[Adopted 12-11-1974 by Ord.
No. 6-74]
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.
The agent designated by the Township to collect the license tax imposed
by this article and to administer the provisions thereof.
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.
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.
A dealer, vendor or proprietor who sells to persons who are not engaged
in the business of reselling.
The period beginning January 1 of the current year and ending December
31 of the current year and each succeeding calendar year thereafter.
[1]Any person engaging in any taxable business activity within the territorial
limits of the Township during the taxable period.
Any business that is conducted at one location for less than 60 consecutive
calendar days.
The Township of Independence, a second class Township under the Second
Class Township Code.
[2]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.
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.[1]
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
|
A.
Every person presently engaging in any activity which
is a subject of the tax imposed by this article shall file his initial registration
statement with the Collector within 15 days after the effective date of this
article; every person who shall engage in any such activity after the effective
date of this article shall file his initial registration statement within
15 days after his commencement of such activity. All persons continuing to
engage in any such activity shall annually file a registration statement on
or before January 15 of each succeeding calendar year.
B.
Such registration statement shall be upon a form prescribed
and furnished by the Collector and shall set forth the person's name, business
address and such other information as the Collector may require to collect
the tax and administer the regulatory provisions of this article.
C.
Such persons, concurrently with the filing of his initial
registration statement and with every registration annually required to be
made hereunder, shall pay to the Collector a license fee as set from time
to time by resolution of the Board of Supervisors. The Collector's receipt
of said license fee shall constitute the license during the taxable period
to engage in any or all activities which are the subject of the tax imposed
by this article, provided, that each person who is required to file a registration
fee hereunder shall file a separate registration statement and pay a license
fee as set from time to time by resolution of the Board of Supervisors for
each business establishment, if any, in which such taxable activity is conducted.
A.
It shall be the duty of the Collector to collect and
receive the taxes, fines and penalties imposed by this article for payment
over to the Treasurer of the Township. It shall also be his duty to keep a
record showing the amount received by him from each person paying the tax
and, if paid by such person in respect of another person, the name of such
other person, and the date of such receipt.
B.
The Collector is hereby charged with the administration
and enforcement of the provisions of this article, and is hereby empowered,
subject to the approval of the Board of Supervisors of the Township to prescribe,
adopt, promulgate and enforce rules and regulations relating to any matter
pertaining to the administration and enforcement of this article including
provisions for the reexamination 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 to prescribe forms necessary for the administration
of this article.
C.
The Collector and agents designated in writing by him
are hereby authorized to examine the books, papers and records of any person
in order to verify the accuracy of any return, or if no return was filed to
ascertain the tax due. Every person is hereby directed and required to give
to the Collector and to any agent so designated in writing by him the means,
facilities and opportunity for such examinations and investigations as are
hereby authorized. The Collector is hereby authorized to compel the production
of books, papers and records and the attendance of all persons, whether as
parties or as witnesses in order to verify the accuracy of any return, or,
if no return was filed, in order to ascertain the tax due.
D.
Any information gained by the Collector, his agents,
or by any other official, agent or employee of the Township as a result of
any return, investigation or hearing required or authorized by this article
shall be confidential and shall not be disclosed to any person except for
official use in connection with the administration or enforcement of this
article or as otherwise provided by law.
A.
The Collector shall sue in the name of the Township for
the recovery of taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by this article
shall be begun within five years after such tax is due or within five years
after a return has been filed, whichever date is later; provided, however,
that this limitation shall not prevent the institution of suit for collection
of any tax due or determined to be due in the following cases:
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.
A.
Any person who fails, neglects or refuses to file any return required by this article; any person who refuses to permit the Collector or a duly authorized agent of the Collector to examine his books, records and papers; and any person who makes any incomplete, false or fraudulent return to avoid payment of the whole or any part of the tax imposed by this article shall be subject to the appropriate penalties set forth in Chapter 1, General Provisions, Article II.
C.
The penalties imposed under this section shall be in
addition to any other section of this article.
D.
The failure of any person to receive or procure the forms
required for the filing of any return required by this article shall not excuse
him from filing such return.
