[Adopted 12-20-1976 by Ord. No. 76-19]
The Borough Council of the Borough of Jenkintown, under and by virtue of the authority vested in it by the Local Tax Enabling Act[1] of the General Assembly of the Commonwealth of Pennsylvania, does ordain that a mercantile license tax to provide revenue for general Borough purposes be and the same is hereby levied, assessed and imposed upon persons engaging in the business of wholesale vendor of or dealer in goods, wares and merchandise, 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. and 53 P.S. § 6924.101 to 6924.312.
This article shall be known and may be cited as the "Mercantile License Tax Ordinance."
A. 
The following words and phrases, as used in this article, shall have the meanings ascribed to them in this section, unless the context clearly indicates a different meaning:
BOROUGH
The Borough of Jenkintown.
COLLECTOR
The person, official or other entity appointed from time to time by resolution of Borough Council to serve at the pleasure of Borough Council.
[Amended 3-30-1981 by Ord. No. 81-3; 1-3-2000 by Ord. No. 2000-1]
GROSS VOLUME OF BUSINESS
Includes both cash and credit transactions and trade-in transactions as provided by law.
LICENSE YEAR
The twelve-month period beginning the first day of January.
PERSON
Any individual, partnership, limited partnership, association, corporation or other business entity.
RETAIL DEALER or RETAIL VENDOR
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.
SECRETARY
The Secretary of the Borough of Jenkintown.
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
Any business that is conducted at one location for less than 60 days.
WHOLESALE AND RETAIL DEALER or WHOLESALE AND RETAIL VENDOR
Any person who sells to dealers in or vendors of goods, wares and merchandise and to other persons.
WHOLESALE DEALER or WHOLESALE VENDOR
Any person who sells to dealers in or vendors of goods, wares and merchandise and to no other persons.
B. 
Exclusions. The foregoing terms shall not include nonprofit corporations or associations organized solely and exclusively for religious, charitable or educational purposes and not conducting any regular or established business competing commercially with any other person subject to the tax herein imposed, nor agencies of the government of the United States or of the Commonwealth of Pennsylvania, nor any person vending or disposing of articles of such person's own manufacture for shipment or delivery from the place of the manufacture thereof, nor any farmer vending or disposing of such farmer's own produce, nor other transaction exempted by law.
For the license year beginning February 1, 1977, and January 1 of each license year thereafter, every person desiring to continue to engage in or hereafter to begin to engage in the business of wholesale, 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 Borough shall, on or before the 15th day of the license year or prior to commencing business in any such license year, apply for and procure a mercantile license for each place of business in the Borough, and if such person has no actual place of business within the Borough, then one license, from the Secretary who shall issue the same upon payment of a fee of $10 for a wholesale and retail license for one such place of business, or if more than one, for each of such person's places of business in the Borough, for such license year. 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. Such license shall not be assignable and shall be conspicuously posted at each place of business within the Borough at all times. In case of loss, defacement or destruction of any license, the person to whom the license was issued shall apply to the Secretary for a new license, for which a fee of $1 shall be charged.
A. 
A tax to provide revenue for general Borough purposes is hereby levied, assessed and imposed upon every person engaging in any of the following occupations or businesses in the Borough at the rate hereinafter set forth, and such persons shall pay a mercantile license tax for the license year at such rate, subject to the exemptions hereinafter set forth; provided, however, that in no event shall the annual mercantile license tax herein imposed be less than $10 for each of the places of business of every such person:
(1) 
Wholesale vendor or dealer 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 such person during the license year.
(2) 
Retail vendor or dealer 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, on each dollar of the gross volume of business transacted at the rate of:
[Amended 12-29-1977 by Ord. No. 77-22]
(a) 
One mill during the license year commencing February 1, 1977, and ending December 31, 1977.
(b) 
One and 1/2 mills for the license years commencing each January 1 after December 31, 1977.
(3) 
Wholesale and retail vendor or dealer 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 during the license year and on each dollar of gross volume of retail business transacted by such person at the rate of:
[Amended 12-29-1977 by Ord. No. 77-22]
(a) 
One mill during the license year commencing February 1, 1977, and ending December 31, 1977.
(b) 
One and 1/2 mills for the license years commencing each January 1 after December 31, 1977.
B. 
The tax provided for in Subsection A(1), (2) and (3) of this section shall not be levied on the dollar volume of business transacted by wholesale and/or retail vendors or dealers derived from the resale of goods, wares and merchandise taken by any vendor or 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.
A. 
Every person subject to the payment of the tax hereby imposed who has commenced business at least a full year prior to January 1 of the license year shall compute the gross volume of business upon the actual gross amount of business transacted by such person during the 12 months preceding such January 1.
B. 
Every person subject to the payment of the tax hereby imposed who has commenced business less than one full year prior to such January 1 shall compute the gross volume of business by multiplying by 12 the monthly average of the actual gross amount of business transacted by such person during the months while engaged in business prior to such January 1.
C. 
Every person subject to the payment of the tax hereby imposed who commences business subsequent to such January 1 shall compute the gross volume of business for the license year upon the gross volume of business transacted by such person during the first month of 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 gross volume of business upon the actual gross amount of business transacted by such person during the license year.
E. 
At the end of the license year and on or before May 1 of the following year, every person subject to the tax hereby imposed shall make a return to the Secretary of the Borough of the actual volume of business transacted by the taxpayer during the period for which the taxpayer is subject to the tax. Such final return shall state the amount of the gross volume of business as set forth in the first return, the amount of tax paid at the time of the filing of the first return and the amount of tax due upon the final computation.
A. 
Every return and estimated return as required by this article shall be made upon a form furnished by the Collector with appropriate instructions to furnish such additional information as may be reasonably necessary to determine proper tax liability and to reconcile taxpayer's allocation of gross receipts with total gross receipts. Every person making such return shall certify to the correctness thereof by signing such return under penalties of perjury and criminal prosecution thereof.
[Amended 6-24-2002 by Ord. No. 2002-4]
B. 
Every person subject to the tax imposed by this article who has commenced business at least one full year prior to the beginning of the license year shall, on or before the first day of May following, file with the Collector a return setting forth such person's name, business and business address and such other information as may be necessary to compute the actual gross volume of business transacted by such person during the preceding year and the amount of tax estimated to be due.
C. 
Every person subject to the tax imposed by this article who has commenced business less than one full year prior to the beginning of the license year shall, on or before the first day of May following, file with the Collector a return setting forth such person's name, business and business address and such other information as may be necessary to compute the actual gross volume of business transacted by such person during the preceding year and the amount of tax estimated to be due.
D. 
Every person subject to the tax imposed by this article who commences business subsequent to the beginning of the license year shall, within 40 days from the date of commencing such business, file with the Collector a return setting forth such person's name, business and business address and such other information as may be necessary to compute the actual gross volume of business transacted by such person during the first month of business and the amount of tax estimated to be due.
E. 
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 date of completion of such business, file with the Collector a return setting forth such person's name, business and business address and such other information as may be necessary in arriving at the actual gross amount of business transacted by such person during such period and the amount of the tax due.
F. 
On or before May 1 of the year following the license year, every person subject to the tax hereby imposed shall make a final return as required by § 163-43E.
A. 
At the time of filing the first return, the person making the same shall pay the amount of the tax estimated to be due.
B. 
At the time of filing the final 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 shall 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 tax finally shown to be due.
[Amended 12-29-1986 by Ord. No. 86-4]
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 the duty of the Collector to keep a record showing the amount of the tax received and the date of payment. A receipt shall be given to the person paying the tax.
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, the Collector 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 the Collector's possession or that shall come into his possession, and for this purpose the Collector or the deputy or authorized agent of the Collector is authorized to examine the books, papers and records of any such person to verify the accuracy of the return or payment made under the provisions hereof 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 such officer's discretion, require reasonable deposits to be made by licensees who engage in a business which is temporary, seasonal or itinerant by its nature.
C. 
If any taxpayer or supposed taxpayer fails to make any return and payment of tax as 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 for taxes, penalties and interest thereon.
[Amended 3-30-1981 by Ord. No. 81-3]
D. 
The burden is hereby imposed upon any person, firm or corporation claiming an exemption from the payment of the tax hereby imposed to prove by clear and convincing evidence the legal right to such exemption to the satisfaction of the Collector.
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 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.
F. 
Any information contained on the returns of a taxpayer and any information obtained as a result of the examination of the books and records of the taxpayer shall be confidential except for official purposes and except for purposes of judicial order.
All taxes due and unpaid under this article shall be recoverable by the Solicitor as other debts due the Borough are now by law recoverable.
[Amended 3-30-1981 by Ord. No. 81-3]
All taxes due under this article shall bear interest at the rate of 1 1/2% per month or fractional part of a month from the day they are due and payable until paid. If any taxpayer fails to make any return or payment as herein required within one month after the day it is due and payable, 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 Borough for the use and benefit of the Borough.
Nothing contained in this article shall be construed to empower the Borough 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 Borough under the Constitution of the United States and the Constitution and laws of the Commonwealth of Pennsylvania.
[Amended 4-28-1980 by Ord. No. 80-13; 1-30-1989 by Ord. No. 89-2]
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 Magisterial District Judge, be sentenced to pay a fine of not less than $25 nor more than $600 and costs of prosecution for each offense, to be collected as other fines and costs are by law collectible, or to imprisonment for a period not exceeding 30 days, or both. The fine imposed by this section shall be in addition to any other penalty imposed by any other section of this article.
The Collector shall enter bond for the faithful performance of his duties in such form and amount and with such corporate surety authorized by law to so act as shall be directed by Borough Council. The bond premiums shall be paid by the Borough.
The Borough Council, on its own motion or upon the recommendation of the Collector, may by resolution adopt such rules and regulations for the implementation and enforcement of this article as in its judgment shall be necessary.