This article shall be known and may be cited
as the "Business Privilege Tax Ordinance of the Township of Muhlenberg,
Berks County, Pennsylvania."
The following words and phrases, as used in
this article, shall have the meanings ascribed to them in this section:
BUSINESS
Any activity carried on or exercised with the intent for
gain or profit in the Township of Muhlenberg, including but not limited
to the sale of merchandise or other tangible personalty, the performance
of services and the rental of personalty and/or realty. As to those
taxpayers having their principal place of business within the Township
of Muhlenberg, "business" shall include all activities carried on
within the Township of Muhlenberg as well as those carried on outside
of the Township of Muhlenberg. As to those taxpayers having a place
of business other than a principal one within the Township of Muhlenberg,
"business" shall include all activities carried on within the Township
of Muhlenberg and those carried on outside of the Township of Muhlenberg
attributable to the place of business within the Township of Muhlenberg.
CALENDAR YEAR
The period from January 1 to December 31, inclusive.
FLEA MARKET AND/OR TRANSIENT SHOW OPERATOR
Any person owning or leasing land, buildings or personal
property to any person or persons for the purpose of allowing said
person or persons to operate any stand for the sale of goods or services
which shall be seasonal, temporary or itinerant by nature.
LICENSE YEAR
The period from January 1 to December 31, inclusive.
MANUFACTURE
The application of skill and labor to the original substance
or material whereby the original substance or material is changed
into a new, different and useful article.
PERSON
Any individual, partnership, limited partnership, association,
firm or corporation. Whenever used in any clause describing 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 and directors thereof.
TAX ADMINISTRATOR
The person duly appointed by the Board of Commissioners of
the Township of Muhlenberg to administer and collect 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.
TOWNSHIP
The Township of Muhlenberg, Berks County, Pennsylvania.
There is hereby levied for the tax year commencing
January 1, 1990, and annually thereafter, without reenactment, a tax
for general revenue purposes on the privilege of engaging in business
in the Township of Muhlenberg, Berks County, Pennsylvania, as follows.
The rate of the tax on each and every dollar
of the whole or gross volume of business transacted shall be 1 1/2
mills, that is $1.50 per $1,000, except that the gross volume of business
transacted by wholesale dealers or wholesale vendors shall be one
mill, that is $1 per $1,000 of gross volume of business. All non-wholesale
business of such wholesale dealers or wholesale vendors shall be taxed
at the general rate of 1 1/2 mills.
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:
A. 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.
B. 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.
C. Taxes collected
as agent for the United States of America, Commonwealth of Pennsylvania,
or the Township of Muhlenberg.
When 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 Board of Commissioners of the Township of Muhlenberg, shall
establish rules and regulations and methods of allocation and evaluations,
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 taxable hereunder.
[Added 11-15-2004 by Res. No. 2004-37]
A. Preamble: Under
certain circumstances receipts from sales in interstate or foreign
commerce may be exempt from tax in whole or in part even though they
are allocable to a place of business in the Township and receipts
are not automatically exempt from tax merely because the sale involves
interstate or foreign commerce. The controlling principles in determining
whether any such receipts are subject to tax are that there be some
nexus between the business activity carried on in the Township and
the imposition of the tax and that there be a fair method of allocation
of receipts to the business carried on in the Township, which will
avoid an undue burden on interstate commerce, and the burden is generally
on the taxpayer to establish that the receipts are exempt from tax.
B. The following
methods of allocation will be followed by the Township:
(1) Receipts directly
payable or paid to a place of business located within the Township
shall be considered allocable to the Township and subject to tax.
(2) If the Administrator determines, either upon his own initiative or upon application by the taxpayer, that the receipts covered by Subsection
B(1) above do not properly reflect all receipts attributable to the activity carried on in the Township, then to the extent possible (bearing in mind the accounting system used by the taxpayer and any other information reasonably capable of being derived from the books and records of the taxpayer), a separate accounting shall be made with respect to each place of business, and all receipts attributable to the place of business in the Township shall be considered allocable to the Township and subject to tax.
(3) If the Administrator determines, either on his own initiative or upon application by the taxpayer, that the provisions of Subsection
B(1) and
(2) above do not properly reflect all receipts attributable to the activity carried on in the Township, a different method of allocation may be used with due regard to the extent of the receipts, property and wages of the taxpayer within the Township, the nature of the business concerned, the number of jurisdictions in which the receipts may be taxed, and such other factors as may be considered relevant.
(4) All receipts
from interstate commerce, whether taxable or nontaxable under the
foregoing rules, must be included on the return filed by the taxpayer,
and a deduction for the nontaxable receipts shall be allowed thereon.
C. Any taxpayer,
or prospective taxpayer, may request from the Township a written determination
as to the taxability of its receipts. In order to obtain such a determination,
a taxpayer must file with the Township a written request for tax determination,
identifying itself and supplying all information requested by the
Township to determine the taxability of the taxpayer.
The taxpayer shall keep books and records of
his business to show clearly, accurately and separately the gross
volume of business and such amounts as set forth by the taxpayer to
be excluded or exempted from the tax as hereinbefore provided.
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 first return setting forth the taxpayer's
estimated tax and, if the same is not filed or paid on said date,
a 10% penalty shall be added thereto, in addition to interest on said
amount at the rate of 1% per month or fractional part thereof, thereafter
until paid in full.
[Amended 12-20-2004 by Ord. No. 402]
After the effective date of this article, any
person desiring to engage in business within the Township of Muhlenberg
shall file with the Township of Muhlenberg an application for business
privilege license on or before February 15 and shall pay a fee of
$35. Any license fee not paid on or before February 15 of each year
shall be increased to $50 for the additional costs of administration.
The business privilege license issued shall
be conspicuously posted in the place of business for which such license
is issued and shall remain in effect for the license year or fraction
thereof for which said license was issued. In cases where more than
one place of business is conducted, a separate license shall be issued,
without additional cost, for each such licensed business. Any taxpayer
who is in default of any tax due hereunder shall be refused a license
until such tax, together with penalty and interest thereon, is paid
in full.
Any information gained by the Tax Administrator
or any other official, agent or employee of the Township of Muhlenberg
as a result of any return or investigation herein or verification
required or authorized by this article shall be confidential, except
in accordance with proper judicial order or as otherwise provided
by law.