[Adopted 11-27-1971 by Ord. No. 897]
A.
BOROUGH SECRETARY
BUSINESS
(1)
(2)
(3)
(4)
COST OF GOODS
COST OF LABOR
FINANCIAL BUSINESS
GROSS RECEIPTS
GROSS VOLUME OF BUSINESS
(1)
(2)
(3)
(4)
(5)
LICENSE YEAR
MANUFACTURER
PERSON
PLACE OF AMUSEMENT
PLACE OF BUSINESS
RETAIL DEALER OR VENDOR
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
WHOLESALE DEALER OR VENDOR
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 of the Borough of Ambridge.
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:
Any activity conducted by a nonprofit organization or association
organized for religious, charitable or educational purposes.
Any authority created and organized under and pursuant to any
Act of Assembly.
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.
Any employment for wage or salary.
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.
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.
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.
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 receipts of a business, including other cash and credit
transactions, but excluding:
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.
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.
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.
Receipts or that portion thereof attributable to any services
actually performed outside the limits of the Borough.
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.
Twelve-month period corresponding to a fiscal year of the
Borough.
Any person who sells goods, wares and merchandise of his
own growth or production.
Any individual, partnership, limited partnership, association
or corporation.
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.
Each place or location wherein the taxpayer conducts or carries
on business as defined in this section.
Any person who is a dealer in or vendor of goods, wares and
merchandise who is not a wholesale dealer or vendor.
Any business that is conducted at one location for less than
60 consecutive calendar days.
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.
For the year 1972, the Borough hereby imposes an annual mercantile
tax in the manner and at the rate hereinafter set forth.
[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.
