[Adopted 4-14-1981 by Ord. No. 1004 (Ch. 24, Part 5, of the 1996 Code of Ordinances)]
This article shall be known as the "Business Privilege Tax Ordinance."
The following words and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
BOROUGH
The Borough of Sewickley.
BUSINESS
Any activity carried on or exercised for gain or profit in the Borough, including, but not limited to, the sale of merchandise or other tangible personalty or performance of services and the rental of personalty and/or realty.
CALENDAR YEAR
The period January 1 to December 31, inclusive.
LICENSE YEAR
The period from January 1 to December 31, inclusive.
TAX ADMINISTRATOR
The person duly appointed by the Borough Council to administer the within tax.
TAX YEAR
The period from January 1 to December 31, inclusive, except that the tax year 1981 shall be the period from May 15 to December 31, 1981.
TAXPAYER
A person subject to the payment of the tax imposed by this article.
TREASURER
The Treasurer of the Borough of Sewickley.
WHOLESALE DEALER or WHOLESALE VENDOR
Any person who sells to dealers in or vendors of goods, wares and merchandise with respect to such goods and to no other persons.
[Amended 5-24-1982 by Ord. No. 1016]
There is hereby levied for the tax year 1981 and annually thereafter a tax for general revenue purposes on the privilege of doing business as herein defined in the Borough, as follows:
A. 
Rate and basis of tax.
(1) 
The rate of the tax on each and every dollar of the whole or gross volume of business transacted within the territorial limits of the Borough shall be one mill, one mill shall mean $1 per $1,000 gross volume of business; except that the rate of the tax on each and every dollar of the whole or gross volume of business traded by wholesale dealers or wholesale vendors within the territorial limits of the Borough shall be 2/3 mill. All nonwholesale business of such wholesale dealers or wholesale vendors shall be taxed at the general rate of one mill.
(2) 
Prior to the effective date of this amendment, the rate of the tax, as established by Ord. No. 1004, is 1 1/2 mills upon the whole or gross volume of nonwholesale business and one mill upon the whole or gross volume of wholesale business. It is the intent of this amendment that the amount of tax due and payable by every taxpayer for the tax year 1982 shall be collected as if the rate and basis of tax as set forth in this amended Subsection A had been in effect for that portion of the year from January 1, 1982, until the effective date of this amendment. For that purpose, the Tax Administrator is hereby authorized to accept returns and payment of the tax for the year 1982 upon the rate and basis of tax as set forth in Subsection A and as hereinafter provided in § 299-10 of this article, as amended. The provisions of this amendment are expressly condition upon its validity. In the event that all or any part of this amendment is determined to be invalid for any reason, the provisions of Subsection A of Ord. No. 1004 shall remain in full force and effect and shall not be deemed to have been repealed.
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 1981 only, such computation shall be based upon the actual gross amount of business transacted from May 15 through December 31 of the immediately preceding calendar year.
(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 gross volume of business for the tax year upon the 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 1981 only, such computation shall be based upon the monthly average multiplied by 7 1/2.
(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 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. For the tax year 1981 only, such computation shall be based on the monthly average multiplied by 7 1/2 for every person subject to the payment of the tax who has commenced or commences his business subsequent to the beginning of the tax year but on or prior to May 15, 1981. In the event that such person shall be in business fewer than 90 days in the tax year, he shall be permitted to use sufficient days in the next succeeding calendar year to equal 90 successive days after commencement of business to take a monthly average thereon, and to multiply the average by the number of months from the commencement of his 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 the 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 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.
(6) 
Payment made under the mercantile license tax for business to which this tax is applicable shall be credited to this tax and vice versa.
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 action 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 Borough, 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 business. Gross or whole volume 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 and 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 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 the Borough.
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 Borough Council, 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 this same tax on the same subject imposed under the Local Tax Enabling Act of 1965, December 31, P.L. 1257, and its amendments,[1] to the Borough and one or more political subdivision 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.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
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.
[Amended 5-24-1982 by Ord. No. 1016]
A. 
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.
B. 
For the tax year 1982 only, returns required to be filed on or before the 15th day of May shall be filed on or before the 15th day of August.
C. 
For the tax year 1982 only, returns required to be filed on or before the 15th day of May shall be filed on or before the 15th day of August.
D. 
For the tax year 1982 only, returns required to be filed on or before the 15th day of May shall be filed on or before the 15th day of August.
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 at the time application is made for the business privilege license file a return with the Tax Administrator 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 § 299-9B(4).
F. 
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.
G. 
Payment of tax and penalties for late payment. The business privilege tax levied pursuant to this article for the tax year 1981, which shall include the period from May 15, 1981 through December 31, 1981, shall be due and payable as follows: (1) for those taxpayers who are required to file a return on July 15, 1981, 1/2 of the tax shall be due and payable on July 15, 1981, and 1/2 of the tax shall be due and payable on September 15, 1981; (2) for those taxpayers who are required to file a return subsequent to July 15, 1981, but prior to September 15, 1981, 1/2 of the tax shall be due and payable on the date on which the taxpayer is required to file a return and 1/2 of the tax shall be due and payable on September 15, 1981; (3) for those taxpayers who are required to file a return on or subsequent to September 15, 1981, the entire amount of the tax shall be due and payable on the date on which the taxpayer is required to file a return. For the tax year 1982 and subsequent tax years to which this article is applicable, the business privilege tax levied pursuant to this article shall be due and payable on the date on which the taxpayer is required to file a return. In the event the amount due and payable is not paid on the dates required as set forth above, 5% shall be added thereto, plus an additional 1% per month or fractional part of a month until paid.
H. 
Receipt. The Tax Administrator shall, upon payment to him of the business privilege tax, give the person paying the same a receipt therefor.
[Amended 2-19-1996 by Ord. No. 1159]
After the effective date of this article, any person desiring to conduct or to continue to conduct any business as herein defined within the Borough of Sewickley shall file with the Tax Administrator an application for a business privilege license and shall pay a fee in an amount to be determined from time to time by resolution of the Borough Council.
The license issued shall be conspicuously posted in the place of business for which the 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 of payment of the tax due hereunder shall be refused a license until such tax is paid in full.
[Amended 2-19-1996 by Ord. No. 1159]
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 conviction thereof, be sentenced to pay a fine of not more than $600 plus costs and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 30 days. Each day that a violation of this article continues shall constitute a separate offense.
A. 
The Tax Administrator is charged with the duties of collecting and receiving the taxes, fines and penalties imposed by this article. 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.
B. 
The Tax Administrator and his duly appointed deputies under the direction of the Finance Committee of Council are hereby empowered with the approval of the Council of the Borough of Sewickley to prescribe, adopt and promulgate rules and regulations relating to any matter pertaining to the administration and enforcement of this article, including provisions for the examination and correction of returns, and payments alleged or found to be incorrect, or as to which an overpayment is claimed or found to have occurred, and charged with enforcing the provisions of this article and any rules and/or regulations promulgated pursuant hereto.
C. 
In the event the person to be assessed neglects or refuses to make a return, then 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 deputies deem reasonable and appropriate. In all cases of assessment, the 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.
D. 
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 this article. 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 article in order to verify the accuracy of the return made or, if no return was made, ascertain the tax due.
E. 
Any person aggrieved by any decision of the Tax Administrator shall have the right to appeal to the court of common pleas, as in other cases.
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 article shall be confidential, except in accordance with proper judicial order or as otherwise provided by law.
A. 
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 article.
B. 
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.