[Adopted 5-31-1974 as Ord. No. 153]
This ordinance and the business privilege tax
it imposes is enacted under the authority of the Local Tax Enabling
Act 511 of December 31, 1965, P.L. 1257, 53 P.S. § 6901,
and amendments thereto. This ordinance shall go into effect 30 days
after enactment, as provided by said Act.
The following words and phrases shall have the
meanings ascribed to them in this section, except where the context
clearly indicates a different meaning:
Any activity carried on or exercised for profit in the Township,
including but not limited to the sale of merchandise or other tangible
personalty or the performance of services, professional or otherwise.
The period from January 1 to December 31, inclusive.
Any individual, partnership, limited partnership, association,
trust, firm or corporation. Whenever used in any clause prescribing
or imposing a penalty, "person" as applied to associations means the
partners or members thereof, and as applied to corporations, the officers
thereof.
The business privilege tax imposed herein.
A person subject to the payment of the tax.
The calendar year for which the tax is due.
The Township of Palmer, Northampton County, Pennsylvania.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and to no other persons.
There is hereby levied for the last six months of the year 1974 and annually thereafter, a tax for general revenue purposes on all persons for the privilege of doing business as herein defined in the Township, and the rate of the tax on every dollar of the whole or gross volume of business or services transacted within the territorial limits of the Township shall be 1 1/2 mills (1 1/2 mills means $1.50 per $1,000 of gross volume of business), except that the rate of the tax on every dollar of the whole or gross volume of business or services transacted by wholesale dealers or wholesale vendors within the territorial limits of the Township shall be one mill (one mill means $1 per $1,000 of gross volume of business). All nonwholesale business of such wholesale dealers or wholesale vendors shall be taxed at the general rate of 1 1/2 mills. The tax shall be payable by April 15 of the tax year based upon estimated gross business volume for the tax year computed from prior years or other methods according to § 173-4 of this chapter.
A.
Every person subject to the tax who commenced his
business on or before January 1 of the calendar year preceding the
tax year shall compute his annual estimated gross volume of business
for the tax year upon the actual gross amount of business transacted
by him during such prior year.
B.
Every person subject to the tax who commenced his
business after January 1 and in the calendar year preceding 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
such preceding calendar year by taking the monthly average during
the period and multiplying the same by 12.
C.
Every person subject to the tax who commenced his
business after the beginning of a tax year, if there are less than
three months from the commencement of his business to the end of the
tax 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 are 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 the commencement of business to the end of the tax year.
D.
Persons subject to the payment of the tax who are
engaged in a business which is temporary, seasonal or itinerant by
nature shall compute the estimated gross amount of business to be
transacted within the Township by a method to be determined by the
collection officer.
E.
The collection officer is hereby authorized to accept
payment under protest of the tax where the taxpayer disputes the validity
or amount of the tax. If it is thereafter judicially determined by
a court of competent jurisdiction that the tax has been overpaid,
the amount of the overpayment shall be refunded to the taxpayer.
A.
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 municipal authority are exempt from the tax.
B.
State tax or license fee. The fact that a taxpayer
receives a certificate or other document which is designated as a
"license" from the Commonwealth of Pennsylvania or from some other
state for which the taxpayer pays a sum of money does not exempt the
taxpayer from this business privilege tax. Even though the charge
is labeled a "license fee," it cannot be regarded as such if it is
nominal in amount and not equated to the probable cost of supervision
or regulation of the licensee's activities. Flat annual fees, fees
which are not related to gross income or amount of production or fees
that are nominal in nature are not considered true license fees, and
hence, payment of such fees will not exempt the taxpayer from this
business privilege tax.
[Amended 11-27-1990 by Ord. No. 238[1]]
[1]
Editor's Note: Section 5 of this ordinance
provided that it go into effect 30 days after its adoption and shall
be effective for the tax year commencing January 1, 1991, and all
tax years thereafter.
C.
Any person or company whose rates of service are fixed
and regulated by the Pennsylvania Public Utility Commission on any
public utility service rendered by any such person or company or any
privilege or transaction involving the rendering of any such public
utility service is exempt from the tax.
D.
The privilege of employing such tangible property
as is subject to a state tax, except on sales of admission to places
of amusement or sales or other transfers of title or possession of
property, is exempt from the tax.
E.
Goods, articles and products or byproducts of manufacture,
or minerals, timber, natural resources and farm products manufactured,
produced or grown in the Township, or the preparation or processing
thereof for use or market, or 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,
producers and 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 byproducts
of manufacture or the transportation, loading, unloading, dumping
or storage of such goods, articles, products or byproducts are exempt
from the tax.
The gross volume of business upon which the
tax is computed shall include the gross consideration credited or
received for or on account of sales made or services rendered, or
both, subject only to the following deductions:
A.
Gross moneys derived from the resale of goods, wares
and merchandise taken as trade-in or as part payment for other goods,
wares and merchandise to the extent that the resale price does not
exceed the trade-in allowance.
B.
Refunds, credits or allowances given 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 person to another similar
person on account of a purchase or sales contract initiated, executed
or cleared with such other person.
D.
Bad debts, where the deduction is also taken in the
same year for federal income taxation purposes.
E.
Taxes collected as agent for the United States of
America, Commonwealth of Pennsylvania or Township of Palmer.
Where the gross or whole volume of business
in its entirety cannot be subjected to the tax imposed by this ordinance
by reason of the provisions of the Constitution of the United States
or any other provision of law, the collection officer shall establish
rules and methods of allocation so that only that part of the gross
volume of business which is taxable shall be taxed. If any person
is liable for the same tax on the same subject imposed under the Local
Tax Enabling Act to the Township and one or more political subdivisions
of the state, the tax shall be apportioned by such percentage as may
be agreed upon by such political subdivisions, but the combined taxes
of both subdivisions shall not exceed the maximum rate of tax.
The taxpayer shall keep books and records of
his business so as to show clearly, accurately and separately the
amount of sales and services as are subject to the tax and the amounts
of such sales and services which he is entitled to deduct from the
gross volume of business.
A.
Every return shall be made upon a form furnished by
the collection officer. Every person making a return shall certify
the correctness thereof, under penalties of this ordinance.
B.
Every person subject to the tax who commenced his business on or before January 1 of the calendar year preceding the tax year shall, on or before the 15th day of April of the tax year, file with the collection officer a return setting forth his name, business, business address and such other information as may be necessary in arriving at the gross amount of business transacted by him during the preceding calendar year and the amount of the tax due according to § 173-4A. The business privilege tax return so filed shall be accompanied by copies of the appropriate federal income tax schedules and forms for the relevant tax year, specifically but not limited to Schedule C, Schedule E, Form 1065, Form 1120-A, Form 1120 and Form 1120-S. In addition, any person claiming a partial exemption from this business privilege tax under § 173-7 shall file with his return copies of the appropriate documentation as a basis for the claim of such partial exemption. No exemption or partial exemption shall be permitted from this business privilege tax without the simultaneous filing of such appropriate documentation.
[Amended 11-27-1990 by Ord. No. 238[1]]
[1]
Editor's Note: Section 5 of this ordinance
provided that it go into effect 30 days after its adoption and shall
be effective for the tax year commencing January 1, 1991, and all
tax years thereafter.
C.
Every person subject to the tax who commenced his business after January 1 and in the calendar year preceding the tax year shall, on or before the 15th day of April of the tax year, file with the collection officer a return setting forth his name, 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 § 173-4B and the amount of tax due.
D.
Every person subject to the tax who commenced business after the beginning of any tax year shall, within 100 days from the date of commencing such business, file a return with the collection officer setting forth his name, business, business address and such information as may be necessary in arriving at the estimated or actual gross amount of business transacted by him as calculated under § 173-4C hereof and the amount of the tax due.
E.
Every person subject to the tax who engages in a business which is temporary, seasonal or itinerant by its nature shall, at the time application is made for the business privilege license, file a return with the collection officer 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 § 173-4D.
F.
Any person going out of or ceasing to do business
shall, within 30 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 the person ceased
doing business, and pay any tax due as computed thereon at the rate
herein provided for at the time of filing the return. If such tax
has been previously paid based upon estimated gross receipts, the
taxpayer shall be entitled to a refund of any excess tax paid for
the tax year in which business was terminated.
G.
The business privilege tax levied pursuant to this
ordinance 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 paid on such date, 5% shall be added thereto, plus an additional
1% per month or fractional part of a month until paid. The return
and tax for the last six months of 1974 shall be due and payable on
September 15, 1974; the tax imposed that one time shall be 1/2 that
normally due for the tax year 1974.
[Amended 1-6-2003 by Ord. No. 2003-332; 12-26-2007 by Ord. No. 2007-374; 9-6-2016 by Ord. No. 2016-446]
Any person conducting, engaging in or carrying on any business,
trade, occupation or business activity, or desiring to conduct or
continuing to conduct any said business, trade, occupation or business
activity within the Township, shall file with the collection officer
an application for a business privilege license and shall pay the
appropriate fee, established annually by resolution of the Board of
Supervisors, for the initial license and for each renewal thereafter.
The fee shall not be prorated by the Township based upon the date
of issuance. All licenses shall be effective for one calendar year,
effective January 1 and expiring on December 31. The license issued
shall be conspicuously posted in the place of business for which such
license is 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 tax due hereunder
shall be refused a license until such tax is paid in full. Licenses
may be revoked for Township ordinance violations.
A.
The collection officer is charged with the duties
of collecting and receiving the taxes, fines and penalties imposed
by this ordinance. 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. The Board of Supervisors shall appoint the collection
officer and may appoint deputy collection officers. He or they shall
assess and collect the tax.
B.
The collection officer and the Board are hereby authorized
to prescribe, adopt and promulgate forms and regulations relating
to any matter pertaining to the administration and enforcement of
this ordinance.
C.
If a taxpayer neglects or refuses to make a return,
the collection officer or his duly appointed deputies may assess the
person such an amount of gross volume of business as the collection
officer or his deputies deem reasonable and appropriate. In all cases
of assessment, the collection officer or his duly appointed deputies
shall give the parties assessed a notice in which shall be stated
the amount of tax levied.
D.
The collection officer or his deputies are hereby
authorized to examine the books, papers and records of any person
subject to the tax in order to verify the accuracy of the return made,
or if no return was made, ascertain the tax due. All returns shall
be confidential, unless subject to court proceedings.
E.
Any person aggrieved by a decision of the collection
officer shall have the right to appeal to the Court of Common Pleas,
as in other cases.
The collection officer or his duly appointed
deputies shall have the power in the name of the Township to institute
proceedings against any and all persons who violate the provisions
of this ordinance. 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.
Nothing contained in this ordinance shall be
construed to authorize the Township to levy and collect the tax on
any person or any business or any portion of any business not within
the taxing power of the Township. The provisions of this ordinance
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 ordinance. It is
hereby declared to be the intention of the Board of Supervisors that
this ordinance would have been adopted if such illegal, invalid or
unconstitutional provisions had not been included herein.
[Amended 10-25-1988 by Ord. No. 227]
A.
Any person who conducts, transacts or engages in any
of the businesses subject to the tax imposed by this ordinance without
having first secured a business privilege license for the year, or
any person who fails to file a tax return as required by the provisions
of this ordinance, or any person who willfully files a false return,
shall, upon summary conviction before any Justice of the Peace in
the County of Northampton, be fined not more than $600 for any one
offense, recoverable with costs, or imprisonment not exceeding 30
days, if the amount of the fine and costs are not paid.
B.
Each day of violation of the particular code or ordinance
applicable shall be considered a separate offense, for which the fines
and penalties stated herein may be imposed on a daily basis.
