[HISTORY: Adopted by the City Council of the City of Harrisburg
by Ord. No. 31-1982. Amendments noted where applicable.]
CROSS-REFERENCES
Local Agency Law, Subchapter B of Chapters 5 and 7 of the Act
of April 28, 1978, P.L. 202 (2 Pa.C.S.A. §§ 105, 551
to 555 and 751 to 754).
Local services tax: see Ch. 5-705.
Power to tax: see Local Tax Enabling Act, Act of Dec. 31, 1965,
P.L. 1257, as amended (53 P.S. § 6924.101 et seq.).
Transient wholesale and retail business: see Ch. 5-303.
[Amended 11-13-2001 by Ord. No. 21-2001[1]]
See also Glossary of Terms, Chapter 1-302. As used in this chapter, unless otherwise expressly stated or clearly indicated by the context, the following terms shall have the meanings indicated:
The determination by the City of the amount of underpayment
by a taxpayer.
An enterprise, activity, profession or any other undertaking
of any nature conducted for profit or ordinarily conducted for profit,
whether by an individual, partnership, association, corporation or
any other entity, or any activity carried on or exercised for gain
or profit in the City of Harrisburg, including, but not limited to,
the sale of merchandise or other tangible personalty or the performance
of services. The businesses of taxpayers having their principal places
of business within the City of Harrisburg shall include all activities
carried on within the City and those carried on outside the City attributable
to the place of business within the City.
A person engaged in the business of furnishing labor, materials,
or both labor and materials, in connection with all or any part of
the construction, alteration, repairing, dismantling or demolition
of buildings, roads, bridges, viaducts, sewers, water and gas mains,
and every other type of improvement, alteration or development of
real property.
The later of the date paid or the date tax is deemed to have
been overpaid.
The date the overpayment is refunded or credited.
Any act which furthers the purpose of a business, as defined
herein.
Cash, credits or property of any kind received in exchange
for merchandise sold or services performed or other business activity
conducted within or attributable to the City, without deduction therefrom:
A person who is in the business of leasing or renting out
three or more dwelling units or one or more commercial spaces. For
the purposes of this chapter, "commercial" shall include all business
uses, including but not limited to manufacturing/industrial use, retail/wholesale
use, office space and provision of services.
A transfer of the right to possession and/or use of real
or personal property (including intangible personal property) for
a term in return for consideration. For the purposes of this chapter,
any rental of property shall be treated as a lease of property.
Produce, goods, commodities, food or foodstuffs, wares, items,
products, crops, livestock, animals, metals, gems, or any other property
of whatever description, whether new or used.
Any payment of tax which is determined in the manner provided
by law not to be legally due.
Sales made by persons engaged, as owner or agent, in the
business of selling or exchanging merchandise for cash or barter or
any consideration on the assumption that the purchaser of such goods
has acquired the same for ultimate consumption or use and not for
resale.
The passing of ownership from a seller to a buyer for consideration.
Any activity (other than retail or wholesale vending of merchandise)
done for the benefit of another or others for consideration, including
but not limited to consulting, maintenance and repairs, construction,
engineering, planning, design, installation, commission sales, training,
the lease or use of real of personal property (tangible or intangible),
and the providing of legal or accounting expertise.
The Harrisburg business privilege and mercantile tax.
A person subject to the payment of the tax or one who would
be subject to the payment of the same but for an exemption granted
by state or local law.
The amount or portion of any tax determined to be legally
due for which payment or remittance has not been made.
A payment of the tax made pursuant to the free will of the
taxpayer. The term does not include a payment made as a result of
distraint or levy or pursuant to a legal proceeding filed by the City
to collect delinquent taxes.
Sales made by persons engaged, as owners or agents, in the
business of selling to, or exchanging with, another person goods for
cash or barter or any consideration, for the purpose of resale by
the person acquiring the goods sold or exchanged.
There is hereby levied for the tax year beginning January 1,
1983, a tax for general revenue purposes on the privilege of doing
business, as herein defined, in the City.
A.
Rate of tax.
(1)
Business privilege tax. On receipts attributable to the performance
of service, the rate imposed shall be two mills, or $2 per $1,000
of gross volume of business, up to gross receipts of $3,300,000; for
gross receipts in excess of $3,300,000, the rate imposed shall be
1/2 mill or $0.50 per $1,000. Collection of estimated tax shall not
be construed to levy an increase in the annual rate of the tax.
(2)
Wholesale mercantile tax. On receipts attributable to wholesale
sales of merchandise, the rate imposed shall be one mill or $1 per
$1,000 of gross volume of business, up to gross receipts of $5,000,000;
for gross receipts in excess of $5,000,000, the rate imposed shall
be 1/8 mill or $0.125 per $1,000. Collection of past due taxes, penalties
or estimated tax shall not be construed to levy an increase in the
annual rate of the tax.
(3)
Retail mercantile tax. On receipts attributable to retail sales
of merchandise, the rate imposed shall be 1 1/2 mills or $1.50
per $1,000, up to gross receipts of $3,300,000; for gross receipts
in excess of $3,300,000, the rate imposed shall be 1/8 mill or $0.125
per $1,000. Collection of past due taxes, penalties or estimated tax
shall not be construed to levy an increase in the annual rate of the
tax.
B.
Computation of volume of business.
(1)
Every person subject to the payment of the tax hereby imposed
who has commenced business prior to the beginning of the tax year
shall compute gross volume of business upon the actual gross volume
of business transacted during such immediately preceding tax year.
(2)
Every person subject to the payment of the tax hereby imposed
who has commenced or commences business subsequent to the beginning
of the tax year shall compute gross volume of business upon the actual
gross amount of business transacted during that tax year.
(3)
Every person subject to the payment of the tax hereby imposed
who engages in a business temporary, seasonal or itinerant in nature
shall compute estimated gross amount of business within the City by
a method to be determined by the Business Administrator or designee.
C.
Exemptions.
(1)
Persons and businesses. 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 any political subdivision
thereof, or any authority created or organized under and pursuant
to any law are exempt from the provisions of this chapter.
(2)
State preemption. No such tax shall be assessed and collected
on a privilege, transaction, subject, or occupation which is subject
to a revenue-producing state tax or license fee, which tax or license
fee has been held by the courts of Pennsylvania to be the basis for
exemption from the imposition of a business privilege or mercantile
tax by a municipality.
(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 tangible property 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.
(5)
Landlords and rental property. No such tax shall be assessed
and collected on the gross receipts received as rent by a landlord
or his agent.
(6)
Production and manufacture. No such tax shall be assessed and
collected on goods, articles, products, or by-products of manufacture
or on minerals, timber, natural resources, and farm products manufactured,
produced or grown in the City, or on the preparation or processing
thereof for use or market, or on any privilege, act or transaction
related to the business of manufacturing, the production, preparation
or processing of minerals, timber and natural resources or farm products
by manufacturers, producers, and farmers with respect to the goods,
articles and products of their own manufacture, production or growth;
or any privilege, act or transaction relating to the business of processing
by-products of manufacture; or on the transportation, loading, unloading,
dumping or storage of such goods, articles, products or by-products.
(7)
Gross receipts tax or fee. No such tax shall be assessed or
collected on any receipts which are subject to a gross receipts tax
or fee under any other ordinance of the City.
D.
Determination of gross or whole volume of business. 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 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 and taxation purposes; and
(5)
Taxes collected as agent for the United States of America, the
Commonwealth of Pennsylvania, or the City.
E.
Partial exemptions. Where gross or whole volume of business in its
entirety cannot be subjected to the tax imposed by this chapter by
reason of the provisions of the Constitution of the United States,
or any other provisions of law, the Business Administrator or designee,
under the direction of the Mayor, shall establish rules and regulations
and methods of allocation and evaluation so that only that part of
the gross or whole volume of business which is properly attributable
and allowable to doing business in the City shall be taxed hereunder.
F.
Rate when same tax is imposed by two taxing bodies. If any person
is liable for the same tax on the same subject to the City and one
or more political subdivisions of the commonwealth, 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, if any, fixed
by law.
G.
Records. The exempt or partially exempt taxpayer, to obtain the foregoing
enumerated exclusions and deductions, shall keep books and records
of business so as to show clearly, accurately and separately the amount
of such sales and services which may be deducted from the gross volume
of business as hereinbefore provided.
A.
Every person subject to the provisions of this chapter shall file
a declaration of estimated tax in the form and manner prescribed by
the Business Administrator or designee, provided that this section
shall apply only to taxpayers whose estimated annual gross volume
of business can reasonably be expected to exceed $2,000,000.
B.
Every person filing a declaration shall certify the correctness thereof
by affidavit. The fact that an individual's name is signed on
the return shall be prima facie evidence that such individual is authorized
to sign the return on behalf of the taxpayer.
C.
Any person required under Subsection A hereof to file a declaration of estimated tax shall file such declaration and make payment of the estimated tax in quarterly installments of 25% of the tax estimated to be due for the year, which payment shall be made on or before the 30th day of the month following a quarter, that is, before the 30th day of April, July, October, and January, respectively.
[Ord. No. 33-1993]
D.
If, after a declaration is filed, the estimated tax due is substantially
increased or decreased, an amended declaration shall be filed on or
before the next date for payment of an installment of the estimated
tax. The remaining unpaid installments shall be proportionately increased
or decreased, as the case may be, to reflect any increase or decrease
in the estimated tax.
E.
An overpayment of tax due may be credited to the next year's
first installment of estimated tax or may be applied evenly over all
installments.
A.
Every return shall be made upon a form furnished by the Business
Administrator or designee. Every person making a return shall certify
the correctness thereof by affidavit.
B.
The fact that an individual's name is signed on the return shall
be prima facie evidence that such individual is authorized to sign
the return on behalf of the taxpayer.
C.
Every person subject to the tax imposed by this chapter who commences
business subsequent to the beginning of any tax year and/or continues
a business into another tax year shall, on or before the 15th day
of April of the next year, file with the Business Administrator or
designee a return setting forth the taxpayer's name, business,
business address, the amount of estimated tax paid which is attributed
to the tax, year and such information as may be necessary in arriving
at the actual gross amount of business transacted and the tax due.
D.
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 at
the time of filing the return. If such tax has been previously paid
based upon estimated gross receipts, the taxpayer shall be entitled
to a refund of any excess tax paid for the tax year in which business
was terminated.
E.
Any person required to file a return by this chapter shall attach
to such return the Internal Revenue Service Schedule C, Form 1065
or Form 1120.
A.
The tax levied pursuant to this chapter shall be due and payable
without further notice or demand on the date which the taxpayer is
required to file a declaration of estimated tax.
B.
If the taxpayer is not required to file a declaration of estimated
tax or if for some other reason a declaration was not filed, the full
tax is due and payable without further notice or demand on April 15
of the succeeding year, with interest and penalties, where applicable.
C.
At the time of filing the final return after proper filing of declarations
of estimated tax, the taxpayer shall pay the balance of tax due.
D.
At the election of the taxpayer, any installment of the estimated
tax may be paid before the date prescribed for its payment.
E.
Payment of the tax shall be made to the City Treasurer. The Treasurer
shall, upon payment of said tax, give the person paying the same a
receipt therefor.
F.
The Business Administrator is hereby authorized to accept payment
under protest of the amount of business privilege and/or mercantile
tax claimed by the City in any case where the taxpayer disputes the
validity or amount of the City's claimed tax. If it is thereafter
judicially determined by a court of competent jurisdiction that the
City has been overpaid, the amount of the overpayment shall be refunded
to the taxpayer. The provisions of this section shall be applicable
to cases clearly analogous to those in a case litigated in a court
of competent jurisdiction.
A.
If there is an underpayment of or failure to pay any installment
of estimated tax or to pay the entire tax due, an addition to the
tax due at the rate of 10% per annum for the period of the underpayment
or nonpayment shall be imposed.
B.
An underpayment is determined to be the excess of the installment
payment that would be required if the estimated tax were 80% of the
tax due for the year over the amount of the installments paid by the
due date.
[Amended by Ord. No. 33-1993; by Ord. No. 5-1995; 11-13-2001 by Ord. No. 21-2001; 11-22-2016 by Ord. No. 21-2016]
A.
Any person desiring to conduct, or to continue to conduct, any business
within the City shall file with the Business Administrator or designee
an application for a business privilege and mercantile license and
shall pay a fee of $50 for the license and $50 for each renewal thereof.
The license issued shall be conspicuously posted in the place of business
for which the license is 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. A business privilege and mercantile license, once issued, shall
remain valid until the indicated activity or business changes owner,
goes out of business or until the end of the tax year.
B.
The issuance of a business privilege and mercantile license is predicated
upon the applicant first receiving the approval of the Zoning Administrator
and/or Health Officer, where applicable, for the operation of his
or her business.
C.
Regardless of whether or not a license is procured, the tax required
to be paid pursuant to this chapter is due if a person operates a
business within the City. Regardless of whether or not a business
is exempt from paying the tax, a person or entity who operates a business
within the City shall obtain a mercantile license.
D.
Any mercantile/business privilege license issued by the City is subject
to revocation by the issuing authority upon a determination that the
licensee has violated one or more provisions of the Codified Ordinances
of the City.
E.
Any person whose license is subject to revocation shall have the
right to request an administrative hearing before the Business Administrator
or designee within 10 days of the notice of violation and prior to
revocation. The decision of the Business Administrator or designee
may be appealed in accordance with the Local Agency Law.[1]
[1]
Editor's Note: See 2 Pa.C.S.A. § 551 et seq. and 2 Pa.C.S.A.
§ 751 et seq.
A.
The City Treasurer is charged with the duties of receiving the taxes,
fines and penalties imposed by this chapter.
B.
The Business Administrator and/or duly appointed designee, under
the direction of the Mayor, is hereby empowered with the approval
of the Mayor to prescribe, adopt, and promulgate rules and regulations
relating to any matter pertaining to the administration and enforcement
of this chapter, including provisions for the examination and correction
of declarations and returns and payments alleged or found to be incorrect,
or as to which an overpayment is claimed or found to have occurred,
and is charged with enforcing the provisions of this chapter and any
rules and/or regulations promulgated pursuant hereto.
C.
The taxpayer shall maintain such records and books of account as
will enable him or her to make a true and accurate declaration and
return in accordance with the provisions of this chapter. Such accounts
and records shall disclose in detail the gross receipts and other
data pertaining to the taxpayer's gross volume of business and
shall be sufficiently complete to enable the Business Administrator
or appointed designee to verify all transactions.
[Ord. No. 33-1993]
D.
Any person aggrieved by any decision of the Business Administrator
shall have the right to appeal to the Court of Common Pleas, as in
other cases.
The Business Administrator or duly appointed designee shall
have the power in the name of the City to institute proceedings against
any and all persons who violate the provisions of this chapter or
to take any other action provided by law.
Any information gained by the Business Administrator or any
other official, agent or employee of the City as a result of any declarations,
returns, investigations, hearings or verifications required or authorized
by this chapter shall be confidential, except in accordance with proper
judicial order or as otherwise provided by law.
See Chapter 5-717, Enforcement and Penalties.
