[Adopted 12-12-1988 by Ord. No. 1638]
This article shall be known as the "Whitehall Business Privilege Tax Ordinance."
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:
BUSINESS
Any activity carried on or exercised for gain or profit in the Township of Whitehall including, but not limited to, the sale of merchandise or other tangible personalty, the performance of services and the rental of property.
CALENDAR YEAR
The period January 1 to December 31, inclusive.
COSTS OF COLLECTION
Any and all fees including, but not limited to, filing fees, court costs, actual attorney's fees and expert witness fees incurred by the Township in connection with the enforcement of this article.
[Amended 6-11-1996 by Ord. No. 1987]
LICENSE YEAR
Each period from January 1 to December 31, inclusive.
MAYOR
The Mayor of the Township of Whitehall.
[Amended 6-8-2009 by Ord. No. 2776, approved 11-3-2009]
MILL
One one-thousandth of $1 or $0.001.
PERSON
An individual, partnership, limited partnership, association, firm or corporation. Whenever used in any clause prescribing or imposing a penalty, the term "person" as applied to associations, firms, partnerships and limited partnerships shall also mean the partners or members thereof and as applied to corporations shall mean the officers thereof.
PRECEDING YEAR
With respect to any given tax year, the calendar year immediately preceding such tax year.
TAXPAYER
A person who conducts business within the Township, other than person who only conducts businesses which are exempt from the business privilege tax under § 24-8 of this article.
TAX YEAR
Each period from January 1 to December 31, inclusive.
TOWNSHIP
The Township of Whitehall, Lehigh County, Pennsylvania.
TREASURER
The Treasurer of the Township of Whitehall.
WHOLESALE DEALER
Any person who sells to dealers in, or vendors of, goods, wares and merchandise and to no other person.
There is hereby imposed for each tax year for general revenue purposes on the privilege of doing business, as herein defined, in the Township of Whitehall, as follows:
A. 
Rate of tax. Except in the case of wholesale dealers, each taxpayer shall pay to the Township for each tax year an amount equal to 0.1% (or one mill per dollar) of the taxpayer's estimated gross volume of business for such tax year. Each wholesale dealer shall pay to the Township for each tax year an amount equal to 0.075% (or 3/4 if a mill per dollar) of such wholesale dealer's estimated gross volume of business for such tax year.
B. 
Estimated gross volume of business.
(1) 
The estimated gross volume of business for a given tax year of a taxpayer who commenced his business prior to the beginning of the preceding year shall be the actual whole or gross volume of business transacted by such taxpayer within the territorial limits of the Township during the preceding year.
(2) 
The estimated gross volume of business for a given tax year of a taxpayer who commenced his business at least 90 days prior to the beginning of the tax year but after the beginning of the preceding year shall be equal to the monthly average of the actual whole or gross volume of business transacted by such taxpayer within the territorial limits of the Township during the calendar months of the preceding year in which he transacted business, multiplied by 12.
(3) 
The estimated gross volume of business for a given tax year of a taxpayer who commenced his business prior to the beginning of the tax year but fewer than 90 days before the end of the preceding year shall be equal to the actual whole or gross volume of business transacted by such taxpayer within the territorial limits of the Township during the 90 calendar-day period commencing with the day the taxpayer commenced his business, multiplied by four.
(4) 
The estimated gross volume of business for a given tax year of a taxpayer who commences his business on or after the beginning of the tax year and before October 1 of such year shall be equal to the actual whole or gross volume of business transacted by such taxpayer within the territorial limits of the Township during the 90 calendar day period commencing with the day the taxpayer commences his business, divided by three and multiplied by the number of calendar months; from (and including) the month in which the taxpayer commences his business through the end of the tax year.
(5) 
The estimated gross volume of business for a given tax year of a taxpayer who commences his business before the end of the tax year but after September 30 of such year shall be equal to the actual whole or gross volume of business transacted by such taxpayer within the territorial limits of the Township during the tax year.
(6) 
Notwithstanding the foregoing provisions of this Subsection B(2), the estimated gross volume of business for a given tax year of a taxpayer who engages in a business which is temporary, seasonal or itinerant by nature shall be an estimate of the whole or gross volume of business to be transacted by such taxpayer within the territorial limits of the Township for the period during the tax year in which such taxpayer expects to engage in such temporary, seasonal or itinerant business. The Mayor is hereby authorized to promulgate, from time to time, one or more reasonable methods to produce such an estimate.
[Amended 6-8-2009 by Ord. No. 2776, approved 11-3-2009]
C. 
Whole or gross volume of business. Whole or gross volume of business upon which the business privilege tax imposed by this article is computed shall include the gross consideration credited or received for or on account of sales made, services performed, rentals of property and/or other business transactions, within the territorial limits of the Township, subject only to the following allowable deductions and exemptions:
(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) 
Commissions paid by a broker to another broker on account of a purchase or sales contract initiated, executed or cleared with such other broker.
(4) 
Bad debts, where the deduction is also taken for Federal income taxation purposes in a Federal income tax year which includes all or part of the period for which whole or gross volume of business is being measure for purposes of the Whitehall Township business privilege tax.
(5) 
Taxes collected as agent for the United States of America, the Commonwealth of Pennsylvania or the Township.
(6) 
The dollar volume of all business transactions excluded from the business privilege tax under § 24-8 of this article. Where the whole or gross volume of business in its entirety cannot be subjected to the tax imposed by this article by reason of the provisions of the Constitution of the United States, or by any other provisions of law, the Mayor 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 allowable to doing business in the Township shall be taxed hereunder.
[Amended 6-8-2009 by Ord. No. 2776, approved 11-3-2009]
D. 
Records. The taxpayer shall maintain such records and books of account as will enable him to make a true and accurate return in accordance with the provisions of this article. Such accounts and records must disclose in detail the gross receipts and other data pertaining to the taxpayer's whole or gross volume of business, and must be sufficiently complete to enable the Treasurer to verify all transactions. In order to obtain the exclusions and deductions set forth in Subsection C, the taxpayer shall keep books and records of his business so as to show clearly, accurately and separately the amount of such sales, services and other transactions as are excluded from the tax and the amounts of such sales, services and other transactions which he is entitled to deduct from the whole or gross volume of business.
E. 
Due date. The business privilege tax imposed under § 24-3 shall be due and payable in each tax year on the date the taxpayer is required to file a return for such tax year under § 24-4B of this article.
A. 
Filing of returns. Every person subject to the business privilege tax imposed by this article shall file with the Treasurer, for each tax year in which he conducts business in the Township, a return setting forth his name, his business, his business address and such other information as may be necessary in arriving at his estimated gross volume of business for such tax year and the amount of tax due. Every return shall be made upon a form furnished by the Treasurer and shall be accompanied by a copy of Schedule C or E (or the portion thereof listing gross volume of business) of the taxpayer's federal income tax return for the most recent calendar or fiscal year. Every person making a return shall certify the correctness thereof by affidavit.
B. 
Due dates. The return required under Subsection A for 2022 are due on the later of October 1, 2022 or the date required by § 24-4B(2). The returns for any given tax year, excluding 2022, shall be filed on or before:
[Amended 6-13-2022 by Ord. No. 3271]
(1) 
The first day of June of the tax year if the taxpayer commenced his business prior to the beginning of the tax year.
(2) 
The later of the first day of June of the tax year or the date 100 calendar days after the date the taxpayer commenced his business if the taxpayer commenced his business after the beginning of the tax year, but in no event later than January 10 of the calendar year immediately following the tax year.
(3) 
The date the taxpayer files an application for a business privilege license under § 24-7 of this article (or should have so filed an application) if the taxpayer engages in a business temporary, seasonal or itinerant by its nature, notwithstanding anything to the contrary contained in Subsection B(1) and (2).
Notwithstanding the provisions of §§ 24-3 and 24-4 of this article:
A. 
The amount of tax due for a given tax year by a person who goes out of or ceases to do business with the Township during such tax year shall be the amount determined under § 24-3A of this article, except that the phrase "actual whole or gross volume of business" shall be substituted for the phrase "estimated gross volume of business" each time the latter appears therein.
B. 
Within seven days from the date the taxpayer goes out of or ceases to do business in the Township, the taxpayer shall file a return with the Treasurer setting forth his name, his business, his business address and such other information as may be necessary in arriving at his actual whole or gross volume of business for such tax year and the amount of tax due. Every return shall be made upon a form furnished by the Treasurer. Every person making a return shall certify the correctness thereof by affidavit.
C. 
If the taxpayer has previously paid the business privilege tax for such tax year based on his estimated gross volume of business, he shall receive a credit in the amount of such payment against the tax due under this section. If the amount previously paid exceed the amount due under this section, the taxpayer shall be entitled to a refund of such excess.
D. 
The taxpayer shall pay the amount of all tax due under this section to the Treasurer on or before the date his return is due under Subsection B.
If the business privilege tax imposed under § 24-3 or 24-5 is not paid on or before the date it is due, the amount of tax due shall be increased by 5% plus an additional 1% per month or fractional part of a month from the date due until the tax is paid in full.
[Amended 2-14-2005 by Ord. No. 2538; 8-8-2005 by Ord. No. 2578]
A. 
Any person desiring to conduct or to continue to conduct any business, as defined herein, within the Township in any given license year shall file with the Treasurer an application for a business privilege license for such license year. The fee for such license shall be in an amount as established by resolution, from time to time, by the Board of Commissioners. The license issued shall be conspicuously posted in the place of business for which the said license is issued and shall remain in effect until the end of the license year for which it was issued. If the person maintains more than one place of business in the Township, a separate license shall be required for each place of business. No license shall be issued to any taxpayer who is in default in the payment of the business privilege tax imposed under this article until such tax is paid in full. No license shall be required for a business if all the business' activities are exempt from the business privilege tax under § 24-8 of this article.
B. 
Any person obtaining a business privilege license shall also be required to comply with all other applicable laws of the Township, and secure all other necessary approvals for the business operation, including but not limited to zoning and building code regulations, and the mere issuance of a business privilege license shall not imply compliance with all other Township regulations.
A. 
Wages and salaries; nonprofit organizations; governmental bodies. Persons employed for a wage or salary, nonprofit corporations or associations organized for religious, charitable or educational purposes, agencies of the government of the United States or the Commonwealth of Pennsylvania and the business of any political subdivision or any authority created or organized under and pursuant to any act of the Pennsylvania General Assembly are exempt from the business privilege tax.
B. 
Constitutional and statutory exemptions. No business privilege tax shall be assessed or collected to the extent it is prohibited by the Constitution of the United States or any other applicable law. Nothing contained in this article shall be construed to empower the Township to levy and collect the business privilege tax on any person, or any business or any portion of any business not within the taxing power of the Township under the Constitution and laws of the United States and the Commonwealth of Pennsylvania. If the business privilege tax, or any portion thereof, imposed upon any person under the provisions of this article shall be held by any court of competent jurisdiction to be in violation of the Constitution or laws of the United States or the Commonwealth of Pennsylvania, the decisions of the court shall not affect or impair the Township's right to impose the taxes, or the validity of the taxes so imposed, upon other persons as herein provided.
C. 
(Reserved)[1]
[1]
Editor’s Note: Former Subsection C, Subjects of state taxes or license fees, was repealed 4-27-2009 by Ord. No. 2769.
D. 
Utilities. No business privilege tax shall be assessed or collected on the gross receipts from utility service of any person or company whose rates of service are fixed and regulated by the Pennsylvania Public Utility Commission or on any public utility service rendered by any such person or company or on any privilege or transaction involving the rendering of any such public utility service.
E. 
Tangible property subject to state tax. No business privilege tax shall be assessed or collected on the privilege of employing such tangible property as is subject to a Pennsylvania State tax, except on sales of admission to places of amusement or on sales or other transfers of title to or possession of property.
F. 
Production, manufacture, etc. Within the Township. No business privilege tax shall be assessed or collected on goods, articles, products or by-products of manufacture, minerals, timber, natural resources, or farm products manufactured, produced or grown in the Township or on the preparation or processing thereof for use or market. No business privilege tax shall be assessed or collected on any privilege, act or transaction related to the business of manufacturing or the production, preparation or processing of minerals, timber, natural resources or farm products by manufacturers, producers or farmers with respect to the goods, articles and products of their own manufacture, production or growth within the Township or any privilege, act or transaction relating to the business of processing by-products of such manufacture or the transportation, loading, unloading, dumping or storage of such goods, articles, products or byproducts.[2]
[2]
Editor’s Note: Former Subsection G, Incidental use of residential property, which immediately followed this subsection, was repealed 1-12-2009 by Ord. No. 2761.
Upon the payment of any business privilege tax or business privilege license fee, the Treasurer shall give a receipt therefor to the person making such payment.
The Treasurer is hereby authorized to accept payment under protest of the amount of business privilege tax claimed by the Township in any case where the taxpayer disputes the validity or amount of the Township's claim for tax. If it is thereafter judicially determined by a court of competent jurisdiction that the Township has been overpaid, the amount of the overpayment shall be refunded to the taxpayer. This section shall remain applicable to cases in which the facts are similar to those of a case previously litigated in a court of competent jurisdiction, notwithstanding such litigation.
Any information gained by the Treasurer or any other official, agent or employee of the Township as a result of any returns, investigations, hearings or verifications required or authorized under this article shall be confidential, except in accordance with proper judicial order or as otherwise provided by law.
[Amended 8-8-2005 by Ord. No. 2578]
Any person, firm or corporation who shall conduct, transact or engage in any business subject to the business privilege tax imposed by this article during any license year without first having secured a business privilege license for such license year, or any person who shall fail to file a business privilege tax return as required by the provisions of this article or any person who shall willfully file a false return shall, upon conviction thereof, be sentenced to pay a fine of not more than $1,000 plus costs and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 30 days. Each day that a violation of this section continues shall constitute a separate offense.
A. 
The Treasurer is charged with the duties of collecting and receiving the taxes, fees, additions and penalties imposed under 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.
B. 
The Treasurer and his duly appointed deputies are hereby empowered, with the approval of the Board of Commissioners or the Township of Whitehall, to prescribe, adopt and promulgate additional 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 an overpayment is claimed or found to have occurred.
C. 
In the event any person subject to the business privilege tax neglects or refuses to file a return, the Treasurer shall assess said person on such volume of business as the Treasurer deems reasonable and appropriate. In all cases of assessment, the Treasurer shall give the person assessed a notice which shall state the person's trade, business, occupation or class and the amount of business privilege tax imposed or levied.
D. 
The Treasurer is hereby authorized to examine the books, papers and records of any person he believes may be subject to the tax imposed by this article in order to verify the accuracy of any returns made or to ascertain the tax due for any tax year in which no return was made.
E. 
Any person aggrieved by any decision of the Treasurer shall have the right to appeal to the Court of Common Pleas as in other cases.
A. 
The Mayor or his appointed deputies shall have the power in the name of the Township to institute proceedings against any and all persons who violate the provisions of this article.
[Amended 6-8-2009 by Ord. No. 2776, approved 11-3-2009]
B. 
If for any reason the business privilege tax is not paid when due and suit is brought for the recovery of any such tax, and any additions and penalties, the person liable therefor shall, in addition, be liable for the costs of collection.
The business privilege tax imposed by this article is enacted by the Township under the authority of the Local Tax Enabling Act, 53 Pa.C.S.A. § 6901 et seq.