[Adopted 8-31-1992 by Ord. No. 415B (Ch. 24, Part 5, of the 2003 Code
of Ordinances)]
This article shall be known as the "Amended Business Privilege
Tax Ordinance."
The following words and phrases, when used in this article,
shall have the meaning ascribed to them in this section, except where
the context clearly indicates a different meaning:
Any activity carried on or exercised for gain or profit in
the City of Lock Haven including, but not limited to, the sale of
merchandise or other tangible personalty, the performance of services
and the rental of personalty and/or realty.
The period January 1 to December 31, inclusive.
The City of Lock Haven, Clinton County, Pennsylvania.
Those business entities whose income is combined for the
purpose of inclusion on a single federal individual, partnership or
corporate tax return.
Any individual, partnership, limited partnership, association,
firm or corporation. Whenever used in any clause prescribing or imposing
a penalty, the term "person" as applied to the association shall mean
the partners or members thereof, and as applied to corporation, the
officers thereof.
The person or agency duly appointed by the City of Lock Haven
to administer the within tax.
The period from January 1 to December 31, inclusive.
A person subject to the payment of the tax imposed by this
article.
"Wholesale dealer" or "wholesale vendor" shall mean any person
who sells to dealers in, or vendors of, goods, wares and merchandise
and to no other persons.
There is hereby levied for the tax year 1992 and annually thereafter
a tax for general purposes on the privilege of doing business as herein
defined in the City of Lock Haven as follows:
A.
Rate and basis of tax. The rate of tax on each and every dollar of
the whole or gross volume of business transacted within the territorial
limits of the City of Lock Haven shall be 1 1/2 mills; 1 1/2
mills shall mean $1.50 per $1,000 of 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 City of Lock Haven shall
be one mill. All non-wholesale business of such wholesale dealers
or wholesale vendors shall be taxed at the general rate of 1 1/2
mills.
B.
Computation of volume of business.
(1)
Ongoing business. Every person subject to the payment of the tax
hereby imposed shall use as his annual estimated gross volume of business
the actual gross amount of business transacted by him during the immediately
preceding calendar year, providing that his business was begun prior
to such preceding calendar year.
(2)
New business. If the business was begun during the first nine months
of the calendar year, the gross volume of business used to calculate
the tax due in the beginning year shall be the first three months'
average, times the number of months of operation during the tax year.
The annual estimated gross volume of business for the second year
of operation shall be calculated by annualizing the beginning year's
actual gross volume of business. If the business was begun within
the last three months of the calendar year, the actual gross volume
of business shall be used to calculate the beginning year's tax liability.
The annual estimated gross volume of business for the second year
of operation shall be calculated by analyzing the gross volume of
business from the first 90 days of operation, even if some of the
90 days fall within the second year.
(3)
Every person subject to the payment of the tax hereby imposed, who
engages in a business temporary, seasonal or itinerant by nature shall
compute his estimated gross amount of business to be transacted by
him for the period said person engages in such temporary, seasonal
or itinerant business within the City by a method to be determined
by the Tax Administrator.
(4)
The Tax Administrator is hereby authorized to accept payment under
protest of the amount of business privilege tax claimed by the City
in any case where the taxpayer disputes the validity or amount of
the City's claim for tax. If it is thereafter judicially determined
by a court of competent jurisdiction that the City has been overpaid,
the amount of overpayment shall be refunded to the taxpayer. The provisions
of this section shall be applicable to cases in which the facts are
similar to those in a case litigated in a court of competent jurisdiction.
(5)
Payments made under any mercantile tax for business to which this
tax is applicable shall be credited to this tax and vice versa.
C.
Persons, businesses and receipts exempted.
(1)
Persons and businesses. Persons employed for a wage or salary, not
for profit corporations or associations organized for religious, charitable
or educational purposes, agencies of the government of the United
States or 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)
Every person whose total tax due under this article from all sources
under common control for any tax year is less than $20 is exempt from
filing a return and payment of tax for that tax year.
(3)
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 to be the basis for exemption
from the imposition of a business privilege tax by a municipality.
(4)
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 Pubic Utility
Commission or 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.
(5)
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.
(6)
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 City of Lock Haven 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 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 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 commission 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 or the City of Lock Haven.
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 of law, the Tax Administrator, with the approval
of the Council of the City of Lock Haven, 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 City 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[1] and its amendments, to the City 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 said Enabling Act permitting
the imposition of such taxes, and if no maximum rate of tax is fixed
by said Enabling Act, the tax due hereunder shall be reduced by the
amount of tax on the same subject collected by one or more other political
subdivision(s); provided, however, that said reduction shall be limited
to an amount not to exceed 50% of the amount otherwise due hereunder.
[1]
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.
Every return shall be made upon a form furnished by the Tax Administrator.
Every person making a return shall certify the correctness thereof
by affidavit.
B.
Every person subject to the tax imposed by this article who commenced
his business on or before January 1 of the full calendar year previous
to the beginning of any tax year shall on or before the June 15 of
the tax year file with the Tax Administrator a return setting forth
his name, his business address and other such 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 the tax
due.
C.
Every person subject to the tax imposed by this article who has commenced
his business before the beginning of the tax year but after January
1 of the full calendar year previous to the beginning of the tax year
shall on or before June 15 of the tax year file with the Tax Administrator
a return setting forth his name, his business, business address and
such other information as may be necessary in arriving at the estimated
gross amount of business transacted by him as calculated under § 365-258B(2)
hereof and the amount of tax due, provided 100 days have elapsed from
the commencement of the business to June 15 of the tax year. If a
taxpayer has not been in business for 100 days as of June 15 of the
tax year, whether or not he commenced business within the tax year,
his return shall be filed within 100 days of the commencement of his
business.
D.
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 at the commencement of business for the tax year file a return with the Tax Administrator setting forth his name, his business, his business address and such information as may be necessary in arriving at the estimated gross amount of business to be transacted by him as calculated in accordance with § 365-25B(1).
E.
Any person going out of or ceasing to do business shall, within seven
days from the date of ceasing to do business, file a return showing
the actual gross volume of business conducted and done by such person
during the tax year in which said person ceased doing business and
pay the tax due as computed thereon at the rate herein provided for
at the time of filing said return. If such tax has been previously
paid based upon estimated gross receipts, the taxpayer shall be entitled
to a refund, without interest, of any excess tax paid for the tax
year in which business was terminated.
F.
Payment of tax and penalties for late payment. The business privilege
tax levied pursuant to this article shall be due and payable on the
date on which the taxpayer is required to file a return as set forth
above. All taxpayers who shall fail to pay said tax by the due date
shall be charged a penalty of 10%, plus an additional 1% per month
or fractional part of a month, commencing with the penalty period,
until said tax is paid.
G.
Receipt. The Tax Administrator shall, when requested, upon payment
to him of the business privilege tax, give the person paying the same
a receipt therefor.
[Amended 2-24-2003 by Ord. No. 670]
After the effective date of this article, any person desiring
to commence or recommence any business, as herein defined, within
the City of Lock Haven shall register with the Tax Administrator and
shall pay a one-time registration fee in an amount as established
from time to time by resolution of City Council. Registration shall
be permanent, but will expire when the business is inactive for one
complete tax year.
[Amended 2-24-2003 by Ord. No. 670]
Any person who conducts, transacts or engages in any of the
businesses subject to the tax imposed by this article, without having
first registered with the Tax Administrator, or who fails to file
a tax return as required by the provisions of this article, or who
willfully files a false return, or who fails to maintain such records
and books of account as shall enable him to make a true and correct
return in accordance with the provisions of this article or any person
or persons subject to, or supposed to be subject to, the tax imposed
by this article who refuses to allow the Tax Administrator or his
deputies to examine the books, papers and records of any such person
or persons or who fails to comply with any other provision of this
article shall, upon conviction in a summary proceeding, be sentenced
to pay a fine of not more than $600, plus costs and, in default of
payment of such fine and costs, to a term of imprisonment not to exceed
30 days.
Each day on which such person violated this article may be considered
as a separate offense and punishable as such as aforeprovided, without
the necessity of filing a separate complaint.
A.
The Tax Administrator is charged with the duties of collecting and
receiving the taxes, fines and penalties imposed by this article.
It shall be his duty to keep a record showing the amount received
from each person paying the tax and the date of such receipt.
B.
The Tax Administrator and his duly appointed deputies are hereby
empowered, with the approval of the Council of the City of Lock Haven,
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 as to
which an overpayment is 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 Administrator or his duly appointed
deputies shall assess said person or persons on such an amount of
whole or gross volume of business as said Tax Administrator or his
deputies deem reasonable and appropriate. In all cases of assessment,
the Tax Administrator or his duly appointed deputies shall give the
parties assessed a notice in which shall be stated the trade, business,
occupation or class, and the amount of the business privilege tax
imposed or levied.
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
the provisions of 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 Administrator or his deputies to verify all transactions.
The Tax Administrator or his deputies 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,
ascertain the tax due.
E.
Any person aggrieved by any decision of the Tax Administrator shall
have the right to appeal to the Court of Common Pleas, as in other
cases.
Any information gained by the Tax Administrator or any other
official, agent or employee of the City of Lock Haven 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 Administrator or his duly appointed deputies shall have the
power, in the name of the City of Lock Haven, to institute proceedings
against any and all persons who violate the provisions of this article.
B.
If for any reasons 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.
