[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:
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.
The period January 1 to December 31, inclusive.
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]
Each period from January 1 to December 31, inclusive.
The Mayor of the Township of Whitehall.
[Amended 6-8-2009 by Ord. No. 2776, approved 11-3-2009]
One one-thousandth of $1 or $0.001.
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.
With respect to any given tax year, the calendar year immediately
preceding such tax year.
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.
Each period from January 1 to December 31, inclusive.
The Township of Whitehall, Lehigh County, Pennsylvania.
The Treasurer of the Township of Whitehall.
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.
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).
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.
[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.
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.
