[Adopted 12-15-1980 by Ord. No. 266 (Ch.
II, Art. 2, of the 1976 Ordinance Book)]
This article shall be known as "The Middletown
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:
All business, trades, occupation, professions and activities
carried on or exercised for gain or profit, including without limitation
those enterprises engaged in by hotel operators, motel operators,
parking lot and garage operators, warehouse operators, lessors of
real and/or tangible personal property, social workers, consultants,
teachers, nurses, health services, therapists, physicians and surgeons,
osteopaths, podiatrists, chiropractors, veterinarians, optometrists,
pharmacists, lawyers, dentists, engineers, architects, chemists, certified
public accountants, public accountants, funeral directors, promoters,
factors, commission merchants, agents brokers, manufacturer's representatives,
advertising and public relations agencies, real estate brokers, insurance
brokers and agents, cable television operators, operators of places
of amusement providing either passive or active recreation, vending
machine operators, barbershop operators, and beauty shop operators,
cleaning, pressing and dyeing establishment operators, laundry operators,
shoe repair shop operators, tailors, upholsterers, electrical, plastering,
bricklaying, carpentry, heat, ventilating, plumbing and painting,
contractors engaged in the class of heavy building or other construction
of any kind or in the alteration, maintenance or repair thereof, repairers
of electrical, electronic and automotive machinery and equipment or
other machinery and equipment and other wares and merchandise and
other businesses, trades, occupations and professions in which there
is offered any service or services to the general public or a limited
number thereof.
The period January 1 to December 31, inclusive, except that
for 1981, "calendar year" shall mean the period February 1 to December
31, inclusive.
Tax return to be filed on or before April 15th of the tax
year and based upon the estimated gross volume of business.
Tax return to be filed on or before April 15th of the year
following the tax year and based upon the actual gross volume of business.
The period from January 1 to December 31, inclusive, except
that for 1981, "license year" shall mean the period February 1 to
December 31, inclusive.
Any 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 shall mean
the partners or members thereof, and as applied to corporations, the
officers thereof.
Retail vendors or of dealers in goods, wares and merchandise;
that is, those vendors or dealers who are not wholesale vendors or
dealers.
The person or firm contracted with to collect said tax.
A person subject to the payment of the tax imposed by this
article.
The period from January 1 to December 31, inclusive.
The Finance Director of the Township of Middletown.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and to no other persons.
[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 II of the Code of the Township of Middletown.
[2]
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 II of the Code of the Township of Middletown.
[Amended 2-17-1987 by Ord. No. 401]
There is hereby levied for the tax year 1981
and annually thereafter a tax for general revenue purposes on the
privilege of doing business as herein defined in the Township of Middletown
as follows:
A.
The rate of the tax on each and every dollar of the
whole gross volume of business transacted within the territorial limits
of the Township of Middletown shall be 2 1/4 mills, 2 1/4 mills shall
mean $2.25 per $1,000 of gross volume of business; except that the
rate of tax on each and every dollar of the whole or gross volume
of business transacted by wholesale dealers or the wholesale vendors
within the territorial limits of the Township of Middletown shall
be 1 1/2 mills. All non-wholesale business or such wholesale dealers
or wholesale vendors shall be taxed at the general rate of 2 1/4 mills.
B.
Computation of volume of business.
(1)
Every person subject to the payment of the tax hereby
imposed who has commenced his business prior to the full calendar
year prior to the tax year shall compute his annual estimated gross
volume of business upon the actual gross amount of business transacted
by him during said immediately preceding calendar year. (As example,
for the tax year 1981, if a person is in business as of January 1,
1981, and continues to be in business for the full calendar year,
then the figures for 1980 shall be the basis for the computation for
his annual estimated gross volume of business.)
(2)
Every person subject to the payment of the tax hereby
imposed who has commenced or who commences his business before the
beginning of the tax year but after the beginning of the full calendar
year prior to the tax year, shall compute his estimated annual gross
volume of business for the tax year upon the gross volume of business
transacted by him during prior calendar year, taking the monthly average
during said period and multiplying the same by 12. In the event that
he shall be in business fewer than 90 days in the prior calendar year,
he shall be permitted to use sufficient days in calendar year in which
the tax year begins to equal 90 successive days after commencement
of business, to take a monthly average thereon, and to multiply the
average by 12.
(3)
Every person subject to the payment of the tax hereby
imposed who has commenced or commences his business subsequent to
the beginning of the tax year, if there shall be less than three months
from the commencement of his business to the end of the tax year,
shall compute his annual gross volume of business upon the actual
gross amount of business transacted by him during the tax year; if
there shall be more than three months from the commencement of his
business to the end of the tax year, he shall compute his estimated
gross volume of business for such tax year upon the gross volume of
business transacted by him during the period from the commencement
of his business to the end of the tax year, taking the monthly average
during the first three months of business and multiplying the same
by the number of months from the commencement of business to the end
of the tax year.
(4)
Every person subject to the payment of the tax hereby
imposed who engages in a business temporary, seasonal or itinerant
by nature, shall compute his estimated gross of business to be transacted
by him for the period said person engages in such temporary, seasonal
or itinerant business within the Township by a method to be determined
by the Tax Administrator.
(5)
The Tax Administrator 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. The provisions of this section shall be applicable
to cases in which the facts are similar to those in a case litigated
in a court of competent jurisdiction.
C.
Persons, business and receipts exempted.
(1)
Persons and business. 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 of the Commonwealth of Pennsylvania and the business
of any political subdivision, or of any authority created or organized
under and pursuant to any act of assembly are exempt from the provisions
of this article.
(2)
No such tax shall be assessed and collected on a privilege, transaction, subject, or occupation which is subject to a state tax or license fee or which has been held by the Courts of Pennsylvania to be the basis for the exemption from the imposition of a privilege tax by a municipality and specifically all businesses or occupations being presently taxed under Article I, Mercantile Tax, being Ordinance No. 182, approved March 3, 1975.
(3)
Utilities. No such tax shall be assessed and 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.
(4)
State tax on tangible property. No such tax shall
be assessed and collected on the privilege of employing such tangible
property as is subject to a state tax except on sales of admission
to places of amusement or on sales or other transfers of title or
possession of property.
D.
Gross or whole volume of business upon which the tax
hereunder is computed shall include the gross consideration credited
or received for or on account of sales made, rentals and/or services
rendered, 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)
Any 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 in the
same year for federal income taxation purposes.
(5)
Taxes collected as agent for the United States of
America, Commonwealth of Pennsylvania or the Township of Middletown.
E.
Where gross or whole volume of business in its entirety
cannot be subjected to the tax imposed by this article by reason of
the provision of law, the Tax Administrator with the approval of the
Township Council of the Township of Middletown shall establish rules
and regulations and methods of allocation and evaluation so that only
the part of the gross of whole volume of business which is properly
attributable and allowable to doing business in the Township of Middletown
shall be taxed hereunder.
F.
If any person is liable for the same tax on the same
subject imposed under the Local Tax Enabling Act of 1965, December
21, Pamphlet Law 1257,[1] and its amendments, to the Township and one or more political
subdivisions of the state, then and in that event the tax shall be
apportioned by such percentage as may be agreed upon by such political
subdivisions, but, in no event shall the combined taxes of both subdivisions
exceed a maximum rate of tax as fixed by the Enabling Act permitting
the imposition of such taxes.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
G.
The taxpayer, to obtain the foregoing enumerated exclusions
and deductions, shall keep books and records of his business so as
to show clearly, accurately, and separately the amount of such sales
and services as are excluded from the tax and the amounts of such
sales and services which he is entitled to deduct from the gross volume
of business as hereinbefore provided.
[Amended 2-28-1983 by Ord. No. 338]
A.
Every return shall be made upon a form furnished by
the Tax Administrator. Every person making a return shall certify
the correctness thereof by affidavit. Every person making a return
shall furnish such additional information, including copies of tax
returns, forms and schedules, filed for federal and state taxes, as
the Tax Administrator shall, in his discretion, require to determine
or verify the tax due under this article.
B.
Every person subject to the tax imposed by this article
shall be required to file two tax returns each year: an estimated
return and a final return unless otherwise provided for in this article.
Each time an estimated return is required to be filed, the following
year, if it is determined that the amount of tax paid in the estimated
return was greater than required by the final return, the taxpayer
shall be entitled to either apply the overpayment to the estimated
return for the year in which the final return in question is being
filed or, in the alternative, is entitled to a refund. In the event
that the estimated tax was less than the amount finally determined
to be owed in the final return, the taxpayer shall be liable to pay
said tax upon the filing of the final return plus interest at the
rate of 6% per annum. In the event that the amount paid at the time
of the filing of the estimated return is 80% of the total tax due
for the entire tax year, including the estimated tax paid as well
as the final tax paid.
[Amended 5-10-2021 by Ord. No. 830[1]]
(1)
Every person subject to the tax imposed by this article
who commenced his business on or before January 1 of the full calendar
year previous to the beginning of any tax year shall on or before
March 31 of the tax year file with Tax Administrator an estimated
return setting forth his name, his business, his business address,
and such other information as may be necessary in arriving at the
actual gross amount of business transacted by him during the preceding
calendar year, and the amount of tax due.
(2)
Every person subject to the tax imposed by this article who has commenced his business before the beginning of the tax year but after January 1 of the full calendar year previous to the beginning of the tax year shall on or before March 31 of the tax year file with the Tax Administrator an estimated return setting forth his name, his business, business address, and such other information as may be necessary in arriving at the estimated gross amount of business transacted by him as calculated under § 215-19B(2) hereof and the amount of tax due.
(3)
Every person subject to the tax imposed by this article who commences business subsequent to the beginning of any tax year shall, within 100 days from the date of commencing said business, file with the Tax Administrator either an estimated return or a final return, in accordance with § 215-19B(2) hereof, setting forth his name, his business and business address, and such other information as may be necessary in arriving at the estimated or actual gross amount of business transacted by him as calculated under § 215-19B(3) hereof in the amount of tax due.
(4)
Every person subject to the payment of the tax imposed by this article who engages in a business temporary, seasonal or itinerant by its nature shall, at the time application is made for the business privilege license, file a return with the Tax Administrator setting forth his name, his business, his business address, and such other information as may be necessary in arriving at the estimated gross amount of business to be transacted by him as calculated in accordance with § 215-19B(4).
(5)
Any person going out of or ceasing to do business
shall, within seven days from the date of ceasing to do business,
file a return showing the actual gross volume of business conducted
and done by such person during that tax year in which said person
ceased doing business, and pay the tax due as computed thereon at
the rate herein provided for at the time of filing said return. If
such tax has been previously paid based upon estimated gross receipts,
the taxpayer shall be entitled to a refund, without interest, of any
excess tax paid for the tax year in which business was terminated.
[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 II of the Code of the Township of Middletown.
C.
The business privilege tax levied pursuant to this
article shall be due and payable on the date on which the taxpayer
is required to file a return as set forth above and if the same is
not paid on said date, 5% shall be added thereto, plus an additional
1% per month or fractional part of a month until paid.
D.
The Treasurer shall, upon payment to him of the business
privilege tax, give the person paying the same a receipt thereof.
After the effective date of this article, any person desiring to conduct, or to continue any business, as herein defined, within the Township of Middletown, shall file with the Tax Administrator an application for a business privilege license and shall pay a fee of $10 for each renewal thereof. Taxpayers who pay a license fee under Article I, Mercantile Tax, shall not be required to pay the fee for the business privilege license issued hereunder.
The license shall be conspicuously posted in
the place of business for which the such license is issued, and shall
remain in effect for the license year or fraction of year for which
said license was issued. In cases where more than one place of business
is conducted, a separate license shall be issued for each place of
business. Any taxpayer who is in default in payment of tax due hereunder
shall be refused a license until such tax is paid in full.
Any person who shall conduct, transact or engage
in any of the businesses subject to the tax imposed by this article,
without having first secured a business license for the year, or any
person who shall fail to file a tax return as required by the provisions
of this article, or any person who shall willfully file a false return,
shall, upon summary conviction before any Magisterial District Judge
of Delaware County, be sentenced to pay a fine not to exceed the sum
of $300 for any one offense, recoverable with costs, or imprisonment
not exceeding 90 days, if the amount of said fine and costs shall
not be paid.
Each day on which such person violated this
article may be considered as a separate offense and punishable as
such as aforeprovided.
A.
The Treasurer is charged with the duties of collecting
and receiving the taxes, fines and penalties imposed by 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 Tax Administrator and his duly appointed deputies,
under the direction of the Treasurer, are hereby empowered to collect
and receive the taxes, fines and penalties imposed by this article,
to keep records relating to same, to prescribe, adopt and promulgate
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,
and charged with enforcing the provisions of this article and any
rules and/or regulations promulgated pursuant hereto.
C.
In the event the person to be assessed neglects or
refuses to make a return, then in such case the Tax Administrator
or his duly appointed deputies shall assess said person on such an
amount of whole or gross volume of business as said Tax Administrator
or his deputies deem reasonable and appropriate. In all cases of assessment,
the Tax Administrator or his duly appointed deputies shall give the
parties assessed a notice in which shall be stated the trade, business,
occupation or class, and the amount of the business privilege tax
imposed or levied.
D.
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 volume of business, and
must be sufficiently complete to enable the Tax Administrator or his
deputies to verify all transactions. The Tax Administrator or his
deputies are hereby authorized to examine the books, papers, and records
of any person or persons subject to or supposed to be subject to the
tax imposed by this article, in order to verify the accuracy of the
return made, or if no return was made, ascertain the tax due.
E.
Any person aggrieved by any decision of the Tax Administrator
shall have the right to appeal to the Court of Common Pleas, as in
other cases.
Any information gained by the Tax Administrator
or any other official, agent or employee of the Township, as a result
of any returns, investigations, hearings, or verifications required
or authorized by this article, shall be confidential except in accordance
with proper judicial order or as otherwise provided by law.
A.
The Tax Administrator or his duly 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
after first advising Township Council of the Township of Middletown
of such action.
B.
If for any reason the tax is not paid when due and
suit is brought for the recovery of any such tax, the person liable
therefor, shall, in addition, be liable for the costs of collection
and interest and penalties herein imposed.
A.
Nothing contained in this article shall be construed
to empower the Township to levy and collect the taxes hereby imposed
on any person, or any business, or any portion of any business not
within the taxing power of the Township under the Constitution of
the United States and the laws and Constitution of the Commonwealth
of Pennsylvania.
B.
If the tax, or any provision thereof, imposed upon
any person under the provisions of this article shall be held by any
court of competent power or jurisdiction to be violation of the Constitution
of the United States or of the Commonwealth of Pennsylvania or any
other provision of the law, the decisions of the court shall not affect
or impair the right to impose the taxes, or the validity of the taxes
so imposed upon other persons as herein provided.
This article is enacted pursuant to the authority
of the Local Tax Enabling Act, 1965, December 31, Pamphlet Law 1257,[1] as amended, and shall become effective on the 31st day
after it has been passed by the Township Council of the Township of
Middletown and shall continue thereafter unless amended or repealed.
[1]
Editor's Note: 53 P.S. § 6901 et
seq.
