[Adopted 3-13-1967 by Ord. No. 724; amended in its entirety 11-14-1989 by Ord. No.
899 (Ch. 24, Part 3, of the 1989 Code)]
This article is enacted under authority of the Local Tax Enabling
Act, P.L. 1257, No. 511, December 31, 1965, 53 P.S. § 6901
et seq. (1982), as hereafter amended, supplemented, modified or reenacted
by the General Assembly of Pennsylvania.[1]
[1]
Editor's Note: Pursuant to P.L. 197, No. 32, enacted 7-2-2008,
sections of the Local Tax Enabling Act, formerly codified in 53 P.S.
§ 6901 et seq., have been revised and renumbered. See now 53
P.S. § 6924.101 et seq.
A.
BUSINESS
CALENDAR YEAR
LICENSE YEAR
PERSON
TAXPAYER
TAX YEAR
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
VENDOR
WHOLESALE DEALER or WHOLESALE VENDOR
As used in this article, the following terms shall have the meanings
indicated, unless a different meaning clearly appears from the context:
Any activity carried on or exercised for gain or profit in
the Borough of Wilmerding, including, but not limited to, the sale
of merchandise or other tangible personalty or the performance of
services and the rental of personalty and/or realty.
The period January 1 to December 31, inclusive.
The period from January 1 to December 31, inclusive.
Any individual, partnership, limited partnership, association,
firm or corporation. Whenever used in any clause prescribing a penalty,
the term "person" as applied to partnerships shall mean the partners
thereof, and as applied to corporations and associations, shall mean
the officers thereof, and if there are no officers, the shareholders
thereof.
A person subject to the payment of the tax imposed by this
article.
The period from January 1 to December 31, inclusive.
Business conducted at one location for less than 60 consecutive
calendar days.
Person who, from a store, warehouse, lot or other established
place of business in the Borough, sells merchandise or other tangible
personalty previously purchased by him, such property being in the
same state and condition as when purchased by or for such vendor,
or if manufactured by him, being sold from a store or warehouse apart
from the manufactory.
Any person who sells to dealers in or vendors of goods, wares
and merchandise with respect to such goods and to no other persons.
B.
As used in this article, the masculine shall include the feminine
and neuter.
There is hereby imposed for the first tax year and annually
thereafter a mercantile tax for general revenue purposes on the privilege
of doing business as herein defined in the Borough, as follows:
A.
Rate and basis. The rate of the tax on each and every dollar of the
whole or gross volume of business transacted within the territorial
limits of the Borough of Wilmerding shall be one mill, which shall
mean $1 per $1,000 gross volume of business; except that the rate
of the tax on each and every dollar of the whole or gross volume of
business transacted by wholesale dealers or wholesale vendors within
the territorial limits of the Borough shall be 1/2 mill and all retail
business shall be taxed at the rate of 3/4 mill.[1]
B.
Computation of volume of business.
(1)
Every person subject to payment of the tax hereby imposed who has
commenced his business prior to the full calendar year prior to the
tax year shall compute his estimated annual gross volume of business
upon the actual gross amount of business transacted by him during
said immediately preceding calendar year.
(2)
Every person subject to payment of the tax hereby imposed who has
commenced or who commences his business before the beginning of the
tax year but after the beginning of the full calendar year prior to
the tax year shall compute his estimated annual gross volume of business
upon the gross volume of business transacted by him during the prior
calendar year, taking the monthly average during said period and multiplying
the same by 12. In the event that he shall be in business fewer than
90 days in the prior calendar year, he shall be permitted to use sufficient
days in the calendar year in which the tax year begins to equal 90
successive days after commencement of business, to take a monthly
average thereon, and to multiply the average by 12. For the first
tax year only, such computation shall be based upon the monthly average
multiplied by 10.
(3)
Every person subject to payment of the tax hereby imposed who has
commenced or commences his business subsequent to the beginning of
the tax year and prior to the effective date of this article shall
compute his estimated gross volume of business for such tax year upon
the gross volume of business transacted by him during the period from
the commencement of his business to the end of the year, taking the
monthly average during the first three months of business and multiplying
the same by the number of months from the commencement of business
to the end of the tax year. For the first tax year only, such computation
shall be based on the monthly average multiplied by 10. In the event
that such person shall be in business fewer than 90 days in the tax
year, he shall be permitted to use sufficient days in the next succeeding
calendar year to equal 90 successive days after commencement of business
to take a monthly average thereon, and to multiply the average by
the number of months from the commencement of his business to the
end of the tax year.
(4)
Every person subject to payment of the tax hereby imposed who engages
in business temporary, seasonal or itinerant by nature shall compute
the estimated gross amount of business to be transacted by him for
the period said person engages in such temporary, seasonal or itinerant
business by a method to be determined by the Tax Collector.
(5)
The Tax Collector is hereby authorized to accept payment under protest
of the amount of mercantile 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. Any action
instituted for such judicial determination shall be instituted within
two years of the last day of the period for which the tax is disputed
or claim made.
C.
Persons, business and receipts exempted.
(1)
Persons and businesses. Persons employed for a wage or salary, nonprofit
corporation or association organized for religious, charitable or
educational purposes, agencies of the Government of the United States
or of the Commonwealth of Pennsylvania 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 article.
(2)
No such tax shall be assessed and collected on a privilege, transaction,
subject or occupation which is subject to a state tax or license fee
and which tax or license fee has been held by the Courts of Pennsylvania
to be the basis for exemption from the imposition of a business privilege
tax by a municipality.
(3)
Utilities. No such tax shall be assessed and collected on the gross
receipts from utility service of any person or company whose rates
of service are fixed and regulated by the Pennsylvania Public Utility
Commission or on any public utility service rendered by any such person
or company or on any privilege or transaction involving the rendering
of any such public utility service.
(4)
State tax on tangible property. No such tax shall be assessed and
collected on the privilege of employing such tangible property as
is subject to a state tax except on sales of admission to places of
amusement or on sales or other transfers of title or possession of
property.
(5)
Production and manufacture. No such tax shall be assessed and collected
on goods, articles and products, or on by-products of manufacture,
or on minerals, timber, natural resources and farm products manufactured,
produced or grown in the Borough, or on the preparation or processing
thereof for use or market, or on any privilege, act or transaction
relating to the business of manufacturing, 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 any privilege, act or transaction relating to the business
of processing by-products of manufacture, or on the transportation,
loading, unloading or dumping or storage of such goods, articles,
products or by-products.
D.
Determination of gross or whole volume of business. Gross or whole
volume of business upon which the tax hereunder is computed shall
include the gross consideration credited or received for or on account
of sales made, rentals and/or services rendered, subject only to the
following allowable deductions and exemptions:
(1)
The dollar volume of business transacted by wholesale and retail
dealers derived from the resale of goods, wares and merchandise taken
by any dealer as trade-in or as part payment for other goods, wares
and merchandise, except to the extent that the resale price exceeds
the trade-in allowance.
(2)
Refunds, credits or allowances given by a taxpayer to a purchaser
on account of defects in goods, wares or merchandise sold or on account
of goods, wares or merchandise returned.
(3)
Any commissions paid by a broker to another broker on account of
a purchase or sales contract initiated, executed or cleared with such
other broker.
(4)
Bad debts, where the deduction is also taken in the same year for
federal income taxation purposes.
(5)
Taxes collected as agent for the United States of America, Commonwealth
of Pennsylvania, County of Allegheny or the Borough.
E.
Partial exemptions. Where gross or whole volume of business in its
entirety cannot be subjected to the tax imposed by this article by
reason of the provisions of the Constitution of the United States
or any other provision by law, the Tax Collector with the approval
of Borough Council shall establish rules and regulations and methods
of allocation and evaluation so that only that part of the gross or
whole volume of business which is properly attributable and allowable
to doing business in the Borough shall be taxed hereunder.
F.
Rate when same tax is imposed by two taxing bodies. If any person
is liable for the same tax on the same subject imposed under the Local
Tax Enabling Act[2] to the Borough and one or more political subdivisions
of the state, then and in that event the tax shall be apportioned
by such percentage as may be agreed upon by such political subdivisions,
but in no event shall the combined taxes of both subdivisions exceed
a maximum rate of tax as fixed by the said enabling act permitting
the imposition of such taxes.
[2]
Editor's Note: See 53 P.S. § 6924.101 et seq.
G.
Records. The taxpayer, to obtain the foregoing enumerated exclusions
and deductions, shall keep books and records of his business so as
to show clearly, accurately, and separately the amount of such sales
and services as are excluded from the tax and the amounts of such
sales and services which he is entitled to deduct from the gross volume
of business as hereinbefore provided.
A.
Any return shall be made upon a form furnished by the Tax Collector.
Every person making a return shall verify the correctness thereof
by affidavit.
B.
During the Borough fiscal year 1967, every person subject to the
tax imposed by this article who has commenced his business at least
one full year prior to the first day of January 1967 shall, on or
before the 15th day of August 1967, file with the Tax Collector a
return setting forth his name, his business and his business address,
and such other information as may be necessary in arriving at the
actual gross amount of the business transacted by him during the period
between the first day of January 1967 and the day preceding the first
day of January 1968, both inclusive, and the amount of tax due.
C.
Annually after the Borough fiscal year 1967, every person subject
to the tax imposed by this article who has commenced business at least
one full year prior to the beginning of any tax or fiscal year shall,
on or before the 15th day of February following, file with the Tax
Collector a return setting forth his name, his business and his business
address, and such other information as may be necessary in arriving
at the actual gross amount of business transacted by him during the
preceding calendar year and the amount of tax due.
D.
During the Borough fiscal year 1967, every person subject to the
tax imposed by this article who has commenced his business less than
one full year prior to the first day of January 1967 shall, on or
before the 15th day of August 1967, file with the Tax Collector a
return setting forth his name, his business and his business address,
and such other information as may be necessary in arriving at the
actual gross amount of business transacted by him during the number
of months in business and the amount of tax due.
E.
Annually after the Borough fiscal year 1967, 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 any tax year shall,
on or before the 15th day of February following, file with the Tax
Collector a return setting forth his name, his business and his business
address, and such other information as may be necessary in arriving
at the actual gross amount of business transacted by him during the
number of months in business and the amount of the tax due.
F.
Every person subject to the tax imposed by this article who commences
business subsequent to the beginning of any tax year shall, within
40 days from the date of commencing such business, file a return with
the Tax Collector setting forth his name, his business and his business
address, and such other information as may be necessary in arriving
at the actual gross amount of business transacted by him during his
first month of business and the amount of tax due.
G.
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, on the day he completes such business, file a return
with the Tax Collector setting forth his name, his business and his
business address, and such other 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.
After the effective date of this article, any person desiring
to conduct or to continue to conduct any business, as herein defined,
within the Borough shall file with the Tax Collector an application
for a mercantile license with a fee of $2 for retail and $2 for wholesale;
$4 for both; $2 for eating and drinking businesses; $2 for brokers.
The license issued shall be conspicuously posted in the place
of business for which such license is issued and shall remain in effect
for the license year or fraction of year for which said license was
issued. In cases where more than one place of business is conducted,
a separate license shall be issued for each place of business. Any
taxpayer who is in default in payment of the tax due hereunder shall
be refused a license until such tax is paid in full.
Any person who shall conduct, transact or engage in any of the
businesses subject to the tax imposed by this article without having
first secured a mercantile license for the year, or any person who
shall fail to file a tax return as required by the provisions of this
article, or any person who shall willfully file a false return shall,
upon conviction thereof, be sentenced to pay a fine of not more than
$600 and costs or, in default of payment thereof, to imprisonment
for a term not to exceed 30 days.
A.
The Tax Collector is charged with the duties of collecting and receiving
taxes, fines and penalties imposed by this article. It shall be his
duty to keep a record showing the amount received by him, from whom
received, and the date of such receipt.
B.
The Tax Collector and his duly appointed agents are hereby empowered,
with the approval of Borough Council, to prescribe, adopt and promulgate
rules and regulations relating to any matter pertaining to the administration
and enforcement of this article, including provisions for the examination
and correction of returns and payments alleged or found to be incorrect,
or overpayments claimed or found to have occurred, and charged with
enforcing the provisions of this article and any rules and/or regulations
promulgated pursuant hereto.
C.
In the event the person to be assessed neglects or refuses to make
a return, then in such case the Tax Collector or his duly appointed
agents shall assess said person or persons on such an amount of whole
or gross volume of business as the said Tax Collector or his agents
deem reasonable and appropriate. In all cases of assessment, the Tax
Collector or his duly appointed agents shall give the parties assessed
a notice, in which shall be stated the trade, business, occupation
or class and the amount of the mercantile tax imposed.
D.
The taxpayer shall maintain such records and books of account as
will enable him to make a true and accurate return in accordance with
this article. Such accounts and records must disclose in detail the
gross receipts and other data pertaining to the taxpayer's gross
volume of business, and must be sufficiently complete to enable the
Tax Collector or his agents to verify all transactions. The Tax Collector
or his agents are hereby authorized to examine the books, papers and
records of any person or persons subject to or supposed to be subject
to the tax imposed by this article in order to verify the accuracy
of the return made or, if no return was made, to ascertain the tax
due.
E.
Any person aggrieved by any decision of the Tax Collector shall have
the right to appeal to the Court of Common Pleas.
The compensation to be paid the Tax Collector is hereby fixed
at 2% on all taxes collected under the provisions of this article
or at such rate of compensation as may be amended or revised from
time to time.
The Tax Collector shall post a surety bond in a sufficient amount,
as fixed from time to time, conditioned for the faithful performance
of his duty or duties under the provisions of this article.
Any information gained by the Tax Collector or any other official,
agent or employee of the Borough as a result of any returns, investigations,
hearings or verifications required or authorized by this article shall
be confidential, except in accordance with proper judicial order or
as otherwise provided by law.
A.
The Tax Collector or his duly appointed agents shall have the power
in the name of the Borough to institute proceedings against persons
who violate the provisions of this article.
B.
If for any reason the tax is not paid when due and 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 interest and
penalties herein imposed.