[Ord. 323, 12/9/1976, § 1; as reenacted and amended by Ord. 348, 1/4/1982]
This ordinance shall be known as the "Business Privilege Tax and Mercantile Tax Ordinance."
[Ord. 323, 12/9/1976, § 2; as reenacted and amended by Ord. 348, 1/4/1982]
The following words and phrases, when used in this ordinance shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning.
1. 
Business — any activity carried on or exercised for gain or profit in the Borough of Fountain Hill including, but not limited to, the sale of merchandise or other tangible personalty or the performance of services. As to those taxpayers having their principle place of business within the Borough of Fountain Hill, business shall include all activities carried on within the Borough of Fountain Hill as well as those carried on outside of the Borough of Fountain Hill. As to those taxpayers which do not have a place of business within the Borough of Fountain Hill there shall be included only those activities carried on within the Borough of Fountain Hill. As to those taxpayers having a place of business other than their principle one, within the Borough of Fountain Hill, business shall include all activities carried on within the Borough of Fountain Hill and those carried on outside the Borough of Fountain Hill attributed to the place of business within the Borough.
2. 
Borough shall mean the Borough of Fountain Hill.
3. 
License year — "License Year" shall be the calendar year.
4. 
Person — any individual, partnership, limited partnership, association, firm, or corporation. Whenever used in any clause prescribing or imposing a penalty, the term "person" as applied to associations shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
5. 
Taxpayer — "Taxpayer" shall mean a person subject to the payment of the tax imposed by this ordinance.
6. 
Tax year — "Tax Year" shall be the calendar year.
7. 
Tax collector — shall mean the Tax Collector of the Borough of Fountain Hill.
[Ord. 323, 12/9/1976, § 3; as reenacted and amended by Ord. 348, 1/4/1982]
There is hereby levied for the tax year 1977 and annually thereafter a tax for general revenue purposes on the privilege of doing business as herein defined in the Borough of Fountain Hill, as follows:
1. 
Rate and Basis of Tax — the rate of tax on every dollar of the whole or gross volume of business transacted within the territorial limits of the Borough of Fountain Hill shall be calculated as follows:
A. 
On receipts attributable to the performance of services the rate shall be 1 1/2 mills or $1.50 per $1,000 of gross volume of business.
B. 
On receipts attributable to wholesale sales of merchandise the rate shall be one mill or $1 per $1,000 of gross volume of business.
C. 
On receipts attributable to retail sales of merchandise the rate shall be 1 1/2 mills or $1.50 per $1,000 of gross volume of business.
2. 
Computation of Volume of Business.
A. 
Every person subject to the payment of the tax hereby imposed who has commenced his business prior to the full calendar year prior to the tax year shall compute his annual estimated gross volume of business upon the actual gross amount of business transacted by him during said immediately preceding calendar year.
B. 
Every person subject to the payment of the tax hereby imposed who has commenced or who commences his business before the beginning of the tax year but after the beginning of the full calendar year prior to the tax year, shall compute his estimated annual gross volume of business for the tax year upon the gross volume of business transacted by him during prior calendar year, taking the monthly average during said period and multiplying the same by 12. In the event that he shall be in business fewer than 90 days in the prior calendar year, he shall be permitted to use sufficient days in calendar year in which the tax year begins to equal 90 successive days after commencement of business, to take a monthly average thereon, and to multiply the average by 12.
C. 
Every person subject to the payment of the tax hereby imposed who has commenced or commences his business subsequent to the beginning of the tax year, if there shall be less than three months from the commencement of his business to the end of the tax year shall compute his annual gross volume of business upon the actual gross amount of business transacted by him during the tax year; if there shall be more than three months from the commencement of his business to the end of the tax year he shall compute his estimated gross volume of business transacted by him during the period from the commencement of his business to the end of the tax year, taking the monthly average during the first three months of business and multiplying the same by the number of months from the commencement of business to the end of the tax year.
D. 
Every person subject to the payment of the tax hereby imposed who engages in a business temporary, seasonal or itinerant by nature, shall compute his estimated gross amount of business to be transacted by him for the period said person engages in such temporary, seasonal or itinerant business within the Borough by a method to be determined by the Tax Collector.
E. 
The Tax Collector is hereby authorized to accept payment under protest of the amount of business privilege tax claimed by the Borough in any case where the taxpayer disputes the validity or amount of the Borough's claim for tax. If it is thereafter judicially determined by a court of competent jurisdiction that the Borough has been overpaid, the amount of the overpayment shall be refunded to the taxpayer. The provisions of this Section shall be applicable to cases in which the facts are similar to those in a case litigated in a court of competent jurisdiction.
3. 
Persons, Business and Receipt Exempted.
A. 
Persons and Businesses — persons employed for a wage or salary, nonprofit corporations, organized for religious, charitable or educational purposes, agencies of the Government of the United States or of the Commonwealth of Pennsylvania and the business of any political subdivision, or of any authority created or organized under and pursuant to any act of assembly are exempt from the provisions of this ordinance.
B. 
No such tax shall be assessed and collected on a privilege, transaction, subject, or occupation which is subject to a state tax or license fee, and which tax or license fee has been held by the Courts of Pennsylvania to be the basis for exemption from the imposition of a business privilege or mercantile tax by a municipality.
C. 
Utilities — no such tax shall be assessed and collected on the gross receipts from utility service are fixed and regulated by the Pennsylvania Public Utility Commission; or on any public utility service rendered by any such person or company or on any privilege or transaction involving the rendering of any such public utility service.
D. 
State Tax on Tangible Property — no such tax shall be assessed and collected on the privilege of employing such tangible property as is subject to a State tax except on sales of admission to places of amusement or on sales or other transfers of title or possession of property.
E. 
Production and Manufacture — no such tax shall be assessed and collected on goods, articles, and products, or on by-products of manufacture, or on minerals, timber, natural resources, and farm products, manufactured, produced, or grown in the Borough of Fountain Hill, or on the preparation or processing thereof for use or market, or on any privilege, act or transaction related to the business of manufacturing, the production, preparation or processing of minerals, timber and natural resources or farm products, by manufacturers, by producers, and by farmers with respect to the goods, articles and products of their own manufacturer, production or growth, or any privilege, act or transaction relating to the business of processing by-products of manufacturer, or on the transportation loading, unloading or dumping or storage of such goods, articles, products or by-products.
4. 
Determination of Gross or Whole Volume of Business — gross or whole volume of business upon which the tax hereunder is computed shall include the gross consideration credited or received for or on account of sales made and/or services rendered, subject only to the following allowable deductions and exemptions.
A. 
The dollar volume of business transacted by wholesale and retail dealers, derived from the resale of goods, wares, and merchandise taken by any dealer as trade-in or as part payment for other goods, wares and merchandise, except to the extent that the resale price exceeds the trade-in allowance.
B. 
Refunds, credits, or allowances given by a taxpayer to a purchaser on account of defects in goods, wares or merchandise sold, or on account of goods, wares or merchandise returned.
C. 
Any commissions paid by a broker to another broker on account of a purchase or sales contract initiated, executed or cleared with such other broker.
D. 
Bad debts, where the deduction is also taken in the same year for Federal Income Taxation purposes.
E. 
Taxes collected as agent for the United States of America, Commonwealth of Pennsylvania or the Borough of Fountain Hill.
5. 
Partial Exemptions — where gross or whole volume of business in its entirety cannot be subjected to the tax imposed by this ordinance by reason of the provisions of the Constitution of the United States, or any other provision of law, the Tax Collector under the direction of the Mayor shall establish rules and regulations and methods of allocation and evaluation so that only that part of the gross or whole volume of business which is properly attributable and allowable to doing business in the Borough shall be taxed hereunder.
6. 
Rate When Same Tax is Imposed by Two Taxing Bodies — if any person is liable for the same tax on the same subject imposed under the Local Tax Enabling Act 1965, December 31, Pamphlet Law 1257 and its amendments, to the Borough and one or more political subdivisions of the State, then and in that event the tax shall be apportioned by such percentage as may be agreed upon by such political subdivisions, but in no event, shall the combined taxes of both subdivisions exceed a maximum rate of tax as fixed by the said Enabling Act permitting the imposition of such taxes.
7. 
Records — the taxpayer, to obtain the foregoing enumerated exclusions and deductions, shall keep books and records of his business so as to show clearly, accurately, and separately the amount of such sales and services as are excluded from the tax and the amounts of such sales and services which he is entitled to deduct from the gross volume of business as hereinbefore provided.
[Ord. 323, 12/9/1976, § 4; as reenacted and amended by Ord. 348, 1/4/1982; and by Ord. 481, 7/1/1991]
1. 
Every return shall be made upon a form furnished by the Tax Collector. Every person making a return shall certify the correctness thereof by affidavit.
2. 
Every person subject to the tax imposed by this ordinance who commenced his business on or before January 1 of the full calendar year previous to the beginning of any tax year shall on or before the 1st Monday of May of the tax year file with the Tax Collector a return setting forth 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 the preceding calendar year, and the amount of the tax due.
3. 
Every person subject to the tax imposed by this ordinance who has commenced his business less than one full year prior to the beginning of any license year shall on or before the 1st Monday of May, 1977 file with the Tax Collector 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 the first month of business and the amount of tax due.
4. 
Every person subject to the tax imposed by this ordinance who commences business subsequent to the beginning of any tax year shall within 100 days from date of commencing such business file a return with the Tax Collector setting forth his name, his business and business address and such information as may be necessary in arriving at the estimated or actual gross amount of business transacted by him as calculated under § 403(2-C) hereof and the amount of the tax due.
5. 
Every person subject to the payment of the tax imposed by this ordinance who engages in a business temporary, seasonal or itinerant by its nature shall at the time application is made for the business privilege license file a return with the Tax Collector setting forth his name, his business, his business address and such information as may be necessary in arriving at the estimated gross amount of business to be transacted by him as calculated in accordance with § 403(2-D).
6. 
Any person going out of or ceasing to do business shall within seven days from the date of ceasing to do business, file a return showing the actual gross volume of business conducted and done by such person during that tax year in which said person ceased doing business, and pay the tax due as computed thereon at the rate herein provided for at the time of filing said return. If such tax has been previously paid based upon estimated gross receipts, the taxpayer shall be entitled to a refund of any excess tax paid for the tax year in which business was terminated.
7. 
Payment of Tax and Penalties for Late Payment — The business privilege tax levied pursuant to this Part shall be due and payable on the date on which the taxpayer is required to file a return as set forth above and if the same is not paid on said date, penalty at the rate of 6% per annum on the amount of said tax, and an additional interest of 1% per month or fractional part of a month until paid.
8. 
Receipt — the Tax Collector shall, upon payment to him of the Business Privilege Tax, give the person paying the same a receipt therefor.
[Ord. 323, 12/9/1976, § 5; as reenacted and amended by Ord. 348, 1/4/1982]
After the effective date of this ordinance, any person desiring to conduct, or to continue to conduct any business, as herein defined, within the Borough of Fountain Hill shall file with the Tax Collector an application for a Business Privilege License and shall pay a fee of $2 for each renewal thereof. The license shall be conspicuously posted in the place of business for which the such license is issued and shall remain in effect for the license year or fraction of year for which said license was issued. In cases where more than one place of business is conducted, a separate license shall be issued for each place of business. Any taxpayer who is in default in payment of tax due hereunder shall be refused a license until such tax is paid in full.
[Ord. 323, 12/9/1976, § 6; as reenacted and amended by Ord. 348, 1/4/1982]
Any person who shall conduct, transact or engage in any of the business subject to the tax imposed by this ordinance, without having first secured a Business Privilege License for the year, or any person who shall fail to file a tax return as required by the provisions of this ordinance, or any person who shall willfully file a false return, shall, upon summary conviction before a District Justice be sentenced to pay a fine not to exceed the sum of $300 for any one offense, recoverable with costs, or imprisonment one day for each $10 of the balance of unpaid fine and costs.
[Ord. 323, 12/9/1976, § 7; as reenacted and amended by Ord. 348, 1/4/1982]
Each day on which such person violated the ordinance may be considered as a separate offense and punishable as such as a fore-provided.
[Ord. 323, 112/9/1976, § 8; as reenacted and amended by Ord. 348, 1/4/1982]
1. 
The Tax Collector is charged with the duties of collecting and receiving the taxes, fines and penalties imposed by this ordinance. It shall be his duty to keep a record showing the amount received by him from each person paying the tax and the date of such receipt.
2. 
The Tax Collector is also empowered to prescribe, adopt and promulgate rules and regulations relating to any matter pertaining to the administration and enforcement of this ordinance, including provisions for the examination and correction of returns, and payments alleged or found to be incorrect, or as to which an overpayment is to be incorrect, or as to which an overpayment is claimed, or found to have occurred, and charged with enforcing the provisions of this ordinance and any rules and/or regulations promulgated pursuant hereto.
3. 
In the event the person to be assessed neglects or refuses to make a return, then in such case the Tax Collector shall assess said person or persons on such an amount of whole or gross volume of business as the Tax Collector deems reasonable and appropriate. In all cases of assessment, the Tax Collector shall give the parties assessed a notice in which shall be stated the trade, business, occupation or class, and the amount of the business privilege tax imposed or levied.
4. 
The taxpayer shall maintain such records and books of account as will enable him to make a true and accurate return in accordance with the provisions of the ordinance. Such accounts and records must disclose in detail the gross receipts and other data pertaining to the taxpayer's gross volume of business, and must be sufficiently complete to enable the Tax Collector to verify all transactions. The Tax Collector is hereby authorized to examine the books, papers and records of any person or persons subject to or supposed to be subject to the tax imposed by this ordinance, in order to verify the accuracy of the return made, or if no return was made, ascertain the tax due.
5. 
Any person aggrieved by any decision of the Tax Collector shall have the right to appeal to the Court of Common Pleas, as in other cases.
[Ord. 323, 12/9/1976; as added by Ord. 596, 2/3/1997]
The Tax Collector shall receive such compensation for his services and expenses as shall be determined by Council from time to time.
[Ord. 323, 12/9/1976, § 9; as reenacted and amended by Ord. 348, 1/4/1982]
Any information gained by the Tax Collector, or any other official, agent or employee of the Borough as a result of any returns, investigations, hearings, or verifications required or authorized by this ordinance, shall be confidential, except in accordance with proper judicial order or as otherwise provided by law.
[Ord. 323, 12/9/1976, § 10; as reenacted and amended by Ord. 348, 1/4/1982]
1. 
The Tax Collector shall have the power in the name of the Borough to institute proceedings against any and all persons who violate the provisions of this ordinance.
2. 
If for any reason the tax is not paid when due and suit is brought for the recovery of any such tax, the person liable therefore, shall, in addition, be liable for the costs of collection and interest and penalties herein imposed.
[Ord. 323, 12/9/1976, § 11; as reenacted and amended by Ord. 348, 1/4/1982]
1. 
Nothing contained in this ordinance shall be construed to empower the Borough to levy and collect the taxes hereby imposed on any person, or any business, or any portion of all business not within the taxing power of the Borough under the Constitution of the United States and the laws and Constitution of the Commonwealth of Pennsylvania.
2. 
If the tax, or any portion thereof, imposed upon any person under the provisions of this ordinance shall be held by any court of competent power or jurisdiction to be in violation of the Constitution of the United States or of the Commonwealth of Pennsylvania or any other provision of the law, the decisions of the court shall not affect or impair the right to impose the taxes, or the validity of the taxes so imposed upon other persons as herein provided.
3. 
The provisions of this ordinance are severable, and if any of its provisions shall be held illegal, invalid, or unconstitutional, the decision of the court shall not affect or impair any of the remaining provisions of this ordinance. It is hereby declared to be the intention of the Council of the Borough of Fountain Hill that this ordinance would have been adopted if such illegal, invalid or unconstitutional provisions had not been included herein.
[Ord. 323, 12/9/1976, § 12; as reenacted and amended by Ord. 348, 1/4/1982]
This ordinance is enacted pursuant to the authority of the Local Tax Enabling Act, 1965 December 31, Pamphlet Law 1257, and shall become effective 30 days after it has been passed by Council and signed by the Mayor.