[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.
BOROUGH
COLLECTOR
GROSS VOLUME OF BUSINESS
LICENSE YEAR
PERSON
RETAIL DEALER or RETAIL VENDOR
SECRETARY
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
WHOLESALE AND RETAIL DEALER or WHOLESALE AND RETAIL VENDOR
WHOLESALE DEALER or WHOLESALE VENDOR
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:
The Borough of Jenkintown.
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]
Includes both cash and credit transactions and trade-in transactions
as provided by law.
The twelve-month period beginning the first day of January.
Any individual, partnership, limited partnership, association,
corporation or other business entity.
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.
The Secretary of the Borough of Jenkintown.
Any business that is conducted at one location for less than
60 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.
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]
(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]
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.
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.
