[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:
The Borough of Sewickley.
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.
The period January 1 to December 31, inclusive.
The period from January 1 to December 31, inclusive.
The person duly appointed by the Borough Council to administer
the within tax.
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.
A person subject to the payment of the tax imposed by this
article.
The Treasurer of the Borough of Sewickley.
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.
