[Adopted 2-25-1974 by Ord. No. 1564 as
Ch. 122, Part 3, of the 1974 Code]
The Board of Commissioners of the Township of
Radnor, under and by virtue of the authority vested in it by Act No.
511 of the General Assembly of the Commonwealth of Pennsylvania, approved
December 31, 1965, P.L. 1257, as amended, known as the "Local Tax
Enabling Act,"[1] does ordain that a mercantile tax to provide revenue for
general Township purposes is hereby levied, assessed and imposed upon
persons engaging in the occupation or business of wholesale vendor
of or dealer in goods, wares and merchandise or retail vendor of or
dealer in goods, wares and merchandise and wholesale and retail dealer
therein and all persons engaged in conducting restaurants or other
places where food, drink or refreshments are sold, in accordance with
the following.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
This article shall be known and may be cited
as the "Mercantile Tax Ordinance."
As used in this article, the following terms
shall have the meanings indicated, unless the context clearly indicates
a different meaning:
The Township Manager of the Township of Radnor or his designated
representative.
Includes both cash and credit transactions, and trade-in
transactions as provided by law.
The twelve-month period beginning the first day of January.
[Amended 9-10-2012 by Ord. No. 2012-13]
Any individual, partnership, limited partnership, association
or corporation (except such as are wholly exempt from taxation under
the Act of the General Assembly No. 511, approved December 31, 1965,
P.L. 1257).[1]
Any person who is a dealer in or a vendor of goods, wares
and merchandise and 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.
The Township of Radnor.
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: See 53 P.S. § 6901
et seq.
[Amended 7-20-1992 by Ord. No. 92-13]
The terms of this article shall not apply to
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 transaction exempted by law.
[Amended 12-26-1979 by Ord. No. 79-32; 9-10-2012 by Ord. No.
2012-13; 9-10-2012 by Ord. No. 2012-13]
A.
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 July of
each license year 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 of business
in the Township from the Collector, who shall issue the same upon
payment of a fee of $10 for a wholesale or 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.
B.
If the
person applying for a mercantile license has engaged in and is continuing
to engage in business in the Township and already is in possession
of a valid mercantile license to expire at the end of the calendar
year, the person shall make application and pay for the following
year's mercantile license at the time of filing of that person's mercantile
tax return, by completing the mercantile tax form and making payment
for the mercantile license fee contemporaneously therewith.
C.
If the
person appling for a mercantile license intends to begin to engage
in business in the Township and does not possess a valid mercantile
license, the person shall make application to and pay for a mercantile
license at or before that person begins to engage in business inthe
Township, by completing an appropriate application for such license
with the Township and making payment to the Township for the mercantile
license fee contemporaneously therewith.
A.
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.
B.
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.
C.
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 of $0.50 shall
be charged.
A.
Assessment of tax; rate. 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 each year, beginning January 1, at such rate,
subject to the exemptions hereinafter set forth:
[Amended 12-9-1985 by Ord. No. 85-35; 9-10-2012 by Ord. No. 2012-13]
(1)
Wholesale vendors or dealers in goods, wares and merchandise of every
kind, at the rate of three mills on each dollar of the gross volume
of business transacted by him during the license year.
(2)
Retail vendors or dealers of 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 three mills
on each dollar of the gross volume of business transacted by him during
the license year.
B.
Amount of gross volume nontaxable. The first $25,000 of gross volume of business transacted by the vendors specified and described within this section in Subsection A(1) and (2) above, shall be exempt from and not subject to the rates of taxation determined for such vending transactions. The first $25,000 of gross volume of business transacted by the vendors specified and described in Subsection A shall be exempt from and not subject to the rates of taxation determined and specified therein, such exemption first applying to the gross volume of business arising from retail sales and the balance, if any, applying to the gross volume of business arising from wholesale sales conducted by such vendors.
C.
Exemption for resale or trade-ins. The tax imposed by this article shall not apply to the dollar volume of annual business transacted by wholesale and retail dealers described in Subsections A(1) and (2) above, derived from the resale of goods, wares and merchandise taken by any dealer as a trade-in or as a part payment for other goods, wares and merchandise, except to the extent that the resale price exceeds the trade-in allowance.
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 the beginning of a license year shall compute the estimated gross
volume of business for that license year upon the actual gross amount
of business transacted by him during the 12 months preceding.
B.
Every person subject to the payment of the tax hereby imposed who
has commenced his business less than one fill year prior to the beginning
of a license year shall compute the estimated gross volume of business
for that year 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.
[Amended 9-10-2012 by Ord. No. 2012-13]
C.
Every person subject to the payment of the tax hereby
imposed who commences his business subsequent to the beginning of
a license year shall compute the estimated gross volume of business
for that 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 year.
D.
Every person subject to the payment of the tax hereby
imposed who engages in business which is temporary, seasonal or itinerant
by its nature shall compute the estimated gross volume of business
upon the actual gross amount of business transacted by him during
the license year.
[Amended 9-10-2012 by Ord. No. 2012-13]
A.
General requirements. Every return, as hereinafter required by this
article, shall be made upon a form furnished by the Collector thereof
under the penalties of perjury. Every person making such return shall
furnish all information requested therein and certify the correctness
thereof. In reporting gross receipts and calculating tax due, taxpayers
shall round to the nearest dollar.
[Amended 12-13-2021 by Ord. No. 2021-13]
B.
Tax returns.
(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 15th day of May 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.
(2)
Every person subject to the tax imposed by this article who has commenced
his business less than one full year prior to the beginning of the
license year shall, on or before the 15th day of May following, file
with the Collector a return setting forth his name, his business,
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.
(3)
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 with the Collector
a return setting forth his name, 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.
(4)
Every person subject to the payment of the tax imposed by this article
who engages in a business which is temporary, seasonal or itinerant
by its nature shall, within seven days from the day he completes such
business, file with the Collector a return 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 tax return.
(1)
On or before May 15 of each year, 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.
Estimated tax. At the time of filing the first tax
return, the person making the same shall pay the amount of the tax
estimated to be due.
B.
Balance due. 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 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.
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.
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 such 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.
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.
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.
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 more 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 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.
On or before the effective date of this article,
the Board of Commissioners shall, by resolution, adopt mercantile
tax regulations for the purpose of further clarifying applicability
of the tax.
A.
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.
B.
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 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 general fund of the Township of Radnor for the use
and benefit of the Township of Radnor.
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 Constitution and laws of the Commonwealth of Pennsylvania.
[Amended 7-20-1992 by Ord. No. 92-13; 3-18-2013 by Ord. No. 2013-02]
A.
Any person, as defined in this article, who shall fail, neglect or
refuse to comply with the terms or provisions of this article shall
be responsible and liable for the costs of collection, including attorneys'
fees, at the flat and hourly rates shown below and at the rate of
$165 per hour for any work not included in the fees shown below:
|
Activity
|
Legal Fees
|
Court Fees
|
Sheriff Fees
| |
|---|---|---|---|---|
|
Verify account information and data, establish and open file;
prepare and send demand letter; account for monies received
|
$135
|
n/a
|
n/a
| |
|
Prepare and file civil complaint in Magisterial District Court;
account for monies received
|
$250
|
According to fee schedule
|
Varied
| |
|
Represent taxing authority at any MDJ hearing: includes preparation
of case; preparation of witnesses and any exhibits; attendance at
any hearings or conferences; post-hearing pleadings or exhibits
|
$165 per hour
|
n/a
|
n/a
| |
|
Prepare and file request to certify judgment with County; account
for monies received
|
$125
|
According to fee schedule
|
n/a
| |
|
Execution of judgment against delinquent taxpayer, e.g., prepare
praecipe for writ of execution and all related documents
|
$165 per hour
|
According to fee schedule
|
Varied
|
B.
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 Judge of the Township of Radnor, be subject
to a fine of not more than $600 and costs of prosecution for each
offense and, in default of payment of such fine and costs, to imprisonment
in the county jail for a term not exceeding 30 days. The fine imposed
by this section shall be in addition to any other penalty imposed
by any other section of this article.
[Added 9-10-2012 by Ord. No. 2012-13]
To effectuate the conversion from a fiscal tax year ending June
30 to a calendar tax year during the year 2012, for purposes of the
year 2012 only, there shall be a short tax year covering the period
beginning July 1, 2012, and ending December 31, 2012. For purposes
of payment of estimated taxes for 2013 only, the estimated tax to
be paid for the tax year 2013 shall by calculated based upon a calculation
of double the taxable gross receipts for the short calendar year beginning
July 1, 2012, and ending December 31, 2012.
