[Adopted 8-18-1981 by Res. No. R-1981-18 (Ch. 24, Part 2B,
of the 2002 Code of Ordinances)]
In addition to the words or phrases defined in § 301-1 of Article I of this chapter, the following words or phrases when used in this article shall have the meanings ascribed to them, except where the context clearly indicates a different meaning:
An activity that is not a "temporary activity."
The resolution of East Lampeter Township levying an admission tax, adopted August 18, 1981 (Article I, Admissions Tax, of this chapter).
The Secretary of East Lampeter Township.
The amount of tax collected or which should have been collected
under the terms of this article for the relevant time period.
An activity that is of a seasonal or itinerant nature. A
seasonal activity is one held open to the public for the majority
of days in less than four months of the calendar year.
[Added 12-22-1998 by Res. No. R-1998-27; amended 12-18-2001 by Res. No.
R-2001-36; 12-22-2009 by Res. No. R-2009-30]
A.
On or before the 20th day of each month, the producer of a permanent
activity shall transmit a report showing the tax due for the preceding
month, together with payment of that amount.
B.
The producer of a temporary activity shall, at the close of each
day on which the activity was conducted, transmit a report of the
tax due for that day, together with payment of that amount.
[Amended 8-20-1991 by Res. No. R-1991-15A]
The tax imposed by this article is based on the "price of admission".
A.
Donations, contributions. Whenever the charge for the privilege of
engaging in an activity is not fixed, but rather is left to the discretion
of the individual, as by contribution or donation and the like, the
"price of admission" shall be the gross amount of donations or contributions
received by the producer.
B.
Fixed price of admission. Except as otherwise provided in this article,
the "price of admission" on fixed admissions shall be the greater
of the "established price of admission" or the amount actually collected.
The "established price of admission" means the full price, fixed by
the person in control, in force at the time of the sale of admissions
to that activity. The price charged or collected shall be presumed
not to include the tax unless the producer clearly discloses to all
persons who pay admissions that the tax is included in the amount
paid.
C.
Season tickets. The "established price of admission" for a season
ticket or pass or subscription shall be the actual price paid therefor.
D.
Group rates. When a producer grants a special rate to groups, the
special rate so granted shall be the "established group rate" and
the basis for the tax imposed by this article. The tax imposed by
this article shall be collected by the producer of the activity rather
than by the tour or bus companies setting up the tours or the businesses
distributing admission tickets to groups.
E.
Amusement and other parks. The tax on admissions to amusement and
other parks shall be computed upon the price of admission for each
ride, coin-operated device or place of activity or, when punch cards
or strip tickets are used, upon the price paid for the strip of tickets
or a punch card. If an additional and separate charge is imposed for
admission to the amusement or other park, the tax shall be paid on
the amount so charged, in addition to the tax paid for individual
rides, coin-operated devices and places of activity.
F.
Presumed admissions charges.
(1)
General rule. If a charge collected from an individual entering a
place of activity is designated an admissions charge, it will be presumed
that it is in fact an admission subject to tax under this article
even though payment thereof entitles the individual not only to admission,
but also to use of property or services provided by the producer of
the activity. However, if the producer can show by clear and convincing
evidence that all or part of the charge is for rental of property
or services, the tax imposed by this article shall be payable only
on that portion of the amount charged that is for admission, and not
on that portion that is for rental of property or services.
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Example: A producer charges $1 for admission to a skating rink.
Skates are supplied to the individual at no additional charge. If
the producer can show that individuals using their own skates are
admitted free, no tax is payable on the $1 charge.
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If the producer shows that individuals using their own skates
are charged less than $1, the amount charged such individuals shall
be the price of admission subject to tax.
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(2)
Rental or service charges. The designation of a charge as a rental
or service charge will not avoid liability for payment of tax under
this article if, in fact, the charge is one for admission. If all
individuals entering a place of activity are charged the same amount
whether or not they will use their own property or equipment therein,
the full amount charged upon entry is an admission subject to tax
under this article. If a lesser charge is collected from those using
their own equipment and property, the lesser charge represents the
price of admission.
G.
Bowling alleys. For bowling alleys or bowling lanes, the price of
admission shall be deemed to be 40% of the charge imposed upon a patron
for the sale of admission to or the privilege of admission to a bowling
alley or bowling lane to engage in one or more games of bowling.
H.
Golf courses. For golf courses, the price of admission shall be deemed
to be 40% of the greens fee. The greens fee shall include all costs
of admission to the golf course.
I.
Admissions at places where food and drink are served.
[Added by Res. No. R-2012-11]
(1)
Where any activity which is taxable as part of the admissions tax
is conducted at a place where food and drink are served and the price
of admission to such "activity" is wholly or partially included in
the price paid for such food and drink, a tax is imposed upon 20%
of the amount paid by each person for such food, drink and service.
For example, four people together attend a nightclub at which entertainment
is provided. No fix charge is made for admission. The charge for food,
drink and service for the party amounted to $50 and was paid by one
of the parties. The tax is equal to the then current rate of the admissions
tax multiplied by 20% of the total charge for such food, drink and
service.
(2)
If a cover charge is made, such charge shall be considered as the
regular established price paid for admission as taxable as such. If
the total bill exceeds the cover charge, then the excess over and
above the cover charge is taxable on the basis of 20% of such excess.
(3)
Where a hotel, or motel or similar establishment offers, as a package,
food, drink, entertainment and overnight accommodations for a single
charge, the tax shall be calculated on 20% of the product resulting
from the subtraction of the normal room rate for the room from the
package rate.
J.
Trampoline park. For trampoline parks, the "price of admission,"
as defined in the admissions tax and regulations thereunder shall
be deemed to be 40% of the charge imposed upon a patron for the sale
of admission to or the privilege of admission to a trampoline park.
[Added 6-2-2014 by Res.
No. 2014-07]
[Amended 8-20-1991 by Res. No. R-1991-15A]
A.
Organization exemption. Amusement, entertainment and other forms
of activity are not considered activities subject to tax when proceeds
therefrom will benefit enumerated societies, institutions or organizations.
(1)
Basic requirements.
(a)
To provide a basis for exemption from tax liability under this
subsection, the society, institution or organization to which the
proceeds will inure must meet both of the following basic requirements:
(b)
An institution, society or organization is nonprofit if no part of the net earnings of the institution, society or organization inures to the benefit of any private person. However, the fact that the institution, society or organization is not organized or operated for profit will not provide a basis for exemption under this Subsection A unless the institution, society or organization also has a religious, educational, charitable or community purpose.
(2)
Religious, educational, charitable and community defined.
(a)
Religious. The term "religious" contemplates a gathering for
the purpose of divine worship. Churches and synagogues are such institutions.
(b)
Educational. The term "educational" connotes the teaching or
imparting of knowledge. The institution, society or organization must
offer instruction of a general nature in its particular field to its
students, not limited to technical advice or merely providing an answer
to particular questions. Elementary schools, high schools, colleges,
seminaries and music conservatories are examples of such educational
institutions. Institutions, societies and organizations offering courses
in various subjects, such as art classes, music lessons and the like
are within the exemption. Societies or clubs organized for social
or athletic purposes are not exempt. Societies organized for the purpose
of advancement of a particular interest or group are not deemed educational.
(c)
Charitable.
[1]
A charitable institution, society or organization must meet
both of the following conditions:
[a]
Whatever it does for others must be done free of
charge or at least so nearly free of charge as to make the charges
nominal or negligible.
[b]
Those to whom it renders help or services are those
who are unable to provide themselves with what the institution, society
or organization provides for them — that is, they are legitimate
objects of charity.
[2]
Whenever an institution, society or organization engages in various activities only some of which are charitable, exemption on the basis of this Subsection A will be granted only if the proceeds of the amusement, entertainment or other activity inure solely to the benefit of the charitable activities of the institution, society or organization.
(d)
Community. The term "community" contemplates a purpose of serving
residents of a certain limited geographical area with a facility or
service open or available to all residents or a purpose of betterment
of the community. In either case, the purpose should be one commonly
served by municipal or governmental entities.
(3)
Specific institutions, societies and organizations. If they meet the basic requirements set forth in Subsection A(1) and any additional requirements stated below, the following institutions, societies and organizations shall provide a basis for exemption from the tax imposed by this article.
(a)
Societies for the prevention of cruelty to children or animals.
(b)
Societies or organizations conducted for the sole purpose of
making artistic presentations. Such societies or organizations must
show that they receive substantial support from voluntary contributions
other than funds derived from entertainments.
(c)
Societies or organizations for the purpose of maintaining a
cooperative, or community center, swimming pool or for the purpose
of improving any municipal services. Such societies or organizations
must show that their purpose is 1) the actual maintenance of an existing
center or swimming pool open to all residents of the particular community
in which the facility is located, or 2) the betterment of the community
itself.
(d)
Auxiliary police, volunteer fire departments and organizations
or associations formed for the purpose of benefitting police or fire
departments or members thereof or heirs or members thereof. Such organizations
or associations must be actively functioning. The funds of auxiliary
police or volunteer fire departments must be devoted to and necessary
for the purposes of the organization, including, but not limited to,
the purchase of equipment, training, purchase of supplies or the purchase
of real estate. The funds of organizations formed for the purpose
of benefitting members, dependents or heirs of members must in fact
be devoted to rendering benefit to them. The departments of which
they are members must have received official recognition as such by
the political subdivision of the Commonwealth of Pennsylvania in which
the department serves.
B.
Exemption of certain activities. All admissions received for the
following activities are exempt from the tax imposed by this article.
(1)
Certain lectures. Lectures of a scientific, historical or educational
nature, when such lectures are produced or conducted by nonprofit
associations or clubs, are exempt.
(2)
Tours. The price of admission for a tour or guided tour on an ICC
or PUC-regulated vehicle is not subject to tax. However, this exemption
shall not be construed to grant an exemption from payment of tax on
the price of admission to any activity visited by the tour group.
C.
Exercise and health maintenance. The admissions tax shall not apply
to any amounts paid for membership, membership dues, fees or assessments,
donations, contributions or monetary charges of any character whatsoever
paid by the general public, or a limited or selected number thereof,
for such persons to enter into any place, indoors or outdoors, to
engage in any activities, the predominant purpose or nature of which
is exercise, fitness, health maintenance, improvement or rehabilitation,
health or nutrition education, or weight control. Bowling and golf
shall not be considered exempt activities under this subsection.
Every producer shall keep an accurate daily record of all classes
of admissions, including free and complimentary tickets and reduced
rate admissions, and all other figures and information necessary to
determine the amount of tax due on each particular day. Such daily
records must show the ticket sequence of any tickets sold in numerical
order on each day. Daily records must be kept on file at the place
where the tax is collected for a period of at least four years from
the date when the tax becomes due.
A.
The Secretary is empowered to make a determination of and assess
the tax due by a producer if he is unsatisfied with the report and
payment of tax made by such producer. The determination of tax due
shall be based upon the facts contained in the report or upon any
other information available.
B.
All books, papers, tickets, ticket stubs and records of any producer
are subject to examination by the Township Secretary, his assistants
or authorized agents, to verify the accuracy of any report or payment
made, or to ascertain whether proper taxes have been paid.
C.
Promptly after any such determination, the Secretary will send or
furnish a copy thereof to the producer. Within 30 days thereafter
said producer may file with the Secretary a petition for redetermination
of such tax. Every petition shall state specifically the reasons the
petitioner believes entitle him to a redetermination and shall be
supported by affidavit that it is not made for the purpose of delay
and that the facts set forth therein are true. Notice of the action
taken upon any petition for the redetermination will be given to the
petitioner promptly after the date of redetermination by the Secretary.
