[Adopted 5-6-2019 by Ord. No. 910[1]]
[1]
Editor's Note: This ordinance repealed former Art. IV, Business
Privilege Tax, adopted 11-24-1980 by Ord. No. 584, as amended.
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 indicated or requires a different meaning:
Merchandise broker, factor or commission merchant.
Carrying on or exercising, whether for gain or profit or otherwise,
within the Township of Butler, any trade, business, including but
not limited to 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 an office or place of business in the Township of Butler, the receipt
of any money or fee in the Township of Butler.
Shall not include the following: the business of any political
subdivision; any employment for a wage or salary; any business which
is subject to the mercantile tax; any organization, foundation, corporation
or unincorporated association operating under a nonprofit charter
or recognized as a nonprofit entity by the Commonwealth of Pennsylvania.
Any person who is a dealer in or vendor of goods for fewer
than six days during the tax year.
Any contractor or subcontractor who has or maintains an office
or place of business or storage facility within Butler Township.
The services and transactions of banks and bankers, savings
and loan associations, trusts, credit and investment and brokers in
money, credits, commercial paper, bonds, notes, security and stocks,
monetary metals, factors and commission merchants.
Cash, credits, property of any kind or nature, received in
or allocable or attributable to the Township of Butler from any business
or by reason of any sales made, including resales of goods, wares
or merchandise taken by a dealer as a trade-in or as part payment
for other goods, wares or merchandise, or services rendered, or commercial
or business transactions had within the Township of Butler without
deduction therefrom on account of the cost of property sold, materials
used, labor, service, or other costs, interest or discount paid, or
any other expense, or the receipt of any money or fee in the Township
of Butler. Gross receipts shall exclude:
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 a 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.
In the case of a financial business, the cost of securities
and other property sold, exchanged, paid at maturity, or redeemed,
and moneys or credits received in repayment of advances, credits and
loans, but not to exceed the principal amount of such advances, credits
and loans, and shall also exclude deposits.
In the case of a broker, commission paid by him to another broker
or sales person on account of a purchase of sales contract initiated,
executed or cleared in conjunction with such other broker.
Receipts by dealers 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.
The actual total amount of business transacted, including
both cash and credit transactions, and shall be calculated on the
basis of gross receipts of the business.
Persons doing business within Butler Township who own and
hold title to real property, residential or commercial.
The calendar year beginning at 12:01 a.m., January 1, and
ending at 12:00 midnight December 31, of the current calendar year,
and each succeeding calendar year thereafter.
Any natural person, partnership, unincorporated association
or corporation. Whenever used in any provision prescribing a fine
or penalty, the word "person" as applied to partnership shall mean
the partners thereof, and as applied to corporation or unincorporated
associations, shall mean the officers thereof.
Any person who is a dealer in or vendor of goods, wares or
merchandise, other than a wholesale dealer, wholesale vendor or broker.
That person duly appointed by the Board of Commissioners
of the Township of Butler to administer this article and collect taxes
hereunder.
All statutory limitations upon the assessment of taxes imposed
by this article. All limitations imposed by the provisions of the
Local Tax Enabling Act[1] are by law a part of this article, among which is the
limitation that the Township shall not have authority by virtue of
the Local Tax Enabling Act to levy, assess and collect a tax on goods
and articles manufactured in the Township or on the by-products of
manufacture, or on minerals, timber, natural resources and farm products
produced in such political subdivision or on the preparation or processing
thereof for use or market, or on any privilege, act or transaction
related to the business of manufacturing, the production, preparation
or processing of minerals, timber and natural resources, or farm products,
by manufacturing, by producers and by farmers with respect to the
goods, articles and products of their own manufacture, production
or growth, or on 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.
The twelve-month period beginning on January 1 of the current
year and ending on December 31 of the current year, and each succeeding
twelve-month period thereafter.
Any business that is conducted at one location for less than
60 consecutive calendar days.
Any person who sells goods, wares or merchandise for resale
to dealers in or vendors of goods, wares or merchandise, whether or
not the goods, wares or merchandise are resold in the same form, or
in an altered or changed form, or are consumed directly in the manufacturing,
processing, or fabricating of tangible personal property, which is
then sold.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
Every person, contractor or subcontractor engaging in any business,
any lessor of real property, or any broker or agent in the Township
of Butler subject to the business privilege tax, shall pay an annual
tax at the rate of 1 1/4 mills on each dollar of volume of the
gross annual receipts of such business or activity.
A.
Contractors and subcontractors. Contractors or subcontractors permanently
or temporarily doing business in Butler Township shall register and
file a tax return. A contractor or subcontractor, resident or nonresident,
engaged in the business of erecting buildings, or otherwise altering,
repairing, or improving real property, or other major construction
work, is required to report as gross receipts all receipts derived
from the performance of such contract. The amount of receipts to be
included in the tax base shall be the full contract price, which is
the total amount received or receivable by way of a fixed or determinable
amount under the terms of the contract. The contract price will be
considered to include all charges made by a contractor, or subcontractor,
for materials, labor, supervision, overhead costs, and profit. In
the case of the general contractor, prime contractor, or subcontractor
employing lower-tier subcontractors, no deduction may be made with
respect to amounts paid to subcontractors and materialmen, unless
it can be shown that the subcontractor has paid the business privilege
tax to Butler Township on the same gross receipts stemming from the
same contract.
(1)
Where a contractor or subcontractor is located or maintains a place
of business within Butler Township, but is engaged in the performance
of building and construction contracts at a point outside the territorial
limits of Butler Township, such contractor or subcontractor may exclude
from the measure of the tax the gross receipts derived therefrom,
provided that a bona fide field office was maintained on the premises
of the project during the performance of the contract wherein all
control over such project was exercised to the extent that it constituted
the doing of local business at the situs of the job.
B.
Lessors; landlords; rental agencies. Where the lessor maintains an
office or place of business within Butler Township, said receipts
are wholly taxable regardless of the fact that the property leased
or rented is situated outside the taxing district and/or regardless
of where the lease agreement is executed. No deductions may be made
for depreciation, cost of maintenance, repairs, etc.
(1)
Persons operating hotels, apartment houses, boardinghouses, nursing
homes, rooming houses and all other such establishments are taxable
on receipts from renting of rooms, furnishing of meals, and any other
services rendered.
(2)
Any person carrying on the business of renting buildings, offices,
space, stores, dwelling houses, etc., shall include gross rentals
received in the tax base.
(3)
Business corporations which hold rental property as a source of income
in addition to their regular businesses, which may or may not be real
estate, are subject to the tax whether or not services are rendered.
C.
Insurance agents, brokers, and underwriters. General agents for insurance
companies are required to report as gross receipts the entire commissions
received as compensation for their own efforts on policies sold by
them directly and the overriding commissions received by them upon
business produced by brokers or subagents.
(1)
Brokers or subagents. Brokers or subagents are required to report
as gross receipts the commissions received as compensation for their
service.
(2)
Employee of single company. A person who represents a single insurance
company is subject to tax hereunder unless he:
(a)
Devotes his entire time to the company;
(b)
Is considered by the company to be its employee, and the company
pays social security and unemployment compensation taxes on behalf
of the person claiming the exemption; and, in the event of an accident
in the course of employment, said person is entitled to workmen's
compensation; and
(c)
Does not employ solicitors, subagents, or other persons to whom
he pays salaries, commissions, or other compensation in connection
with insurance business solicited.
Every person other than a casual vendor desiring to continue
to engage in, or hereafter to begin to engage in, the business of
wholesale or retail dealer in wholesale or retail vendor goods, wares
and merchandise and any person conducting a restaurant or other place
where food, drink, and/or refreshments are sold, shall, on or before
the first Monday of January of the license year, or prior to commencing
business in the license year, procure a mercantile license for the
Township of Butler from the Tax Administrator, who shall issue the
same upon the payment of $5 for a wholesale or retail license, and
$5 for each of his or its places of business for the license year.
Such license shall be conspicuously posted at the place of business,
or at each of the places of business, at all times:
A.
Beginning with the tax year 1990 and each year thereafter, the Township
of Butler does hereby impose a mercantile tax in the manner and at
the rate hereinafter set forth, provided, nevertheless, that said
gross annual volume of business or receipt is greater than $2,500
per annum, as follows.
B.
Wholesale dealers in or wholesale vendors of goods, wares or merchandise,
at the rate of one mill on each dollar of the volume of the annual
gross business transacted by him. In the case of brokers, the term
"gross business" shall mean "gross commission earned."
(1)
Retail dealers in or retail vendors of goods, wares or merchandise,
and all persons engaged in conducting restaurants or other places
where food, drink or refreshments are sold, at the rate of 1 1/4
mills on each dollar of the volume of the annual gross business transacted
by him.
C.
The tax imposed herein shall apply whether or not the tax activity
is conducted together with some other business or occupation.
A.
Every person or entity subject to the payment of the tax hereby imposed,
who has commenced his business at least one full year prior to the
beginning of the tax or license year, shall compute his annual gross
volume of business or receipts upon the annual gross amount of business
transacted or 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 his business subsequent to the beginning of any tax
or license year shall compute his annual volume of business or gross
receipts upon the actual volume of business or gross receipts received
by him during the part of such tax or license year remaining and on
the actual gross receipts of volume of business of his first full
year for the second full year he engages in business, as the case
may be. In the case of business commencing less than one full year
prior to any tax or license year, the average monthly volume of business
or gross receipts multiplied by 12 shall be the basis for computing
the gross volume of business or receipts for the first full tax or
license year.
C.
Where a receipt 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 of Pennsylvania, or any other provisions of
law, including the exemptions within this article, the Tax Administrator
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 Township
of Butler shall be taxed hereunder. Every person who ceases to carry
on a business during any tax or license year shall be permitted to
apportion his tax for such tax or license year and shall pay for such
tax or license year an amount to be computed by multiplying his gross
receipts or volume of business 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.
D.
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 volume of business or gross receipts on the
actual business transacted or gross receipts received by him during
such tax or license year.
E.
Every person who shall discontinue business during the tax or license
year after having paid taxes for the entire year, upon making proper
application to the Tax Administrator, shall be entitled to receive
a refund of a pro rata amount of the tax paid, based upon the period
of time he was not in business during the tax or license year.
A.
Every person subject to the tax imposed by this article shall forthwith
register with the Tax Administrator, setting 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 Tax Administrator.
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 the
license year shall, on or before the 15th day of May each year, file
with the Tax Administrator a return setting forth his name, his business
address and business, and such other information as may be necessary
in arriving at the annual gross volume of business transacted or receipts
received by him during the preceding year and the amount of tax due.
D.
Every person subject to the tax imposed by this article who commences
business subsequent to the beginning of any tax or license year for
such tax or license year shall, on or before January 31 of the succeeding
tax or license year, file a return with the Tax Administrator 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 transacted or receipts received by him during such tax
period 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 any tax or license year shall,
on or before May 15 of the succeeding tax or license year, file a
return with the Tax Administrator setting forth his name, his business,
his business address and such other information as may be necessary
in arriving at the gross volume of business or receipts for the first
full tax or license year and the amount of tax due. The average monthly
volume of business transacted or receipts received in the preceding
year multiplied by 12 shall be the basis for computing the gross volume
of business or receipts for the first full tax or license year.
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 Tax Administrator 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 or receipts
during the tax period and the amount of tax due.
At the time of the filing of his return, being May 15 of each
calendar or license year, the taxpayer shall pay the amount of tax
shown and due to the Tax Collector.
A.
It shall be the duty of the Tax Administrator 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 Tax Administrator is hereby charged with the administration and
enforcement of the provisions of this article, and is, subject to
the approval of the Township Commissioners, hereby empowered to prescribe,
adopt, promulgate, and enforce rules and regulations relating to any
matters pertaining to the administration and enforcement of this article,
including provisions for the 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 Tax Administrator shall
have the right to appeal to court as in other cases provided.
C.
The Tax Administrator is hereby authorized 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 Tax Administrator 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 Tax Administrator the
means, facilities, and opportunity for such examinations and investigations
as are hereby authorized.
A.
The Tax Administrator may sue for the recovery of taxes due and unpaid
under this article in the name of the Township. If for any reason
the tax is not paid when due each year, interest at the rate of 6%
on the amount of such tax, 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.
B.
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.
A.
Nothing contained in this article shall be construed to empower the
Township 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 Township under the Constitution of the United States
and the Laws and Constitution of Pennsylvania.
B.
If the tax, or any portion thereof, imposed upon any person under
the provisions of this article is held by any court of competent jurisdiction
to be in violation of the Constitution of the United States or 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 herein provided.
A.
Any person who makes any false or untrue statement on his return,
and any person who fails or refuses to file a return or procure a
mercantile license as required or who fails to keep his license conspicuously
posted at his place of business as required herein or who fails to
pay the proper and full amount of tax due, whether business privilege
or mercantile, shall, upon conviction by a District Justice in a summary
proceeding, pay a fine of not less than $200 nor more than $500 plus
costs of prosecution.
B.
The failure of any person required to file a return to receive or
procure the form on which the same is required to be filed shall not
excuse him from making a return or from paying the tax.
C.
In addition thereto, the Township may proceed with a civil action
to collect the tax.
