This article shall be known and may be cited as the "Business
Privilege Tax Ordinance."
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:
GROSS RECEIPTS
Cash, credits, and/or property of any kind or nature received
by any business offering services from places, offices or establishments
within the City of Altoona and shall also include receipts from services
rendered within the City of Altoona regardless of whether or not the
business is conducted from a place or office or establishment within
the City of Altoona, without deduction therefrom on account of the
cost of materials used, labor, service, or other cost, interest, or
discount paid, or any other expense. "Gross receipts" shall include
both cash and credit transactions. "Gross receipts" shall exclude
[NOTE: If a private business has several locations, including one(s)
located within the City of Altoona, the tax would only apply to the
revenue generated by the location(s) within the City of Altoona. To
the extent that the Altoona location(s) generates sales, accepts orders
and/or accepts payments, those transactions would be subject to the
tax. The tax would not be applicable to sales and orders generated
through a location outside the City of Altoona so long as the order
was filled and payment for these sales and orders was received by
the location outside the City of Altoona. There needs to be a nexus
between the Altoona location and the gross revenue sought to be taxed.]:
[Amended 11-8-2021 by Res. No. 0123-21]
A.
In the case of a broker, on commissions paid by him or her to another broker on account of a purchase or sales contract initiated, executed or cleared in conjunction with such other broker, to the extent segregated as provided in §
646-31D.
B.
That portion of gross receipts which the City of Altoona is prohibited from taxing by law. Such receipts shall be segregated as set forth in §
646-30 of this article.
C.
Those receipts transferred to a subcontractor for the performance of services offered by a contractor, to the extent segregated as provided in §
646-31D(1).
D.
Receipts attributable to services rendered outside the geographic limits of the City of Altoona, to the extent segregated as provided in §
646-31D(2).
PERSON
Any individual, partnership, limited partnership, association,
or corporation, estate, trust, or other form of organization, but
shall not include a wage earner, a nonprofit corporation organized
for religious, charitable, or educational purposes and an association
for such purposes, any agency of the Government of the United States
or of the Commonwealth of Pennsylvania or any public utility. Whenever
used in any clause prescribing and imposing a penalty, the term "person,"
as applied to a partnership, shall mean the partners thereof; as applied
to an association, shall mean the members thereof; as applied to an
estate or trust, shall mean the fiduciary thereof; and as applied
to a corporation and an unincorporated association, shall mean the
officers thereof.
SERVICE
Any act or instance of helping or benefiting another for
a consideration.
TAX ADMINISTRATOR
The person authorized and empowered by the City of Altoona
to oversee the collection of the taxes imposed hereby and the enforcement
of the provisions of this article.
TAX COLLECTORS
The various tax collectors designated by the City of Altoona
to collect the taxes and to enforce the provisions of this article.
TAX YEAR
The fiscal year of the person rendering services within the
City of Altoona, with the fiscal year corresponding to the accounting
period utilized by the person for filing an annual federal tax return.
Verification of the tax year used shall be by copy(ies) of the applicable
federal tax return. To change a tax year, a copy of the approval from
the Commissioner of Internal Revenue must be provided to the Tax Office.
Every person engaging in business in the City of Altoona, whether
or not he or she maintains a place of business in the City of Altoona,
shall pay an annual business privilege tax for the tax year or any
part thereof beginning with the effective date of the article at the
rate of one mill on each dollar of the gross receipts.
Where a receipt in its entirety cannot be subjected to the tax
imposed by this article by reason of the provisions of the Constitution
of the United States or any other provisions of law, the Tax Administrator
shall establish rules and regulations and methods of allocation and
evaluation so that only that part of such receipt which is properly
attributable and allocable to the doing of business in the City of
Altoona shall be taxed hereunder. The Tax Administrator may make such
allocation with due regard to the nature of the business concerned
on the basis of millage division of the receipt according to the number
of jurisdictions in which it may be taxed, the ratio of the value
of the property or assets of the taxpayer owned and situated in the
City of Altoona to the total property or assets of the taxpayer wherever
owned and situated, or any other method or methods of calculation
other than the foregoing calculated to effect a fair and proper allocation.
The rules and regulations established shall be in writing and a copy
filed with the City Clerk of the City of Altoona.
At the time of filing a return, the person making the same shall
pay the amount of tax shown as due thereon to the Tax Collector.
Whoever fails to file a return, makes any false or untrue statement
on his, hers or their return, or who refuses to permit inspection
of the books, records, or accounts of any business in his, hers or
their custody or control, when the right to make such inspection by
the Tax Collector is requested, shall, upon conviction before any
court, be sentenced to pay a fine of not less than $100 nor more than
$1,000 or be imprisoned for a period not exceeding 90 days, or both,
for each offense.
The Tax Collector is hereby authorized to accept payment under
protest of the amount of business privilege tax claimed by the City
of Altoona in any case where the taxpayer disputes the validity or
the amount of the City of Altoona's claim for tax. If it is thereafter
judicially determined by a court of competent jurisdiction that the
City of Altoona has been overpaid, the amount of the overpayment shall
be refunded to the taxpayer.
This article shall be effective retroactive to January 1, 1989,
pursuant to the authority of the Act of December 31, 1965 (Act 511),
known as "the Local Tax Enabling Act," as amended; and shall continue in full force and effect
from year to year without the necessity of annual reenactment.