Township of Upper Merion, PA Article IV Gross Receipts

§ A170-8 Gross receipts upon which tax is imposed.

In general, the gross receipts upon which the tax is imposed includes 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 except for the limited deductions and exemptions referenced hereinafter.

§ A170-9 Deductions.

A. Deductions allowed. Trade discounts allowed to customers may be deducted from the gross amount charged in determining the amount to be reported as receipts from sales. Trade discounts include:

(1) Discounts deducted from the face amount of the bill as a method of adjusting the list price; and

(2) Discounts unconditionally deducted by customers at settlement of their bills and allowed as a matter of establishing custom of the trade without regard to the due date of such bills or the form or terms in which such discounts are described or stated on bills.

B. Other discounts. Discounts allowed to customers as cash discounts for prompt payment of their bills may be deducted from gross receipts.

C. Freight, delivery or other transportation charges. Generally, freight, delivery or other transportation charges paid by the buyer to the seller may not be deducted from gross receipts. If the seller contracts to deliver the property sold to some designated point, or is obligated under the terms of the contract to pay transportation charges to some designated point, and the transportation services are rendered to the seller, the freight, delivery or other transportation charges so incurred by the seller may not be deducted from gross receipts. Similarly, if property is sold on terms requiring the seller to deliver such property to a designated point but the purchaser pays the amount of freight, delivery or other transportation charges in the first instance, and deducts such charges from the invoice price in making remittance to the seller, no deduction from gross receipts may be taken therefor by the seller. Where, however, the seller advances the freight, delivery or other transportation charges for the account of the purchaser in accordance with the terms of the contract of sale, such charges may be excluded from gross receipts of the seller, provided:

(1) That such charges are the actual charges incurred and are billed as such to the purchaser, and

(2) That the books and records of the taxpayer clearly indicate such facts.

§ A170-10 Cash or accrual basis.

A tax return may be filed on a cash basis or on an accrual basis, but the return must be prepared in accordance with the method of accounting regularly employed in keeping the books of the taxpayer. A person who keeps books on the cash basis will report gross receipts on the basis of amounts actually received during the period used as the measure of the tax. A taxpayer who keeps books on the accrual basis will report the receipts from all sales made or services rendered during the period used as the measure of the tax, irrespective of the date when such moneys are collected from the customer. In either case, the taxpayer must file on a calendar-year basis beginning January 1 and ending December 31, regardless of the taxpayer's fiscal year.

§ A170-10.1 Form of tax return.

A tax return filed in accordance with § 149-39 of the ordinance shall include only amounts rounded to the nearest dollar, as required by the tax return form approved by the Township from time to time.