[Ord. No. 534,
Art. I, § 1, 4-30-1968]
This article shall be known and may be cited as the "Mercantile
License Tax Ordinance."
[Ord. No. 534,
Art. II, § 1, 4-30-1968; Ord. No. 716, § 1, 2-24-1975; Ord.
No. 1098, § 1, 4-20-1992; Ord. No. 1111, § 1, 10-12-1992]
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:
Shall mean the Finance Director of the Township.
Shall include both cash and credit transactions, and trade-in
transactions as provided by law.
Shall mean the twelve-month period beginning the first day
of January each year.
Shall mean any individual, partnership, limited partnership,
association or corporation, except such as are wholly exempt from
taxation under the Act of the General Assembly No. 511, approved December
31, 1965, P.L.
Shall mean any person who is a dealer in or a vendor of goods,
wares and merchandise who is not a wholesale dealer or vendor, or
a wholesale and retail dealer or vendor as hereinafter defined.
Shall mean the Secretary of the Township.
Shall mean any business that is conducted at one location
for less than sixty (60) consecutive calendar days.
Shall mean any person who sells to dealers in or vendors
of goods, wares and merchandise and to other persons.
Shall mean any person who sells to dealers in, or vendors
of, goods, wares and merchandise and to no other persons.
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The terms "person," "retail dealer" or "retail vendor," "wholesale dealer" or "wholesale vendor," "wholesale and retail dealer" or "wholesale and retail vendor," shall not include persons, corporations or associations wholly exempt from taxation under the Pennsylvania Constitution, the Act of May 22, 1933, P.L. 853, article II, Section 204, as amended, or the Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257 as amended, agencies of the government of the United States of the state, or any person vending or disposing of articles of his own manufacture for shipment or delivery from the place of the manufacture thereof, or any farmer vending or disposing of his own produce, or other transaction exempted by law.
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[Ord. No. 534,
Art. IV, § 1, 4-30-1968; Ord. No. 1111, § 2, 10-12-1992]
(a)
A tax to provide revenue for general Township purposes is hereby
levied, assessed and imposed upon every person engaging in any of
the following occupations or businesses in the Township at the rate
hereinafter set forth, and such persons shall pay a mercantile license
tax for the year beginning January first of each year at such rate,
subject to the exemptions hereinafter set forth; provided, however,
that in no event shall the annual mercantile license tax herein imposed
be less than ten dollars ($10.00) for each of the places of business
of every such person:
(1)
Wholesale vendors or dealers in goods, wares and merchandise
of every kind, at the rate of one (1) mill on each dollar of the gross
volume of business transacted by him during the license year;
(2)
Retail vendors or dealers of goods, wares and merchandise of
every kind, and all persons engaged in conducting restaurants or other
places where food, drink or refreshments are sold, at the rate of
one and one-half (1 1/2) mills on each dollar of the gross volume
of business transacted by him during the license year;
(3)
Wholesale and retail vendors or dealers in goods, wares and
merchandise of every kind at the rate of one mill on each dollar of
the gross volume of wholesale business transacted by him, and one
and one-half (1 1/2) mills on each dollar of the gross volume
of retail business transacted by him during the license year.
(b)
The tax imposed by this section shall not apply to the dollar volume
of annual business transacted by wholesale and retail dealers derived
from the resale of goods, wares and merchandise, taken by any dealer
as a trade-in or as a part payment for other goods, wares and merchandise,
except to the extent that the resale price exceeds the trade-in allowance.
[Ord. No. 534,
Art. V, §§ 1-4, 4-30-1968; Ord. No. 716, § 1, 2-24-1975; Ord.
No. 1111, § 3, 10-12-1992]
The paragraphs of this section refer to the computation of the
estimated gross volume of business:
(1)
Every person subject to the payment of the tax hereby imposed, who
has commenced his business at least a full year prior to January first
of the license year shall compute the gross volume of business upon
the actual gross amount of business transacted by him during the twelve
(12) months preceding January first.
(2)
Every person subject to the payment of the tax hereby imposed, who
has commenced his business less than one full year prior to January
first of the license year, shall compute the gross volume of business
by multiplying by twelve (12) the monthly average of the actual gross
amount of business transacted by him during the months he was engaged
in business prior to such January first.
(3)
Every person subject to the payment of the tax hereby imposed, who
commences his business subsequent to January first of the license
year, shall compute the gross volume of business for the license year
upon the gross volume of business transacted by him during the first
month of his engaging in business, multiplied by the number of months
remaining in the license year.
(4)
Every person subject to the payment of the tax hereby imposed who
engages in business which is temporary or seasonal by its nature shall
compute the gross volume of business upon the actual gross amount
of business transacted by him during the license year.
[Ord. No. 534,
Art. V, § 5, 4-30-1968]
At the end of the license year every person subject to the tax
imposed by this article shall make a return to the collector of the
actual volume of business transacted by the taxpayer during the period
for which the taxpayer is subject to the tax. Such final return shall
state the amount of the gross volume of business as set forth in the
first return, the amount of tax paid at the time of the filing of
the first return, and the amount of tax due upon the final computation.
[Ord. No. 534,
Art. VI, § 1, 4-30-1968]
[Ord. No. 534,
Art. VI, §§ 2—4, 4-30-1968; Ord. No. 1111, § 4, 10-12-1992]
(a)
Every person subject to the tax imposed by this article who has commenced
his business at least one full year prior to the beginning of the
license year shall, on or before the fifteenth day of April following,
file with the collector a return setting forth his name, business
and business address, and such other information as may be necessary
to compute the actual gross volume of business transacted by him during
the license year and the amount of tax estimated to be due.
(b)
Every person subject to the tax imposed by this article who has commenced
his business less than one full year prior to the beginning of the
license year shall, on or before the fifteenth day of April following,
file with the collector a return setting forth his name, business,
business address and such other information as may be necessary to
compute the actual gross volume of business transacted by him during
the license year and the amount of tax estimated to be due.
(c)
Every person subject to the tax imposed by this article who commences
business subsequent to the beginning of the license year shall, within
forty-five (45) days from the date of commencing such business, file
a return with the collector setting forth his name, business and business
address and such information as may be necessary to compute the actual
gross volume of business transacted by him during the license year
and the amount of tax estimated to be due.
[Ord. No. 534,
Art. IV, § 5, 4-30-1968]
Every person subject to the payment of the tax imposed by this
article who engages in a business which is temporary or seasonal by
its nature, shall, within seven (7) days from the day he completes
such business, file a return with the collector setting forth his
name, business and business address and such information as may be
necessary in arriving at the actual gross amount of business transacted
by him during such period and the amount of tax due.
[Ord. No. 534,
Art. VI, § 6, 4-30-1968]
On or before fifteen (15) days after the end of the license year, every person subject to the tax imposed by this article shall make a final return in the form provided by Section 22-44.
[Ord. No. 534,
Art. VII, §§ 1, 2, 4-30-1968]
(a)
At the time of filing the first return the person making the same
shall pay the amount of the tax levied by this article estimated to
be due.
(b)
At the time of the filing of the final return, if the full amount
of the tax levied by this article due by the taxpayer for the license
year has not been paid, the taxpayer shall pay the remaining balance
of the tax which will be the difference between the amount of the
tax paid at the time of making the first return on the estimated computation,
and the amount of the tax finally shown to be due.
[Ord. No. 534,
Art. VIII, §§ 1—3, 4-30-1968]
(a)
It shall be the duty of the collector to collect and receive the
fees, taxes, fines and penalties imposed by this article. It shall
also be his duty to keep a record showing the amount of the tax received
by him and the date of payment. A receipt shall be given to the person
paying the tax.
(b)
If the collector is not satisfied with the return and payment of
tax made by any taxpayer or supposed taxpayer under the provisions
of this article, he is authorized and empowered to make a determination
of the tax due by such person, based upon the facts contained in the
return, or upon any information within his possession, or that shall
come into his possession, and for this purpose, the collector, his
deputy or his authorized agent are authorized to examine the books,
papers and records of any such person to verify the accuracy of any
return or payment made under the provisions of this article or to
ascertain whether the taxes imposed by this article have been paid.
The collector is hereby authorized and directed to make and keep such
records, prepare such forms, and take such other measures as may be
necessary or convenient to carry this article into effect, and may,
in his discretion, require reasonable deposits to be made by licensees
who engage in a business temporary or seasonal by its nature.
(c)
If any taxpayer or supposed taxpayer shall neglect or refuse to make
any return and payment of tax required by this article, or if, as
a result of an investigation by the collector, a return is found to
be incorrect, the collector shall estimate the tax due by such person,
and determine the amount due from such person for taxes, penalties
and interest thereon.
[Ord. No. 534,
Art. VIII, § 4, 4-30-1968]
The burden is hereby imposed upon any person claiming an exemption
from the payment of the tax imposed by this article to convince the
collector of his legal right to such exemption.
[Ord. No. 534,
Art. VIII, § 5, 4-30-1968; Ord. No. 1111, § 5, 10-12-1992]
If the final return of the taxpayer shows an overpayment of
the tax by this article by reason of the fact that the gross volume
of business as stated in the estimated computation was less than the
actual volume of business for the license year or by reason of the
fact that the taxpayer did not continue to engage in business throughout
the license year, the collector shall refund to the taxpayer the amount
of such overpayment which shall be the difference between the amount
of tax paid upon the filing of the first return and the amount of
the tax finally shown to be due.
[Ord. No. 534,
Art. IX, § 1, 4-30-1968]
All taxes due and unpaid under this article shall be recoverable
by the Township Solicitor as other debts due the Township are now
by law recoverable.
[Ord. No. 534,
Art. X, § 1, 4-30-1968; Ord. No. 899, § 1, 7-11-1983; Ord.
No. 1129, § 1, 8-16-1993]
(a)
All taxes due under this article shall bear interest at the rate
of one and one-quarter (1 1/4) per cent per month or a fractional
part of a month from the due date until date of receipt of payment.
Any taxpayer who shall neglect or refuse to make payment as herein
required shall be assessed an additional ten (10) per cent of the
amount of the tax due as a penalty.
(b)
If legal action is brought for the recovery of this tax, interest
and penalty, the taxpayer thereafter shall, in addition, be responsible
and liable for collection costs, including court costs and attorney
fees.
[Ord. No. 534,
Art. XI, § 1, 4-30-1968]
All taxes, interest and penalties received, collected or recovered
under the provisions of this article shall be paid into the general
fund of the Township for the use and benefit of the Township.
[Ord. No. 534,
Art. XII, § 1, 4-30-1968]
Nothing contained in this article shall be construed to empower
the Township to levy and collect the taxes hereby imposed on any person,
or any business, or any portion of any business not within the taxing
power of the Township under the Constitution of the United States
and the constitution and laws of the state.
[Ord. No. 1448, § 1, 11-14-2005]
When a taxpayer has sales in another state or states than Pennsylvania,
and regardless of whether or not the taxpayer has an office or place
of business in that other state, the following principles shall apply:
(a)
Receipts from sales made within the Commonwealth of Pennsylvania,
but not properly allocable to another place of business within the
Commonwealth of Pennsylvania, shall be allocable to Plymouth Township.
(b)
Receipts from sales made within other states shall be apportioned
to Plymouth Township by multiplying the total gross receipts of the
taxpayer for the taxing period by a fraction, the numerator of which
is the Property Factor, plus the Payroll Factor, plus the Gross Receipts
Factor (such capitalized terms being hereinafter defined), and the
denominator of which is three (3).
(1)
Property Factor. The Property Factor is a fraction, the numerator
of which is the average value of the taxpayer's real and tangible
personal property owned or rented and used in this Township during
the tax period and the denominator of which is the average value of
all of the taxpayer's real and tangible personal property owned or
rented and used during the tax period, but shall not include the security
interest of any corporation as seller or lessor in personal property
sold or leased under a conditional sales, bailment lease, chattel
mortgage or other contract providing for the retention of a lien or
title as security for the sales price of the property.
(i)
Property owned by the taxpayer shall be valued at its Fair Market
Value. Solely for the purposes hereof, property rented by the taxpayer
shall be valued at eight (8) times the net annual rental rate. Net
annual rental rate is the annual rental rate paid by the taxpayer
less any annual rental rate received by the taxpayer from subrentals.
(ii)
The average value of the property shall be determined by averaging
the values at the beginning and ending of the tax period, but the
collector may require the averaging of monthly values during the tax
period if reasonably required to reflect properly the average value
of the taxpayer's property.
(2)
Payroll Factor. The Payroll Factor is a fraction, the numerator
of which is the total amount paid in this Township during the tax
period by the taxpayer for compensation and the denominator of which
is the total compensation paid everywhere during the tax period.
(i)
Compensation is paid in this Township if:
1)
The individual's service is performed entirely within the Township;
or
2)
The individual's service is performed both within and without
the Township but the service performed without the Township is incidental
to the individual's service within this Township; or,
3)
Some of the service is performed in the Township and the base
of operations (or if there is no base of operations, the place from
which the service is directed or controlled) is in this Township,
or if the base of operations or the place from which the service is
directed or controlled is not in any jurisdiction in which some part
of the service is performed, but the individual's residence is in
the Township.
(3)
Gross Receipts Factor. The Gross Receipts Factor is a fraction,
the numerator of which is the gross business revenues of the taxpayer
in this Township during the tax period, and the denominator of which
is the gross business revenues of the taxpayer everywhere during the
tax period.
(c)
All receipts from interstate commerce, whether taxable or nontaxable
under the foregoing rules, must be included on the return filed by
the taxpayer and a deduction for the nontaxable receipts shall be
allowed thereon.
