[Ord. 733, 12/8/1983, § 1]
This Part shall be known as the "Business Privilege Tax Ordinance."
[Ord. 733, 12/8/1983, § 2; as amended by Ord. 734,
12/8/1983, § 1]
The following words and phrases, when used in this Part, shall
have the meanings ascribed to them in this section, except where the
context clearly indicates a different meaning:
The Borough of Shillington.
Any activity carried on or exercised for gain or profit in
the Borough of Shillington, 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.
The period of January 1 to December 31, inclusive.
The actual gross consideration credited or received for or
on account of sales made, rental and/or services rendered by any business
subject to the tax imposed by this Part. For the purposes of the Part
"gross volume of business" is intended also to mean "whole volume
of business."
The period from January 1 to December 31, inclusive.
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.
Any person who is a dealer in, or vendor of, goods, wares
and merchandise who is not a wholesale dealer or vendor.
The person duly appointed by the Council of the Borough of
Shillington to administer the within tax.
The period from January 1 to December 31, inclusive.
A person subject to the payment of the tax imposed by the
Part.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and to no other persons.
[Ord. 733, 12/8/1983, § 3]
1.
There is hereby levied for the tax year 1984, and annually thereafter,
a tax for general revenue purposes on the privilege of doing business
as herein defined in the Borough of Shillington as follows:
A.
Rate and Basis of Tax. The rate of the tax on each and every dollar
of the whole or gross volume of business or rental transactions within
the territorial limits of the Borough of Shillington shall be 1 1/2
mills; 1 1/2 mills shall mean $1.50 per $1,000 of gross volume
of business; except that the rate of tax on each and every dollar
of the whole or gross volume of business transacted by wholesale dealers
or wholesale vendors within the territorial limits of the Borough
of Shillington shall be one mill. All non-wholesale businesses of
such wholesale dealers or wholesale vendors shall be taxed at the
general rate of 1 1/2 mills.
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 preceding
the tax year shall compute his annual estimated gross amount of business
transacted by him during said immediately preceding full calendar
year.
(2)
Every person subject to the payment of the tax hereby imposed
who has commenced or who commences his business prior to the beginning
of the tax year but after the beginning of the full calendar year
immediately preceding the tax year, shall compute his estimated annual
gross volume of business for the tax year upon which the gross volume
of business transacted by him during said 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 preceding 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 in order to compute
a monthly average thereon, and to multiply the average by 12.
(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 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 Borough 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
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 no tax is due
or that the Borough has been overpaid, the amount of the payment or
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 other courts of competent jurisdiction
outside of Berks County.
(6)
Payments made under any mercantile license tax ordinance which
may be in effect or hereafter adopted for business to which this tax
is applicable shall be credited to this tax and vice versa.
C.
Persons, Business and Receipts Exempted.
(1)
Persons and Business. 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 municipal authority created or
organized under and pursuant to any act of assembly are exempt from
the provisions of this Part.
(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 or using any tangible
property which 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 Borough of Shillington or on the preparation
or processing thereof for use or 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 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, 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 taken
by any dealer as trade-in or as part payment for other goods, wares
or merchandise, except to the extent that the resale price exceeds
the trade-in allowance.
(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 commission 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 or the Borough of Shillington.
E.
Partial Exemptions. Where gross or whole volume of business in its
entirety cannot be subjected to the tax imposed by this Part by reason
of the provisions of the Constitution of the United States or any
other provision of law, the Council of the Borough of Shillington
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.
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, P.L. 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 said subdivisions exceed a maximum rate
of tax as fixed by the said 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.
[Ord. 733, 12/8/1983, § 4]
1.
Every return shall be made upon a form furnished by the Tax Administrator.
Every person making a return shall certify the correctness thereof
by affidavit.
2.
Every person subject to the tax imposed by this Part who commenced
his business on or before January 1 of the full calendar year immediately
preceding the beginning of any tax year shall on or before the fifteenth
day of February of the tax year file with the Tax Administrator 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 preceding calendar
year, and the amount of the tax due.
3.
Every person subject to the tax imposed by this Part who has commenced his business before the beginning of the tax year but after January 1 of the full calendar year immediately preceding the beginning of the tax year shall on or before the fifteenth day of February of the tax year file with the Tax Administrator a return setting forth his name, his business, business address, and such other information as may be necessary in arriving at the estimated gross amount of business transacted by him as calculated under § 24-303, Subsection 1B(2), hereof and the amount of tax due, provided 100 days of the commencement of his business.
4.
Every person subject to the payment of the tax imposed by this Part 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 Administrator setting forth his name, his business, 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 § 24-303, Subsection 1B(4).
5.
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, without interest, of any excess tax
paid for the tax year in which business was terminated.
6.
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.
If the tax is paid within two months after the due date a discount
of 2% shall be allowed. All taxpayers who shall fail to pay said tax
for four months after due date, shall be charged a penalty of 10%
plus an additional 1 1/2% per month or fractional part of a month,
commencing with the penalty period, until said tax is paid.
7.
Receipt. The Tax Administrator shall, upon payment to him of the
business privilege tax, give the person paying the same, receipt therefore.
[Ord. 733, 12/8/1983, § 5, as amended by Ord. 1025,
10/14/2004]
After the effective date of this Part, any person desiring to
conduct, or to continue to conduct any business, as herein defined,
within the Borough of Shillington shall file with the Tax Administrator
an application for a business privilege license and shall pay a fee
for the initial license and for each renewal thereof in much amounts
as may be established from time to time by resolution of Borough Council.
[Ord. 733, 12/8/1983, § 6]
The license issued shall be conspicuously posted in the place
of business for which the said 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. 733, 12/8/1983, § 7; as amended by Ord. 1025,
10/14/2004]
Any person who shall conduct, transact or engage in any of the
businesses subject to the tax imposed by this Part, 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 Part, or any person who shall willfully file a false return,
shall, upon conviction be sentenced to pay a fine not to exceed the
sum of $600 for any one offense, recoverable with costs, and in default
of payment thereof, to imprisonment for a term not exceeding 30 days,
if the amount of said fine and costs shall not be paid.
[Ord. 733, 12/8/1983, § 8]
Each day on which a person commits a violation of this Part
may be considered as a separate offense and punishable as such as
afore-provided.
[Ord. 733, 12/8/1983, § 9]
1.
The Tax Administrator is charged with the duties of collecting and
receiving the taxes, fines, and penalties imposed by this Part. 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 Administrator of the Borough of Shillington may prescribe,
adopt and promulgate rules and regulations relating to any matter
pertaining to the administration and enforcement of this Part, including
provisions for the examination and collection of returns, and payments
alleged or found to be incorrect, or as to which an overpayment is
claimed, or found to have occurred. The Tax Administrator is charged
with enforcing the provisions of this Part 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, than in such case the Tax Administrator or his duly appointed
deputies shall assess said person or persons on such an amount of
whole or gross volume of business as the said Tax Administrator or
his duly appointed deputies 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 Part. 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 Administrator or his deputies to verify all transactions.
The Tax Administrator or his deputies are 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 Part, 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 Administrator shall
have the right to appeal to the Court of Common Pleas, as provided
by law.
[Ord. 733, 12/8/1983, § 10]
Any information gained by the Tax Administrator 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 Part, shall be confidential, except in accordance with proper
judicial order or as otherwise provided by law.
[Ord. 733, 12/8/1983, § 11]
1.
The Tax Administrator or his duly appointed deputies shall have the
power in the name of the Borough to institute proceedings against
any and all persons who violate the provisions of this Part.
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 therefor shall,
in addition, be liable for the costs of collection and interest and
penalties herein imposed.
