[Adopted 12-31-1968 by Ord. No. 610]
The following words and phrases when used in
this article shall have the meanings ascribed to them in this section
unless the context clearly indicates a different meaning:
The Borough Secretary of the Borough of Baden.
The carrying on or exercising within the Borough of Baden
of an enterprise, activity, profession or any other undertaking of
an unincorporated nature conducted for profit or ordinarily conducted
for profit whether by a person, partnership, association or any other
entity. Business shall not include the following:
Any activity conducted by a nonprofit corporation
or association organized for religious, charitable or educational
purposes.
Any authority created and organized under and
pursuant to any Act of Assembly.
The business of any insurance company, association
or exchange, or any fraternal, benefit or beneficial society of any
other state when, under the laws of such other state, insurance companies,
associations or exchanges, fraternal, benefit or beneficial societies
of this commonwealth doing business in such other state would be subjected
by reason of the tax imposed by this article to additional taxes,
fines, penalties or license fees by such other state.
Any employment for wage or salary.
Any person vending or disposing of articles
of his own growth, production or manufacture for shipment or delivery
from the place of growth, manufacture or production thereof.
In the case of a manufacturer, the cost of those raw materials
purchased which actually appear in one form or another in the final
product of the manufacturer, such cost to include all freight charges;
and in the case of a wholesaler, the cost of goods, wares, commodities
or merchandise purchased by the wholesaler, resold by him, together
with all freight charges.
In the case of a manufacturer, the cost of labor of his own
employees directly involved in working on the raw materials to change
them into the final manufactured product together with the cost of
the labor of his own employees in receiving, storing, shipping and
delivering such product and the cost of the salaries or commissions
paid to his own employees for making the actual sale of the product;
and in the case of a wholesaler, the cost of the labor of his own
employees used in receiving, storing, shipping and delivering the
goods, wares, commodities or merchandise purchased for resale and
the cost of the salaries or commissions paid to his own employees
for making the actual sales of the goods, wares, commodities or merchandise.
The services and transactions of holding companies, dealers
and brokers in money, credits, commercial paper, bonds, notes, securities
and stocks, monetary metals, factors and commission merchandise.
Cash, credits and property of any kind or nature received
in, or attributable to, the Borough of Baden from any business or
by reason of any sale made or service rendered or commercial or business
transaction occurring in the Borough of Baden.
The gross receipts of a business, including both cash and
credit transactions, but excluding:
The dollar volume of annual business covering
the resale of goods, wares or merchandise taken by a dealer as a trade-in
or as part payment for other goods, wares and merchandise in the usual
and ordinary course of his business, except to the extent that the
resale price exceeds the trade-in allowance.
In the case of a financial business, the cost
of securities and other similar property sold, exchanged, paid at
maturity or redeemed, and money or credits received in repayment of
advances, credits and loans, but not to exceed the principal amount
of such advances, credits and loans, and shall exclude deposits.
Receipts or the portion thereof attributable
to any item of sale or lease involving the bona fide delivery of goods,
commodities, wares or merchandise to a location regularly maintained
by the other party to the transaction outside the limits of the Borough
and not for the purpose of evading payment of the tax or any portion
thereof.
Receipts or that portion thereof attributable
to any services actually performed outside the limits of the Borough.
Receipts of persons making sales and/or rendering
personal or professional services both inside and outside of the Borough
are to be segregated, and the receipts from sales where delivery is
made to a location regularly maintained by the other party to the
transaction outside of the limits of the Borough and not for the purpose
of evading payment of the tax or any portion thereof and receipts
from services actually rendered or performed outside of the limits
of the Borough shall be excluded from the tax base.
The twelve-month period corresponding to a fiscal year of
the Borough.
Any person who sells goods, wares and merchandise of his
own growth or production.
Any individual, partnership, limited partnership, association
or corporation. The term shall not include 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, or any person vending or disposing of
articles of his own growth, production or manufacture for shipment
or delivery from the place of growth, production or manufacture thereof.
Any place indoors or outdoors where the general public or
a limited or selected number thereof may, upon payment of an established
price, attend or engage in any amusement, entertainment, exhibition,
contest, recreation, including among other places, theaters, opera
houses, motion-picture houses, amusement parks, stadiums, arenas,
baseball or football parks or fields, skating rinks, circus or carnival
tents or grounds, fairgrounds, bowling alleys, billiard or pool rooms,
shuffleboard rooms, nine- or ten-pin alley, riding academies, golf
courses, bathing and swimming places, dance halls, tennis courts,
archery, rifle or shotgun ranges and other like places. The term does
not include any exhibition, amusement, performance or contest conducted
by a nonprofit corporation or association organized for religious,
charitable or educational purposes.
Each place or location wherein the taxpayer conducts or carries
on business as defined in this section.
Any person who is a dealer in or vendor of goods, wares and
merchandise who is not a wholesale dealer or vendor. The terms shall
not include 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, or any person
vending or disposing of articles of his own growth, production or
manufacture for shipment or delivery from the place of growth, production
or manufacture thereof.
Any business that is conducted at one location for less than
60 consecutive calendar days.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and to no other persons. The terms shall not include
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, or any person vending
or disposing of articles of his own growth, production or manufacture
for shipment or delivery from the place of growth, production or manufacture
thereof.
[Amended 12-29-1982 by Ord. No. 742]
For each calendar year commencing January 1
and ending December 31, the Borough hereby imposes an annual mercantile
tax in the manner and at the rate hereinafter set forth.
[Amended 12-29-1982 by Ord. No. 742]
During each calendar year, so long as this article
is in effect, every person desiring to engage in or to continue to
engage in any business or every wholesale or retail vendor or every
dealer in goods, wares and merchandise and any person conducting a
restaurant or other place where food, drink or refreshments are sold
or a place of amusement in the Borough shall, on or before the 15th
day of January of each license year, or prior to commencing business
in any such license year, procure a mercantile license for his place
of business or, if more than one, for each of his places of business
in the Borough from the Borough Secretary, who shall issue the same
upon the payment of $5 for each place of business, except a wholesale
and retail license, which shall be $7 for each place of business.
Such license shall be conspicuously posted at the place of business
of each of the places of business of every such person at all times.
Every person engaging in any of the following
businesses in the Borough of Baden shall, in addition to paying a
license fee as herein provided, pay an annual mercantile license tax
for the year 1969 and annually thereafter at the rate set forth:
A.
Wholesale vendors or dealers in goods, wares and merchandise
at the rate of 1/2 mill on each dollar of the volume of the annual
gross volume of business transacted by him or, in the alternative
at the option of the wholesale dealer or vendor, at the rate of 1/2%
of the annual gross volume of business transacted by such person less
the cost of goods and less the cost of labor.
B.
Retail vendors or dealers in goods, wares and merchandise,
all persons engaged in conducting restaurants or other places where
food, drink or refreshments are sold, and all persons conducting places
of amusement, at the rate of 3/4 of a mill on each dollar of the annual
gross volume of business transacted by him or, in the alternative
at the option of the retail dealer or vendor, at the rate of 3/4 of
1% of the annual gross volume of business transacted by such person
less the cost of goods and less the cost of labor.
C.
Wholesale and retail vendors or dealers in goods,
wares and merchandise at the rate of 1/2 mill on each dollar of volume
of the annual gross volume of wholesale business transacted by him
and 3/4 of a mill on each dollar of the volume of the annual gross
volume of retail business transacted by him or, in the alternative
at the option of the wholesale and retail vendor or dealer, at the
rate of 1/2% of the annual gross volume of wholesale business transacted
by him less the cost of goods and less the cost of labor and at the
rate of 3/4 of 1% of the annual gross volume of retail business transacted
by him less the cost of goods and less the cost of labor.
D.
All other persons engaged in business at the rate
of 3/4 of a mill on each dollar of the annual gross volume of business
transacted by them.
Every person subject to the payment of the tax
hereby imposed shall compute his gross volume of business upon the
actual gross amount of business transacted by him during the quarters
ending March 31, June 30, September 30 and December 31, 1969.
Every person subject to the payment of the tax
hereby imposed shall, on or before the 30th day of April, July, October
and January of each year, file a return upon a form furnished by the
Borough Secretary setting forth the actual gross amount of business
transacted by him during the respective quarter ending the next previous
March 31, June 30, September 30 and December 31.
At the time of filing the return, the person
making the same shall pay the amount of tax shown as due thereon to
the Borough Secretary.
A.
It shall be the duty of the Borough Secretary to collect
and receive the taxes, fines and penalties imposed by this article
for payment over to the Borough Treasurer. It shall also be her duty
to keep a record showing the amount received by her from each person
paying the tax and the date of such receipt.
B.
The Borough Council may prescribe, adopt, promulgate
and enforce rules and regulations relating to the matter pertaining
to the administration and enforcement of this article, including provisions
for the reexamination and correction of returns and payment alleged
or found to be incorrect or as to which an overpayment is claimed
or found to have occurred. Any person aggrieved by any decision of
the Borough Council shall have the right to appeal to the Court of
Common Pleas as in other cases provided.
C.
The Borough Secretary or any other person designated
by Borough Council is hereby authorized to examine the books, papers
and records of any taxpayer or supposed taxpayer in order to verify
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 to the Borough Secretary, or any other
person designated by Borough Council, the means, facilities and opportunity
for such examinations and investigations as are hereby authorized.
A.
The Borough Secretary may sue for the recovery of
taxes due and unpaid under this article.
B.
If for any reason the tax is not paid when due in
each year, interest at the rate of 6% per annum on the amount of said
tax, and an additional penalty of 1% of the amount of the unpaid tax
for each month or fraction thereof during which the tax remains unpaid,
shall be added and collected. Where 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 the interest and penalties herein
imposed.
[Amended 5-15-1985 by Ord. No. 759]
Any person who shall violate any provision of
this article shall, upon conviction thereof, be punishable by a fine
of not more than $300 and costs of such proceedings or, upon default
of payment of such fine and costs, by imprisonment in the county jail
for a term of not more than 30 days.
The books, accounts and records of the person
collecting this tax shall be audited, adjusted and settled annually
by the auditors of the Borough of Baden.
