[Adopted 2-7-1983 by Ord. No. 83.1]
Editor's Note: Subsequent to the adoption of this ordinance establishing the business privilege tax, the Board of Supervisors adopted Res. No. 83-20, adopted 7-11-1983, which read as follows:
"WHEREAS, the Board of Supervisors of Hempfield Township did adopt an ordinance known as the 'Hempfield Township Business Privilege Tax, Ordinance Number 83-1'; and
"WHEREAS, under the terms of the aforementioned ordinance the Board of Supervisors of Hempfield Township was authorized to prescribe rates of interest and penalties for the nonpayment of the tax or taxes imposed by said ordinance; and
"WHEREAS, the Board of Supervisors of Hempfield Township are desirous by resolution to prescribe penalties and interest for the nonpayment of the tax or taxes imposed by the aforementioned ordinance the following resolution is hereby adopted:
"BE IT RESOLVED, AND IT IS HEREIN RESOLVED AS FOLLOWS:
"That there be imposed in addition to all taxes due under the Hempfield Township Business Privilege Tax, Ordinance No. 83-1, a penalty at the rate of 10% of the tax due if not paid on the due dates, plus interest at the rate of 1% per month of the tax due for each month or fractional part thereof of any taxes remaining unpaid."
This Article shall be known, referred to and cited as the "Hempfield Township Business Privilege Tax Ordinance."
This Article is enacted under the authority of the Local Tax Enabling Act, being the Act of December 31, 1965, P.L. 1257, § 1 et seq., as amended (53 P.S. § 6901 et seq.).
Unless otherwise expressly stated, the following words, phrases and/or terms shall have the meanings ascribed to them:
- The carrying on or exercising, whether for gain or profit or otherwise, of any trade, profession, rendering of services, retail sales or wholesale sales of tangible or intangible personal property or goods, construction, independent contractors, financial businesses permitted to be taxed by law, communications, rents, any commercial activity and the like. "Business" shall not be construed to mean any political subdivision, any employment for wages or salary and any activity upon which the power to levy a tax is withheld by law.
- The Collector of the taxes levied and imposed by this article.
- FINANCIAL BUSINESS
- The services and transactions of banks and bankers, trust, credit and investment companies where the within levy is not prohibited by law, holding companies, dealers, and brokers in money, credits, commercial paper, bonds, notes, securities and stocks, monetary metals, factors and commission merchants.
- GROSS RECEIPTS
- Moneys, value, cash, credits and property of whatever kind, without any deductions on account of any costs of material, capital, labor or any other type of expenses, received by those conducting any business within Hempfield Township, Westmoreland County, Pennsylvania. In the case of a broker, the term "gross receipts" shall mean gross commissions earned. "Gross receipts" shall not be construed to mean the following:
- A. The dollar volume of business transacted by wholesale and retail dealers derived from the resale of goods, wares and merchandise, taxes 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.
- B. 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.
- C. In the case of a broker, any commissions paid by him to another broker on account of a purchase or sales contract initiated, executed or cleared in conjunction with such other broker.
- D. 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, as long as said dealers are not the parent or subsidiary organization of the vendor or have no other affiliation or cooperative arrangement with the vendor.
- E. Receipts or that portion thereof attributable to interstate or foreign commerce or to an office or place of business regularly maintained by the taxpayer, outside the limits of the Township of Hempfield and not for the purpose of evading payment of this tax and those receipts which the Township of Hempfield is prohibited from taxing by law. Such receipts shall be segregated as set forth in § 79-44B of this article.
- Any individual, partnership, limited partnership, corporation, firm, association, broker, business association, joint venture or any other type of entity doing business in Hempfield Township, Westmoreland County, Pennsylvania.
- TAXABLE YEAR
- From January 1 to and including December 31 of each year.
- TEMPORARY, SEASONAL OR ITINERANT BUSINESS
- Any business conducted by any person within Hempfield Township, Westmoreland County, Pennsylvania, less than 60 days in the calendar year.
There is herein levied and imposed upon all persons engaged in any type of business activity in Hempfield Township, Westmoreland County, Pennsylvania, a business privilege tax of .00025 on each dollar volume of annual gross receipts transacted by such persons, subject to the limitation that no one person shall pay more than $12,500 in taxes for one year. This limitation shall therefore tax gross receipts of one person up to $50,000,000 in a calendar year and any gross receipts for a calendar year in excess of $50,000,000 shall be exempt from taxes levied herein.
Every person subject to the payment of the tax hereby shall compute his annual gross receipts upon the actual receipts received by him during the calendar year.
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 any other provision of law, the Collector 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 Hempfield shall be taxed hereunder. The Collector may make such allocation, with due regard to the nature of the business concerned, on the basis of the millage division of the receipt according to the number of jurisdictions in which it may be taxed, the ratio of the value of the property or assets of the taxpayer owned and situated in the Township of Hempfield to the total property or assets of the taxpayer wherever owned and situated and any other method or methods of calculation other than the foregoing, calculated to effect a fair and proper allocation.
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 gross receipts upon the actual gross receipts received by him during such tax year.
Every person subject to the tax levied and imposed by this article shall file a tax return upon a form furnished by the Tax Collector. Said form shall set forth the name, address, character of business, gross receipts, tax due and any other information which is relevant to the collection of the tax levied and imposed herein.
Every person subject to the tax levied and imposed by this article shall file returns as required by this article under oath or affirmation with the Tax Collector on or before the 15th day of April, the 15th day of July, the 15th day of October and the 15th day of January of each calendar year indicating thereon the gross receipts for the business quarter previously ending. Therefore, tax returns shall be filed on or before April 15 for the business quarter from January 1 to and including March 31; a tax return shall be filed on or before July 15 for the business quarter beginning April 1 and concluding June 30; a tax return shall be filed on or before October 15 for the quarter year beginning July 1 and ending September 30; and a tax return shall be filed on or before January 15 for the quarter year beginning October 1 and ending December 31.
Except for temporary, seasonal or itinerant business, when it appears that the amount of taxes to be paid in any quarter-year period does not exceed $5, then and in such event the taxpayer shall have the right to defer such payment until on or before April 15 of the following year.
At the time that tax returns are required to be filed as herein mandated, the persons subject to the tax herein levied shall pay to the Tax Collector the taxes due on the gross receipts that are reflected on said returns. The Tax Collector shall provide at the time of payment of the tax herein imposed, a receipt on a form provided by the Tax Collector to the person paying said tax. Therefore, the tax herein levied shall be due and payable on or before the 15th day of April, the 15th day of July, the 15th day of October and the 15th day of January of each calendar year, with the exception of those persons whose businesses are temporary, seasonal or itinerant businesses whose payments of taxes are due and payable 30 days after completion or cease of such business, and with the exception of persons paying less than $5 in taxes in any quarter-year period whose annual payment shall be due on or before April 15 of the following year.
Any person engaged in a business temporary, seasonal or itinerant in nature shall within 30 days of completing such business file the tax return with the Tax Collector on the gross receipts of business transacted.
Within a reasonable time after the adoption of this article, the Township Supervisors, by ordinance, shall appoint a Tax Collector to provide for the collection of the tax levied by this ordinance and to have all other powers necessary and incident to the same, including the powers and duties specifically authorized by law and this ordinance.
In addition to all other powers granted herein or provided for by law, the Tax Collector shall have the following powers and duties:
It shall be the duty of the Tax Collector to collect all taxes, fines and penalties authorized, levied and/or imposed by this article.
The Tax Collector is hereby empowered with the duty to administer and enforce the provisions of this article and is herein empowered to prepare, draft, print and distribute to persons tax return forms, receipt forms and other forms necessary for the collection of the tax levied herein and is further empowered to enforce this article to carry out the administration of the tax collection process. Nothing contained herein shall be interpreted to mean that the enforcement of this article cannot be had by the Township Supervisors.
The Tax Collector is further empowered to provide procedures for the examination and reexamination of tax returns to ensure proper payment of the tax rate and amount of taxes due from any person subject to tax.
The Tax Collector or his authorized agent 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 Collector or his authorized agent the means, facilities and opportunity for such examinations and investigations as are hereby authorized.
Any information gained by any Supervisor or other official, employee or agent of the Township of Hempfield as the result of any return, investigations, hearings or verifications required or authorized by this article shall be confidential, except for official purposes and except in accordance with proper judicial order or as otherwise provided by law.
The Tax Collector and township officials hereby are instructed and authorized to impound all returns, verifications and records that come into his custody through the operation, administration and enforcement of this article, with the exception of reporting to township officials information necessary to enforce this article and to assure the efficient and orderly administration of the tax collection process.
All taxes imposed by this article, together with penalties imposed under this article, shall be recoverable by Hempfield Township or the Tax Collector as provided by law.
In addition to other remedies available by law, suit may be brought for recovery of any unpaid tax, interest and costs of collection that are allowable by law, from the person or persons who are liable for the payment of the same.
[Amended 6-12-1989 by Ord. No. 89-13; 4-8-1996 by Ord. No. 96-4]
Any person who makes any false or untrue statement on the tax return required to be filed by this article or who refuses to permit examination and inspections of the books, records and/or accounts of any business activity subject to the within tax or whosoever fails or refuses to file a tax return as required by this article or fails or refuses to pay the tax levied by this article when due shall, when found by the District Justice to be in violation, be subject to a civil fine not to exceed $600, plus all court costs and reasonable attorney's fees incurred by Hempfield Township in the enforcement of this article in a civil enforcement proceeding. Each day that a person refuses to permit examination and/or inspection of the books, records or accounts of any business activity subject to the within tax shall constitute a separate enforceable offense. Furthermore, each day that any person fails or refuses to file a return or fails and refuses to pay the tax levied in this article when due shall constitute a separate enforceable offense.
Nothing contained in this article shall be construed to mean that the Township can levy and collect taxes as herein imposed upon any person which is exempt from the payment of said taxes under the Constitution of the United States and/or the Constitution and laws of the Commonwealth of Pennsylvania.
If any portion or provision of this article is declared to be illegal, unenforceable or unconstitutional by any court of competent jurisdiction, the decision of said court, unless otherwise specifically stated, shall not affect any of the remaining portions of this article.
It is herein declared that the provisions of this article are severable, and if any provisions, portions or sections of this article are declared to be illegal, invalid or unconstitutional, the decision or decisions of any court which makes such declaration shall not impair or affect any of the remaining portions of this article.
This Article shall not be effective until 30 days after its adoption. Taxes shall be due and payable on the gross receipts for the calendar year 1983 and each and every calendar year thereafter as herein prescribed.
The Board of Supervisors of Hempfield Township is herein empowered to adopt any and all rules and regulations necessary to implement the levy of the within tax.
The Township Supervisors shall be prohibited from increasing the rate of taxation or the rate of the tax levy made herein except by specific repeal of this article and the entire enactment or adoption of a new ordinance in accordance with the Acts of the General Assembly.