This article is enacted pursuant to the authority conferred by the Local
Tax Enabling Act (53 P.S. § 6901 et seq.), as amended.
This article shall be known and may be cited as "The Mercantile License
Tax Ordinance of Independence Township."
The following words when used in this article shall have the meanings
ascribed to them in this section, except in those instances where the context
clearly indicates a different meaning.
COLLECTOR
The agent designated by the Township to collect the license tax imposed
by this article and to administer the provisions thereof.
LICENSE FEE
The annual filing or registration fee imposed to administer the regulatory
provisions of this article. The payment of such license fee shall not relieve
the holder from payment of the tax imposed by this article.
PERSON
Any individual, partnership, limited partnership, association or
corporation engaging in any activity which is the subject of the excise tax
imposed by this article. Whenever used in a section prescribing and imposing
a fine or imprisonment, the term "person" as applied to associations shall
mean the partners or members thereof, and as applied to corporation, the officers
thereof.
RETAILER
A dealer, vendor or proprietor who sells to persons who are not engaged
in the business of reselling.
TAXABLE PERIOD
The period beginning January 1 of the current year and ending December
31 of the current year and each succeeding calendar year thereafter.
TAXPAYER
Any person engaging in any taxable business activity within the territorial
limits of the Township during the taxable period.
TOWNSHIP
The Township of Independence, a second class Township under the Second
Class Township Code.
WHOLE VOLUME OF BUSINESS
The gross receipts of the business activity during the taxable period,
provided that the dollar volume of business derived from the resale of goods,
wares and merchandise taken as a trade-in or a part payment for other goods
shall not be included in computing the whole volume of business, except to
the extent that the resale price may exceed the trade-in allowance. For taxpayers
electing to employ the accrual method for bookkeeping purposes, gross receipts
shall include cash transactions and accounts receivable; for taxpayers electing
to employ the cash method for bookkeeping purposes, gross receipts shall include
cash transactions only.
WHOLESALE
A dealer, vendor or proprietor who sells to persons who are engaged
in the business of reselling.
An annual excise tax for general revenue purposes is hereby imposed
upon any person engaging in the following business activities within the territorial
limits of the Township:
A. Engaging in the sale of goods, wares and merchandise;
B. Engaging in the sale of food, drink (alcoholic and nonalcoholic)
and refreshments;
C. Engaging in the sale of cigarettes and other tobacco
products, carbonated beverages and soft drinks, and candy and confections
from coin-operated mechanical devices;
D. Engaging in amusement and/or entertainment produced by
or derived from coin-operated mechanical and/or electronic devices;
E. Engaging in amusements and/or entertainment whether indoors
or outdoors and whether or not conducted in conjunction with any other activity
subject to the tax imposed by this article; provided, however, that any nonprofit
corporation or association organized for religious, charitable or educational
purposes engaging in such activity shall be exempt from the tax imposed by
this article;
F. Engaging in commission sales, except as a securities
broker or real estate broker, including without limitation, merchandise brokers,
freight brokers, factors and commission agents. Said tax shall be effective
January 1 of the current year and shall continue in force through December
31 of the current year and each succeeding calendar year.
Every person engaging as a wholesaler in any activity which is a subject
of the tax imposed by this article shall pay a mercantile tax for the taxable
period at the rate of one mill on each dollar of the whole volume of business
transacted by him. Every other person, not a wholesaler, engaging in any activity
which is the subject of a tax imposed by this article shall pay a mercantile
tax for the taxable period at the rate of 1 1/2 mills. Persons engaging
in both wholesale and retail activities which are taxable subjects hereunder
shall pay one mill on each dollar of the whole volume of business derived
from his wholesale transactions and 1 1/2 mills on each dollar of the
whole volume of all remaining business transacted by him.
Every person subject to the payment of the tax imposed by this article
shall on or before the date hereinafter specified file a quarterly return,
on a form prescribed and furnished by the Collector, and shall concurrently
therewith pay to the Collector the tax due upon the actual whole volume of
business transacted by him during the applicable quarterly period.
Quarterly Period
|
Return and Tax Due
|
---|
January - March, current year
|
April 30, current year
|
April - June, current year
|
July 31, current year
|
July - September, current year
|
October 31, current year
|
October - December, current year
|
January 31, succeeding year
|
If for any reason the tax is not paid when due, interest at the rate
of 6% per annum of the amount of said tax, and an additional penalty of 1/2
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 cost of collection, and the interest and penalties herein
imposed.
The tax imposed by this article shall not apply to any nonprofit institution
or organization operated for public, religious, educational or charitable
purposes.