evading payment of this tax and those receipts which the Borough is prohibited from taxing by law. Such receipts shall be segregated as set forth in § 312-12C of this article.
Includes both cash and credit transactions.
The twelve-month period from January 1 to December 31.
Any business that is conducted at one location for less than
60 consecutive calendar days.
Every person engaging in any business in the Borough beginning
with the tax year 1977, and annually thereafter, shall pay an annual
tax at the rate of 0.75 of a mill on each dollar of volume of the
gross annual receipts thereof.
A.
Every person subject to the payment of the tax hereby imposed who
has commenced his business at least one full year prior to the beginning
of any tax year shall compute his annual gross receipts upon the actual
receipts received by him during the preceding calendar year.
B.
Every person subject to the payment of the tax hereby imposed who
has commenced or who commences his business less than one full year
prior to the beginning of any tax year shall compute his annual gross
receipts for such tax year upon the gross receipts generated by the
business transaction within the Borough during the first month he
engages in such business activity multiplied by 12.
C.
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 provisions of law, including the exemptions
within this article, the Collector 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 Borough shall be taxed hereunder. The Collector
may make such allocation with due regard to the nature of the business
concerned on the basis of mileage division of the receipts according
to the number of jurisdictions in which it may be taxed, the ratio
of the value or values of the property or assets of the taxpayer owned
and situated in the Borough to the total property or assets of the
taxpayer wherever owned and situated, or any other method or methods
of calculation in addition to the foregoing, calculated to effect
a fair and proper allocation.
D.
Every person who ceases to carry on a business during any tax year
after having paid the business privilege tax for the entire year shall,
upon making proper application to the Collector, be entitled to receive
a refund of the prorated amount of the tax paid based upon the period
of time he was not in business during the license year. In the event
that a person who discontinues business during any tax year does so
before payment of his tax becomes due for such tax year, he shall
be permitted to apportion his tax for such tax year and shall pay
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.
E.
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
received by him during such tax year.
A.
Every person subject to the tax imposed by this article shall forthwith
register with the Collector and set forth his name, address, business
address and the nature of the business activity in which he is engaged.
B.
Every return shall be made upon a form furnished by the Collector.
Every person making a return shall certify the correctness thereof.
C.
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 any
tax year shall, on or before April 5, 1977, and annually thereafter,
file with the Collector a return setting forth his name, his business
and business address, and such other information as may be necessary
in arriving at the annual gross volume of business transacted by him
during the preceding year and the amount of the tax due.
D.
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
tax year shall, on or before the following May 15, file with the Collector
a return setting forth his name, his business, business address and
such other information as may be necessary in arriving at the actual
volume of business transacted by him during the period of operation
prior to January 1 of that tax year and the amount of the tax due.
E.
Every person subject to the tax imposed by this article who commences
business subsequent to the beginning of the tax year shall, within
40 days from the date of commencing such business, file a return with
the Collector setting forth his name, his business, business address
and such other information as may be necessary in arriving at the
actual volume of business transacted by him during his first month
of business and the amount of the tax due.
F.
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 business,
file a return with the Collector setting forth his name, his business,
his business address and such other information as may be necessary
in arriving at the actual gross volume of business during the tax
period and the amount of the tax due.
The person making the return shall, at the time of filing the
return, pay the amount of tax shown as due thereon to the Collector.
A.
It shall be the duty of the Collector 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 receipts.
B.
The Collector 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, reexamination 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 to
make refunds where necessary. Any person aggrieved by any decision
of the Collector shall have the right to appeal to court as in other
cases provided.
C.
The Collector is hereby authorized to issue subpoenas, if necessary,
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.
D.
The Collector is hereby authorized to examine the books, papers and
records of any taxpayer or supposed taxpayer in order to verify the
accuracy of any return made or, if no return was made, to ascertain
the tax due. Every such taxpayer or supposed taxpayer is hereby directed
and required to give to the Collector the means, facilities and opportunity
for such examinations and investigations as are hereby authorized.
A.
The Collector 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 in each year, interest
at the rate of 6% per annum, 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.[1]
A.
Nothing contained in this article 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 or
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 article shall be held by any court of competent
jurisdiction to be in violation of the Constitution of the United
States or of the Commonwealth of Pennsylvania, the decision of the
court shall not affect or impair the right to impose the taxes or
the validity of the taxes so imposed upon other persons as herein
provided.
The Collector 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 or 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.
