[Amended 4-24-1986 by Ord. No. 1356]
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:
BROKER
Any merchandise broker, factor or commission merchant, but
shall not include any stockbroker, bill broker, note broker, exchange
broker, real estate broker or agent.
LICENSE YEAR
The twelve-month period beginning March 1, 1951, and each
succeeding twelve-month period beginning March 1 of each succeeding
year.
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, stadia, 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 alleys, riding academies, golf courses, bathing
and swimming places, dance halls, tennis courts, archery, rifle or
shotgun ranges and other like places. The term, for the purpose of
this article, does not include any exhibition, amusement, performance
or contest conducted by a nonprofit corporation or association organized
for religious, charitable or educational purposes.
TREASURER
The Treasurer of the City of Washington.
B. The terms "person," "wholesale dealer," "wholesale vendor," "retail
dealer," and "retail vendor" shall not include nonprofit corporations
organized for religious, charitable or educational purposes, any associations
organized for such 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 1951 and annually thereafter, the City hereby imposes
an annual mercantile license tax in the manner and at the rates hereinafter
set forth.
[Amended 4-24-1986 by Ord. No. 1356; 1-12-2006 by Ord. No. 1753; 1-11-2007 by Ord. No. 1767]
Every person desiring to continue to engage in or hereafter
to begin to engage in the business or occupation of 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, whether or not the same be incidental to some other business
or occupation, any person conducting or operating a place of amusement,
whether or not the same be incidental to some other business or occupation,
and every broker in the City shall, on or before the first day of
March in each license year, or prior to commencing business in any
such license year, procure a mercantile license for his place of business
or occupation or, if more than one, for each place of business or
occupation in the City, from the Treasurer, who shall issue the same
upon the payment of a fee of $25 for a retail license or a broker's
license and $50 for a wholesale license for his place of business
and $68 for a retail and wholesale license or, if more than one, for
each of his places of business in the City for each license year.
Such license shall be conspicuously posted at the place of business
or each of the places of business of every such person at all times.
[Amended 2-11-1953 by Ord. No. 632; 12-11-1967 by Ord. No. 1014; 12-26-1972 by Ord. No. 1122; 12-23-1982 by Ord. No. 1303]
Every person engaging in any of the following occupations or
businesses in the City shall pay an annual mercantile license tax
for the year 1951 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
business transacted by him.
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, whether or not the same be incidental to
some other business or occupation; all persons conducting places of
amusement, whether or not the same be incidental to some other business
or occupation: at the rate of 1 1/2 mills on each dollar of the
volume of the annual gross business transacted by them.
C. Wholesale and retail vendors or dealers in goods, wares and merchandise:
at the rate of one mill on each dollar of the volume of the annual
gross wholesale business transacted by him and 1 1/2 mills on
each dollar of the volume of the annual gross retail business transacted
by him.
D. Brokers: at the rate of one mill on each dollar of the volume of
the annual gross business transacted by them. In the case of brokers,
the term "gross business transacted" shall mean "gross commissions
earned."
[Amended 5-27-1952 by Ord. No. 620A]
A. Every person subject to the payment of the tax hereby imposed who
has commenced his business at least one full year prior to the beginning
of any license year shall compute his annual gross volume of business
upon the actual gross amount of business transacted by him during
the preceding calendar year.
B. Every person subject to the payment of the tax hereby imposed who
has commenced or who commences his business less than one full year
prior to the beginning of any license year shall compute his annual
gross volume of business for such license year upon the gross volume
of business transacted by him during the first month he engages in
business multiplied by 12.
C. Every person subject to the payment of the tax hereby imposed who
commences his business subsequent to the beginning of any license
year shall compute his annual gross volume of business for such 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 he engages in business in such license year.
D. Every person subject to the payment of the tax hereby imposed who
engages in a business temporary, seasonal or itinerant by its nature
shall compute his annual gross volume of business upon the actual
gross amount of business transacted by him during such license year.
E. Every person who shall discontinue business during any license year
after having paid the mercantile tax for the entire year, upon making
proper application to the Treasurer, shall be entitled to receive
a refund of a pro rata amount of the tax paid, based upon the period
of time he was not in business during such license year.
[Amended 5-27-1952 by Ord. No. 620A]
A. Every return shall be made upon a form furnished by the Treasurer.
Every person making a return shall certify the correctness thereof
by affidavit.
B. 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 any
license year shall, on or before the 15th day of May following, file
with the Treasurer a return setting forth his name, his business and
business address, and such other information as may be necessary in
arriving at the actual gross amount of business transacted by him
during the preceding calendar year and the amount of the tax due.
C. 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 any
license year shall, on or before the 15th day of May following, file
with the Treasurer a return setting forth his name, his business,
business address, and such other information as may be necessary in
arriving at the actual gross amount of business transacted by him
during his first month of business and the amount of the tax due.
D. Every person subject to the tax imposed by this article who commences
business subsequent to the beginning of any license year shall, within
40 days from the date of commencing such business, file a return with
the Treasurer setting forth his name, his business, and business address,
and such information as may be necessary in arriving at the actual
gross amount of business transacted by him during his first month
of business and the amount of the tax due.
E. Every person subject to the payment of the tax imposed by this article
who engages in a business temporary, seasonal or itinerant by its
nature shall, within seven days from the day he completes such business,
file a return with the Treasurer setting forth his name, his 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 the tax due.
At the time of filing the return, the person making the same
shall pay the amount of tax shown as due thereon to the Treasurer.
[Amended 4-24-1986 by Ord. No. 1356]
Whoever makes any false or untrue statement on his return, or
who refuses to permit inspection of the books, records or accounts
of any business in his custody or control when the right to make such
inspection by the Treasurer is requested, and whoever fails or refuses
to file a return required by this article, and whoever fails or refuses
to procure a mercantile license when so required under this article,
or fails to keep his license conspicuously posted at his place of
business as required herein, shall, upon conviction, be sentenced
to pay a fine of not more than $300 for each offense and, in default
of payment of said fine, to be imprisoned for a period not exceeding
90 days for each offense.
[Added 4-24-1986 by Ord. No. 1356]
A. Introduction. These regulations are issued pursuant to Ordinance
No. 593, approved January 24, 1951, enacted to provide revenue for
the City of Washington. This article provides for the issuance of
mercantile licenses to persons engaging in certain occupations and
businesses upon payment of fees therefor and imposes the mercantile
tax on the same persons.
B. To whom the article applies.
(1) The license and tax provisions of the article apply to:
(a)
Wholesale vendors of or dealers in goods, wares and merchandise,
that is those persons who sell to vendors of or dealers in goods,
wares and merchandise.
(b)
Retail vendors of or dealers in goods, wares and merchandise,
that is those vendors or dealers who are not wholesale vendors or
dealers.
(c)
Persons conducting restaurants or other places where food, drink
or refreshments are sold.
(d)
Persons conducting places of amusement, that is any place indoors
or outdoors where the general public or a limited or a selected number
thereof may, upon payment of an established price, attend or engage
in any amusement, entertainment, exhibition, contest or recreation,
including among other places, theaters, opera houses, motion-picture
houses, amusement parks, stadia, 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 alleys, riding academies, golf courses, bathing and swimming
places, dance halls, tennis courts, archery, rifle or shotgun ranges
and other like places.
(2) The article applies to concessionaires who carry on any occupation or business which is described in any of the classifications listed in Subsection
B(1) above.
(3) The article applies whether the business is carried on by an individual,
partnership, limited partnership, association or corporation.
(4) The article applies not only to any business in existence at the
beginning of the license year, but also to any business begun within
the license year.
(5) A person whose business is in part furnishing services and in part
the dealing in goods, wares and merchandise must comply with the license
and tax provisions with respect to his business in goods, wares and
merchandise.
C. Procurement of licenses and payment of license fees.
(1) Procurement of license.
(a)
All persons to whom the article applies, on or before March
1, 1951, and on or before March 1 of each year thereafter, must procure
from the City Treasurer, City Hall, Washington, Pennsylvania, for
the year beginning March 1, a mercantile license for each of his places
of business in Washington. For businesses begun during any license
year after March 1, the license must be procured before business is
begun. The application for a license must list all applicant's concessionaires
and subconcessionaires.
(b)
The license must be posted conspicuously at each place of business
of the licensee at all times.
(c)
A person who sells goods, wares or merchandise by means of vending
machines, and who has not otherwise procured a license as a retail
vendor or dealer under the article, shall procure one license covering
all of his vending machines located in Washington.
(2) Period covered. The license year is from March 1 of one year to February
28, inclusive, of the next year. A license procured after March 1
for the current year is valid only from the date of issue until the
end of the year in which it is issued.
(3) Payment of fees. The license fee must be paid to the City Treasurer
before a license will be issued.
(4) Amount of fee.
[Amended 1-12-2006 by Ord. No. 1753; 1-11-2007 by Ord. No. 1767]
(a)
The license fees for such place of business for all or part
of a year, are as follows:
|
Wholesale
|
$50
|
|
Retail
|
$25
|
|
Combined wholesale and retail
|
$68
|
|
Broker
|
$25
|
|
Restaurant
|
$25
|
(b)
These license fees are in addition to fees for any other licenses
which persons to whom this article applies are required to procure
under any article or other statute.
D. Returns and payment of license tax.
(1) Return requirements.
(a)
Contents and execution. Every person to whom the article applies
must file a return with the City Treasurer, City Hall, Washington,
Pennsylvania, on the form furnished. The return must be filled out
completely. The taxpayer must supplement the return with such other
information as may be necessary in arriving at the actual gross amount
of business transacted by him during the period on which the tax is
based. An affidavit by the taxpayer must be included certifying to
the correctness of the return.
(b)
Time of filing.
[1]
If the taxpayer has commenced business before March 1 of the
license year, the return must be filed and the tax paid on or before
May 15 in the current license year. The first such returns will be
due on or before May 15, 1951.
[2]
If the taxpayer first begins business after March 1, 1951, or
in any subsequent license year, the first return and payment of tax
are due within 40 days from the date of commencing business.
[3]
If the business of the taxpayer is temporary, seasonal or itinerant,
the return and payment of tax is due within seven days from the day
he completes such business.
(2) Period covered. The tax is payable for every license year or any
part thereof during which the taxpayer does business.
(3) Payment of tax. The taxpayer must pay the amount of the tax shown
due on the return to the City Treasurer at the time of filing the
return.
(4) Rates of tax. The tax is imposed on the annual gross business transacted
by the taxpayer at the following rates:
Character of Business
|
Tax Rate in Mills* per Dollar
|
---|
Wholesale
|
1
|
Brokers
|
1
|
Retail
|
1 1/2
|
Restaurant
|
1 1/2
|
|
NOTE:
|
---|
|
*
|
One mill equals $1 per $1,000 or 1/10 of 1%.
|
E. Gross volume of business.
(1) Exceptions.
(a)
The rate of tax applied to the actual gross amount of business
transacted by the taxpayer during the entire preceding calendar year,
except for those taxpayers:
[1]
Who were not in business during the whole of preceding calendar
year;
[2]
Who begins business during the current license year; or
[3]
Whose business is temporary, seasonal or itinerant.
(b)
If the taxpayer was not in business during the whole of 1950,
his annual gross volume of business is determined by multiplying by
12 the actual gross amount of business transacted by him during the
first month he engaged in business.
(c)
For example, if a retailer begins business during a license
year, and in the first month of his business grosses $10,000, his
tax for the tax year would be at the rate of 1 1/2 mills times
the gross volume of business for that month times the number of months
or fraction of months of the current license year he begins his business,
and the next succeeding year his tax will 1 1/2 mills times the
gross volume of business for the first month times 12, as follows:
|
Taxpayer begins business June 15 of the license year and in
his first month, ending July 15, grosses $10,000; his tax for the
current tax year would be 0.0015 x $10,000 x 6 1/2 (remaining
months and fraction of month in year from time of beginning business),
and for the next succeeding year his tax will be 0.0015 x $10,000
x 12.
|
(d)
If the business of the taxpayer is temporary, seasonal or itinerant,
the rate shall be applied to the actual gross amount of business transacted
by him during each period in the license year in which the temporary,
seasonal or itinerant business was conducted.
(2) "Gross volume of business" corresponds generally to gross receipts
or gross sales, depending on the nature of the business. The gross
volume of business shall include not only receipts in money but also,
in the case of barter and exchange transactions in which other than
money is received as payment or part payment, an amount equal to that
which would have been received if full payment had been required in
cash. The gross receipts from sales shall include all receipts from
any transfer of title or possession, or both, whether conditional,
by bailment lease or otherwise, for a consideration.
(3) The tax is imposed on any person who exercises the privilege of carrying
on certain businesses within the City of Washington and is measured
by the entire annual gross volume of business transacted by him. Receipts
from any business transaction are to be included if any event forming
a part of the transaction occurs within Washington. Examples of such
events are:
(a)
Cash transaction in Washington.
(b)
Receipt of orders by seller or his agent in Washington by mail
or otherwise.
(c)
Solicitation within Washington by seller or his agent.
(d)
Shipment from Washington.
(4) Brokers, commission merchants and factors are taxable at the rate
of one mill on each dollar of gross commissions received by them.
However, if a person in addition to acting as a broker, commission
merchant or factor also acts as a vendor or dealer and takes title
to and sells good, wares and merchandise on his own account, he is
required to pay a tax on the entire gross receipts from such sales
made on his own account.
(5) Wholesale or retail vendors and dealers (except to the extent they
act as brokers) shall include in their gross volume of business only
gross receipts from the vending of goods, wares and merchandise, which
do not include stocks, bonds and other evidence of indebtedness.
(6) The entire gross receipts of vending machines and other mechanical
devices which dispense goods, wares and merchandise are to be included
in the gross volume of business of the owner or lessor thereof. No
deductions may be made therefrom for splits, rentals, commissions
or other remuneration paid to persons in charge of the machines and/or
to the lessee of premises upon which the machines are located.
(7) Refunds, credits or allowances given by a vendor or dealer to a purchaser
on account of defects in goods, wares and merchandise sold or returned
may be deducted from the amount of gross volume of business of the
vendor or dealer.
(8) Trade discounts allowed to customers may be deducted from gross volume
of business if they are in the nature of: a) discounts deducted on
the face of the bill as a medium of adjusting the list price; and
b) discounts unconditionally deducted by customers upon settlement
of their bills and allowed as a matter of the established custom of
a trade or line of business without regard to the due date of such
bills or the form or terms in which such discounts are described or
stated on bills of invoice.
(9) Persons in the service trades shall include in their taxable gross
volume of business that portion of their gross receipts resulting
from the sale of goods, wares and merchandise.
(10)
The following federal and state excise taxes may be excluded
from the gross volume of business, provided such taxes are separately
stated on the evidence of charge or sale:
(a)
Federal tax on admission and dues.
(b)
Federal retailers excise tax on jewelry, furs and fur articles,
toilet preparations and luggage.
(c)
Pennsylvania liquid fuels tax.
F. Treatment of particular transactions.
(1) Property traded in. In the case of trade-in transactions in which
goods, wares and merchandise are sold and allowance is made for other
property which is traded in and is accepted by the vendor or dealer
in part payment of the property sold, the allowance made for the property
traded in shall be deducted from the selling price of the property
sold in computing gross receipts upon which the tax is based. Where
the property traded in is subsequently sold by the vendor or dealer,
the latter must include in his gross receipts the entire selling price
from the sale of such property traded in.
(a)
When dealers who are engaged in similar lines of business exchange
articles of property and one of them makes payment to the other in
addition to the property exchanged by him, the transaction shall constitute
sales to each other. The receipt of each dealer is measured by the
gross value of the transaction received by him. Where a dealer transfers
property, such as an automobile, to another dealer with the understanding
that property of identical description will be returned at a subsequent
date, such transaction does not constitute a sale and the value of
the property exchanged need not be included in the tax base of either
dealer.
(2) Property repossessed. Where goods, wares or merchandise sold under
a conditional or other installment sale contract are repossessed by
the seller, and the repossessed property is subsequently sold, the
gross receipts from such sales are to be included in the gross volume
of business only to the extent by which the amount of the sale exceeds
the balance due on the original sale at the time of repossession.
No deduction from gross receipts may be taken at the time of repossession
for any unpaid balance due.
(3) Intercompany transactions. Receipts from transactions between affiliated
companies, other than those of a purely accommodation nature, are
subject to inclusion in gross volume of business.
(4) Interdepartment charges. When one department, branch or division
of a corporation or other business entity furnishes goods, wares and
merchandise to another department, branch or division of the same
corporation or business entity, the amounts recorded on the books
to reflect such interdepartmental transactions need not be included
in the gross volume of business of the taxpayer.
G. Exemption and exclusions. The article does not apply to:
(1) Nonprofit corporations and associations organized for religious,
charitable or educational purposes.
(2) Agencies of the Government of the United States or of the Commonwealth
of Pennsylvania.
(3) Any person vending or disposing of articles of his own growth, production
or manufacture or shipment or delivery from the place of growth, production
or manufacture thereof. The term "manufacture" means the production
of a new article which is separate and distinct from the materials
or ingredients of which it is composed.
(4) Any hawker or peddler licensed under any law of the commonwealth.
(5) Professions and contractors, such as lawyers, doctors, architects,
engineers and service trades such as barbers, laundries and cleaning
and dyeing establishments, except to such part of their business as
may consist of the sale of goods, wares and merchandise.
(6) That portion of the annual gross volume of business which the Commonwealth
of Pennsylvania is prohibited from taxing by reason of the Constitution
of the United States and of the Commonwealth of Pennsylvania. Receipts
will be excluded as having been derived from interstate commerce transactions
only if those transactions directly involved the sale, exchange or
transportation of commodities between the states. The citizenship
or residence of the parties to the transaction is of no significance,
and it is of no significance in which state title to the goods passes
or whether the goods are shipped FOB, one state to another. For example:
(a)
Sale and delivery in Washington. Receipts are included in the
case of sales made by a Washington vendor or dealer to customers located
outside Pennsylvania where the property is delivered directly to the
purchaser or his agent within Pennsylvania, notwithstanding the fact
that the purchaser or his agent intends to, and later does, transport
the property to a point outside the state.
(b)
Shipment from Washington by vendor or dealer. Receipts are excluded
if the Washington vendor or dealer, as a necessary incident to the
contract of sale, agrees to and does deliver the property to a purchaser
at a point outside Pennsylvania or delivers the property to a common
carrier consigned to the purchaser at a point outside Pennsylvania.
(c)
Shipments into Pennsylvania from out-of-state warehouse of vendor
or dealer. Receipts are excluded if, by the terms of the contract
of sale or the established practice of doing business, the vendor
or dealer is required to make delivery by transporting or shipping
the property from his warehouse situated outside Pennsylvania directly
to the purchaser at a point within Pennsylvania.
(d)
Shipment into Pennsylvania from out-of-state factory of third
party. Receipts are included if the Washington vendor or dealer causes
delivery to be made at a point within Pennsylvania from an out-of-state
source of supply owned or operated by a third party (one from whom
the vendor buys). For example, if a dealer in Washington causes an
automobile to be delivered directly to the buyer from the factory
of the manufacturer in Detroit, the receipts are included in the dealer's
gross volume of business on which the tax is based.
(e)
Delivery from out-of-state factory of vendor or dealer via his
Washington office. Receipts are included if the property is shipped
from the out-of-state factory or warehouse of a Washington vendor
or dealer to his (the vendor's or dealer's) place of business in Pennsylvania,
from which point the goods are delivered to the purchaser.
(7) Receipts from sales to or dealings with governmental agencies, charitable
and religious corporations are not to be excluded from the gross volume
of business on which the tax is based. The article grants exemption
only to the agencies, institutions and persons specified, and not
to taxpayers transacting business with such agencies, institutions
and persons.
H. Collection, books and records and examination thereof.
(1) Collection. If the amount of the tax, penalty or interest imposed
by this article is not paid when due, payment of the total amount
owing will be enforced by suit by the City Treasurer. For this purpose,
the due date of the amount of tax computed and reported on a return
is the date of filing such return; and the due date of any amount
of deficiency of tax not computed or reported in a return properly
filed is the date in which the City Treasurer makes an assessment
of the deficiency by notice thereof sent to the taxpayer.
(2) Books and records. The taxpayer must maintain such accounting records
as will enable him to make a true and accurate return in accordance
with the provisions of the article and these regulations. Such accounting
records must disclose in detail all data pertaining to the taxpayer's
gross volume of business and must be sufficiently complete to enable
the Treasurer to verify all transactions. A taxpayer claiming exemptions
for receipts from transactions in foreign or interstate commerce,
and exclusions of nontaxable receipts, must maintain complete records
of such items.
(3) Inspection and examination. The Treasurer is 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 to be imposed. He is authorized to
examine any person connected with any business concerning the gross
volume of business or gross receipts which was or should have been
returned for taxation, and for this purpose may compel the production
of books, papers and records. The article directs that every taxpayer
or supposed taxpayer give to the Treasurer the means, facilities and
opportunity for such examinations and investigations.
I. Interest, cost of collection and penalties.
(1) Interest. If the tax is not paid when due, 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.
(2) Cost of collection. Where suit is brought for the recovery of any
such tax, the person shall be liable for, in addition to the tax assessed
against such person, the costs of such collection.
[Added 6-13-1951 by Ord. No. 599]
Any information gained by the Treasurer, any member of Council
or any other official, agent or employee of the City as a result of
any returns, investigations, hearings or verifications required or
authorized by the Mercantile Tax Ordinance (Ordinance No. 593) shall
be confidential, except for official purposes and except in accordance
with proper judicial order or as otherwise provided by law, and divulgence
of any information so gained is hereby declared to be a violation
of this article.