[Adopted as Title 2, Ch. 7, Art. 1, of the 1977 Code[1]]
[1]
Editor's Note: This chapter was adopted 12-7-1977 and amended
12-29-1978 by Ord. No. 897; 12-30-1980 by Ord. No. 940; 7-18-1983
by Ord. No. 1029; 12-30-1986 by Ord. No. 1118; 7-20-1987 by Ord. No.
1136; 10-5-1987 by Ord. No. 1141; 9-6-1988 by Ord. No. 1164; 9-6-1988
by Ord. No. 1165; 7-10-1989 by Ord. No. 1190; 11-9-1998 by Ord. No.
1381; and 11-9-1998 by Ord. No. 1382.
This article shall be known and may be cited as the "Business
Privilege Tax Ordinance."
A.
ASSESSMENT
AUDIT
BUSINESS, TRADE, OCCUPATION, PROFESSION, AND VOCATION
COLLECTOR
CREDIT
DETERMINATION
GROSS RECEIPTS
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
PERSON
SECRETARY
SERVICE
TAX YEAR
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
TOWNSHIP
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:
The determination of business taxes due from a taxpayer as
the result of an audit or review of tax returns filed with the Township.
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.
Shall include, but not be limited to, all businesses, trades,
occupations, professions, and vocations in which there is offered
any service or services to the general public or a limited number
thereof, including those enterprises engaged in by hotel operators,
motel operators, parking lot and garage operators; warehousemen; lessors
of real and tangible personal property; physicians and surgeons, osteopaths,
podiatrists, chiropractors, veterinarians, optometrists, pharmacists,
lawyers, dentists, engineers, architects, chemists, certified public
accounts, public accountants, funeral directors, promoters, factors,
commission merchants, agents, brokers, manufacturers' 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
or consultants of electrical, electronic, and automotive machinery
or equipment or other machinery and equipment and other wares and
merchandise.
The Business Tax Office of the Township and all duly authorized
business tax officers.
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.
A decision by the Business Tax Office, including an assessment
of tax due for payment or denial of a refund or credit.
Cash, credits, property of any kind or nature received or
allocable or attributable to any business or services rendered or
commercial or business transactions without deduction therefrom on
account of the cost of property sold, materials used, labor, service
or other costs, interest or discount paid, or any other expense. "Gross
receipts" excludes the following:
In the case of a financial business, the cost of securities
and other property sold, exchanged, paid at maturity, or redeemed,
and monies or credits received in repayment of advances, credits and
loans, but not to exceed the principal amount of such advances, credits,
loans and deposits.
In the case of a broker of financial papers, commissions paid
by him to another broker on account of a purchase or sales contract
initiated, executed or cleared in conjunction with such other broker.
In the case of a real estate developer or general contractor,
the amounts paid by such developer or general contractor to contractors
or subcontractors registered to do business in the Township and to
the extent that such contractors or subcontractors have made timely
payment of the taxes imposed by this article.
Receipts upon which a business privilege tax or similar tax
has been imposed by another political subdivision by reason of the
performance of the service or conducting the 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.
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 excluded from the amount of the
gross receipts of the person.
Adjustments allowed to customers may be excluded 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.
Where a transaction involves both the performance of a service and the sale of any goods or property, the portion of the receipts applicable to the sale of goods or property may be excluded, provided that the sale portion is separately stated upon the invoice or bill to the customer and the applicable sales tax is charged, collected and remitted to the Commonwealth of Pennsylvania, and the applicable mercantile license tax under Article II of this chapter of the Township Code of Upper Moreland Township is paid on such sale portion.
Federal, state and local taxes may be excluded from 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.
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.
Any rental income received from the rental of not more than
one dwelling unit in a building to a person related to the lessor
by birth, marriage or adoption, provided that the lessor also resides
in a dwelling unit within the building.
An individual, partnership, corporation, unincorporated association
or any legal entity.
The Secretary of the Township of Upper Moreland.
Any act or instance of helping or benefiting another for
a consideration.
The twelve-month period beginning the first day of January
and ending the last day of December.
Any business that is conducted at one location for less than
60 consecutive calendar days.
The Township of Upper Moreland.
B.
The terms "person" and "business, trade, occupation, profession,
and vocation," 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.
A.
The registration and tax provisions of this article apply to any person engaging in any business, trade, occupation, profession, or vocation in which there is offered any service or services to the general public or a limited number of the general public for a consideration, except for persons who are wholesale or retail vendors or dealers in goods or who conduct restaurants or other places where food or beverages are sold and who are thus subject to the Mercantile License Tax Ordinance, Article II of this chapter of the Township Code of Upper Moreland Township.
B.
The article applies not only to businesses in existence at the beginning
of the license year but also to businesses begun during the tax year
or carried on in the Township for any part of the tax year.
C.
A person engaged in any business, trade, occupation, profession,
or vocation shall have the burden of proof with respect to the assertion
of any claim that the business, trade, occupation, profession, or
vocation or that the gross receipts or any portion of such gross receipts
is excludable from the tax imposed by this article or that any provision
of this article is inapplicable to such person.
Every person engaging in a business, trade, occupation, profession,
or vocation in the Township shall pay an annual business privilege
tax for the tax year at the rate of 3.5 mills on his gross receipts,
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.
Every person engaged in a business, trade, occupation, profession,
or vocation within the Township shall register with the collector
by completing the application form devised by the collector and furnishing
the information required by such form, including but not limited to
name, address, business address, nature of business, trade, occupation,
profession or vocation. Such registration shall be done without regard
for whether any tax will be due or payable. The collector shall, upon
completion of the registration form, issue a certification of registration
to such person. A separate certificate of registration must be obtained
each year for each place of business in the Township. The certificate
must be obtained on or before January 15 of each tax year if the business
was begun prior to that tax year. If a business is begun or a new
place of business established during the tax year, the certificate
must be obtained prior to commencing business. The certificate shall
be valid for the location for which it was issued and the applicant
only, and shall not be assignable.
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.
A.
The application
for certificate of registration forms shall be available from the
Collector of Business Privilege Tax, 117 Park Avenue, Willow Grove,
Pennsylvania 19090. Failure to obtain or receive the application form
shall not excuse any person from the obligation to file and obtain
the registration certificate or the business privilege tax return
or payment of the applicable tax hereunder.
B.
Each application
for registration 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.
C.
All applications
for certificates of registration shall be filed with the Collector
of Business Privilege Tax, 117 Park Avenue, Willow Grove, Pennsylvania
19090.
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.
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 tax year irrespective of the date when such monies are
collected from the customer. In either case, the taxpayer must file,
on a calender-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 § 310-10C 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 Mercantile License
Tax Ordinance, shall combine and report gross receipts in a single
return.
A.
At the time of filing the tax return on May 1 of the tax year except
as hereinbefore provided, the person shall pay in a single payment
an amount equal to the estimated tax for the current tax year and
any balance due for actual gross receipts for the prior year.
B.
Any person with a decrease in actual gross receipts from that estimated
on the prior year's return shall be entitled to a credit on the estimated
tax for the current year in an amount equal to the overpayment of
tax for the prior year.
C.
Tax credits resulting from overpayment by a taxpayer may only be
utilized after all then due tax returns have been filed with the Tax
Office. Failure to file a completed tax return as required will prevent
the utilization of any accrued credits.
A.
It shall be the duty of the collector to collect and receive all
fees, taxes, interest, fines, and penalties imposed by this article
and to maintain a record of all payments received and the date thereof.
B.
The collector shall pay all fees, taxes, interest, fines, and penalties
collected, received, or recovered under the provisions of this article
into the treasury of the Township for the use and benefit of the Township.
C.
The collector is hereby authorized and empowered to enforce the provisions
of this article and, for such purpose, is duly constituted a law enforcement
officer for the purpose of instituting summary proceedings under this
article pursuant to the Pennsylvania Rules of Criminal Procedure.
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 § 310-20 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.
A.
Any claim for a refund or use as a credit of the overpayment of the
tax imposed by this article must be made in writing within three years
of the due date for filing the tax return or one year after the actual
payment of the tax, whichever is later.
B.
No refund or credit will be issued to a taxpayer unless all then currently due tax returns required under this article and the Mercantile License Tax Ordinance have been filed. The Tax Office shall notify the taxpayer in writing if there are any outstanding returns required to be filed before the issuance of a credit or refund. Said return must be filed before the expiration of time for requesting a refund or credit as set forth in Subsection A above or within 30 days of the notice from the tax officer if the time limitations in Subsection A expired after the request for refund or credit was received.
C.
A refund or credit accrued as a result of overpayment of business
privilege tax may be applied as payment for tax due under either the
Business Privilege Tax Ordinance, the Mercantile License Tax Ordinance
or the Occupational Privilege Tax Ordinance.
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 business privilege 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 the
business privilege 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."
|
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.