This article shall be known as and may be cited as the "Mercantile
License Tax Ordinance."
The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section unless the
context clearly indicates a different meaning:
ASSESSMENT
The determination of business taxes due from a taxpayer as
the result of an audit or review of tax returns filed with the Township.
AUDIT
An inspection of the books and accounting records of a taxpayer
by the designated auditor or business tax officer for the Township
of Upper Moreland for the purpose of verifying the correct payment
of business taxes and occupational privilege taxes by the taxpayer.
An audit may be conducted in person at the taxpayer's location, at
the Business Tax Office or through the provision of copies of requested
records to the Business Tax Office through the mail.
COLLECTOR
The Business Tax Office of the Township and all duly authorized
business tax officers.
CREDIT
An overpayment made to the Township of business privilege
tax, mercantile license tax or occupational privilege tax. A credit
may be used to satisfy future business tax obligations upon the written
request of the taxpayer and the filing of all required tax returns.
DETERMINATION
A decision by the Business Tax Office, including an assessment
of tax due or payment or denial of a refund or credit.
GROSS RECEIPTS
Cash, credits, property of any kind or nature, received or
allocable or attributable to any business. "Gross receipts" excludes
the following:
A.
Receipts upon which a mercantile tax or similar tax has been
imposed by another political subdivision by reason of the performance
of the service, sale of goods or conducting business in that political
subdivision, provided that proof of payment of such tax must be provided
to the collector at the time of claiming such exclusion.
B.
Refunds, credits or allowances given by a person to a customer
on account of defects in services rendered or in goods, wares and
merchandise sold or returned may be deducted from the amount of the
"gross receipts" of the person.
C.
Adjustments allowed to customers may be deducted from gross
receipts if they are deducted on the face of the invoice as a medium
of adjusting the price or fee for the service and if they are not
reimbursed to the person by his supplier or some other person.
D.
Federal, state and local taxes are not included in gross receipts
if they are collected from the customer and are separately stated
on the evidence of charge or sale, or the taxpayer produces satisfactory
proof of payment of the federal, state or local taxes.
E.
The collector shall promulgate rules and regulations setting
forth methods of allocation of gross receipts for such cases where
the gross receipts of a business in its entirety are not subject to
tax imposed by this article by reason of the provisions of the commerce
clause of the United States Constitution or under the Constitution
of the Commonwealth of Pennsylvania.
PERSON
An individual, partner, corporation, unincorporated association
or any other legal entity.
RETAIL DEALER or RETAIL VENDOR
Any person who is a dealer in or a vendor of goods, wares
and merchandise who is not a wholesale dealer or vendor, wholesale
and retail dealer or vendor, as hereinafter defined.
SERVICE
Any act or instance of helping or benefiting another for
a consideration.
TAX YEAR
The twelve-month period beginning the first day of January
and ending the last day of December.
TOWNSHIP
The Township of Upper Moreland.
A. The terms "person," "wholesale dealer" or "wholesale vendor," "retail
dealer" or "retail vendor," and "wholesale and retail dealer" or "wholesale
and retail vendor," as defined in this section, shall not include
the following:
(1) The government of the United States or of the Commonwealth of Pennsylvania,
or any employee or agency thereof.
(2) Any organization or nonprofit corporation which is or has been determined to be an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the "code"), and is exempt from federal income taxes under Section 501(a) of the Code; provided, however, that such organization or nonprofit corporation shall be required to register under §
310-5 of this article, and the tax imposed under this article shall be applicable to any "unrelated business income" of such organization or nonprofit corporation, as defined in Section 512 of the Internal Revenue Code.
Every person engaging in a wholesale, retail or wholesale and
retail business in the Township shall pay an annual mercantile license
tax for the tax year at the rate of 1.5 mills on his gross receipts
for retail and at the rate of one mill of his gross receipts for wholesale,
provided no tax will be levied on any person who has registered with
the Township and whose gross receipts are $2,900 or less, provided
that a tax return is filed.
The certificate is issued for a tax year from January 1 to December
31 of each year. A certificate obtained at any time during the year
is valid only from the date of issue until the end of the year with
respect to which it is issued.
Before the issuance of a certificate, the applicant shall make payment to the collector of a registration fee for each place of business. The fee shall be that set by the Board of Commissioners and set forth in Chapter
140, Fees, Rates, and Permits, of the Upper Moreland Township Code.
All registration fees due under this article and not paid by
January 15 of the tax year shall bear interest at the rate of 10%
per month or fractional part of a month from the day they are due
and payable until paid. If any person shall neglect or refuse to obtain
a registration certificate as herein required, an additional penalty
of 10% of the registration fee shall be added by the collector and
collected.
Every person subject to this article shall file a return as
follows:
A. If the person has commenced business prior to January 1 of the tax
year, the return shall be filed and received by the collector on or
before May 1 of the tax year;
B. If the person commences business after January 1 of the tax year,
the return shall be filed and received by the collector within 40
days from the date of commencing business;
C. If the person is engaged in a business which is temporary, seasonal,
or itinerant in its nature, the return shall be filed and received
by the collector within seven days of the completion of such business;
and
D. If the person discontinues, terminates, or otherwise ceases business
activity at the registered location, the return shall be filed and
received by the collector within 30 days of the termination.
A tax return may be filed on a cash basis or on an accrual basis,
but the return must be prepared in accordance with the method of accounting
regularly employed in keeping the books of the taxpayer. A person
who keeps his books on the cash basis will report his gross receipts
on the basis of amounts actually received during the period used as
the measure of the tax. A taxpayer who keeps his books on the accrual
basis will report the receipts from all sales made or services rendered
during the period used as the measure of tax, irrespective of the
date when such monies are collected from the customer. In either case,
the taxpayer must file on a calendar-year basis beginning January
1 and ending December 31, regardless of the taxpayer's fiscal year.
The estimated gross receipts for any tax year shall be determined
as follows:
A. If the taxpayer has been engaged in business for a full year prior
to January 1 of the tax year, the actual gross receipts for that prior
year shall be the estimated gross receipts for the tax year.
B. If the taxpayer has been engaged in business prior to January 1 of
the tax year, but for less than one full year, the estimated gross
receipts shall be the average monthly gross receipts for the prior
year multiplied by 12.
C. If the taxpayer commences business during the tax year, the estimated
gross receipts shall be determined by multiplying the gross receipts
for the first month of business by the number of months remaining
in the tax year.
D. In the case of a temporary, seasonal or itinerant business for which a return is filed as provided in §
310-34C above, no estimate is computed. Instead, the tax is imposed on the actual gross receipts during the period covered by the return.
E. Any person who engages in business with gross receipts from wholesale
or retail sales of merchandise or from a restaurant and from service,
who registers under this article, as opposed to the Business Privilege
Tax Ordinance, shall combine and report gross receipts in a single
return.
The collector or representative of the collector may request
the production for inspection and copying of books and records, including
federal income tax returns and state sales tax returns with appropriate
accompanying schedules, as will enable the collector to determine
the accuracy of the taxpayer's return. Any person claiming any exclusion
for any portion of the gross receipts must maintain complete records
in support of such claim.
The collector or other designated representative is authorized to examine the books, papers and records of any taxpayer or supposed taxpayer in order to verify the accuracy of any return made, or if no return was made, then to ascertain whether a tax should be imposed and, if so, the amount of such tax. He is further authorized to examine any person connected with any business concerning any gross receipts of the business which were or should have been returned for taxation and, for this purpose, may compel the production of books, papers, records and the attendance of all persons before him, whether as parties or witnesses, whom he believes to have knowledge of such business or gross receipts. The failure to provide such records or to submit to the examination shall be a violation of this article and shall subject such person to the penalties as set forth in §
310-44 of this article. Each day such person shall fail or refuse to provide such records or submit to such examination shall constitute a separate offense.
No assessment of any tax may be made more than five years after
the date on which such taxes should have been paid unless a fraudulent
return or no return is filed, in which case there shall be no limitations.
Suits for recovery of taxes may be brought within six years of the
date of assessment or date due, whichever is later, by the collector
or Township Solicitor as other debts due the Township are by law recoverable.
If for any reason the tax is not paid when due, interest at
the rate of 1 1/4% of the amount of the unpaid tax for each month
or fraction thereof during which the tax remains unpaid shall be added
to the tax. A penalty shall also be assessed in the amount of 10%
of the unpaid mercantile tax balance due.
Any person who fails, refuses or neglects to comply with the
provisions of this article may be punishable by a fine of not less
than $50 and not more than $600 plus costs of prosecution, upon conviction
before a magisterial district judge.
The collector is hereby authorized to enter into such agreements
with officials of other political subdivisions of the Commonwealth
of Pennsylvania for the purpose of collection of taxes imposed by
this article and with the Secretary of the Treasury of the United
States for access to copies of federal tax returns for the purpose
of collecting the tax hereby imposed.
Each taxpayer contacted by the Business Tax Office regarding
the assessment, audit, determination, review or collection of mercantile
license tax shall receive a notice containing the following information:
"You are entitled to receive a written explanation of your rights
with regard to the audit, appeal, enforcement, refund and collection
of local taxes by calling the Business Tax Office at (215) 659-3100,
extension 343 or 251, during the hours of 8:30 a.m. to 4:30 p.m. Monday
through Friday."
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A taxpayer may appeal any determination of the Tax Office, including an assessment, determination of underpayment, denial of refund or credit to the Tax Review Board, as set forth in Article
VII of this chapter.
The Business Tax Office may enter into an installment payment
agreement under which a taxpayer will satisfy an existing tax liability
with a series of payments over time, if in the tax officer's professional
opinion such an agreement will facilitate the collection of the tax
outstanding. The duration and amount of the payment and other terms
and conditions shall be at the discretion of the Business Tax Office.
The installment agreement may combine payments for all eligible taxes
in one payment.