[Adopted 10-11-1989 by Ord. No. 5124]
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:
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]
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.
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.
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).
Receipts attributable to services rendered outside the geographic limits of the City of Altoona, to the extent segregated as provided in § 646-31D(2).
Includes both cash and credit transactions.
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.
Any act or instance of helping or benefiting another for
a consideration.
Services in which any event forming a part of the service
performed occurs within the City of Altoona.
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.
The various tax collectors designated by the City of Altoona
to collect the taxes and to enforce the provisions of this article.
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.
Any business that is conducted at one location for less than
60 consecutive calendar days.
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.
A.
Every return shall be made upon a form furnished by the Tax Administrator.
Every person making a return shall verify the return by attaching
a Schedule C, Form 1065, Form 1120, and/or any other forms prescribed
by the Tax Administrator and shall certify the correctness thereof
by his or her signature on the return.
B.
The return shall be filed with the Tax Collector on or before the
15th day of the fifth month immediately following the end of the tax
year. The date for filing of the return for any particular tax year
may be extended by resolution of Council.
[Amended 5-13-2020 by Ord. No. 5763]
C.
Every person subject to the payment of the tax imposed by this article
who engages in a business temporary, seasonal, or itinerant in its
nature shall, within seven days from the day he or she completes such
business, file a return with and pay the amount due to the Tax Administrator,
setting forth his or her name, his or her business and business address,
and such information as may be necessary in arriving at the actual
gross volume of business transacted by him or her during such period
and the amount of the tax due.
D.
Segregation of receipts.
(1)
For receipts eligible for any exclusions provided in this article,
the person filing the return must attach the following documentation
to the return in addition to any other information required by the
Tax Administrator:
(a)
Subcontracting and broker exclusion. Names and addresses of
each subcontractor or broker and the gross receipts paid thereto.
(b)
Out-of-City services exclusion. Names and addresses of persons
for whom services were performed, specific location where services
were performed, description of the service, dates during which the
service was performed, and the amount of the exclusion for each service.
(2)
Or, in the alternative, provide tax receipts verifying that the business
privilege tax has been paid to another political subdivision in Pennsylvania
on said revenues, other than a political subdivision any part of which
lies within the geographic limits 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.
A.
It shall be the duty of the Tax Collector to collect and receive
the taxes, fines and penalties imposed by this article and to enforce
the provisions of this article and any rules and regulations promulgated
thereunder. It shall also be his or her duty to keep a record showing
the amount received by him or her from each person paying the tax
and the date of such receipt.
B.
The Tax Administrator is hereby charged with the administration of
the provisions of this article and is hereby empowered to prescribe,
adopt, and promulgate rules and regulations relating to any matter
pertaining to the administration and enforcement of this article,
including provisions for the reexamination and correction of returns
and payments 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 Tax Collector or Tax Administrator shall have the
right to appeal to the Court of Common Pleas as in other cases provided.
C.
The Tax Collector 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 Tax Collector the means, facilities,
and opportunity for such examinations and investigations as are hereby
authorized. The examinations of records will be conducted at a time
and place so designated by the Tax Collector.
A.
The Tax Collector 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 the said tax and an additional
penalty of 1/2% 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.
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,"[1] as amended; and shall continue in full force and effect
from year to year without the necessity of annual reenactment.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
