Borough of Penndel, PA Article V Entertainment and Amusement Tax

[Adopted 9-4-1990 by Ord. No. 90-10 (Ch. 110, Art. V, of the 1976 Borough Code)]

§ 368-58 Establishment of tax.

The Borough of Penndel does hereby establish a tax on certain entertainment and amusement activities operated within the Borough, with said article being known as the "Entertainment and Amusement Tax Ordinance."

§ 368-59 Definitions; word usage.

A. 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:

AMUSEMENT

All manner and form of entertainment, including, among others, theatrical or operatic performances, concerts, vaudevilles, circuses, carnivals and sideshows, all forms of entertainment at the fairgrounds and amusement parks, athletic contests, including wrestling matches, boxing and sparring, swimming, archery, shooting, riding, dancing, rowing, billiards, pool and all other forms of diversions, sport, recreation or pastime, shows, exhibitions, contests, displays and games and all other methods of obtaining admission charges, donations, contributions or monetary charges of any character from the general public, or a limited or selected number thereof, directly or indirectly, in return for other than tangible property or specific personal or professional services.[1]

AMUSEMENT TAX COLLECTOR

The person as designated by the Penndel Borough Council.

ASSOCIATION

Any partnership, limited partnership or other form of unincorporated enterprise owned by two or more persons.

BOROUGH

The Borough of Penndel, County of Bucks, Commonwealth of Pennsylvania.

CHARITABLE SOCIETIES OR ORGANIZATIONS

Any group of people who are organized together for any nonprofit-making venture, the funds or use thereof which inure to the benefit of a substantial number of the citizens of the community. Examples of such groups would be public recreational associations, parent-teacher associations, etc.

COUNCIL

The Council of the Borough of Penndel.

ESTABLISHED PRICE

Regular monetary charges of any character whatever, including donations, contributions and dues or membership fees (periodical or otherwise), fixed and exacted, or in any manner received by producers, as herein defined, from the general public, or a limited or selected number thereof, directly or indirectly, for the privilege to attend or to engage in any entertainment or amusement, provided that when such entertainment or amusement is conducted at any place where the charge for admission is, wholly or in part, included in the price paid for refreshment, service or merchandise, the amounts paid for admission to such amusement shall be deemed to be 50% of the amount paid for refreshment, service and merchandise.

ITINERANT AMUSEMENT

An amusement which moves from place to place, either within the Borough or partially outside the Borough.

PERMANENT AMUSEMENT

An amusement conducted at one location for a period in excess of one month.

PERSON

Every natural person, copartnership, association or corporation. Whenever used in any clause prescribing and imposing a penalty, or both, the term "person," as applied to copartnerships or associations, shall mean the partners or members thereof and, as applied to corporations, the officers thereof.

PLACE OF AMUSEMENT

Any place, indoors or outdoors, within the Borough where the general public, or a limited or selected number thereof, may, upon payment of an established price, attend or engage in any amusement as herein defined, including, among others, opera houses, theaters, amusement parks, stadiums, arenas, baseball parks, skating rinks, circus or carnival tents or grounds, fairgrounds, social, sporting, athletic, riding, gun and country clubs, riding academies, golf courses, golf driving ranges, miniature golf courses, bathing and swimming places, dance halls, tennis courts, archery, rifle or shotgun ranges, pool and billiard parlors, roof gardens, cabarets, nightclubs and other restaurants where amusement or entertainment is provided, and other like places.[2]

PRODUCER

Any person, as herein defined, conducting any place of amusement, as herein defined, where the general public, or a limited or selected number thereof, may, upon the payment of an established price, attend or engage in any amusement.

SECRETARY

The Secretary of the Council of the Borough of Penndel, County of Bucks, Commonwealth of Pennsylvania.

TEMPORARY AMUSEMENT

An amusement, other than an itinerant amusement, which is conducted for a period of less than one month during any calendar year.

[1] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

[2] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

B. The singular shall include the plural, and the masculine shall include the feminine and neuter.

§ 368-60 Registration required; method of registration.

A. No amusement shall be conducted within the Borough unless and until it has been registered, a registration certificate has been issued for it and such certificate remains in effect and unrevoked.

B. Registration.

(1) Registration shall be made on a form prescribed, prepared and furnished by the Amusement Tax Collector and shall set forth the name under which the amusement will be conducted, whether it will be a permanent, temporary or itinerant amusement, its location or itinerary, the established price which will be charged and such other pertinent information as the Amusement Tax Collector may require.

(2) If the producer has or intends to have more than one place of amusement within the Borough, he will register each one and shall state the location of each and, in the case of itinerant amusements, the date and length of time such amusement is to be conducted.

(3) If the producer is an association or corporation, it shall state the names and addresses of the principal officers thereof and any other information prescribed by the Amusement Tax Collector for purposes of identification.

(4) The registration shall be signed and verified by oath or affirmation by the producer, if a natural person, and in the case of an association, by a member or partner thereof, and in the case of a corporation, by an executive officer thereof or some person specifically authorized by the corporation to sign the registration, to which shall be attached written evidence of his authority.

C. Certificate.

(1) Upon the filing of a completed registration form, the Amusement Tax Collector shall issue to the producer an annual or temporary registration certificate. A producer of permanent or temporary amusement shall be issued a separate certificate for each of his places of amusement within the Borough. A certificate issued to the producer of an itinerant amusement shall set forth the itinerary of the producer.

(2) A registration certificate shall be valid only for the person in whose name it is issued and for the conduct of an amusement at the place or places designated therein. It shall not be assignable. It shall at all times be conspicuously displayed at the place or places for which issued.

(3) All registration certificates for permanent amusements shall expire on the 10th day of February next succeeding the date upon which they become effective. Registration certificates for temporary or itinerant amusements shall expire at the time specified therein.

(4) The producer of an itinerant amusement shall notify the Amusement Tax Collector promptly of any change in the originally contemplated itinerary, either as to the date or the time of the conduct of the amusement at each place.

(5) Whenever any registration certificate issued under the provisions of this article is defaced, lost or destroyed, the Amusement Tax Collector may issue a duplicate certificate to the holder thereof.

D. Each permanent place of amusement shall be registered annually during the month preceding the 10th day of February, and the registration certificate issued thereon shall become effective on the 10th day of February.

§ 368-61 Tax levied; amount of tax.

A. A tax to provide revenue for general Borough purposes is hereby levied, assessed and imposed upon the admission fee or privilege to attend or engage in any amusement, with the exception of admissions to ski facilities, golf courses and bowling alleys and bowling lanes, within the Borough, at the rate of $0.01 for each $0.10 of the established price charged the general public or a limited or selected group thereof by any producer for such privilege, which shall be paid by the person acquiring such privilege.

B. A tax is hereby levied, assessed and imposed on admissions to ski facilities and golf courses at the rate of $0.01 for each $0.10 using the following tax bases:[1]

(1) Ski facilities. The tax base upon which the tax shall be levied shall be 40% of the cost of the lift ticket The lift ticket shall include all costs of admissions to the ski facility.

(2) Golf courses. The tax base upon which the tax shall be levied shall be 40% of the green fees. The green fee shall include all costs of admissions to the golf course.

[1] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I); this ordinance also repealed original Subsection B(3), pertaining to bowling alleys.

C. In the case of persons (except bona fide employees of a producer or municipal or state officers on official business) admitted free or at reduced rates to any place of amusement at a time when and under the circumstances where an established price is charged to other persons, the tax imposed by this article shall be computed on the established price charged to such other persons of the same class for the same or similar accommodations to be paid by the persons so admitted or on the tax base established in Subsection B(1) and (2) above for admissions to ski facilities and golf courses.[2]

[2] Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

D. In the case of persons having the permanent use of boxes or seats in any place of amusement or a lease for the use of such box or seat in such place of amusement, the tax herein shall be for each performance or exhibition at which the box or seat is used or reserved by or for the lessee or holder, such tax to be paid by the lessee or holder and shall be in accordance with all provisions of Section 403 of the Internal Revenue Code of 1954, as amended.

E. In the case of amusements, the established price for which is subject to the federal admissions tax imposed by Section 4231 of the Internal Revenue Code of 1954, as amended, if the federal tax on the established price of any given admission is equal to or greater than 50% of the amusement tax due to the Borough on the established price under § 368-60A of this article, a credit of 30% of the Borough tax shall be allowed.

§ 368-62 Collection of tax.

A. Producers shall collect the tax imposed by this article and shall be liable to the Borough as agents thereof for the payment of the same to the Amusement Tax Collector, as hereinafter provided in this article.

B. Where temporary or itinerant forms of amusement are conducted by persons who are not the owners, lessees or custodians of the place where the amusements are to be conducted, or where a temporary or itinerant form of amusement is permitted to be conducted after the effective date of this article by the owner, lessee or custodian of any place, without it being registered with the Borough as required by this article, the collection of the tax imposed by this article shall be the responsibility of the owner, lessee or custodian where such itinerant forms of amusement are held or conducted and shall be collected and paid by him unless collected and paid by the producer conducting the amusement.

C. Where producers may begin to conduct permanent amusements after the effective date of this article and they are not the owners of the places where the permanent amusements are to be conducted or where the owner of any place permits a producer to begin to conduct a permanent amusement at that place after the effective date of this article without it being registered with the Borough as required by this article, the collection of the tax imposed by this article shall be the responsibility of the owner of such place where any such permanent amusement is to be conducted and shall be collected and paid by him unless collected and paid by the producer conducting the permanent amusement.

§ 368-63 Procedure for payment.

In order that the amount of tax collected and payable by producers to the Borough may be ascertained, every producer shall submit to the Amusement Tax Collector and the Secretary at the times set forth below a report on a form prescribed, prepared and furnished by the Amusement Tax Collector. The report shall contain such pertinent information as the Amusement Tax Collector shall prescribe and shall be verified by oath or affirmation.

A. Every producer of a permanent amusement shall submit on or before the 10th of each month a report concerning the tax collected by him during the immediately preceding calendar month.

B. Every producer of a temporary or itinerant amusement shall submit within 48 hours a report concerning the tax collected by him on each day during which the amusement continues. If the persons or the properties involved in the amusement are intended to leave the Borough before the expiration of 48 hours, the report shall be submitted before either the persons or the properties leave the Borough.

C. Before allowance shall be made by the Borough for any credit claimed under § 368-60D of this article, the producer shall submit to the Amusement Tax Collector a copy of his federal admissions tax return for the period for which the credit is claimed.

D. Every producer of a permanent amusement shall submit a certificate from an accountant or auditor which verifies the sales figures and taxes paid for each calendar year. Said certificate shall be submitted by January 30 of the following year.

§ 368-64 Time of payment.

A. Taxes which have been or should have been collected by a producer during any given time period shall be due and payable to the Borough on the date on which a report covering that period is required by this article to be filed.

B. If any tax is paid before the due date, a credit of 2% of the amount of the tax shall be allowed.

C. If the tax on a permanent amusement is not paid on or before the 13th day after the due date or if the tax on a temporary or itinerant amusement is not paid on or before the due date, a penalty of $5 or 10% of the unpaid tax, whichever is greater, shall be added to the tax.

D. In addition to the penalties provided in Subsection C above, unpaid taxes shall bear interest at the rate of 1/2 of 1% per month or fractional part of a month from 30 days after the date they are due and payable until paid.

§ 368-65 Powers of Collector; enforcement.

The Amusement Tax Collector and the Secretary, or either of them, for the purpose of enforcing this article, are hereby authorized and empowered to examine the books, papers, tickets, ticket stubs and all other pertinent records of any producer or any other person who may be liable for the tax herein imposed.

§ 368-66 Estimate of tax.

If any producer shall neglect or refuse to make any report and payment of tax required by this article or if, as a result of an investigation by the Amusement Tax Collector and/or the Secretary, a report is found to be incorrect, the Amusement Tax Collector shall estimate the tax due by such producer and determine the amount due him for taxes, penalties and interest thereon.

§ 368-67 Remedies for noncompliance.

If any producer shall neglect or refuse to make any report or payment of tax required by this article or if the Amusement Tax Collector and/or Secretary have reason to believe that any report and payment are incorrect, the Amusement Tax Collector and/or Secretary shall have the following remedies in addition to any other remedies provided by this article or any other statute or ordinance:

A. In any case, the registration certificate may be declared revoked and the conduct of the amusement may be ordered to be stopped.

B. In the case of an itinerant amusement, the removal from the Borough of the properties used in the conduct of the amusement may be prohibited.

§ 368-68 Disposition of receipts.

All taxes, interest and penalties received, collected or recovered under the provisions of this article shall be paid into the treasury of the Borough for the use and benefit of the Borough.

§ 368-69 Promulgation of regulations.

The Amusement Tax Collector is authorized and empowered to prescribe, adopt and promulgate rules and regulations relating to any matter or thing pertaining to the administration and enforcement of this article and the collection of the tax hereby imposed, subject to the approval of the Council.

§ 368-70 Exemptions.

A. The tax imposed by this article shall not apply to or be imposed upon the privilege to attend any amusement, the proceeds of which, after payment of reasonable expenses, inure:

(1) Exclusively to the benefit of religious, educational or charitable institutions, societies or organizations, provided that no part of the net earnings of the institutions, societies or organizations inure to the benefit of any private shareholder or person.

(2) Exclusively to the benefit of organizations of persons in military or naval forces of the United States or of national guard organizations, reserve officers' associations or posts or organizations of war veterans, or auxiliary units or societies of such posts or organizations, if such posts, organizations, units or societies are organized in the Commonwealth of Pennsylvania and if no part of their net earnings inure to the benefit of any private shareholder or person.

(3) Exclusively to the benefit of organizations or associations created and maintained for the purpose of benefiting employees of any political subdivision of the Commonwealth of Pennsylvania or their dependents or heirs or for the purpose of benefiting the members or the dependents of or the heirs of members of police or paid or volunteer fire departments of any political subdivision of the Commonwealth of Pennsylvania.

B. The entertainment tax shall not grant the authority to levy, assess or collect an amusement or admissions tax on membership, membership dues, fees or assessments, donations, contributions or monetary charges of any character whatsoever paid by the general public, or a limited or selected number thereof, for such persons to enter into any place, indoors or outdoors, to engage in any activities, the predominant purpose or nature of which is exercise, fitness, health maintenance, improvement or rehabilitation, health or nutrition education or weight control.

C. In no event shall any exemption be allowed under this section unless the producer thereof shall comply with the provisions of this article and the rules and regulations of the Borough with respect to the application for and approval of exemptions.

D. With respect to amusements, the net profits of which inure to the benefit of persons or organizations described in Subsection A above, but part of the gross intake of which is paid to persons engaged in the business of operating amusements for profit, the tax imposed by this article shall apply only to that portion of the gross intake which is paid to such persons engaged in business for profit.

§ 368-71 Violations and penalties.

A. Any person, copartnership, association or corporation who or which shall fail, neglect or refuse to comply with any of the terms or provisions of this article or of any regulation or requirement pursuant thereto and authorized thereby shall, in addition to other penalties provided by law, upon summary conviction before a Magisterial District Judge, be sentenced to pay a fine not to exceed $1,000 and costs of prosecution of each such offense or to undergo imprisonment for not more than 30 days for the nonpayment of such fine and costs within 10 days from the imposition thereof.

B. Such fines imposed by this section shall be in addition to any other penalty imposed by any other section of this article; provided, however, that if any producer of any amusement within the provision of this article shall offer evidence or testimony or submit to examination in any proceeding instituted by the Borough for the recovery of any taxes or interest due or alleged to be due to the Borough under this article, no process, civil or criminal, for the recovery of any fines or penalties imposed by this article may thereafter issue against the person so testifying or offering such evidence or testimony on account of any violation of the provisions of this article which such evidence or testimony may disclose.