[Adopted 3-22-1978 by Ord. No. 1459]
This article shall be known and may be cited
as the "Mercantile Tax Ordinance."
The following words and phrases, when used in
this article, shall have the meanings ascribed to them, unless the
context clearly indicates a different meaning:
The Township Secretary of the Township of Ridley or his designated
representative.
Both cash and credit transactions and trade-in transactions
as provided by law.
The twelve-month period beginning the first day of January
1978, and each calendar year thereafter.
Any individual, partnership, limited partnership, association
or corporation, except such as are wholly exempt from taxation under
the Act of Assembly No. 511, as amended.
Any person who is a dealer in or vendor of goods, wares and
merchandise who is not a wholesale dealer or vendor or a wholesale
and retail dealer or vendor as hereinafter defined.
Any business that is conducted at one location for less than
60 consecutive calendar days.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and to other persons.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and to no other persons.
[1]
Editor's Note: Ordinance No. 1459 also provided
that the term(s) herein defined shall not include nonprofit corporations
or associations organized for religious, charitable or educational
purposes, agencies of the Government of the United States or of the
Commonwealth of Pennsylvania or any person vending or disposing of
articles of his own manufacture for shipment or delivery away from
the place of the manufacture thereof or any farmer vending or disposing
of his own produce, or other transactions exempted by law.
A.
For the license year beginning January 1, 1995, and
each license year thereafter, every person desiring to continue to
engage in or hereafter to begin to engage in the business of wholesale
or retail or wholesale and retail vendor or dealer in goods, wares
and merchandise, and any person conducting a restaurant or other place
where food, drink or refreshments are sold in the Township shall,
on or before the first day of June, 1995, and on or before the first
day of January of each license year thereafter, or prior to commencing
business in any such license year, apply for and procure a mercantile
license for his place of business or, if more than one, for each of
his places in business in the Township, from the Collector, who shall
issue the same upon payment of a fee as set from time to time by resolution
of the Board of Commissioners for a wholesale or retail license or
for a wholesale and retail license for his place of business, or if
more than one, for each of his places of business in the Township
for such license year.
[Amended 12-21-1994 by Ord. No. 1733; 10-25-2000 by Ord. No.
1808]
B.
Each application for a license shall be signed by
the applicant, if a natural person, and in the case of an association
or partnership, by a member or partner thereof, and in the case of
a corporation, by an officer thereof.
C.
Such licenses shall not be assignable and shall be
conspicuously posted at the place of business or each of the places
of business of every such person at all times.
D.
In the case of loss, defacement or destruction of
any license, the person to whom the license was issued shall apply
to the Collector for a new license, for which a fee as set from time
to time by resolution of the Board of Commissioners shall be charged.
[Amended 10-25-2000 by Ord. No. 1808]
A.
A tax to provide revenue for general Township purposes
is hereby levied, assessed and imposed upon every person engaging
in any of the following occupations or businesses in the Township
at the rate hereinafter set forth, and such persons shall pay a mercantile
tax for the year beginning January 1, 1978, and subsequent years at
such rate subject to the exemptions hereinafter set forth:
(1)
Wholesale vendors or dealers in goods, wares and merchandise
of every kind, at the rate of one mill on each dollar of the gross
volume of business transacted by him during the license year.
(2)
Retail vendors or dealers in goods, wares and merchandise
of every kind and all persons engaged in conducting restaurants or
other places where food, drink or refreshments are sold, at the rate
of 1 1/2 mills on each dollar of the gross volume of business
transacted by him during the license year.
(3)
Wholesale and retail vendors or dealers in goods,
wares and merchandise of every kind, at the rate of one mill on each
dollar of the gross volume of wholesale business transacted by him
and 1 1/2 mills on each dollar of the gross volume of retail
business transacted by him during the license year.
(4)
The tax imposed by this section shall not apply to
the dollar volume of annual business covering the resale of goods,
wares or merchandise taken by a dealer as a trade-in or as partial
payment for other goods, wares and merchandise, except to the extent
that the resale price exceeds the trade-in allowance.
(5)
The first $50,000 of gross volume of business shall
be exempt from and not subject to the rates of taxation specified
above and herein.
B.
The tax for the year 1978 shall only be applied to
the gross volume of business occurring during the period beginning
on the effective date of the tax and extending to and including December
31, 1978.
The following subsections refer to the computation
of the estimated gross volume of business:
A.
Every person subject to the payment of the tax hereby
imposed who has commenced his business at least a full year prior
to January 1, 1978, shall compute the gross volume of business upon
the actual gross amount of business transacted by him during the 12
months preceding January 1, 1978.
B.
Every person subject to the payment of the tax hereby
imposed who has commenced his business less than one full year prior
to January 1, 1978, shall compute the gross volume of business by
multiplying by 12 the monthly average of the actual gross amount of
business transacted by him during the months he was engaged in business
prior to January 1, 1978.
C.
Every person subject to the payment of the tax hereby
imposed who commences his business subsequent to January 1, 1978,
shall compute the gross volume of business for the license year upon
the gross volume of business transacted by him during the first month
of his engaging in business, multiplied by the number of months remaining
in the license.
D.
Every person subject to the payment of the tax hereby
imposed who engages in business temporary, seasonal or itinerant by
its nature shall compute the gross volume of business upon the actual
gross amount of business transacted by him during the license year.
A.
Forms; information to be correct. Every return, as
hereinafter required by this subsection, shall be made upon a form
furnished by the Collector. Every person making such return shall
furnish all information requested therein and certify the correctness
thereof under the penalties of perjury.
B.
First return.
(1)
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 the license year shall, on or before the 31st day of
March following, file with the Collector a return setting forth his
name, his business and business address and such other information
as may be necessary to compute the actual gross volume of business
transacted by him during the license year and the amount of tax estimated
to be due. For the license year 1978 only, the return shall be filed
by June 30, 1978.
(2)
Every person subject to the tax imposed by this article
who commences business subsequent to the beginning of the license
year shall, within 60 days from the date of commencing such business,
file a return with the Collector setting forth his name, his business
and business address and such information as may be necessary to compute
the actual gross volume of business transacted by him during the license
year and the amount of tax estimated to be due.
(3)
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 Collector setting forth his
name, his business and business address and such 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.
C.
Final return.
(1)
On or before March 31 of each year, beginning in 1979,
every person subject to the tax hereby imposed shall make a final
return to the Collector showing the actual volume of business transacted
by the taxpayer during the preceding license year. Such final return
shall state the amount of the gross volume of business as set forth
in the first tax return, the amount of tax paid at the time of filing
the first tax return and the amount of tax due upon the final computation.
(2)
Any person ceasing to do business during the license
year shall, within 14 days from the date of ceasing to do business,
file a final return showing the actual gross volume of business conducted
during that portion of the license year in which said person was actually
in business and pay the tax due as computed thereon.
A.
At the time of the first tax return, the person making
same shall pay the amount of the tax estimated to be due.
B.
At the time of the filing of the final tax return,
if the full amount of the tax due by the taxpayer for the license
year has not been paid, the taxpayer shall pay the remaining balance
of the tax, which will be the difference between the amount of the
tax paid at the time of making the first return on the estimated computation
and the amount of the tax finally shown to be due.
A.
It shall be the duty of the Collector to collect and
receive the fees, taxes, fines and penalties imposed by this article.
It shall also be his duty to keep a record showing the amount of the
tax received by him and the date of payment.
B.
If the Collector is not satisfied with the return
and Payment of tax made by any taxpayer or supposed taxpayer under
the provisions of this article, he is hereby authorized and empowered
to make a determination of the tax due by such person, based upon
the facts contained in the return or upon any information within his
possession or that shall come into his possession, and for this purpose
the Collector or his authorized agent is authorized to examine the
books, papers and records of any person to verify the accuracy of
any return or payment made under the provisions thereof or to ascertain
whether the taxes imposed by this article have been paid. The Collector
is hereby authorized and directed to make and keep such records, prepare
such forms and take such other measures as may be necessary or convenient
to carry this article into effect and may, in his discretion, require
reasonable deposits to be made by licensees who engage in a business
temporary, seasonal or itinerant by its nature.
C.
If any taxpayer or supposed taxpayer shall neglect
or refuse to make any return and payment of tax required by this article
or if, as a result of an investigation by the Collector, a return
is found to be incorrect, the Collector shall estimate the tax due
by such person and determine the amount due by him for taxes, penalties
and interest thereon.
D.
The burden is hereby imposed upon any person, firm
or corporation claiming an exemption from the payment of the tax hereby
imposed to convince the Collector of his legal right to such exemption.
E.
If the final return of the taxpayer shows an overpayment
of the tax by reason of the fact that the gross volume of business
as stated in the estimated computation was less than the actual volume
of business for the year or by reason of the fact that the taxpayer
did not continue to engage in business throughout the year, the Collector
shall refund to the taxpayer, without interest, the amount of such
overpayment, which shall be the difference between the amount of tax
paid upon the filing of the first return and the amount of the tax
finally shown to be due.
Any information gained by the Collector or any
other Township employee or official from the administration of this
tax shall be confidential, except in accordance with proper judicial
order or as otherwise provided by law, and divulgence of any information
so gained is hereby declared to be a violation of this article.
All taxes due and unpaid under this article
shall be recoverable by the Township Solicitor as other debts due
the Township are now by law recoverable.
The Township shall provide tax regulations for
the purpose of clarifying applicability of the mercantile tax.
All taxes due under this article shall bear
interest at the rate of 1% per month or fractional part of a month
from the day they are due and shall be payable until paid. If any
taxpayer shall neglect or refuse to make any return or payment as
herein required, an additional 10% of the amount of the tax shall
be added by the Collector and collected.
All taxes, interest and penalties received,
collected or recovered under the provisions of this article shall
be paid into the treasury of the Township of Ridley for the use and
benefit of the Township of Ridley.
The provisions of this article are severable,
and if any of its provisions or exemptions shall be held to be illegal,
invalid or unconstitutional or invalid or unconstitutional as to any
part of the period designated herein as the license year, the decisions
of any court shall not affect or impair any of the remaining provisions
of this article or affect or impair its application upon any other
part of said license year, and the requirements as to the license
shall operate as of the effective date of this article, and the computation
of tax and payment thereof shall be applied and adjusted accordingly.
[Amended 11-16-1988 by Ord. No. 1639; 10-25-2000 by Ord. No.
1808]
Any person, as defined in this article, or any
officer, agent servant or employee thereof who shall fail, neglect
or refuse to comply with any of the terms or provisions of this article
shall, upon conviction thereof before a District Justice, be sentenced
to pay a fine of not less than $100 nor more than $600, and costs
of prosecution, for each offense, to be collected as other fines and
costs are by law collectible, and in default of payment of said fine
and costs, shall be imprisoned in the Delaware County Jail for a period
not exceeding 30 days. The fines imposed by this section shall be
in addition to any other penalty imposed by any other section of this
article.
It is the intent of the Board of Commissioners
that any ordinance now in effect which imposes a special license fee
or tax on specific types or kinds of business not covered by the provisions
of this article shall be and remain in full force and effect.
