This article shall be known as the "Business Privilege Tax Ordinance."
The following words and phrases, whether capitalized or not,
when used in this article, shall have the meanings ascribed to them
in this section, except where the context clearly indicates a different
meaning:
BUSINESS
Any activity in the Township of Aleppo carried on or exercised
for gain or profit, including, but not limited to, the sale of merchandise
or other tangible personalty or the performance of services and the
rental of personalty and/or realty. For this purpose, "business" includes,
without limitation, all taxable activity permitted to be taxed by
a business privilege tax under the decision of the Supreme Court of
Pennsylvania in Gilberti v. City of Pittsburgh, a copy of which is
attached hereto for the notice and convenience of Aleppo Township
residents.
CALENDAR YEAR
The period from January 1 to December 31, inclusive, except
for 1987, when the beginning date shall be other than January 1.
LICENSE YEAR
The period from January 1 to December 31, inclusive, except
for 1987, when the beginning date shall be other than January 1.
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.
TAX ADMINISTRATOR
The person duly appointed by the Commissioners of the Township
of Aleppo to administer the within tax.
TAXPAYER
A person subject to the payment of the tax imposed by this
article.
TAX YEAR
The period from January 1 to December 31, inclusive, except
that the tax year 1987 shall be the period from the effective date
of the tax described herein to December 31, 1987.
TREASURER
The Treasurer of the Township of Aleppo.
There is hereby levied for the tax year 1987 and annually thereafter
a tax for general revenue purposes on the privilege of doing business
as herein defined in the Township of Aleppo as follows:
A. Rate and basis of tax. The business privilege tax is imposed on each
and every dollar of gross volume of business. On wholesale business,
the tax rate is one mill per $1,000 of gross volume of business (which
means $1 per each $1,000 of gross volume of business); for retail
and all nonwholesale business, the tax rate is 1 1/2 mills (or
$1.50) per $1,000 of gross volume of business.
[Amended 2-9-1993 by Ord. No. 165; 12-29-2005 by Ord. No. 2005-2]
B. Computation of volume of business.
(1) 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. For the tax year 1987 only,
such computation shall be based upon the actual gross amount of business
transacted during the same months and days in 1986 as are included
in the tax period under this article for 1987.
(2) 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 the 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 the 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. For the tax year 1987 only, such computation shall
be based upon the monthly average multiplied by 11.
(3) 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 for such tax year upon the 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.
(4) 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 Township by a method to be determined
by the Tax Administrator.
(5) The Tax Administrator is hereby authorized to accept payment under
protest of the amount of business privilege tax claimed by the Township
in any case where the taxpayer disputes the validity or amount of
the Township's claim for tax. If it is thereafter judicially determined
by a court of competent jurisdiction that the Township 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.
C. Persons, businesses and receipts exempted.
(1) Persons and businesses. Persons employed for a wage or salary, nonprofit
corporations or associations 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 article.
(2) 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
tax by a municipality.
(3) Utilities. No such tax shall be assessed and collected on the gross
receipts from utility service of any person or company whose rates
of 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.
(4) 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.
(5) 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 Township of Aleppo, or on the preparation
or process thereof for use of market, or on any privilege, act or
transaction relating 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 manufacture,
production or growth, or any privilege, act or transaction relating
to the business of processing by-products of manufacture, or on the
transportation, loading, unloading or dumping or storage of such goods,
articles, products or by-products.
D. Determination of gross or whole volume 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, rentals and/or services rendered, subject only to the
following allowable deductions and exemptions:
(1) The dollar volume of business transacted by wholesale and retail
dealers derived from the resale of goods, wares and merchandise sold
or on account of goods, wares or merchandise returned.
(2) 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.
(3) 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.
(4) Bad debts, where the deduction is also taken in the same year for
federal income taxation purposes.
(5) Taxes collected as agent for the United States of America, Commonwealth
of Pennsylvania, County of Allegheny or Township of Aleppo.
E. Partial exemptions. Where gross or whole volume of business 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 provision of law, the Tax Administrator, with the approval
of the Commissioners of the Township of Aleppo, 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 Township shall
be taxed hereunder.
F. 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 Township 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 Local Tax Enabling Act
permitting the imposition of such taxes.
G. 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.
After the effective date of this article, any person desiring
to conduct or to continue to conduct any business, as herein defined,
within the Township of Aleppo shall file with the Tax Administrator
an application for a business privilege license and shall pay a fee
of $5 for the initial license and $5 for each renewal thereof each
year, to be paid on the same date as the first business privilege
tax payment is due.
Any person who shall conduct, transact or engage in any of the
businesses subject to the tax imposed by this article 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 article or any person who shall willfully file a false return
shall, upon summary conviction before any Magisterial District Judge
in the County of Allegheny, be sentenced to pay a fine not to exceed
the sum of $300 for any one offense, recoverable with costs, or imprisonment
not exceeding 90 days, if the amount of said fine and costs shall
not be paid.
Each day on which such person violated this article may be considered
as a separate offense and punishable as such as aforesaid.
Any information gained by the Tax Administrator or any other
official, agent or employee of the Township as a result of any returns,
investigations, hearings, or verifications required or authorized
by this article shall be confidential, except in accordance with proper
judicial order or as otherwise provided by law.
If the tax, or any portion thereof, imposed upon any person
under the provisions of this article 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.
This article is enacted pursuant to the authority of the Local
Tax Enabling Act, 1965, December 31, Pamphlet Law 1257, as amended, and shall become effective February 1, 1987, and shall
continue thereafter unless amended or repealed.