STATUTORY REFERENCES
Power to tax — See 53 P.S. §§ 6924.101
et seq.
[Ord. 382, passed 5-1-1978]
This chapter shall be known as the "Business Privilege Tax Ordinance,"
or just the "Business Privilege Tax."
[Ord. 382, passed 5-1-1978; Ord. 403, passed 1-7-1980; Ord. 433, passed 12-6-1982; Ord. 588, passed 8-8-1994]
For the purpose of this chapter, the following definitions shall
apply unless the context clearly indicates or requires a different
meaning.
The Borough of Brookhaven.
The carrying on or exercising, whether for gain or profit,
of any trade, business, profession, vocation, service, construction,
communication or commercial activity, in which there is performed
any service or services within the Borough or attributable to a place
of business in the Borough.
The period from January 1 to December 31, inclusive.
Any individual, partnership, limited partnership, association,
firm or corporation. Whenever the term "person" is used in any clause
in this chapter prescribing or imposing a penalty, such term, as applied
to an association, means the partners or members thereof, and as applied
to corporations, the officers thereof.
That physical location from which a person, as herein defined,
carries on any significant activity involved in the operation of the
business.
The person duly elected by the citizens of the Borough for
the collection of taxes provided for under this chapter, or a duly
authorized agent appointed by Council.
The period from January 1 to December 31, inclusive.
The person subject to the payment of the tax imposed by this
chapter.
[Ord. 382, passed 5-1-1978]
There is hereby levied for the tax year beginning June 16, 1978,
and annually thereafter, a tax for general Borough purposes on the
privilege of doing business, as herein defined, in the Borough, as
follows.
(A)
Rate of tax. 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 1 1/2 mills, or $1.50 per $1,000
of gross volume of business.
(B)
Computation of gross volume of business.
(1)
Every person subject to the payment of the tax hereby imposed
who has commenced his or her business prior to the beginning of the
tax year shall compute his or her gross volume of business upon the
actual gross amount of business transacted by him or her during such
immediately preceding tax year.
(2)
Every person subject to the payment of the tax hereby imposed
who has commenced or commences his or her business subsequent to the
beginning of the tax year shall compute his or her gross volume of
business upon the actual gross amount of business transacted by him
or her during that tax year.
(C)
Disputes. The Tax Collector 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. 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.
(D)
Exemptions. 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 the Commonwealth
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 chapter.
(E)
Preemption. No such tax shall be assessed and collected on a privilege,
transaction, subject or occupation that is subject to a state tax
or license fee, which tax or license fee has been held by the courts
of the state to be the basis for exemption from the imposition of
a business privilege or mercantile tax by a municipality.
(F)
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 Utilities
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.
(G)
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 of other transfers of title or possession of
property.
(H)
Production and manufacture. No such tax shall be assessed and collected
on goods, articles and products or 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.
[Ord. 382, passed 5-1-1978]
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 services rendered, subject only to the following
allowable deductions and exemptions:
(A)
Any commissions or fees paid by a real estate broker to another broker
on account of a purchaser's sales contract initiated, executed
or cleared with such other broker, except where either is an employee
of the other;
(B)
Bad debts, where the deduction is also taken in the same year for
federal income tax purposes;
(C)
Any cash advances made by any real estate broker, undertaker or mortician,
attorney or physician made on behalf of a customer or client. However,
cash advances shall not include the cost of any goods purchased on
behalf of such customer or client; and
(D)
Taxes collected as agent for the United States, the Commonwealth
or the Borough.
[Ord. 382, passed 5-1-1978]
Where gross or whole volume of business in its entirety cannot
be subject to the tax imposed by this chapter by reason of the provisions
of the Constitution of the United States or any other provision of
law, the Tax Collector, with the approval of 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 that
is properly attributable to a place of business in the Borough shall
be taxed hereunder.
[Ord. 382, passed 5-1-1978]
If any person is liable for the same tax on the same subject
imposed under the Local Tax Enabling Act 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 taxes fixed by such Enabling Act permitting the imposition of such
taxes.
[Ord. 382, passed 5-1-1978]
The taxpayer, to obtain the foregoing enumerated exclusions
and deductions, shall keep books and records of his or her business
so as to show clearly, accurately and separately the amount of such
services as are excluded from the tax and the amounts of services
that he or she is entitled to deduct from the gross volume of business
as hereinbefore provided.
[Ord. 382, passed 5-1-1978]
(A)
Every return shall be made upon a form furnished by the Tax Collector.
Every person making a return shall certify the correctness thereof
by affidavit.
(B)
Every person subject to the tax imposed by this chapter who commenced
his or her business on or before June 1 of the calendar year previous
to the beginning of any tax year shall, on or before June 15 of the
tax year, file with the Tax Collector a return setting forth his or
her name, his or her business name, his or her business address and
such other information as may be necessary in arriving at the actual
gross amount of business transacted by him or her during the preceding
tax year and the amount of the tax due. He or she shall submit a Schedule
C, Form 1065 or Form 1120, whichever is applicable for verification.
At that time, he or she shall pay any balance due for the preceding
tax year, together with the estimated tax for the forthcoming year
based upon the profit and loss sheet submitted for the previous year.
(C)
Every person subject to the tax imposed by this chapter who has commenced
his or her business before the beginning of the tax year but after
June 1 of the full calendar year previous to the beginning of the
tax year shall, on or before June 15 of the tax year, file with the
Tax Collector a return setting forth his or her name, his or her business
name, his or her business address and such other information as may
be necessary in arriving at the estimated gross amount of business
transacted by him or her as calculated under § 896.04 and
the amount of tax due, provided 100 days have elapsed from the commencement
of the business to June 15 of the tax year. If a taxpayer has not
been in business for 100 days as of June 15 of the tax year, whether
or not he or she commenced business within the tax year, his or her
return shall be filed within 100 days of the commencement of his or
her business.
(D)
Every person subject to the payment of the tax imposed by this chapter
who engages in a business, either 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 Collector setting forth
his or her name, his or her business name, his or her business address
and such information as maybe necessary in arriving at the estimated
gross amount of business to be transacted by him or her as calculated
in accordance with § 896.04.
(E)
Any person going out of business 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 that person ceased doing
business, and pay the tax due as computed thereon at the rate herein
provided for at the time of filing such 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.
(F)
The business privilege tax levied pursuant to this chapter shall
be due and payable on the date on which the taxpayer is required to
file a return as set forth above. If the same is not paid on such
date, a 10% penalty shall be added thereto, plus an additional 1%
interest per month or fractional part of a month until paid.
(G)
The Tax Collector shall, upon payment to him or her of the business
privilege tax, give the person paying the same a receipt therefor.
[Ord. 436, passed 1-3-1983]
Any person who wishes to conduct or to continue to conduct any
business, as defined in § 896.02, within the Borough, shall
file with the Tax Collector an application for a business privilege
license and shall pay a fee as set forth in § 208.03(I)
of the Administration Code.
[Ord. 382, passed 5-1-1978]
The 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 of year for which such 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 the tax due hereunder shall
be refused a license until such tax is paid in full.
[Ord. 382, passed 5-1-1978]
(A)
The Tax Collector is hereby charged with the duty of receiving the
taxes, fines and penalties imposed by this chapter. It shall be his
or her duty to keep a record showing the amount received by him or
her from each person paying the tax and the date of such receipt.
(B)
In the event that any person subject to the tax hereunder neglects
or refuses to make a return, then the Tax Collector shall assess such
person on such amount of the whole or gross volume of business as
the Tax Collector deems reasonable and appropriate. In all cases of
assessment, the Tax Collector shall give the person assessed a notice
in which shall be stated the trade, business, occupation or class
of the person so assessed and the amount of the business privilege
tax imposed.
(C)
The taxpayer shall maintain such records and books of account as
will enable him or her to make a true and accurate return in accordance
with the provisions of this chapter. 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 Collector to verify all transactions. The
Tax Collector is hereby authorized to examine the books, papers and
records of any person or persons subject to or alleged to be subject
to the tax imposed by this chapter, in order to verify the accuracy
of the return made, or if no return was made, to ascertain the tax
due.
(D)
Any person aggrieved by any decision of the Tax Collector shall have
the right to appeal to the Court of Common Pleas of the county.
[Ord. 382, passed 5-1-1978]
Any information gained by the Tax Collector or any other official,
agent or employee of the Borough, as a result of any return, investigation,
hearing or verification required or authorized by this chapter, shall
be confidential, except in accordance with proper judicial order or
as otherwise provided by law.
[Ord. 382, passed 5-1-1978]
(A)
Nothing contained in this chapter shall be construed to empower the
Borough to levy and collect the taxes hereby imposed on any person,
or any business, or any portion of any business, not within the taxing
power of the Borough under the Constitution of the United States and
the laws and the Constitution of the Commonwealth.
(B)
If the tax, or any portion thereof, imposed upon any person under
the provisions of this chapter is held by any court of competent power
or jurisdiction to be in violation of the Constitution of the United
States or the Commonwealth or any other provision of law, the decisions
of the court shall not affect or impair the right to impose the taxes,
or the validity of the taxes so imposed, upon other persons as herein
provided.
(C)
The provisions of this chapter are separable, and if any of such
provisions are held to be illegal, invalid or unconstitutional, the
decision of the court shall not affect or impair any of the remaining
provisions of this chapter. It is hereby declared to be the intention
of Council that this chapter would have been adopted if such illegal,
invalid or unconstitutional provision had not been included herein.
[Ord. 382, passed 5-1-1978]
(A)
No person shall conduct, transactor engage in any of the businesses
subject to the tax imposed by this chapter without first securing
a business privilege license for the year.
(B)
No person shall fail to file a tax return as required by the provisions
of this chapter.
(C)
No person shall willfully file a false return under this chapter.
[Ord. 382, passed 5-1-1978]
Whoever violates or fails to comply with any of the provisions
of this chapter shall be fined not more than $300. In the event of
default in the payment of any such fine, such person shall be imprisoned
not more than 90 days. A separate offense shall be deemed committed
each day during or on which a violation or noncompliance occurs or
continues.
