[Adopted 11-27-1971 by Ord. No. 897]
A. 
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:
BOROUGH SECRETARY
Borough Secretary of the Borough of Ambridge.
BUSINESS
Carrying on or exercising within the Borough an enterprise, activity or any other undertaking of an unincorporated nature conducted for profit or ordinarily conducted for profit, whether by a person, partnership, association or any other entity. "Business" shall not include the following:
(1) 
Any activity conducted by a nonprofit organization or association organized for religious, charitable or educational purposes.
(2) 
Any authority created and organized under and pursuant to any Act of Assembly.
(3) 
The business of any insurance company, association or exchange, or any fraternal, benefit or beneficial society of any other state when, under the laws of such other state, insurance companies, associations or exchanges, fraternal, benefit or beneficial societies of this commonwealth doing business in such other state would be subjected by reason of the tax imposed by this article to additional taxes, fines, penalties or license fees by such other state.
(4) 
Any employment for wage or salary.
COST OF GOODS
In the case of a manufacturer, the cost of those raw materials purchased which actually appear in one form or another in the final product of the manufacturer, such cost to include all freight charges; and in the case of a wholesaler, the cost of goods, wares, commodities or merchandise purchased by the wholesaler, resold by him, together with all freight charges.
COST OF LABOR
In the case of a manufacturer, the cost of labor of his own employees directly involved in working on the raw materials to change them into the final manufactured product, together with the cost of the labor of his own employees in receiving, storing, shipping and delivering such product and the cost of the salaries or commissions paid to his own employees for making the actual sale of the product; and in the case of a wholesaler, the cost of the labor of his own employees used in receiving, storing, shipping and delivering the goods, wares, commodities or merchandise purchased for resale and the cost of the salaries or commissions paid to his own employees for making the actual sales of the goods, wares, commodities or merchandise.
FINANCIAL BUSINESS
Services and transactions of holding companies, dealers and brokers in money, credits, commercial paper, bonds, notes, securities and stocks, monetary metals, factors, and commission merchandise.
GROSS RECEIPTS
Cash, credits and property of any kind or nature received in, or attributable to, the Borough from any business or by reason of any sale made or service rendered or commercial or business transaction occurring in the Borough.
GROSS VOLUME OF BUSINESS
Gross receipts of a business, including other cash and credit transactions, but excluding:
(1) 
The dollar volume of annual business covering the resale of goods, wares or merchandise taken by a dealer as a trade-in or as part payment for other goods, wares and merchandise in the usual and ordinary course of his business except to the extent that the resale price exceeds the trade-in allowance.
(2) 
In the case of a financial business, the cost of securities and other similar property sold, exchanged, paid at maturity or redeemed, and money or credits received in repayment of advances, credits and loans, but not to exceed the principal amount of such advances, credits and loans, and shall exclude deposits.
(3) 
Receipts or the portion thereof attributable to any item of sale or lease involving the bona fide delivery of goods, commodities, wares or merchandise to a location regularly maintained by the other party of the transaction outside the limits of the Borough and not for the purpose of evading payment of the tax or any portion thereof.
(4) 
Receipts or that portion thereof attributable to any services actually performed outside the limits of the Borough.
(5) 
Receipts of persons making sales and/or rendering personal services both inside and outside of the Borough are to be segregated, and the receipts from sales where delivery is made to a location regularly maintained by the other party of the transaction outside of the limits of the Borough and not for the purpose of evading payment of the tax or any portion thereof and receipts from services actually rendered or performed outside of the limits of the Borough shall be excluded from the tax base.
LICENSE YEAR
Twelve-month period corresponding to a fiscal year of the Borough.
MANUFACTURER
Any person who sells goods, wares and merchandise of his own growth or production.
PERSON
Any individual, partnership, limited partnership, association or corporation.
PLACE OF AMUSEMENT
Any place indoors or outdoors where the general public or a limited or selected number thereof may, upon payment of an established price, attend or engage in any amusement, entertainment, exhibition, contest, recreation, including among other places, theaters, opera houses, motion-picture houses, amusement parks, stadiums, arenas, baseball or football parks or fields, skating rinks, circus or carnival tents or grounds, fairgrounds, bowling alleys, billiard or pool rooms, shuffleboard rooms, nine- or ten-pin alley, riding academies, golf courses, bathing and swimming places, dance halls, tennis courts, archery, rifle or shotgun ranges and other like places. The term does not include any exhibition, amusement, performances or contest conducted by a nonprofit corporation or association organized for religious, charitable or educational purposes.
PLACE OF BUSINESS
Each place or location wherein the taxpayer conducts or carries on business as defined in this section.
RETAIL DEALER OR VENDOR
Any person who is a dealer in or vendor of goods, wares and merchandise who is not a wholesale dealer or vendor.
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
Any business that is conducted at one location for less than 60 consecutive calendar days.
WHOLESALE DEALER OR VENDOR
Any person who sells to dealers in or vendors of goods, wares and merchandise and to no other persons.
B. 
The terms "business," "person," "wholesale dealer," "wholesale vendor," "retail dealer" and "retail vendor" shall not include 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, or any person vending or disposing of articles of his own growth, production or manufacture for shipment or delivery from the place of growth, production or manufacture thereof.
[Amended 5-22-2012 by Ord. No. 1247]
Beginning in the year 1972 and annually thereafter, every person desiring to engage in or to continue to engage in any business or wholesale or retail vendor or dealer in goods, wares and merchandise and any person conducting a restaurant or other place where food, drink or refreshments are sold or a place of amusement in the Borough shall, on or before January 15 of each license year or prior to commencing business in any such license year, procure a mercantile license for his place of business or, if more than one, for each of his places of business in the Borough from the Borough Secretary, who shall issue the same upon the payment of a fee in an amount as established from time to time by resolution of Borough Council for each place of business. Such license shall be conspicuously posted at the place of business of each of the places of business of every such person at all times.
Every person engaging in any of the following businesses in the Borough shall, in addition to paying a license fee as herein provided, pay an annual mercantile license tax for the year 1972 and annually thereafter at the rate set forth:
A. 
Wholesale vendors or dealers in goods, wares and merchandise at the rate of one mill on each dollar of the volume of the annual gross volume of business transacted by him or, in the alternative, at the option of the wholesale dealer or vendor, at the rate of 0.5% of the annual gross volume of business transacted by such person, less the cost of goods and less the cost of labor.
B. 
Retail vendors or dealers in goods, wares and merchandise; all persons engaged in conducting restaurants or other places where food, drink or refreshments are sold; and all persons conducting places of amusement at the rate of 0.75 mills of each dollar of the annual gross volume of business transacted by him or, in the alternative, at the option of the retail dealer or vendor, at the rate of 0.75% of the annual gross volume of business transacted by such person, less the cost of goods and less the cost of labor.
C. 
Wholesale and retail vendors or dealers in goods, wares and merchandise at the rate of 1/2 mill on each dollar of the volume of the annual gross volume of wholesale business transacted by him and 0.75 mills on each dollar of the volume of the annual gross volume or retail business transacted by him or, in the alternative, at the option of the wholesale and retail vendor or dealer, at the rate of 0.5% of the annual gross volume of wholesale business transacted by him, less the cost of goods and less the cost of labor, and at the rate of 0.75% of the annual gross volume of retail business transacted by him, less the cost of goods and less the cost of labor.
Every person subject to the payment of the tax hereby imposed shall compute his gross volume of business upon the actual gross amount of business transacted by him during the quarter ending March 31, June 30, September 30, and December 31, 1972.
Every person subject to the payment of the tax hereby imposed shall, on or before the April 30, July 30, October 30 and January 30 of each year, file a return upon a form furnished by the Borough Secretary setting forth the actual gross amount of business transacted by him during the respective quarter ending the next previous March 31, June 30, September 30, and December 31.
At the time of filing the return, the person making the same shall pay the amount of tax as shown as due thereon to the Borough Secretary.
A. 
It shall be the duty of the Borough Secretary to collect and receive the taxes, fines and penalties imposed by this article for payment over to the Borough Treasurer. It shall also be his duty to keep a record showing the amount received by him from each person paying the tax and the date of such receipts.
B. 
The Borough Council may prescribe, adopt, promulgate and enforce rules and regulations relating to the matter pertaining to the administration and enforcement of this article, including provisions for the reexamination and correction of returns and payment alleged or found to be incorrect or as to which an overpayment is claimed or found to have occurred. Any person aggrieved by any decision of the Borough Council shall have the right to appeal to the court of common pleas as in other cases provided.
C. 
The Borough Secretary or any other person designated by Borough Council is hereby 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, to ascertain the tax due. Every such taxpayer or supposed taxpayer is hereby directed and required to give to the Borough Secretary or any other person designated by Borough Council the means, facilities and opportunity for such examinations and investigations as are hereby authorized.
A. 
The Borough Secretary may sue for the recovery of taxes due and unpaid under this article.
B. 
If for any reason the tax is not paid when due in each year, interest at the rate of 6% per annum on the amount of said tax, and an additional penalty of 1% of the amount of the unpaid tax for each month or fraction thereof during which the tax remains unpaid, shall be added and collected. Where 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 the interest and penalties herein imposed.
[Amended 1-17-1983 by Ord. No. 1009; 5-22-2012 by Ord. No. 1247]
Any person, firm or corporation who shall violate any provision of this article shall, upon conviction thereof, be sentenced to pay a fine of not more than $600 plus costs and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 30 days. Each day that the violation continues shall constitute a separate offense.
The books, accounts and records of the person collecting this tax shall be audited, adjusted and settled annually by the auditors of the Borough.
This article shall not apply to any person or property as to whom or which it was beyond the legal power of Council to impose the tax or duties herein provided for.