[Adopted 12-12-1978 by Ord. No. 66]
This article shall be known and may be cited
as the "Mercantile License Tax Ordinance."
A.
GROSS RECEIPTS or GROSS VOLUME OF BUSINESS
LICENSE YEAR
PERSON
RETAIL DEALER or RETAIL VENDOR
SECRETARY
TAX ADMINISTRATOR
TAX YEAR
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
TOWNSHIP
WHOLESALE AND RETAIL DEALER or WHOLESALE AND RETAIL VENDOR
WHOLESALE DEALER or WHOLESALE VENDOR
The following words and phrases, when used in this
article, shall have the meanings ascribed to them in this article
unless the context clearly indicates a different meaning:
In general, the "gross receipts" or "gross volume of business"
upon which the tax is imposed is the value of all cash, credits or
property received by a person which is attributable to the carrying
on of business in the Township, undiminished by any costs of doing
business, including both services, labor and materials entered into
or becoming component parts of the services performed within the Township.
A receipt generally will be considered attributable to the Township
if any part of the transaction or service giving rise to the receipt
takes place within the Township or is directed in any part from an
office or place of business within the Township.
[Amended 12-10-1990 by Ord. No. 66C]
The period from January 1 to December 31, inclusive.
[Amended 12-10-1990 by Ord. No. 66C]
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 who is not a wholesale dealer or vendor or a wholesale
and retail dealer or vendor as hereinafter defined.
The Secretary of the Township of Montgomery.
The person duly appointed by the Township Manager of the
Township of Montgomery to administer this article and the rules and
regulations promulgated thereunder.
[Amended 4-16-1979 by Ord. No. 66A; 12-10-1990 by Ord. No. 66C]
The period from January 1 to December 31, inclusive.
[Added 12-10-1990 by Ord. No. 66C]
Any business that is conducted at one location for less than
60 consecutive calendar days.
The Township of Montgomery.
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.
[Amended 4-16-1979 by Ord. No. 66A]
[1]
Editor's Note: The Local Tax Enabling Act.
See 53 P.S. § 6901 et seq.
B.
The terms "person," "retail dealer," "wholesale dealer"
and "wholesale and retail dealer," hereinbefore defined in this article,
shall not include 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 from the place of the manufacture thereof
or any farmer vending or disposing of his own product or any other
transaction exempted by law.
[Amended 12-10-1990 by Ord. No. 66C]
A.
For each license year, every person desiring 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 15th day of March 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 Tax Administrator, who shall issue the same upon payment of a
fee for a license for the place of business or, if more than one,
for each of the places of business in the Township 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 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 the place of business at all times. In the case of loss,
defacement or destruction of any license, the person to whom the license
was issued shall apply to the Tax Administrator for a new license,
for which a fee shall be charged. The amount of such fee shall be
set by resolution of the Board of Supervisors from time to time.
[Amended 6-22-1992 by Ord. No. 92-1]
B.
Any person required to pay both a Business Privilege
License Tax and a Mercantile License Tax needs only one license for
each place of business.
[Amended 4-16-1979 by Ord. No. 66A; 12-20-1982 by Ord. No. 66B; 12-10-1990 by Ord. No.
66C]
A tax to provide revenue for general Township
purposes is hereby levied, assessed and imposed upon every person
engaged in any of the following occupations or businesses in the Township
at the rate hereinafter set forth, and such persons shall pay a mercantile
license tax for the year beginning January 1, 1979, and each year
thereafter at such rate, subject to the exceptions 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.
A.
Wholesale vendors or dealers in goods, wares and merchandise
of every kind, at the rate of 1/5 (0.2) of a mill on each dollar
of the gross volume of business transacted by him during the license
year.
B.
Retail vendors or dealers 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, at the rate
of 1 1/2 (1.50) of a mill on each dollar of the gross volume
of business transacted by him during the license year.
C.
Wholesale and retail vendors or dealers in goods,
wares and merchandise of every kind at the rate of 1/5 (0.2)
mill on each dollar of the gross volume of wholesale business transacted
by him during license year, and retail vendors or dealers in goods,
wares and merchandise of every kind at the rate of one and 1 1/2
(1.50) mill on each dollar of gross volume of retail business transacted
by him during the license year.
D.
The tax imposed by this article shall not apply to
the dollar volume of annual business transacted by wholesale and retail
dealers 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.
[Added 12-10-1990 by Ord. No. 66C]
A.
All persons required to pay a mercantile tax under
the provisions of this article shall be exempted from paying such
tax upon the same subject matter of taxation upon which such persons
are required to pay a business privilege tax under the Business Privilege
Tax Ordinance.[1] Any person required to pay both a business privilege tax
and a mercantile tax may file one joint return. In addition, any portion
of a taxpayer's gross receipts which is subject to a gross receipts
tax under any other Township ordinance may not be taxed under this
article.
B.
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, the Commonwealth
of Pennsylvania, the County of Montgomery and the North Penn School
District and the business of any political subdivision or any authority
created or organized under and pursuant to any Act of Assembly are
exempt from the provisions of this article.
C.
No such tax shall be assessed and collected on the
gross receipts from utility service to any person or company whose
rates of service are fixed and regulated by the Pennsylvania Public
Utility Commission or on any privilege or transaction involving the
rendering of any such public utility service.
D.
No such tax shall be assessed and collected on goods
and articles manufactured in the Township or the by-products of manufacture
or on minerals, timber, natural resources and farm products produced
in the Township or on the preparation or processing thereof for use
or market or on any privilege, act or transaction related 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 on 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.
E.
Refunds, credits or allowances given by a person to
a customer on account of defects in services rendered or in goods,
wares and merchandise sold or returned may be deducted from the amount
of the gross receipts of the person.
F.
Adjustments allowed to customers may be deducted from
gross receipts if they are deducted on the face of the invoice as
a medium of adjusting the price or fee for the service and if they
are not reimbursed to the person by his supplier or some other person.
G.
Federal, state and local taxes are not included in
gross receipts if they are collected from the customer and are separately
stated on the evidence of charge or sale or the customer produces
satisfactory proof of payment of the federal, state or local taxes.
H.
This article excludes from the definition of gross
receipts the receipts from services performed from a place of business
regularly maintained outside the Township by the taxpayer to a place
of business regularly maintained outside the Township by the customer,
provided that such performance is not made for the purpose of evading
the tax. Services or deliveries of services to a residence or place
of business located outside the Township do not qualify for this exclusion.
I.
Where the gross receipts of the taxpayer cannot in
their entirety be subjected to the tax imposed by this article by
reason of provisions of the Constitution of the United States, the
Constitution of the Commonwealth of Pennsylvania or any other provision
of law, the Tax Administrator shall establish rules and regulations
and methods of allocation and evaluation so that only that part of
the gross receipts which is properly attributable to doing business
in the Township shall be taxed by this article.
[Amended 12-10-1990 by Ord. No. 66C]
A.
Estimated taxes.
(1)
Every person subject to the payment of the tax hereby
imposed who has commenced business at least a full year prior to the
tax year shall compute the gross volume of business upon the actual
gross amount of business transacted by him during the 12 months preceding
the tax year.
(2)
Every person subject to the payment of the tax hereby
imposed who has commenced business less than one full year prior to
the tax year shall compute the gross volume of business by multiplying
by 12 the monthly average of the actual gross amount of business transacted
by him during the months while he was in business prior to the tax
year.
(3)
Every person subject to the payment of the tax hereby
imposed who commences business subsequent to January 1 of the tax
year shall compute the gross volume of business by multiplying the
actual gross volume of business transacted by him during the first
month of his engaging in business by the number of months remaining
in the tax year.
(4)
Every person subject to the payment of the tax hereby
imposed who engages in business which is temporary, seasonal or itinerant
by its nature, except for any person licensed to engage in a temporary
retail business under Ordinance No. 83, as amended,[1] shall compute the gross volume of business upon the actual
gross amount of business transacted by him during the tax year.
B.
Final taxes. On or before March 15 of the year following
the end of the tax year, every person subject to the tax hereby imposed
shall make a return to the Tax Administrator of the Township of the
actual gross receipts of the taxpayer during the period for which
the taxpayer is subject to the tax. Such final return shall state
the amount of tax paid at the time of filing the estimated return
and the amount of tax due upon the final computation.
[Amended 4-16-1979 by Ord. No. 66A; 12-10-1990 by Ord. No. 66C]
A.
Every return as required by this article shall be
made upon a form furnished by the Tax Administrator. Every person
making such return shall certify the correctness thereof under the
penalties of perjury.
B.
Every person subject to the tax imposed by this article
shall be required to file two tax returns each year; an estimated
return and a final return, unless otherwise provided for in this article.
Each time an estimated return is required to be filed, the final return
shall be filed the following calendar year. If it is determined that
the amount of tax paid in the estimated return was greater than required
by the final return, the taxpayer shall be entitled to apply the overpayment
to the estimated return in the same calendar year in which the final
return in question is being filed. In the event that the tax was less
than the amount finally determined to be owed in the final return,
the taxpayer shall be liable to pay said tax upon the filing of the
final return. In the event that the amount paid at the time of the
filing of the estimated return is less than 80% of the amount due
in the final return, a penalty shall also be paid by the taxpayer
in the amount of 10% of the difference between the final tax due and
the estimated tax paid.
C.
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 tax year shall, on or before the 15th day of March following,
file with the Tax Administrator 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 receipts of 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 has commenced business less than one full year prior to the beginning
of the tax year shall, on or before the 15th day of March following,
file with the Tax Administrator 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 receipts of such person
during the preceding year and the amount of tax estimated to be due.
E.
Every person subject to the tax imposed by this article
who has commenced business subsequent to the beginning of the tax
year shall, within 60 days from the date of commencing such business,
file with the Tax Administrator 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 receipts of such person
during the first month of business and the amount of tax estimated
to be due.
F.
Every person subject to the payment of the tax imposed
by this article who is engaged in a business which is temporary, seasonal
or itinerant by its nature, except for any person licensed to engage
in a temporary retail business under Ordinance No. 83, as amended,[1] shall, within seven days from the date of completion of
such business, file with the Tax Administrator a return setting forth
such person's name, business and business address and such information
as may be necessary in arriving at the actual gross receipts of such
person during such period and the amount of the tax due.
G.
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 the 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.
H.
Receipt. The Tax Administrator, upon request to him,
will provide a receipt of payment of the tax.
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 tax 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 estimated return on the estimated computation and
the amount of the tax finally shown to be due. If the balance shall
be a credit, the amount of the credit shall be applied towards the
current year's estimated tax.
[Amended 12-10-1990 by Ord. No. 66C]
[Amended 12-10-1990 by Ord. No. 66C]
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 Board of Supervisors of Montgomery Township, by
resolution, may prescribe, adopt and promulgate rules and regulations
relating to any matter pertaining to the administration and enforcement
of this article and charging the Tax Administrator with the responsibility
for enforcing the provisions of this article and any rules and/or
regulations promulgated pursuant hereto.
C.
In the event that 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 said Tax
Administrator or his deputies deem reasonable and appropriate. In
all cases of such 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 mercantile 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.
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 Tax Administrator of his legal right to such
exemption.
F.
Any person aggrieved by a decision of the Tax Administrator
shall have the right to appeal to the Court of Common Pleas, as in
other cases.
G.
Any information gained by the Tax Administrator or
any other official agent or member of the Board of Supervisors of
the Township of Montgomery as a result of any returns, investigations,
hearings or verifications required or authorized by this article shall
be confidential except in accordance with a proper judicial order
or as otherwise provided by law.
H.
If the final return of the taxpayer shows an overpayment
of the tax by reason of the fact that the taxpayer did not continue
to engage in business throughout the year, the Tax Administrator shall
refund to the taxpayer the amount of such overpayment, without interest,
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.
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.
The Tax Administrator or his duly appointed deputies
shall have the power in the name of the Board of Supervisors of Montgomery
Township to institute proceedings against any and all persons who
violate the provisions of this article.
[Added 12-10-1990 by Ord. No. 66C]
C.
If and 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,
interest and penalties herein imposed.
[Added 12-10-1990 by Ord. No. 66C]
[Amended 12-10-1990 by Ord. No. 66C]
A.
The mercantile license tax levied pursuant to this
article shall be due and payable on the date on which the taxpayer
is required to file a return as set forth above, and if the same is
not filed and paid on said date, 10% shall be added thereto, plus
an additional 1% per month or fractional part of a month until paid.
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 Montgomery for the
use and benefit of the Township of Montgomery.
[Amended 12-10-1990 by Ord. No. 66C]
A.
Nothing contained in this article, as amended, shall
be construed to empower the Board of Supervisors of Montgomery 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
Laws and Constitution of the Commonwealth of Pennsylvania.
B.
If the tax or any portion thereof imposed upon any
person under the provisions of this article, as amended, 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 provision 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.
[Amended 12-10-1990 by Ord. No. 66C]
A.
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
be guilty of a summary offense and, upon conviction thereof before
a District Justice, be sentenced to pay a fine of not less than $300
nor more than $600 and costs of prosecution for each offense. Upon
judgment by summary conviction or by proceedings by summons on default
of the payment of the fine or penalty imposed and costs, the defendant
may be sentenced and committed to the Township lockup for a period
not exceeding five days or to the county jail or workhouse for a period
not exceeding 30 days. The fine imposed by this article shall be in
addition to any other penalty imposed by any other section of this
article.
B.
Each day on which such person violates this article
may be considered as a separate offense and punishable as hereinabove
provided.
It is the intent of the Board of Supervisors
that any ordinance now in effect which imposes a special license fee
or tax on specific types or kinds of business not covered by the provisions
of this article shall be and remain in full force and effect.
