[Adopted 6-13-1977 by Ord. No. 537, approved 6-14-1977]
This article shall be known as the "Business
Privilege Tax Ordinance," and the business privilege tax it imposes
is enacted under the authority of the Local Tax Enabling Act, Act
No. 511 of December 31, 1965, P.L. 1257, 53 P.S. § 6901,
and amendments thereto.[1] This article shall go into effect 30 days after enactment,
as provided by said Act.
[1]
Editor's Note: Pursuant to P.L. 197, No. 32, enacted 7-2-2008,
sections of the Local Tax Enabling Act formerly codified in 53 P.S.
§ 6901 et seq. have been revised and renumbered. See now
53 P.S. § 6924.101 et seq.
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 Wilson.
Any activity carried on or exercised for gain or profit in
the Borough of Wilson, 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.
The period from January 1 to December 31, 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 thereof.
A person subject to the payment of the tax imposed by this
article.
The calendar year for which the tax is due.
The Treasurer of the Borough of Wilson.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and no other persons.
[Amended 12-27-1979 by Ord. No. 554, approved 12-27-1979; 3-8-2004 by Ord. No.
710, approved 3-8-2004]
There is hereby levied for the calendar year 2004, and annually thereafter, a tax for general revenue purposes on all persons for the privilege of doing business as herein defined in the Borough, and 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 1 1/2 mills, (1 1/2 mills shall mean $1.50 per $1,000 of gross volume of business), except that the rate of the tax on each and every dollar of the whole or gross volume of business transacted by wholesale dealers or wholesale vendors within the territorial limits of the Borough shall be one mill. (One mill shall mean $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, 2004, and annually thereafter on April 15th based upon gross business volume for the preceding tax year computed according to § 157-31 of this article.
[Amended 3-8-2004 by Ord. No. 710, approved 3-8-2004]
A.
Every person subject to this article shall compute his gross volume of business upon the actual gross volume of business transacted by him during the person's tax year immediately proceeding the annual due date as set forth in § 157-31.
B.
The License Officer 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 the overpayment shall be refunded to
the taxpayer. The provisions of this section shall be applicable to
cases in which the facts are similar to those in a case litigated
in a court of competent jurisdiction.
A.
Persons and businesses. Persons employed for wage or salary, 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. Nonprofit corporations
or associations organized for religious, charitable or educational
purposes which meet the criteria for "institutions of purely public
charity" as set forth in the Institutions of Purely Public Charity
Act, 1997, P.L. 508, No. 55 (10 P.S. § 371 et seq.), are
also exempt. However, the exemption for such purely public charities
is limited to activities connected to the organization's charitable
purpose, and does not apply to exempt the gross volume of business
derived from "unrelated trade or business," as defined in 26 U.S.C.A.
§ 513, from taxation.
[Amended 11-14-2016 by Ord. No. 779, approved 11-14-2016]
B.
No such tax shall be assessed and collected on a privilege,
transaction, subject or occupation which is subject to a state tax
or license fee.
C.
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.
D.
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.
E.
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 Borough of Wilson, 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 any privilege, act or transaction relating
to the business of processing by-products of their own manufacture,
or on the transportation, loading, unloading or dumping or storage
of such goods, articles, products or by-products.
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 Borough of Wilson.
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 Constitution of the United States or any other provision
of law, the License 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 Borough 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
amounts 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.
[Amended 1-22-1996 by Ord. No. 654, approved 1-22-1996; 3-8-2004 by Ord. No.
710, approved 3-8-2004]
A.
Every return shall be made upon a form furnished by
the License Officer. Every person making a return shall certify the
correctness thereof as provided on the form.
B.
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 that tax year in which said person
ceased doing business, and pay the tax due as computed thereof at
the rate herein provided for at the time of filing said return.
C.
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, 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.
After the effective date of this article, any
person desiring to conduct or continuing to conduct, or to continue
to conduct, any business within the Borough shall file with the License
Officer an application for a business privilege license and shall
pay a fee of $5 for the initial license and $5 for each renewal thereof.
The license issued shall be conspicuously posted in the place of business
for which such license is issued and shall remain in effect one year
from the date of issue. In cases where more than 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 Borough ordinance violations.
A.
The Treasurer 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 License Officer and his duly appointed deputies,
under the direction of the Borough Council, are hereby empowered,
with the approval of the Council, 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 examination
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 thereto.
C.
In the event the person to be assessed neglects or
refuses to make a return, then the License Officer or his duly appointed
deputies shall assess said person or persons on such an amount of
the whole or gross volume of business as the said License Officer
or his deputies deem reasonable and appropriate. In all cases of assessment,
the License Officer and 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 business privilege 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 volume of business and must
be sufficiently complete to enable the License Officer or his deputies
to verify all transactions. The License Officer or his deputies are
hereby authorized to examine the books, papers and records of any
person or persons subject to the tax imposed by this article in order
to verify the accuracy of the return made or, if no return was made,
to ascertain the tax due. All returns shall be confidential, unless
subject to court proceedings.
E.
Any person aggrieved by a decision of the License
Officer shall have the right to appeal to the Court of Common Pleas
as in other cases.
The License Officer or his duly appointed deputies
shall have the power, in the name of the Borough, to institute proceedings
against any and all persons who violate the provisions of this article.
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.
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 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 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 provisions of the law, the decision 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.
Any person who conducts, transacts or engages
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 fails to file a tax return as required by
the provisions of this article, or any person who willfully files
a false return, shall, upon summary conviction before any District
Justice in the County of Northampton, be fined not more than $300
for any one offense, recoverable with costs, or undergo imprisonment
not exceeding 30 days if the amount of the fine and costs is not paid.
Each day on which any person violates any provision of this article
may be considered as a separate offense and punishable as such.
