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:
BUSINESS
Any activity carried on or exercised for gain or profit in
the Borough of Folcroft 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.
ESTIMATED RETURN
Tax return to be filed on or before March 31 of the tax year
and based upon the estimated gross volume of business.
FINAL RETURN
Tax return to be filed on or before March 31 of the year
following the tax year and based upon the actual gross volume of business.
LICENSE YEAR
The period from January 1 to December 31, inclusive.
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.
RETAIL DEALER
Retail vendors of or dealers in goods, wares and merchandise;
that is, those vendors or dealers who are not wholesale vendors or
dealers.
TAX YEAR
The period from January 1 to December 31, inclusive.
TAXPAYER
A person subject to the payment of the tax imposed by this
article.
TREASURER
The Treasurer of the Borough of Folcroft.
There is hereby levied for the tax year 1979 and annually thereafter
a tax for general revenue purposes on the privilege of doing business
as herein defined in the Borough of Folcroft as follows:
A. Rate and basis of tax. The rate of the tax on each and every dollar
of the whole gross volume of business transacted within the territorial
limits of the Borough of Folcroft shall be one mill; one mill shall
mean $1 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 Folcroft shall be 1/2 mill. All non-wholesale
business of such wholesale dealers or wholesale vendors shall be taxes
at the general rate of one mill.
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. (As example, for the tax
year 1979, if a person is in business as of January 1, 1978, and continues
to be in business for the full calendar year, then the figures for
1978 shall be the basis for the computation for his annual estimated
gross volume of business.)
(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 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 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.
(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 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.
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 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 or which has been held by the Courts of Pennsylvania to be the
basis for the exemption from the imposition of a 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) The first $25,000 of gross volume of business shall be exempt from
this tax.
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 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 or the Borough of Folcroft.
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 provision of law, the Tax Administrator, with the approval
of the Borough Council of the Borough of Folcroft, shall establish
rules and regulations and methods of allocation and evaluation so
that only the part of the gross or whole volume of business which
is properly attributable and allowable to doing business in the Borough
of Folcroft 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 of 1965, December 21, 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 both subdivisions
exceed a maximum rate of tax as fixed by the 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.
[Amended 6-17-1997 by Ord. No. 902; 11-21-2006 by Ord. No. 990]
After January 1, 1998, any person desiring to conduct, or to
continue any business within the Borough of Folcroft, shall file with
the Tax Administrator an application for a business privilege license
and shall pay a fee in an amount as established from time to time
by resolution of Borough Council.
The license shall be conspicuously posted in the place of business
for which the such 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.
[Amended 11-21-2006 by Ord. No. 990]
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 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, upon conviction
thereof, shall be sentenced to 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 on which such person violated this article may be considered
as a separate offense and punishable as such as aforeprovided.
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.