[Adopted 3-3-1975 by Ord. No. 182 (Ch.
II, Art. 1, of the 1976 Ordinance Book)]
This article shall be known and may be cited
as the "Mercantile Tax Ordinance."
A.
COLLECTOR
GROSS VOLUME OF BUSINESS
LICENSE YEAR
PERSON
RETAIL DEALER or RETAIL VENDOR
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
TOWNSHIP
WHOLESALE AND RETAIL DEALER or WHOLESALE AND RETAIL VENDOR
WHOLESALE DEALER or WHOLESALE VENDOR
The following words and phrases when used in this
article shall have the meanings ascribed to them unless the context
clearly indicates a different meaning:
The Township Secretary of the Township of Middletown, or
his designated representative.
Includes both cash and credit transactions, and trade-in
transactions as provided by law.
Any individual, partnership, limited partnership, association
or corporation (except such as are wholly exempt from taxation under
the Act of Assembly No. 511, as amended).
Any person who is a dealer in or vendor of goods, wares and
merchandise who is not a wholesale dealer or vendor, or a wholesale
and retail dealer or vendor as hereinafter defined.
Any business that is conducted at one location for less than
60 consecutive calendar days.
The Township of Middletown.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and to other persons.
Any person who sells to dealers in, or vendors of goods,
wares and merchandise and to no other persons.
B.
The terms "person," "wholesale dealer" or "wholesale
vendor" and "wholesale and retail dealer" or "wholesale and retail
vendor" 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 manufacture
for shipment or delivery away from the place of the manufacture thereof,
or any farmer vending or disposing of his own produce, or other transaction
exempted by law.
A.
For the license year beginning April 2, 1975, every
person desiring to continue to engage in, or hereafter to begin to
engage in, the business of wholesale, or retail, or wholesale and
retail, vendor or dealer in goods, wares and merchandise and any person
conducting a restaurant or other place where food, drink or refreshment
are sold in the Township shall, on or before the first day of July
1975, or prior to commencing business in said license year, apply
for and procure a mercantile license for his place of business, or
if more than one, for each of his places of business in the Township,
from the Collector who shall issue same upon payment of a fee of $10
for a wholesale or retail license or for a wholesale and retail license
for his place of business, or if more than one, for each of his places
of business in the Township for such license year.
B.
For the license year beginning January 1, 1976, and
each license year thereafter, every person desiring to continue to
engage in, or hereafter to begin to engage in, the business of wholesale,
or retail, or wholesale and retail, vendor or dealer in goods, wares
and merchandise and any person conducting a restaurant or other place
where food, drink or refreshment are sold in the Township, shall on
or before the first day of January, 1976, and each license year thereafter,
or prior to commencing business in any such license year, apply for
and procure a mercantile license for his place of business, or if
more than one, for each of his places of business in the Township,
from the Collector who shall issue the same upon payment of a fee
of $10 for a wholesale or retail license or for a wholesale and retail
license for his place of business, or if more than one, for each of
his places of business in the Township for such license year.
C.
Each application for a license shall be signed by
the applicant, if a natural person, and in the case of an association
or partnership, by a member or partner thereof, and in the case of
a corporation, by an officer thereof. Such licenses shall not be assignable
and shall be conspicuously posted at the place of business or each
of the places of business of every such person at all times.
D.
In the case of loss, defacement or destruction of
any license, the person to whom the license was issued shall apply
to the Collector for a new license for which a fee of $1 shall be
charged.
[Amended 12-15-1980 by Ord. No. 265; 2-17-1987 by Ord. No.
401]
A tax to provide revenue for general Township
purposes is hereby levied, assessed and imposed upon every person
engaging in any of the following occupations or businesses in the
Township at the rate hereinafter set forth, and such persons shall
pay a mercantile tax for each license year, at such rate, subject
to the exemptions hereinafter set forth:
A.
Wholesale vendors or dealers in goods, wares and merchandise
of every kind, at the rate of 1 1/2 mills on each dollar of the
gross volume of business transacted by him during the license year.
B.
Retail vendors or dealers of goods, wares and merchandise
of every kind, and all persons engaged in conducting restaurants or
other places where food, drink or refreshments are sold, at the rate
of 2 1/4 mills on each dollar of the gross volume of business
transacted by him during the license year.
C.
Wholesale and retail vendors or dealers in goods,
wares and merchandise of every kind at the rate of 1 1/2 mills on
each dollar of the gross volume of wholesale business transacted by
him, and 2 1/4 mills on each dollar of the gross volume of retail
business transacted by him during the license year.
D.
The tax imposed by this section shall not apply to
the dollar volume of annual business covering the resale of goods,
wares or merchandise taken by a dealer at a 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.
E.
The first $25,000 of gross volume of business shall
be exempt from and not subject to the rates of taxation specified
above and herein.
The following subsections refer to the computation
of the estimated gross volume of business:
A.
Every person subject to the payment of the tax hereby
imposed, who has commenced his business at least nine full months
prior to April 2, 1975, shall compute the gross volume of business
upon the actual gross amount of business transacted by him during
the nine months preceding April 2, 1975.
B.
Every person subject to the payment of the tax hereby
imposed, who has commenced his business less than nine full months
prior to April 2, 1975, shall compute the gross volume of business
by multiplying by nine the monthly average of the actual gross amount
of business transacted by him during the months he was engaged in
business prior to April 2, 1975.
C.
Every person subject to the payment of the tax hereby
imposed, who commences his business subsequent to April 2, 1975, shall
compute the gross volume of business for the license year upon the
gross volume of business transacted by him during the first month
of his engaging in business, multiplied by the number of months remaining
in the license year.
D.
Every person subject to the payment of the tax hereby
imposed who engages in business, temporary, seasonal or itinerant
by its nature, shall compute the gross volume of business upon the
actual gross amount of business transacted by him during the license
year.
[Amended 2-28-1983 by Ord. No. 338]
A.
General. Every return, as hereinafter required by
this subsection, shall be made upon a form furnished by the Collector.
Every person making such return shall furnish all information requested
therein and shall furnish such additional information, including copies
of tax returns, forms and schedules, filed for state and federal taxes,
as may be required by the tax collector to determine or verify the
tax due under this article. Every person making such return shall
certify the correctness thereof under the penalties of perjury.
B.
First return.
(1)
For the license year 1975, every person subject to
the tax imposed by this article who has commenced business prior to
the beginning of said license year, shall on or before the first day
of July 1975, file with the Collector a return setting forth his name,
his business and business address, and such other information as may
be necessary to compute the actual gross volume of business transacted
by him during the license year and the amount of tax estimated to
be due.
(2)
Every person subject to the tax imposed by this article
who commences business subsequent to the beginning of the license
year shall within 60 days from the date of commencing such business
file a return with the Collector setting forth his name, his business
and business address and such information as may be necessary to compute
the actual gross volume of business transacted by him during the license
year and the amount of tax estimated to be due.
(3)
Every person subject to payment of the tax imposed
by this article who engages in a business, temporary, seasonal or
itinerant by its nature, shall within seven days from the day he completes
such business file a return with the Collector setting forth his name,
his business and business address, and such information as may be
necessary in arriving at the actual gross amount of business transacted
by him during such period and the amount of the tax due.
C.
Final tax return.
(1)
On or before April 15 of each year, every person subject
to the tax hereby imposed shall make a final return to the Collector
showing the actual volume of business transacted by the taxpayer during
the preceding license year. Such final return shall state the amount
of the gross volume of business as set forth in the first tax return,
the amount of tax paid at the time of fling the first tax return,
and the amount of tax due upon the final computation.
[1]
Editor's Note: This ordinance grants an extension of the deadline for the required filing date of the final tax return for the 2020 tax year only from April 15, 2021 to May 17, 2021. This extension shall not apply to any future tax year final return required filing dates set forth in Chapter 215, Article I of the Code of the Township of Middletown.
(2)
Any person ceasing to do business during the license
year shall, within 14 days from the date of ceasing to do business,
file a final return showing the actual gross volume of business conducted
during that portion of the license year in which said person was actually
in business, and pay the tax due as computed thereon.
A.
At the time of filing the first tax return, the person
making the same shall pay the amount of the tax estimated to be due.
B.
At the time of the filing of the final tax return,
if the full amount of the tax due by the taxpayer for the license
year has not been paid, the taxpayer shall pay the remaining balance
of the tax which will be the difference between the amount of the
tax paid at the time of making the first return on the estimated computation,
and the amount of the tax finally shown to be due.
[Amended 2-28-1983 by Ord. No. 338]
A.
It shall be the duty of the Collector to collect and
receive the fees, taxes, fines and penalties imposed by this article.
It shall also be his duty to keep a record showing the amount of the
tax received by him and the date of payment.
B.
If the Collector is not satisfied with the return
and payment of tax made by any taxpayer or supposed taxpayer under
the provisions of this article, he is hereby authorized and empowered
to make a determination of the tax due by such person, based upon
the facts contained in the return, or upon any information within
his possession, or that shall come into his possession and for this
purpose, the Collector, or his authorized agent are authorized to
examine the books, papers and records of any such person to verify
the accuracy of any return or payment made under the provisions thereof
or to ascertain whether the taxes imposed by this article have been
paid. The Collector is hereby authorized and directed to make and
keep such records, prepare such forms and take such other measures
as may be necessary or convenient to carry this article into effect,
and may, in his discretion, require reasonable deposits to be made
by licensees who engage in a business temporary, seasonable or itinerant
by its nature. The tax collector is hereby authorized to require any
person making a return under this article to provide, with the return,
copies of such tax returns, forms and schedules, filed for federal
and state taxes, as the tax collector shall, in his discretion, require
to determine or verify the tax due under this article.
C.
If any taxpayer or supposed taxpayer shall neglect
or refuse to make any return and payment of tax required by this article,
or if, as a result of an investigation by the Collector, a return
is found to be incorrect, the Collector shall estimate the tax due
by such person, and determine the amount due by him for taxes, penalties
and interest thereon.
D.
The burden is hereby imposed upon any person, firm
or corporation claiming an exemption from the payment of the tax hereby
imposed to convince the Collector of his legal right to such exemption.
E.
If the final return of the taxpayer shows an overpayment
of the tax by reason of the fact that the gross volume of business
as stated in the estimated computation was less than the actual volume
of business for the year or by reason of the fact that the taxpayer
did not continue to engage in business throughout the year, the Collector
shall refund to the taxpayer, without interest, the amount of such
overpayment, which shall be the difference between the amount of tax
paid upon the filing of the first return and the amount of the tax
finally shown to be due.
Any information gained by the Collector or any
other Township employee or official from the administration of this
tax shall be confidential, except in accordance with proper judicial
order or as otherwise provided by law, and divulgence of any information
so gained is hereby declared to be a violation of this article.
All taxes due and unpaid under this article
shall be recoverable by the Township Solicitor as other debts due
the Township are now by law recoverable.
All taxes due under this article shall bear
interest at the rate of 1% per month or fractional part of a month,
from the day they are due and payable until paid. If any taxpayer
shall neglect or refuse to make any return or payment as herein required,
an additional 10% of the amount of the tax shall be added by the Collector
and collected.
All taxes, interest and penalties received,
collected or recovered under the provisions of this article shall
be paid into the Treasury of the Township of Middletown for the use
and benefit of the Township of Middletown.
The provisions of this article are severable
and if any of its provisions or exemptions shall be held to be illegal,
invalid or unconstitutional, or invalid or unconstitutional as to
any part of the period designated herein as the license year, the
decisions of any Court shall not affect or impair any of the remaining
provisions of this article, or affect or impair its application upon
any other part of the said license year, and the requirements as to
the license shall operate as of the effective date of this article
and the computation of tax and payment thereof shall be applied and
adjusted accordingly.
Any person, as defined in this article, or any
officer, agent, servant or employee thereof, who shall fail, neglect
or refuse to comply with any of the terms of provisions of this article,
shall, upon conviction thereof before a Magisterial District Judge,
be sentenced to pay a fine of not less than $25 nor more than $300
and costs and prosecution, for each offense, to be collected as other
fines and costs are by law collectible, and in default of payment
of said fine and costs, shall be imprisoned in the Delaware County
Jail for a period not exceeding 30 days. The fine imposed by this
section shall be in addition to any other penalty imposed by any other
section of this article.
It is the intent of the Township Council that
any ordinance now in effect which imposes a special license fee or
tax on specific types or kinds of business not covered by the provisions
of this article shall be and remain in full force and effect.
This article shall become effective immediately
after its passage and advertisement subject to the time limitations
of the "Local Tax Enabling Act."
