[Adopted 4-6-1982 as Ch. 193, Art.
II, of the 1981 Code]
The following words and phrases, 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 Norristown.
The Borough Administrator of the Borough of Norristown; the
individual who serves as Chief Borough Administrator.
Any activity carried on or exercised for gain or profit in
the Borough of Norristown, including but not limited to the sale of
merchandise or other tangible personalty or the performance of services.
The period from January 1 to December 31, inclusive.
Includes the gross cash receipts for or on account of sales
made and/or services rendered, subject only to the allowable deductions
and exemptions set forth in this Article.[1]
The period from July 1 to June 30, inclusive.
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.
A person subject to the payment of the tax imposed by this
Article.
The period from July 1 to June 30, inclusive.
The Treasurer of the Borough of Norristown.
There is hereby levied for the tax year 1977-1978,
and annually thereafter, a tax for general revenue purposes on the
privilege of doing business, as herein defined, in the Borough of
Norristown, as follows:
A.
Rate and basis of tax. The rate of the tax on each
and every dollar of the whole or gross volume of business transacted
within the territorial limits of the borough shall be one mill, which
shall be $1 per $1,000 of gross volume of business.
A.
Every person subject to the payment of the tax hereby
imposed who has commenced business prior to the full calendar year
prior to the tax year shall compute the annual estimated gross volume
of business upon the actual gross amount of business transacted during
said immediately preceding calendar year.
B.
Every person subject to the payment of the tax hereby
imposed who has commenced or who commences business before the beginning
of the tax year but after the beginning of the full calendar year
prior to the tax year shall compute the estimated annual gross volume
of business for the tax year upon the gross volume of business transacted
during the prior calendar year, taking the monthly average during
said period and multiplying the same by 12. In the event that the
business shall be in business fewer than 90 days in the prior calendar
year, one shall be permitted to use sufficient days in the calendar
year 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.
C.
Every person subject to the payment of the tax hereby
imposed who has commenced or commences business subsequent to the
beginning of the tax year, if there shall be less than three months
from the commencement of business to the end of the tax year, shall
compute the annual gross volume of business upon the actual gross
volume of business transacted by him during the tax year; if there
shall be more than three months from the commencement of business
to the end of the tax year, one shall compute the estimated gross
volume of business for such tax year upon the gross volume of business
transacted during the period from commencement of 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 the commencement of business to the end of the year.
D.
Every person subject to the payment of the tax hereby
imposed who engages in a business temporary, seasonal or itinerant
by nature shall compute the estimated gross amount of business to
be transacted for the period said person engaged in such temporary,
seasonal or itinerant business with the borough by a method to be
determined by the Borough Administrator.
E.
The Borough 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 has been overpaid, the amount of overpayment will be refunded
to the taxpayer.
F.
Incidental use of residential property. No such tax
or fee shall be assessed and collected on rental received by an owner
from a building originally erected as a private dwelling house which
is occupied as a residence by the owner of said residence during the
tax year.
G.
Borough gross receipts tax. No such tax or fee shall
be assessed or collected on any receipts which are subject to a gross
receipts tax under any other ordinance of the borough.
A.
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, the Commonwealth of Pennsylvania, the County of
Montgomery and the Norristown Area School District; 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.
B.
Utilities. 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.
C.
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.
D.
Production and manufacture. No such tax shall be assessed
and collected on:
(1)
Goods and articles manufactured in the Borough of
Norristown or on the by-products of such manufacture.
(2)
Minerals, timber, natural resources and farm products
grown in the Borough of Norristown or on the preparation or processing
thereof for use or market.
(3)
Any privilege, act or transaction related to the business
of manufacturing.
(4)
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.
(5)
Any privilege, act or transaction relating to the
business of processing by-products of manufacture.
(6)
The transportation, loading, unloading or dumping
of any goods, articles, products or by-products of manufacture.
The gross or whole volume of business shall
be subject only to the following allowable deductions and exemptions:
A.
The dollar volume of business transacted by taxpayers
derived from the resale of goods, wares and merchandise taken by any
taxpayer as 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.
B.
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.
C.
Any commissions paid by a taxpayer who is a broker
to another broker on account of a purchase or sales contract initiated,
executed or cleared with such other broker.
D.
Taxes collected by the taxpayer as agent for the Government
of the United States of America, the Commonwealth of Pennsylvania,
the County of Montgomery, the Norristown Area School District and
the Borough of Norristown.
E.
Where the gross or whole volume of business of the
taxpayer cannot in its 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 provisions of law, the Borough Administrator 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 properly attributable to doing business in the borough shall be
taxed by this Article.
F.
The first $15,000 of gross or whole volume of the
business shall be exempt. No tax shall be assessed and collected on
the first $15,000 of the business subject to this tax earned by all
taxpayers subject to this tax. The tax shall be applied and calculated
only on all moneys earned over and above the first $15,000 of the
business.
[Amended 3-6-1984 by Ord. No. 84-4]
If any taxpayer is liable for the same tax on
the same subject imposed under the Local Tax Enabling Act, December
31, 1965, Pamphlet Law 1257, and its amendments,[1] to the borough and one or more political subdivisions
of the state, then and in that event the tax shall be apportioned
by such percentage as may be agreed upon by such political subdivisions,
but in no event shall the combined taxes of both subdivisions exceed
a maximum rate of tax as fixed by said enabling act permitting the
imposition of such taxes.
[1]
Editor's Note: 53 P.S. § 6901 et
seq.
The taxpayer, to obtain the foregoing enumerated
exclusions and deductions, shall keep books and records of the business
so as to show clearly, accurately and separately the amount of such
sales and services which one 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 borough. This form will require that the taxpayer furnish the
following information:
(1)
The taxpayer's name.
(2)
The name of the business for which the taxpayer is paying the tax, even if it is the same as Subsection A(1) above.
(3)
The nature of the taxpayer's business.
(4)
The business address or addresses.
(5)
Such other information as may be necessary to the
borough to arrive at the actual gross amount of business upon which
the amount of tax due should be calculated.
(6)
The amount of tax due the borough from the taxpayer.
B.
Every taxpayer making a return shall certify the correctness
thereof by affidavit.
C.
Every taxpayer subject to the tax imposed by this
Article who commenced business on or before January 1 of the full
calendar year previous to the beginning of any tax year shall, on
or before the first of July of the tax year, file a return with the
borough.
D.
Every taxpayer who has commenced business before the beginning of the tax year but after January 1 of the full calendar year previous to the beginning of the tax year shall, on or before the first of July of the tax year, file with the borough a return consistent with Subsection A of this section and further set forth the estimated gross amount of business transacted as calculated under § 291-10B hereof.
E.
Every taxpayer who commences business subsequent to the beginning of any tax year shall, within 100 days from the date of commencing such business, file a return with the borough in accordance with Subsection A of this section and further set forth the estimated or actual gross amount of business transacted or to be transacted by him as calculated.
F.
Every taxpayer who engages in a business temporary, seasonal or itinerant by the nature of its business shall, at the time of application for the business privilege license, file a return with the borough estimatingthe gross amount of business to be transacted as calculated in accordance with Subsection A of this section.
G.
Any taxpayer going out of or ceasing to do business shall, within seven days from the date of ceasing to do business, file a return with the borough in accordance with Subsection A of this section, showing the actual gross volume of business conducted and done by such taxpayer during that tax year in which said taxpayer ceased doing business, and pay the tax due at the time of filing said return as computed thereon at the rate herein provided. In the event that any tax has been previously paid based upon estimated gross receipts, the taxpayer shall be entitled to a refund of any excess tax paid in the tax year for which business was terminated.
A.
Effective July 1, 1992, and every subsequent licensing
year thereafter, any taxpayer desiring to conduct or continue to conduct
any business as herein defined within the Borough of Norristown shall
file with the Borough Administrator an application for a business
privilege license and shall pay a fee of $65 for the initial license
and $65 for each renewal thereof. Any taxpayer who is in default of
the payment of the tax due hereunder shall be refused a license until
such tax is paid in full.
[Amended 3-6-1984 by Ord. No. 84-4; 3-3-1992 by Ord. No. 92-4]
B.
The license issued shall be conspicuously posted in
the place of business of the taxpayer, and the license shall remain
in effect for the license year or fraction thereof for which said
license was issued. In the event that a taxpayer conducts business
at more than one place, said taxpayer will be issued, at the cost
of $1, an additional license for each additional place of business
so that said additional licenses will be displayed in accordance with
this Article.
A.
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 a return as set forth above. If the tax is not
paid on said date, 5% shall be added thereto, plus an additional 1%
for each month or fractional part of a month until paid.
B.
The Borough Treasurer shall, upon payment of the business
privilege tax, give the taxpayer paying the same a receipt therefor,
setting forth the amount paid and the date on which the tax was paid.
The receipt should have the same information as the tax form itself,
i.e., business name, business address, amount due and amount paid,
as well as the date it was paid.
A.
Summary offense. 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 file a false return shall, upon summary conviction before
any District Justice in the County of Montgomery, be sentenced to
pay a fine of $600 for any one offense, recoverable with costs, or
to undergo imprisonment not exceeding 30 days if the amount of said
fine and costs shall not be paid.
[Amended 3-6-1984 by Ord. No. 84-4[1]]
B.
The Treasurer shall keep a record showing the amount
received by the borough from each taxpayer and the date of such receipt.
C.
The Treasurer shall keep a monthly record showing
the amount received by the borough in the aggregate from all taxpayers
from the tax imposed by this Article and at the end of each tax year
shall make a report to the Borough Administrator showing:
D.
The Treasurer shall keep a record of the amount of
money received by the borough as a result of the imposition of this
tax and further shall keep a record as to the cost to the borough
for the enforcement and administration of this tax. The Treasurer
shall then present this information to the Borough Administrator at
the end of each taxable year, showing the gross receipts to the borough
as a result of the imposition of this tax and the net return to the
borough as a result of the imposition of this tax.
A.
The Borough Administrator is charged with enforcing
the provisions of this Article and any rules and/or regulations promulgated
pursuant to it.
B.
The Borough Administrator is empowered to prescribe,
adopt and promulgate all rules and regulations relating to any matter
pertaining to the administration and enforcement of this Article.
C.
When a taxpayer refuses or fails to make a return,
then in such event the Borough Administrator or duly appointed deputies
shall assess such taxpayer on such an amount of whole or gross volume
of business as the Borough Administrator or deputies deem reasonable
and appropriate in accordance with the standards set by this Article.
D.
In all cases where a taxpayer either failed or refused to make a return and the Borough Administrator or his deputies have found it necessary to assess the taxpayer accordingly with Subsection C of this section, the Borough Administrator or his deputies shall provide the taxpayer accordingly assessed with notice in which shall be stated the nature of the business or services provided by the taxpayer and the amount of business privilege tax imposed or levied by the assessment. The notice shall also set forth the provisions of § 291-18 of this Article and that said provisions are applicable.
E.
The Borough Administrator and/or his deputies are
hereby authorized to be able to examine all books, papers and records
relating to the gross receipts of any person or business subject to
or claimed by the borough to be subject to the tax imposed by this
Article for the purpose of establishing whether or not the person
should be a taxpayer under this Article or the accuracy of the return
made by one who is an admitted taxpayer or to ascertain the tax due
where a return was filed or where no return was filed.
All persons or taxpayers defined by this Article
who are aggrieved by any decision of the Borough Administrator shall
have the right to direct an appeal to the Montgomery County Court
of Common Pleas.
A.
The District Justice Courts shall have original jurisdiction
over any causes of action initiated by the borough against any and
all persons who violate the provisions of this Article.
B.
In the event that the borough initiates a cause of
action to enforce this Article in accordance with the law and provisions
herein, the defendant shall be liable for:
A.
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, the Constitution of the Commonwealth of Pennsylvania and the
laws of the commonwealth.
B.
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, it 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.
Any information learned by the Borough Administrator
or any other official, agent or employee of the borough 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.
[1]
Editor's Note: Former § 291-25,
Business district allocation, amended 12-21-1982 by Ord. No. 82-25,
was deleted 7-7-1992 by Ord. No. 92-12.
