[Adopted 11-13-1978 by Ord. No. 680 (Ch. 114, Art. II, of the 1986 Code)]
This article shall be known as the "Business Privilege Tax Ordinance."
The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates a different meaning. The masculine includes
the feminine, the singular includes the plural and vice versa.
The Borough of Narberth.
Any enterprise, activity, profession or any other undertaking
conducted for profit or ordinarily conducted for profit, including
but not limited to dealing in and vending, at wholesale and/or retail,
goods, wares and merchandise and engaging in conducting restaurants
or other places where food, drink or refreshments are sold, financial
businesses, those enterprises engaged in by hotel operators, motel
operators, office and/or residential apartment building operators,
parking lot and garage operators, warehouse operators, lessors of
tangible personal property, physicians and surgeons, osteopaths, podiatrists,
chiropractors, veterinarians, optometrists, pharmacists, lawyers,
dentists, engineers, architects, chemists, certified public accountants,
public accountants, funeral directors, promoters, agents, brokers,
manufacturer's representatives, advertising and public relations agencies,
real estate brokers, insurance brokers and agents, operators of places
of amusement providing either passive or active recreation, vending
machine operators, barbershop operators and beauty shop operators,
cleaning, pressing and dyeing establishment operators, laundry operators,
shoe repair shop operators, tailors, upholsterers, electrical, plastering,
bricklaying, carpentry, heat, ventilating, plumbing and painting contractors
engaged in the class of heavy building or other construction of any
kind or in the alteration, maintenance or repair thereof, repairers
of electrical, electronic and automotive machinery and equipment or
other machinery and equipment and other wares and merchandise.
Services and transactions of banks and bankers, trust, credit
and investment companies, holding companies, dealers and brokers in
money, credits, commercial papers, bonds, notes, securities, stocks,
monetary metals and commodities, factors and commission merchants.
[Amended 5-14-1979 by Ord. No. 684]
Gross value of revenue received in cash, credits or property
of any kind or nature by any person engaging in business in Narberth.
In the case of a sale of goods in which goods are delivered from a
place of business regularly maintained outside the Borough by the
taxpayer to a place regularly maintained outside the Borough by the
purchaser and in the case of any service which was rendered outside
the Borough by individuals not regularly employed (or self-employed)
in the Borough, "gross volume of business" will only include that
portion of the revenue therefrom which is received or earned from
transactions made and/or services performed within the Borough. In
the case of a financial or commodities business, the cost of securities,
commodities and other property sold, exchanged, paid at maturity or
redeemed and moneys or credits received in repayment of advances,
credits and loans (not to exceed the principal amount of such advances,
credits and loans) and deposits shall not be included.
[Amended 5-14-1979 by Ord. No. 684]
Any individual, partnership, limited partnership, association,
corporation, trust or other legally recognizable entity engaged in
a business.
An individual or organization expressly appointed by the
Council of the Borough of Narberth as such.
The period from January 1 to December 31.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
A person subject to the payment of the tax imposed by this
article.
Any business that is conducted in one location for less than
60 consecutive days.
Officers of the Borough of Narberth elected or appointed
as such.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
For the tax year beginning January 1, 1979, and for each tax
year thereafter, every person desiring to continue to engage in or
hereafter to begin to engage in a business in Narberth shall, on or
before the 31st day of January of the tax year or prior to commencing
business in such tax year, make application for one license for each
actual place of business in the Borough and, if such person has no
actual place of business within the Borough, make application for
one license with the Secretary. Such license shall be made by the
completion of an application furnished by the Secretary and the payment
of a fee as set by resolution of the Borough Council for each license.
Each applicant shall receive a certificate of license from the Secretary,
which shall not be assignable. In the case of loss, defacement or
destruction of any certificate, the person to whom the certificate
was issued shall apply to the Secretary for a new certificate, for
which a fee as set by resolution of the Borough Council shall be charged.
Such certificate shall be conspicuously posted at each place of business
within the Borough at all times.
A.
There is levied for the tax year 1984 and annually thereafter a tax
for general revenue purposes at the rate of 1 1/2 mills or $1.50
per $1,000 of gross volume of business, subject only to the exemptions
provided in this article.
[Amended 12-29-1983 by Ord. No. 736]
B.
The taxpayer shall keep books and records of the business so as to
show clearly and accurately the basis of computing the gross volume
of business and of exemptions, if any.
Exempt persons shall be as follows:
A.
Individuals employed for a wage or salary.
B.
Nonprofit corporations or associations organized solely and exclusively
for religious, educational or charitable purposes and not conducting
any regular or established business competing commercially with any
person subject to the tax imposed by this article.
C.
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.
D.
Any other person exempt by law from imposition of a business privilege
tax by a municipality.
Exempt receipts shall be as follows:
A.
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.
B.
Taxes collected by the taxpayer as agent for the government of the
United States of America, Commonwealth of Pennsylvania or any of its
political subdivisions.
C.
Any portion of the fees or commissions with respect to any transaction
paid by a broker to another broker on account of a purchase or sale
contract initiated by or exercised or cleared in conjunction with
such other broker.
D.
Receipts by a dealer from sales to other dealers in the same line
where the dealer transfers title or possession at the same price for
which they acquired the goods, wares and merchandise, provided that
such other dealers are not the parent or subsidiary of the vendor/dealer
or have no other affiliation or cooperative arrangement with the vendor/dealer.
[Amended 4-21-2021 by Ord. No. 1032]
E.
The amount of any allowance made for goods, wares and 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 their business.
[Amended 4-21-2021 by Ord. No. 1032]
F.
Receipts from utility service to any person or company whose rates
of service are fixed and regulated by the Pennsylvania Public Utility
Commission or on any privilege or transaction involving the rendering
of any such public utility service.
G.
Receipts from the sale of goods, articles and products or by-products
manufactured or grown in the Borough or from their preparation or
processing for use or market or from their transportation, dumping
or storage.
H.
Any other portion of the gross volume of business which is prohibited
from taxing by reason of the Constitution of the United States and
of the Commonwealth of Pennsylvania and the laws of the commonwealth.
A.
Every return shall be made upon a form furnished by the Borough or
the Tax Administrator. This form will require that the taxpayer furnish
the following information:
(1)
Taxpayer's name.
(2)
Nature of taxpayer's business.
(3)
Business address and telephone number.
(4)
Information necessary to arrive at the estimated gross volume of
business and tax payable for the current year.
(5)
Information necessary to compute the amount of tax underpaid or overpaid
for the previous year, which shall be the difference between the tax
payable on the actual gross volume of business and the tax paid on
the estimated gross volume of business.
(6)
The total amount of tax due.
B.
Every person making such return shall certify under authorized signatures
the correctness thereof under the penalties of perjury.
C.
Every taxpayer who commences business on or before March 1 of any
tax year shall file a return on or before the 30th day of June of
the tax year.
D.
Every taxpayer who commences business on March 1 or later of the
tax year shall file a return within four months of such commencement
of business.
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 that 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 volume, the taxpayer shall be entitled
to a refund, without interest, of any excess tax paid for the tax
year in which business was terminated.
A.
Every person subject to the payment of the tax hereby imposed who
has conducted business for the full calendar year immediately preceding
the tax year shall use as the estimated gross volume of business for
the tax year the actual gross amount of business transacted during
said preceding calendar year.
B.
Every person subject to the payment of the tax hereby imposed who
has commenced or who commences business before the beginning of the
tax year but after the beginning of the calendar year preceding the
next year shall compute the estimated annual gross volume of business
for the tax year based upon the gross volume of business transacted
during the preceding calendar year, taking the monthly average during
said period and multiplying same by 12. In the event that such person
shall be in business fewer than three months in the preceding calendar
year, they shall be permitted to use sufficient days in the calendar
year in which the tax year begins to equal three months after commencement
of business, to take a monthly average thereon and to multiply the
average by 12.
[Amended 4-21-2021 by Ord. No. 1032]
C.
Every person subject to the payment of the tax hereby imposed who
has commenced or commences business subsequent to the beginning of
the tax year, if there shall be less than three months from the commencement
of business to the end of the tax year, shall use as the gross volume
of business for the tax year actual gross volume of business transacted
by them during the tax year. If there shall be more than three months
from the commencement of business to the end of the tax year, they
shall compute the estimated gross volume of business for such tax
year by 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 year.
[Amended 4-21-2021 by Ord. No. 1032]
D.
Every person subject to the payment of the tax hereby imposed who engages in a business temporary, seasonal or itinerant by nature shall compute their estimated gross amount of business to be transacted by them during the current tax year using the same bases as described in Subsection A, B or C of this section, taking into account any conditions especially applicable to the nature of their business.
[Amended 4-21-2021 by Ord. No. 1032]
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, and if the same is not paid on said
date, an additional penalty of 1/2% per month or fractional part of
a month and an interest charge at the rate of 6% per year will be
added thereto.
A Tax Administrator shall be appointed by the Borough Council
and shall have the following duties and powers:
A.
To collect and receive the taxes, penalties and interest charges provided in § 458-9 of this article.
B.
To keep a record showing the amount received from each taxpayer and
the date of such receipt.
C.
To prescribe, adopt, promulgate and enforce rules and regulations
relating to the administration and enforcement of this article, including
the reexamination and correction of returns and of payments alleged
or found to be incorrect or as to which an overpayment is claimed
or found to have occurred, and to make refunds in cases of overpayment
for any period of time not to exceed six years from the date of payment
of the sum involved. No rule or regulation of any kind shall be enforceable
unless it has been approved by resolution by the Borough Council.
D.
To examine the books, papers and records of any taxpayer or of whom
the Tax Administrator believes to be a taxpayer, in order to verify
the accuracy of this return, or, if no return was filed, to ascertain
the tax due.
E.
To remit taxes and provide necessary information to the Treasurer
as agreed upon.
A.
The Treasurer shall receive from the Tax Administrator the proceeds
of taxes, fines, penalties and interest charges and the net of authorized
costs and shall report monthly to the Borough Council the amount received
in the aggregate for all taxpayers.
B.
At the end of each year, as well as upon special request by the Borough
Council, the Treasurer shall make a report to the Borough Council
on:
All fees, taxes, fines, penalties and interest charges due and
unpaid shall be recoverable by the Borough as other debts due the
Borough are now or may hereafter be by law recoverable.
Any information gained by the Tax Administrator 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 as authorized under this
article, in accordance with proper judicial order or as otherwise
provided by law.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
Any person who shall conduct, transact or engage in any of the
businesses subject to the tax imposed by this article without having
first registered 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 or any person who shall
violate any other provision of this article shall, upon being found
liable therefor, pay a fine of not more than $600, plus court costs
and reasonable attorneys' fees incurred by the Borough in the enforcement
proceedings. If the penalty is not paid, the Borough shall initiate
a civil action for collection in accordance with the Pennsylvania
Rules of Civil Procedure. Each day a violation exists shall constitute
a separate offense, and each section of this article that is violated
shall also constitute a separate offense. In addition to or in lieu
of enforcement under this section, the Borough may enforce this article
in equity in the Court of Common Pleas of Montgomery County.
A.
Nothing contained in this article shall be construed to empower the
Borough to levy and collect the taxes hereby imposed on any business
or any portion of any business not within the taxing power of the
Borough under the Constitution of the United States, the Constitution
of the Commonwealth of Pennsylvania and the laws of the commonwealth.
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
power or jurisdiction to be in violation of the Constitution of the
United States or of the Commonwealth of Pennsylvania or the laws of
the commonwealth, such event 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.
C.
The provisions of this article are severable. Therefore, if any of
the provisions shall be held to be unconstitutional, illegal or invalid
by any court of competent jurisdiction, the decision of said court
shall only affect that provision held to be unconstitutional, invalid
or illegal and shall not affect or impair any of the remaining provisions
of this article. It is hereby declared to be the intention of the
Council of the Borough of Narberth that this article would have been
adopted even if such unconstitutional, illegal or invalid provision
had not been included herein.
