This article shall be known as the "Business
Privilege Tax Ordinance."
[Amended 1-20-1987 by Ord. No. 823]
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
masculine shall include the feminine, the singular includes the plural,
and vice versa.
BOROUGH
The Borough of Lewisburg, Union County, Pennsylvania.
BUSINESS
Any activity carried on, engaged in or exercised for gain,
profit or otherwise in the Borough of Lewisburg, Union County, Pennsylvania,
including, but not limited to, the sale of merchandise or other personalty
and/or realty, the performance of services, and the rental of personalty
and/or realty.
CALENDAR YEAR
The period from January 1 to December 31, inclusive.
LICENSE YEAR
The period from January 1 to December 31, inclusive.
PERSON
Any individual, partnership, limited partnership, association,
firm, corporation of any class, and/or any other entity. 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, and if there
are no officers, the shareholders thereof.
TAX ADMINISTRATOR
The person, firm, or entity duly appointed by the Borough
Council of the Borough of Lewisburg to administer and collect the
within tax and shall include his or its deputies.
TAXPAYER
A person subject to the payment of the tax imposed by this
article.
TAX YEAR
The period from January 1 to December 31, inclusive.
WHOLE OR GROSS VOLUME OF BUSINESS
The whole or gross value of revenue received in cash, credits
or property of any kind or nature by any person engaging in business
in the Borough of Lewisburg, without deduction on account of cost
or expenses incurred in connection therewith.
[Amended 1-20-1987 by Ord. No. 823]
There is hereby levied for the tax year 1987
and for each tax year thereafter, a tax for general revenue purposes
on the privilege of doing business within the Borough, at the rate
of 3/4 of a mill on each and every dollar of the whole or gross volume
of business transacted within the territorial limits of the Borough
(3/4 mill shall mean $0.75 per $1,000 of the whole or gross volume
of business); except that the rate of 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 1/2 of a mill (1/2 mill shall mean $0.50 per $1,000 of the
whole or gross volume of business). All non-wholesale business of
such wholesale dealers or wholesale vendors shall be taxed at the
general rate of 3/4 of a mill.
The whole or gross volume of business upon which
the business privilege tax imposed by this article is computed shall
include the gross consideration credited to or received by the taxpayer
which is attributed or allocable to business conducted in the Borough,
without deduction therefrom for or on account of the costs of property
sold, materials used, labor, service, or other costs, interest or
discount paid, or any other expense or cost of doing business.
A. Exclusions. The following shall not be included in
the computation of whole or gross volume of business:
(1) The dollar volume of business transacted by wholesale
and retail dealers derived from the resale of goods, wares and merchandise
taken by any dealer 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.
(2) 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.
(3) Any commissions paid by a broker to another broker
on account of a purchase or sales contract initiated, executed or
cleared in conjunction with such other broker.
(4) In the case of a financial business, the cost of securities
and other properties sold, exchanged, paid at maturity, or redeemed,
and moneys or credits received in repayment of advances, credits and
loans (not to exceed the principal amount of such advances, credits
or loans), and deposits.
(5) Bad debts, where the deduction is also taken in the
same year for federal income taxation purposes.
(6) Taxes collected as agent for the United States of
America, the Commonwealth of Pennsylvania, and/or its political subdivisions.
B. Allocation. Where the whole or gross volume of business
in its entirety cannot be subjected to the business privilege tax
imposed by this article by reason of the provisions of the Constitution
of the United States or any other provision of law, the Tax Administrator
with the approval of the Borough shall establish rules and regulations
and methods of allocation and evaluation so that only that part of
the whole or gross volume of business which is properly attributable
and allocable to business conducted or rendered in the Borough shall
be taxed hereunder.
C. Apportionment. If any person is liable for the same
tax on the same subject imposed under authority of the Local Tax Enabling
Act of December 31, 1965, P.L. 1257, as amended, to the Borough and
one or more other political subdivisions of the Commonwealth of Pennsylvania,
then and in that event the business privilege tax imposed by this
article shall be apportioned by such political subdivisions, but,
in no event, shall the combined taxes of both subdivisions exceed
the maximum rate of tax as fixed by the said Local Tax Enabling Act
permitting the imposition of such taxes.
D. Records. The taxpayer, to obtain the foregoing enumerated
exclusions and deductions, shall keep books and records of his business
so as to show clearly, accurately and separately the amount of such
sales and services as are excluded from the business privilege tax
imposed by this article and the amounts of such sales and services
which he is entitled to deduct from the gross volume of business as
hereinbefore provided.
Each taxpayer shall keep full, complete and
accurate books and records of account of the business, as defined
herein, conducted or rendered by him in the Borough, including a full,
complete and accurate account of the gross consideration or other
thing of value credited to, received in, allocable to, or attributed
to business conducted or rendered in the Borough. Such books, records
and account must disclose in detail the gross receipts and other data
pertaining to the taxpayer's gross volume of business and must be
sufficiently complete to enable the Tax Administrator or his deputies
to verify all such transactions. The Tax Administrator or his deputies
are hereby authorized to examine, inspect and/or copy all books, papers
and records of any person or persons subject to or supposed to be
subject to the business privilege tax imposed by this article, and
such taxpayer shall produce the same for the inspection, review and/or
copying of the Tax Administrator or his deputies at such times and
places as specified by the Tax Administrator or his deputies.
The Tax Administrator shall, upon receipt of
payment by him of the business privilege tax imposed by this article,
give the person paying the same a receipt therefor or some other acknowledgement
of receipt as the Tax Administrator may determine.
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 hereinabove, and if the
same is not paid on said date, any taxpayer who shall fail to pay
said tax shall be charged a penalty of 10% of the amount of the tax
due, plus interest of 18% per annum on the amount of the tax due or
1.5% for each month or fractional part thereof, commencing from the
day when said tax was due until the day it is paid. The said penalty
and interest shall be added to and become a part of the tax due and
shall be collectible in the same manner as the tax.
Any person who shall conduct, transact or engage in any of the businesses subject to the business privilege tax imposed by this article without having first secured a business privilege license, or any person who shall fail to file a tax return as required by the provisions of this article, or any person who shall refuse to produce books and records for inspection, review or copying as may be required by the Tax Administrator or his deputies, or any person who shall willfully file a false return, shall, upon conviction thereof in a summary proceeding before a District Justice, be sentenced to pay a fine of not more than $300 for any one offense, plus costs of prosecution, and, in default of payment of such fine and costs, be imprisoned for a period not to exceed 90 days; provided, however, that each day's continuance of a violation of any of the provisions of this article shall constitute a separate offense and shall be punishable as such. The fine and costs imposed by this section shall be in addition to any penalty and interest imposed by §
324-24 of this article.
Any information gained by the Tax Administrator,
his deputies 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.
This article shall become effective 30 days
after enactment or on January 1, 1987, whichever shall be later, and
shall remain in effect and continue thereafter from year to year on
a calendar year basis unless amended or repealed.