[Adopted 1-27-1988 by Ord. No. 482]
This article shall be known as the "Business
Privilege Tax Ordinance."
The following words and phrases, whether capitalized
or not, when used in this article, shall have the meanings ascribed
to them in this section, except where the context clearly indicates
a different meaning:
The Borough of Leetsdale.
Any activity in the Borough of Leetsdale carried on or exercised
for gain or profit, including, but not limited to, the sale of merchandise
or other tangible personalty or the performance of services and the
rental of personalty and/or realty. "Business" also includes any activity
attributable to a Leetsdale Borough office or place of business.
The period January 1 to December 31, inclusive.
The period from January 1 to December 31, inclusive, except
for 1988 when the beginning date shall be other than January 1.
Any individual, partnership, limited partnership, association,
firm or corporation. Whenever used in any clause prescribing or imposing
a penalty, the term "person" as applied to associations shall mean
the partners or members thereof, and as applied to corporations, the
officers thereof.
Any person who sells to dealers in or vendors of goods, wares
and merchandise who is not a wholesale dealer or vendor.
The person duly appointed by the Council of the Borough of
Leetsdale to administer the within tax.
A person subject to the payment of the tax imposed by this
article.
The period from January to December 31, inclusive, except
that the tax year 1988 shall be the period from the effective date
of the tax described herein to December 31, 1988.
The Treasurer of the Borough of Leetsdale.
Any person who sells to dealers in or vendors of goods, wares
and merchandise with respect to such goods and to no other persons.
There is hereby levied for the tax year 1988
and annually thereafter a tax for general revenue purposes on the
privilege of doing business as herein defined in the Borough of Leetsdale
as follows:
A.
Rate and basis of tax. The business privilege tax
is imposed on each and every dollar of gross volume of business. On
wholesale business, the tax rate shall be one mill, which means $1
per $1,000 of gross volume of business; on retail business, the tax
rate shall be 1 1/2 mills, or $1.50 per $1,000 of gross volume
of business; on all nonwholesale and nonretail business, the tax rate
shall be three mills, or $3 per $1,000 of gross volume of business.
B.
Computation of volume of business.
(1)
Every person subject to the payment of the tax hereby
imposed who has commenced his business prior to the full calendar
year prior to the tax year shall compute his annual estimated gross
volume of business upon the actual gross amount of business transacted
by him during said immediately preceding calendar year. For the tax
year 1988 only, such computation shall be based upon the actual gross
amount of business transacted during the same months and days in 1987
as are included in the tax period under this article for 1988.
(2)
Every person subject to the payment of the tax hereby
imposed who has commenced or who commences his business before the
beginning of the tax year but after the beginning of the full calendar
year prior to the tax year, shall compute his estimated annual gross
volume of business for the tax year upon the gross volume of business
transacted by him during prior calendar year, taking the monthly average
during said period and multiplying the same by 12. In the even that
he shall be in business fewer than 90 days in the prior calendar year,
he shall be permitted to use sufficient days in the calendar in which
the tax year begins to equal 90 successive days after commencement
of business, to take a monthly average thereon, and to multiply the
average by 12. For the tax year 1988 only, such computation shall
be based upon the monthly average multiplied by 10.
(3)
Every person subject to the payment of the tax hereby
imposed, who has commenced or commences his business subsequent to
the year, shall compute his annual gross volume of business upon the
actual gross amount of business transacted by him during the tax year;
if there shall be more than three months from the commencement of
his business to the end of the tax year he shall compute his estimated
gross volume of business for such tax year upon the gross volume of
business transacted by him during the period from the commencement
of his business to the end of the tax year, taking the monthly average
during the first three months of business and multiplying the same
by the number of months from commencement of business to the end of
the year.
(4)
Every person subject to the payment of the tax hereby
imposed who engages in a business temporary, seasonal or itinerant
by nature, shall compute his estimated gross amount of business to
be transacted by him for the period said person engages in such temporary,
seasonal or itinerant business within the Borough by a method to be
determined by the tax administrator.
(5)
The tax administrator is hereby authorized to accept
payment under protest of the amount of business privilege tax claimed
by the Borough in any case where the taxpayer disputes the validity
or amount of the Borough's claim for tax. If it is thereafter judicially
determined by a court of competent jurisdiction that the Borough had
been overpaid, the amount of the overpayment shall be refunded to
the taxpayer. The provisions of this section shall be applicable to
cases in which the facts are similar to those in a case litigated
in a court of competent jurisdiction.
C.
Persons, businesses and receipts exempted.
(1)
Persons and businesses. Persons employed for a wage
or salary, 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 and the business
of any political subdivision, or of any authority created or organized
under and pursuant to any act of assembly are exempt from the provisions
of this article.
(2)
No such tax shall be assessed and collected on a privilege,
transaction, subject, or occupation which is subject to a state tax
or license fee, and which tax or license fee has been held by the
Courts of Pennsylvania to be the basis for exemption from the imposition
of a business privilege tax by a municipality.
(3)
Utilities. No such tax shall be assessed and collected
on the gross receipts from utility service of any person or company
whose rates of service are fixed and regulated by the Pennsylvania
Public Utility Commission; or on any public utility service rendered
by any such person or company or on any privilege or transaction involving
the rendering of any such public utility service.
(4)
State tax on tangible property. No such tax shall
be assessed and collected on the privilege of employing such tangible
property as is subject to a state tax except on sales of admission
to places of amusement or on sales or other transfers of title or
possession of property.
(5)
Production and manufacture. No such tax shall be assessed
and collected on goods, articles and products, or on by-products of
manufacture, or on minerals, timber, natural resources, and farm products,
manufactured, produced, or grown in the Borough of Leetsdale, or on
the preparation or process thereof for use of market, or on any privilege,
act or transaction relating to the business of manufacturing, the
production, preparation or processing of minerals, timber and natural
resources or farm products, by manufacturers, by producers, and by
farmers with respect to the goods, articles and products of their
own manufacture, production or growth, or 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.
D.
Determination of gross or whole volume of business.
Gross or whole volume of business upon which the tax hereunder is
computed shall include the gross consideration credited or received
for or on account of sales made, rentals, and/or services rendered,
subject only to the following allowable deductions and exemptions:
(1)
The dollar volume of business transacted by wholesale
and retail dealers derived from the resale of goods, wares and merchandise
sold, or on account of goods, wares or merchandise returned.
(2)
Refunds, credits, or allowances given by a taxpayer
to a purchaser on account of defects in goods, wares or merchandise
sold, or on account of goods, wares or merchandise returned.
(3)
Any commissions paid by a broker to another broker
on account of a purchase or sales contract initiated, executed or
cleared with such other broker.
(4)
Bad debts, where the deduction is also taken in the
same year for federal income taxation purposes.
(5)
Taxes collected as agent for the United States of
America, Commonwealth of Pennsylvania, County of Allegheny or Borough
of Leetsdale.
E.
Partial exemptions. Where the gross or whole volume
of business 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 tax administrator,
with the approval of the Council of the Borough of Leetsdale, shall
establish rules and regulations and methods of allocation and evaluation
so that only that part of the gross or whole volume of business which
is property attributable and allowable to doing business in the Borough,
shall be taxed hereunder.
F.
Records. The taxpayer, to obtain the foregoing enumerated
exclusions and deductions, shall keep books and records of his business
so as to show clearly, accurately, and separately the amount of such
sales and services as are excluded from the tax and the amounts of
such sales and services which he is entitled to deduct from the gross
volume of business as hereinbefore provided.
A.
Every return shall be made upon a form furnished by
the tax administrator. Every person making a return shall certify
the correctness thereof by affidavit.
B.
Every person subject to the tax imposed by this article
who commenced his business on or before July 15, 1988, and on or before
May 15, of all subsequent tax years, shall file with the tax administrator
a return setting forth his name, his business, business address, and
such other information as may be necessary in arriving at the actual
gross amount of business transacted by him during the preceding calendar
year, and the amount of the tax due.
C.
Every person subject to the tax imposed by this article who has commenced his business before July 15, 1988, and on or before May 15 of all subsequent years, shall file with the tax administrator a return setting forth his name, his business, business address, and such other information as may be necessary in arriving at the estimated gross amount of business transacted by him as calculated under § 271-37B(2) hereof and the amount of tax due.
D.
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 at the time application is made for the business privilege license, file a return with the tax administrator setting forth his name, his business, his business address and such information as may be necessary in arriving at the estimated gross amount of business to be transacted by him as calculated in accordance with § 271-37B(4).
E.
Any person going out of or ceasing to do business
shall, within seven days from the date of ceasing to do business,
file a return showing the actual gross volume of business conducted
and done by such person during that tax year in which said person
ceased doing business, and pay the tax due as computed thereon at
the rate herein provided for at the time of filing said return. If
such tax has been previously paid based upon estimated gross receipts,
the taxpayer shall be entitled to a refund, without interest, of any
excess tax paid for the tax year in which business was terminated.
F.
Payment of tax and penalties for late payment. The
business privilege tax levied pursuant to this article for the tax
year 1988, which shall include the period from March 1, 1988, through
December 31, 1988, shall be due and payable on July 15, 1988. For
the tax years 1989 and subsequent tax years to which this article
is applicable, the business privilege tax levied pursuant to this
article shall be due and payable on the date on which the taxpayer
is required to file the return as set forth above and if the same
is not paid on said date, 5% shall be added thereto, plus an additional
1% per month or fractional part of month until paid.
G.
Receipt. The tax administrator shall, upon payment
to him of the business privilege tax, give the person paying the same
a receipt therefor.
[Amended 10-9-1991 by Ord. No. 497]
After the effective date of this article, any
person desiring to conduct, or to continue to conduct any business,
as herein defined, with the Borough of Leetsdale, shall file with
the tax administrator an application for a business privilege license
and shall pay a fee for the initial license and for each renewal thereof
each year, such fees to be established from time to time by resolution
of Borough Council.
The license issued shall be conspicuously posted
in the place of business for which such license is issued, and shall
remain in effect for the license year or fraction of year for which
said license was issued. In cases where more than one place of business
is conducted, a separate license shall be issued for each place of
business. Any taxpayer who is in default in payment of the tax due
hereunder shall be refused a license until such tax is paid in full.
[Amended 10-9-1991 by Ord. No. 497]
Any person who shall conduct, transact or engage
in any of the businesses subject to the tax imposed by this article,
without having first secured a business privilege license for the
year, or any person who shall fail to file a tax return as required
by the provisions of this article, or any person who shall willfully
fail to file a final return shall, upon conviction thereof, be sentenced
to pay a fine not to exceed $600 and costs and, in default of payment
thereof, shall be subject to imprisonment for a term not to exceed
30 days.
Each day on which such person violates this
article may be considered as a separate offense and punishable as
such as aforeprovided.
A.
The tax administrator is charged with the duties of
collecting and receiving the taxes, fines and penalties imposed by
this article. It shall be his duty to keep a record showing the amount
received by him from each person paying the tax and the date of such
receipt.
B.
The tax administrator and his duly appointed deputies
are hereby empowered, with the approval of the Council of the Borough
of Leetsdale, to prescribe, adopt and promulgate rules and regulations
relating to any matter pertaining to the administration and enforcement
of this article, including provisions for the examination 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 charged
with enforcing the provisions of this article and any rules and/or
regulations promulgated pursuant hereto.
C.
In the event the person to be assessed neglects or
refuses to make a return, then in such case the tax administrator
or his duly appointed deputies shall assess said person or persons
on such an amount of whole or gross volume of business as the said
tax administrator or his deputies deem reasonable and appropriate.
In all cases of assessment, the tax administrator or his duly appointed
deputies shall give the parties assessed a notice in which shall be
stated the trade, business, occupation or class, and the amount of
the business privilege tax imposed or levied.
D.
The taxpayer shall maintain such records and books
of account as will enable him to make a true and accurate return in
accordance with the provisions of this article. Such accounts and
records must disclose in detail the gross receipts and other data
pertaining to the taxpayer's gross volume of business, and must be
sufficiently complete to enable the tax administrator or his deputies
to verify all transactions. The tax administrator or his deputies
are hereby authorized to examine the books, papers and records of
any person or persons subject to or supposed to be subject to the
tax imposed by this article, in order to verify the accuracy of the
return made, or if no return was made, ascertain the tax due.
E.
Any person aggrieved by any decision of the tax administrator
shall have the right to appeal to the Court of Common Pleas, as in
other cases.
Any information gained by the tax administrator
or any other official, agent or employee of the Township, as a result
of any returns, investigations, hearings, or verifications required
or authorized by this article, shall be confidential, except in accordance
with proper judicial order or as otherwise provided by law.
A.
The tax administrator or his duly appointed deputies
shall have the power in the name of the Borough to institute proceedings
against any and all persons who violate the provisions of this article.
B.
If for any reason the tax is not paid when due and
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 interest and penalties herein imposed.
A.
If the tax, or any portion thereof, imposed upon any
person under the provisions of this article shall be held by any court
of competent power or jurisdiction to be in violation of the Constitution
of the United States or of the Commonwealth of Pennsylvania or any
other provisions of the law, the decisions 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 as herein provided.
B.
The provisions of this article are severable, and
if any of its provisions shall be held illegal, invalid, or unconstitutional,
the decision of the court shall not affect or impair any of the remaining
provisions of this article. It is hereby declared to be the intention
of the Council of the Borough of Leetsdale that this article would
have been adopted if such illegal, invalid, or unconstitutional provisions
had not been included herein.
This article is enacted pursuant to the authority
of the Local Tax Enabling Act, 1965, December 31, Pamphlet Law 1257,
as amended, and shall become effective March 1, 1988, and shall continue
thereafter unless amended or repealed.
