[Adopted 1-12-1988 by Ord. No. 386]
[Added 12-12-1994 by Ord. No. 526]
Pursuant to the authority granted by the Local Tax Enabling Act (53 P.S. § 6901 et seq.), the City Council of the City of Pottsville hereby imposes a business privilege tax for general revenue purposes, to be levied and assessed as hereinafter provided.
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:
BUSINESS
Any activity carried on or exercised for gain or profit in the City of Pottsville, including but not limited to the sale of merchandise or other tangible personalty, the performance of services and the rental of personalty and/or realty.
CALENDAR YEAR
The period January 1 to December 31, inclusive.
CITY
The City of Pottsville.
MANUFACTURING
The application of labor and skill to material whereby the original article is changed into a new, different and useful article.
PERSON
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.
TAX ADMINISTRATOR
The person duly appointed by the Council of the City of Pottsville to administer the within tax.
TAXPAYER
Any person subject to the payment of the tax imposed by this article.
TAX YEAR
The period from January 1 to December 31, inclusive.
WHOLESALE DEALER
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 tax year 1988, and annually thereafter, a tax for general revenue purposes on the privilege of doing business, as herein defined, in the City of Pottsville, 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 City of Pottsville by persons subject to the payment of the tax hereby imposed, shall be three and one-half (3 1/2) mills, which shall mean $3.50 per $1,000 of the whole or gross volume of business, except that, for wholesale dealers or wholesale vendors, the rate of tax on each and every dollar of the whole or gross volume of business transacted shall be one mill or $1 per $1,000 of whole of gross volume of business, and for retail dealers and retail vendors, the rate of tax on each and every dollar of the whole or gross volume of business transacted shall be one and one-half (1 1/2) mills or $1.50 per $1,000 of the whole or gross volume of business.
[Amended 12-28-1989 by Ord. No. 424]
B. 
Computation of volume of business.
(1) 
Every person subject to the payment of the tax hereby imposed who has commenced his business before the beginning of 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 the prior calendar year.
(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 amount of business transacted by him during the prior calendar year, taking the monthly average during said period and multiplying the same by 12. In the event 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 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 same by 12.
(3) 
Every person subject to the payment of the tax hereby imposed who has commenced or commences his business subsequent to the beginning of the tax year, if there shall be fewer 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 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 amount 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.
(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 the 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 City 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 City in any case where the taxpayer disputes the validity or amount of the City's claim for tax. If it is thereafter judicially determined by a court of competent jurisdiction that the City has been overpaid, the amount of the overpayment shall be refunded to the taxpayer. The provisions of this section shall apply to instances in which the facts are the same as those in like cases litigated before a court of competent jurisdiction.
C. 
Persons, businesses and receipts exempted/excluded.
(1) 
Persons and businesses. Persons employed for a wage or salary, the noncommercial activities of 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) 
Preemption by commonwealth. No such tax shall be assessed and collected on a privilege, transaction, subject or occupation which is subject to a tax or license fee by the Commonwealth of Pennsylvania and which tax or license fee has been held by a court of competent jurisdiction to be the basis for exemption from the imposition of a business privilege tax by a political subdivision.
(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) 
Commonwealth 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 tax by the Commonwealth of Pennsylvania, 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 City of Pottsville or on the preparation or processing thereof for use or 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.
(6) 
Trade-in allowance. No such tax shall be assessed and collected on the dollar volume of business transacted by wholesale and retail dealers derived from the resale of goods, wares and merchandise taken by any such 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.
(7) 
Contractors performing building or construction work outside the City of Pottsville.
(a) 
Contractors with field offices. City of Pottsville contractors or subcontractors engaged in the performance of building and construction contracts at a point outside the territorial limits of the City may exclude from the measure of the tax the receipts derived therefrom, provided that a bona fide field office was established and maintained on the premises of the project during the performance of the contract to such an extent as to constitute doing local business at the situs of the job.
(b) 
Alterations and repairs. The provisions of this section apply only to contractors engaged in the erection of complete new buildings or in the complete alteration and remodeling of old buildings. They do not apply to contractors who engage in alteration and repair jobs, such as a roofer repairing the roof of a building situated outside the City of Pottsville.
(c) 
Architects, engineers, consultants and technicians. The provisions of Subsection C(7) do not apply to architects, engineers, consultants and technicians rendering professional services outside the City of Pottsville.
(d) 
Qualifications for exclusion. In order to qualify for exclusion hereunder, the contractor must show that he established a place of business at the situs of the job by maintaining a bona fide field office thereat with machinery and equipment for use in the fulfillment of the contract together with the performance of such other functions so as to constitute doing local business at the situs of the job.
(8) 
Brokers and agents with out-of-City branch offices.
(a) 
Where a City of Pottsville general agent or broker of an insurance, real estate or other firm establishes and maintains a bona fide branch office outside the City, the commissions attributable to such branch office may be excluded from gross receipts. Commissions will be deemed attributable to the City and hence subject to inclusion in the measure of the tax, if they result from the efforts of brokers, subagents or employees who work in, from or are attached to the City of Pottsville office.
(b) 
In order to qualify for exclusion hereunder, the agent or broker must show that he established and maintained a bona fide place of business outside the City by owning or leasing realty thereat together with the performance of such other functions so as to clearly constitute doing local business at such location.
(9) 
Businesses with out-of-City branch offices, stores, etc.
(a) 
Where a City of Pottsville business establishes and maintains a bona fide branch office, store or other place of business outside the City, the receipts attributable to such branch offices or stores may be excluded from the gross volume of business. Receipts will be deemed attributable to the City, and hence subject to inclusion in the measure of the tax, if they result from the efforts of persons who work in, from or are attached to the City of Pottsville place of business.
(b) 
In order to qualify for exclusion hereunder, the taxpayer must show that he established and maintained a bona fide place of business outside the City by owning or leasing realty thereat together with the performance of such other functions so as to clearly constitute doing local business at such location.
D. 
Determination of gross or whole volume business. The 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, services performed, personalty or realty rented and commissions earned subject only to allowable deductions and exemptions. Where the gross or whole volume of business cannot be subjected to the tax imposed by this article by reason of the provisions of the Constitution of the United States or of the Commonwealth of Pennsylvania or any other provision of law, the Tax Administrator, with the approval by resolution of the Council of the City of Pottsville, shall promulgate rules and regulations and methods of allocation and evaluation so that only the gross or whole volume of business which is properly attributable and allocable to doing business in the City shall be taxed hereunder.
E. 
Partial exemptions/exclusions. 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 of the Commonwealth of Pennsylvania or any other provision of law, the Tax Administrator, with the approval by resolution of the Council of the City of Pottsville, shall promulgate 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 and allocable to doing business in the City shall be taxed hereunder.
F. 
Rate when same tax is imposed by two taxing bodies. If any person is liable for the same tax on the same subject imposed under the Local Tax Enabling Act, 1965, P.L. 1257, No. 511, as amended,[1] to the City and one or more non-coterminous political subdivisions of the commonwealth and when such tax is limited by the Enabling Act, then and in that event, the tax shall be apportioned by such percentage as may be agreed upon by the political subdivisions, but in no event shall the combined taxes of both political subdivisions exceed the maximum rate of tax as fixed by the Enabling Act permitting the imposition of such taxes.
[1]
Editor's Note: See 53 P.S. § 6901 et seq.
G. 
Records. The taxpayer, to obtain the allowable exemptions, exclusions and deductions, shall keep books and records of his business so as to show clearly, accurately and separately the amount of such sales, services and rentals as are exempted or excluded from the tax and the amounts of such sales, services and rentals which he is entitled to deduct from the gross or whole 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 and attach thereto a copy of the appropriate form or schedule from their federal income tax return for their prior calendar or fiscal year(s) to substantiate the gross or whole volume of business reported. Where exemptions or exclusions are claimed, substantiation of the nature and amount of such deductions taken shall be attached to the return.
B. 
Every person subject to the tax imposed by this article who commenced his business on or before January 1 of the full calendar year prior to the beginning of any tax year shall, on or before the 15th day of May of the tax year, file with the Tax Administrator a return setting forth his name, his business, the 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 the beginning of the tax year but after January 1 of the full calendar year prior to the beginning of the tax year shall, on or before the 15th day of May of the tax year, file with the Tax Administrator a return setting forth his name, his business, the 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 § 201-65B(2) hereof, and the amount of tax due.
D. 
Every person subject to the tax imposed by this article who commences business subsequent to the beginning of any tax year shall, within 105 days from the date of commencing such business if said one-hundred-five-day period ends after May 15 of the tax year and, if prior thereto, on May 15 of the tax year, file a return with the Tax Administrator setting forth his name, his business and the business address and such other information as may be necessary in arriving at the estimated or actual gross amount of business transacted by him, as calculated under § 201-65B(3) hereof, and the amount of the tax due.
E. 
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 § 201-65B(4) hereof, and the amount of the tax due.
F. 
Any person going out of or ceasing to do business in the City shall, within 15 days from the date of ceasing to do business, file a return showing the actual gross amount of business transacted 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 of any excess tax paid for the tax year in which business was terminated.
G. 
Payment of tax and penalties for late payment. The 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 hereinbefore, and if the same is not paid on that date, a penalty of 10% shall be added thereto, plus interest at the rate of 1% per month of the unpaid tax for each month or fraction thereof during which the tax remains unpaid. Total amounts due of less than $1 need not be paid.
H. 
Receipt. The Tax Administrator shall, upon payment to him of tax levied pursuant to this article, give the person paying the same a receipt therefor, if requested. A stamped, self-addressed envelope shall be furnished by the taxpayer if a receipt via return mail is desired.
The license shall be conspicuously posted in the place of business for which such license is issued. A licensee maintaining more than one place of business within the City shall obtain one license for all his places of business and shall post such license at his principal place of business.
[Amended 12-12-1994 by Ord. No. 526]
Any person who conducts or engages in any business subject to the tax imposed by this article, without having first secured a business privilege license, or who fails to file a tax return as required by the provisions of this article or who willfully files a false return or who fails to maintain such records and books of account as shall enable him to make a true and correct return in accordance with the provisions of this article or any person subject to or supposed to be subject to the tax imposed by this article who refuses to allow the Tax Administrator or his duly appointed deputies to examine the books, papers and records of such person or who fails to comply with any other provisions of this article shall, upon conviction, be fined not more than $600 for each offense, plus costs, and, in default of payment thereof, shall be imprisoned for not more than 90 days.
Each day on which any person violates this article shall be considered as a separate offense and shall be punishable as such as hereinbefore provided.
A. 
The Tax Administrator is charged with the duty of collecting and receiving the taxes, fines, interest 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, under the direction of the City Treasurer, are hereby empowered, with the approval by resolution of the Council of the City of Pottsville, 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 reexamination and correction of returns and of 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 that any person subject to the tax imposed by this article neglects or refuses to make a return, then and in such case the Tax Administrator or his duly appointed deputies shall assess said person on such an amount of whole or gross volume of business as the Tax Administrator or his deputies deem reasonable and appropriate. In all cases of assessment, the Tax Administrator or his deputies shall give the person assessed a notice, in which shall be stated the nature of business conducted and the amount of tax imposed or levied.
D. 
Any person subject to the tax imposed by this article 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 records must disclose, in detail, gross receipts and other data pertaining to the taxpayer's gross or whole volume of business and must be sufficiently complete to enable the Tax Administrator or his duly appointed deputies to verify all transactions. The Tax Administrator or his deputies are hereby authorized to examine the books, papers and records of any person subject to or supposed to be subject to the tax imposed by this article in order to verify the accuracy of any return made or, if no return was made, to ascertain the tax due.
Any information gained by the Tax Administrator or his duly appointed deputies or any other official, agent or employee of the City as a result of any return, examination, investigation, hearing or verification 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 City, to institute proceedings against any person who violates 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 such tax, the person liable therefor shall, in addition, be liable for the costs of collection and the interest and penalties herein imposed.
A. 
Nothing contained in this article shall be construed to empower the City to levy and collect the tax hereby imposed on any person or any business or any portion of any business not within the taxing powers of the City granted by the Constitution of the United States or of the Commonwealth of Pennsylvania or any other provision of law.
B. 
If the tax or any portion thereof imposed upon any person under the provisions of this article shall be held by a court of competent jurisdiction to be in violation of the Constitution of the United States or of the Commonwealth of Pennsylvania or any other provision of law, the decision of the court shall not affect or impair the right to impose the tax or the validity of the tax so imposed upon other persons, as herein provided.