[Adopted 9-21-1982 by Ord. No. 1406]
This article shall be known as the “Business
Privilege Tax Ordinance,” and is enacted pursuant to the authority
of the Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257,[1] as amended.
[1]
Editor's Note: See 53 P.S. § 6901
et seq., as amended.
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 Crafton.
Any activity carried on or exercised for gain or profit or
otherwise in the Borough of Crafton, including, but not limited to,
the sale of merchandise or other personalty and/or realty, or the
performance of service and the rental of personalty and/or realty.
The period January 1 to December 31, inclusive.
The period from January 1 to December 31, inclusive.
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.
The person, firm or entity appointed by Council of the Borough
of Crafton to administer and collect the within tax and shall include
his or its deputies.
A person subject to the payment of the tax imposed by this
article.
The period from January 1 through December 31, inclusive.
Any business that is conducted within the Borough of Crafton
for less than 60 consecutive days.
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 1982
and for each tax year thereafter a tax for general revenue purposes
on the privilege of doing business within the Borough of Crafton,
at the rate of 1 1/2 mills on each and every dollar of the whole or
gross volume of business (1 1/2 mills shall mean $1.50 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 Borough
of Crafton shall be one mill (one mill shall mean $1 per $1,000 of
the whole or 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.
A.
Every person subject to the payment of the tax hereby
imposed who has commenced his business at least one full calendar
year prior to the beginning of any tax year shall compute his annual
estimated whole or gross volume of business upon the actual amount
of the whole or gross receipts of the business received by or credited
to him during the preceding calendar year.
B.
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 annual estimated whole
or gross volume of business for the tax year by taking the monthly
average of whole or gross receipts received by him or credited to
him during that period of the prior calendar year during which he
transacted or conducted business and multiplying the same by 12.
C.
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 shall compute his annual whole or gross
volume of business upon the actual whole or gross amount of receipts
received by or credited to him during the tax year.
D.
Every person subject to the payment of the tax hereby
imposed who engages in a business which is temporary, seasonal or
itinerate shall compute his estimated whole or gross volume of business
upon the actual amount of the whole or gross receipts received by
or credited to him during the period he engages in such temporary,
seasonal or itinerate business.
E.
Every person who ceases to carry on a business during
any tax year after having paid the business privilege tax for the
entire year shall, upon making proper application to the License Tax
Officer, be entitled to receive a refund of the pro-rata amount of
the tax paid based upon the period of time he was not in business
during the tax year. In the event that a person who discontinues business
during any tax year does so before payment of his tax becomes due
for such tax year, he shall be permitted to apportion his tax for
such tax year and shall pay an amount to be computed by multiplying
his gross receipts for the preceding full calendar year by a fraction
whose numerator shall be the number of months such person was in business
during the tax year and whose denominator shall be 12.
The business of any agency of the United States
or of the Commonwealth of Pennsylvania or its political subdivisions,
and any employment for wage or salary and/or any business upon which
the power to levy is withheld by law, shall not be subject to the
tax herein imposed. The activities of an independent contractor shall
not be considered as employment for wage or salary.
The gross or whole volume of business upon which
the tax hereunder 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 of Crafton, without deduction
therefrom, 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.
The following shall not be included in the computation
of gross or whole 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
returned.
(3)
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 subject to the tax imposed by this article
by reason of the provisions of the Constitution of the United States
or any other provision of law, only that part of the whole or gross
volume of business which is properly allocable or attributable to
business conducted or rendered in the Borough of Crafton shall be
taxed hereunder.
C.
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 which he is entitled to deduct from the gross volume
of business as herein before 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 of Crafton, including
a full and 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 of Crafton.
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 Collector
or his deputies to verify all transactions. The Tax Collector 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 tax imposed by this article, and such taxpayer
shall produce the same for the inspection, review and/or copying of
the Tax Collector or his deputies at such times and place as specified
by the Tax Collector and/or his deputies.
A.
Every return shall be made upon a form prescribed
and/or furnished by the Tax Collector in which the taxpayer shall
set forth his name, his business, business address and such other
information as may be required by the Tax Collector. Every person
making a return shall certify the correctness thereof by certification
or declaration.
B.
Every person subject to the tax herein imposed who has commenced his business at least one full calendar year prior to any tax year shall, on or before the 15th day of May of said tax year, file with the Tax Collector, together with the payment of the tax due, a return setting forth the estimated whole or gross volume of business for the tax year based on the actual whole or gross volume of business transacted in the prior calendar year in accordance with § 201-48A.
C.
Every person subject to the tax herein imposed who has commenced his business less than one 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 Collector, together with payment of the tax due, a return setting forth the estimated whole or gross volume of business for the tax year calculated in accordance with § 201-48B, hereof.
D.
Every person subject to the tax imposed by this article who has commenced or commences business subsequent to the beginning of any tax year shall, on or before January 31 of the year immediately following the tax year, file a return together with payment of tax due, with the Collector, containing the actual whole or gross amount of business transacted by him calculated under § 201-48C.
E.
Every person subject to the payment of the tax imposed by this article who engages in a business, temporary, seasonal or itinerate, shall, on or before January 31 of the year immediately following the tax year, file a return together with payment of the tax due, with the Collector, containing the actual whole or gross amount of business transacted by him as calculated under § 201-48D hereof.
The business privilege tax levied pursuant to
this article shall be due and payable on the date in which the taxpayer
is required to file a return as set forth above 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%, plus an additional 1% per month
or fractional part of a month, commencing when due until said tax
is paid. The penalty and interest shall become part of the tax and
shall be collectible in the same manner as the tax.
After the effective date of this article, any
person desiring to conduct or to continue to conduct any business,
as herein defined, within the Borough of Crafton shall file with the
Tax Collector an application for a business privilege license and
shall pay a fee of $10 for the initial license and $10 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 for the license year or fraction of year for which
said license was 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 and penalty
or interest thereof, due hereunder, shall be refused a license until
such tax is paid in full.
Any person who shall conduct, transact or engage
in any of the businesses subject to the tax imposed by this article
without first having first secured a business privilege license, or
any person who shall fail to file a tax return, or who shall refuse
to produce books and records for inspection, review or copying as
may be required by the Tax Collector or his deputies, or any person
who shall willfully file a false return, shall be, upon conviction
thereof, sentenced to pay a fine of not less than $100 nor more than
$600 for each violation, plus costs, and, in default of payment of
said fine and costs, to imprisonment to the extent permitted by law
for the punishment of summary offenses. A separate offense shall arise
for each day or portion thereof in which a violation is found to exist
or for each section of this article found to have been violated. All
fines and penalties for the violation of this article shall be paid
to the Borough Treasurer. The Borough may also commence appropriate
actions in equity, at law or other to prevent, restrain, correct,
enjoin, or abate violations of this article.
Each day on which such person violated the article
may be considered as a separate offense and punishable as such as
aforeprovided.
A.
The Tax Collector is charged with the duties of administering
this article and collecting and receiving the taxes, interest, 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. The Tax Collector may delegate
his authority hereunder, with the approval and consent of Council
of the Borough of Crafton, to a deputy or deputies.
B.
The Tax Collector is hereby empowered, with the approval
and consent of Council of the Borough of Crafton, 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 payments alleged
or found to be incorrect, or as to which any 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 the person to be assessed neglects or
refuses to make a return, then in such case, the Tax Collector or
his duly appointed deputies shall assess said person or persons on
such an amount of whole or gross volume of business as the said Tax
Collector or his deputies deem reasonable and appropriate. In all
cases of assessment, the Tax Collector or his duly appointed deputies
shall give the parties assessed a notice in which shall be stated
the amount of the business privilege tax assessed against him.
D.
The Tax Collector or his deputy is hereby authorized
to compel the production of books, papers and records, and/or writings
and documents of every nature and kind, of any person subject, or
supposed to be subject, to the tax imposed by this article, for his
review, inspection or copying, and the attendance of all persons before
him, whether as parties or witnesses, whom he believes to have knowledge
of such books, papers, records, documents writings and/or knowledge
of the business transacted by any taxpayer with the Borough of Crafton.
E.
The Tax Collector or his deputies are hereby authorized
to examine, review, inspect or copy the books, papers, records and
documents, the accuracy of any return made, or if no return was made,
to ascertain the tax due. Every such taxpayer or supposed taxpayer
is hereby directed and required to give the Tax Collector or his deputies
the means, facilities and opportunity for such examinations and investigations
as are hereby authorized.
F.
The Tax Collector shall, with the consent and approval
of Council of the Borough of Crafton, establish rules and regulations
and methods of allocation and evaluation so that only that part of
such receipts received or credited during the tax year which are properly
attributable and allocable to the doing of business in the Borough
of Crafton shall be taxed hereunder. The Tax Collector may make such
allocation with due regard to the nature of the business concerned
on the basis of the division of the receipt according to the number
of jurisdictions in which it may be taxed, the ratio of the value
of the property or assets of the taxpayer owned and situated in the
Borough of Crafton to the total property or assets of the taxpayer
wherever owned and situated, or to any other method or methods of
calculation other than the foregoing, calculated to affect a fair
and proper allocation.
Any information gained by the Tax Collector,
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.
A.
The Tax Collector 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.
B.
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 Constitution 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 taxes, or the validity
of the taxes so imposed upon other persons as herein provided.
The provisions of this article shall become
effective on November 1, 1982, and shall remain in effect thereafter
from year to year on a calendar-year basis.
