Chapter 886 Business Privilege Tax

"Business" means carrying on or exercising, whether for gain or profit or otherwise, within the Municipality, a trade, business, including a financial business as hereinafter defined, profession, vocation, service, construction, communication or commercial activity, or making sales to persons or rendering services from or attributable to an office or place of business in the Municipality.

"Business" does not include that portion of a business which is subject to the Municipal mercantile license and tax, the business or services of a political subdivision, employment for a wage or salary and a business or portion thereof upon which the power to levy a tax is withheld by law.

"Business" includes any corporation organized under the business law of any state or commonwealth.

FINANCIAL BUSINESS

The services and transactions of banks and bankers, trust, credit and investment companies, where not prohibited by law, holding companies, dealers and brokers in money, credits, commercial paper, bonds, notes, securities and stocks, monetary metals, factors and commission merchants.

GROSS RECEIPTS

Cash, credit or property of any kind or nature, received in or allocable or attributable to the Municipality from a business transaction and within the Municipality, without deduction therefrom of the cost of property sold, materials used, labor service or other cost, interest or discount paid or any other expense. "Gross receipts" includes both cash and credit transactions. "Gross receipts" does not include, however,

In the case of financial business, the cost of securities and other property sold, exchanged, paid at maturity or redeemed, and money or credit received in repayment of advances, credits and loans, but not to exceed the principal amount of such advances, credits and loans, and also excluding deposits;

In the case of a broker, a commission paid by him or her to another broker on account of a purchase or sales contract initiated, executed or cleared in conjunction with such other broker; and

MUNICIPAL MANAGER OF THE BUSINESS PRIVILEGE TAX or MUNICIPAL MANAGER or MANAGER

Receipts or that portion thereof attributable to interstate or foreign commerce or to an office or place of business regularly maintained by the taxpayer outside the limits of the Municipality and not for the purpose of evading payment of this tax and receipts which the Municipality is prohibited from taxing by law. Such receipts shall be segregated as set forth in § 886.05(f).

The Manager as collector of the business privilege tax of the Municipality.

PERSON

A natural person, partnership, unincorporated association or corporation, nonprofit or otherwise. Whenever used in a provision prescribing a fine or a penalty, "person," as applied to partnerships, means the partners thereof, and as applied to corporations and unincorporated associations, the officers thereof.

SERVICES

Diversified activities, other than retail or wholesale vending, including, but not limited to, consultation, repairs, professional advice, preparation of forms, commission sales, rentals, professional treatment and/or counseling, training, supplying men or material, building, engineering, planning, installations and similar activities.

TAX YEAR

The twelve-month period from January 1 to December 31.

TEMPORARY, SEASONAL OR ITINERANT BUSINESS

A business that is conducted at one location for less than 60 consecutive days.

§ 886.04 Imposition and Rate of Tax.

[Ord. 1592, passed 11-20-1979]

Every person engaging in a business in the Municipality beginning with the tax year 1979, and annually thereafter, shall pay an annual tax at the rate of one mill on each dollar of volume of the gross annual receipts thereof.

§ 886.05 Computation of Gross Annual Receipts.

[Ord. 1592, passed 11-20-1979]

Every person subject to the payment of the tax imposed by this chapter who has commenced his or her business at least one full year prior to the beginning of a tax year shall compute his or her annual gross receipts upon the actual receipts received by him or her during the preceding calendar year.

Every person subject to the payment of the tax imposed by this chapter who has commenced or who commences his or her business less than one full year prior to the beginning of a tax year shall compute his or her annual gross receipts for such tax year upon the gross receipts generated by the business transacted within the Municipality during the first month he or she engages in such business activity multiplied by 12.

Every person subject to the payment of the tax imposed by this chapter who commences his or her business after the beginning of the tax year shall compute his or her annual gross volume of business for the tax year upon the gross volume of business transacted by him or her during the first month of his or her engaging in business multiplied by the number of months remaining in the tax year.

(d)

Every person subject to the payment of the tax hereby imposed who engages in a business, temporary, seasonal or itinerant by its nature, shall compute his or her annual gross receipts upon the actual gross receipts received by him or her during such tax year.

(e)

Every person subject to the payment of the tax hereby imposed and who is also subject to the occupation privilege tax levied under Chapter 870 may deduct such occupation privilege tax from the amount of tax due and owing under this chapter.

(f)

Where a receipt in its entirety cannot be subjected 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, including exemptions within this chapter, the Manager shall establish rules and regulations and methods of allocation and evaluation so that only that part of such receipts which is properly attributable and allocable to the doing of business in the Municipality shall be taxed hereunder. The Manager may make such allocation with due regard to the nature of the business concerned on the basis of millage division of the receipt according to the number of jurisdictions in which it may be taxed, the ratio of the value of the properly or assets of the taxpayer owned and situated in the Municipality to the total property or assets of the taxpayer wherever owned and situated, and any other method or methods of calculation other than the foregoing, calculated to effect a fair and proper allocation.

§ 886.06 Return and Registration.

[Ord. 1592, passed 11-20-1979]

Every person subject to the tax imposed by this chapter shall forthwith register with the Manager and set forth his or her name, address, business address and the nature of the business activity in which he or she is engaged.

Every return shall be made upon a form furnished, by the Manager. Every person making a return shall certify the correctness thereof.

§ 886.07 Payment at Time of Filing Return.

Every person subject to the tax imposed by this chapter who has commenced his or her business at least one full year prior to the beginning of any tax year shall, on or before April 15, file with the Manager a return setting forth his or her name, business and business address and such other information as may be necessary in arriving at the annual gross volume of business transacted by him or her during the preceding calendar year, and the amount of the tax due.

(d)

Every person subject to the tax imposed by this chapter who has commenced his or her business less than one full year prior to the beginning of any tax year shall, on or before April 15 of the current tax year, file with the Manager a return setting forth his or her name, business, 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 first month of business, and the amount of tax due.

(e)

Every person subject to the tax imposed by this chapter who commences business subsequent to the beginning of any tax year shall, within 40 days from the day of commencing such business, file a return with the Manager setting forth his or her name, business and 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 his or her first month of business, and the amount of tax due.

(f)

Every person subject to the payment of the tax imposed by this chapter who engages in a business, temporary, seasonal or itinerant by its nature, shall, within seven days from the date he or she completes such business, file a return with the Manager setting forth his or her name, business and business address and such other information as may be necessary in arriving at the actual gross volume of business during the tax period, and the amount of tax due.

[Ord. 1592, passed 11-20-1979]

The person making the return shall, at the time of filing the return, pay the amount of tax shown as due thereon to the Manager.

§ 886.08 Powers and Duties of Manager.

[Ord. 1592, passed 11-20-1979]

It shall be the duty of the Manager to collect and receive the taxes, fines and penalties imposed by this chapter. It shall also 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 receipts.

The Manager is hereby charged with the administration and enforcement of the provisions of this chapter and is hereby authorized to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of this chapter, including provision for the re-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 to make refunds where necessary. A person aggrieved by a decision of the Manager shall have the right to appeal to a court as in other cases provided.

§ 886.09 Suit on Collection; Unpaid Taxes.

The Manager is hereby authorized to compel the production of books, papers and records and the attendance of all persons before him or her, whether as parties or witnesses, whom he or she believes to have knowledge of such receipts and to otherwise administer and enforce this chapter as provided in the document entitled "Business Privilege Tax Ordinance" - rules and regulations pertaining to enforcement and administration, which document is attached to original Ordinance 1592, passed November 20, 1979, and is hereby made a part hereof, as amended.

[Ord. 1592, passed 11-20-1979; Res. 91-021, passed 3-4-1991]

The Manager, on behalf of the Municipality, may sue for the recovery of taxes due and unpaid under this chapter.

If, for any reason, the tax is not paid when due in each year, interest at the rate of 6% per year and an additional surcharge of 1/2 of 1% of the amount of the unpaid tax for each month or fraction thereof during which the tax remains unpaid, shall be added and collected. Where suit is brought for the recovery of any such tax, the person liable therefor shall, in addition, be liable for the cost of collection and the interest and surcharges herein imposed.

§ 886.12 Payment Under Protest; Refunds.

Council hereby authorizes the Municipal Attorney's office to utilize assumpsit lawsuits for the collection of delinquent business privilege taxes when such suits are deemed appropriate.

§ 886.10 Refunds.

[Ord. 1592, passed 11-20-1979]

Every person who ceases to carry on a business during a tax year after having paid the business privilege tax for the entire year shall, upon proper application to the Manager, be entitled to receive a refund of the pro rata amount of the tax paid based upon the period of time he or she was not in business during any tax year. If a person ceases to carry on a business during a tax year before payment of his or her tax becomes due for such tax year, he or she shall be permitted to apportion his or her tax for such tax year and pay an amount to be computed by multiplying his or her gross receipts for the preceding full calendar year by a fraction whose numerator shall be the number of months such person was in business during the tax year and whose denominator shall be 12.

§ 886.11 Applicability.

[Ord. 1592, passed 11-20-1979]

Nothing contained in this chapter shall be construed to authorize the Municipality to levy and collect the taxes hereby imposed on a person, business or portion of a business not within the taxing power of the Municipality under the Constitution of the United States and the laws and Constitution of the Commonwealth.

[Ord. 1592, passed 11-20-1979]

The Municipality is hereby authorized to accept payment under protest of the amount of business privilege tax claimed by the Municipality in a case where the taxpayer disputes the validity or amount of the Municipality's claim for tax. If it is thereafter judicially determined by a court of competent jurisdiction that the Municipality has been overpaid, the amount of the overpayment shall be refunded to the taxpayer.

§ 886.13 Extensions.

[Ord. 1592, passed 11-20-1979]

This chapter and the tax levied hereunder shall continue in full force and effect for the tax year 1979 and each year thereafter without annual re-enactment. All dates referred to herein shall be applicable to each succeeding year.

§ 886.14 Effective Date.

[Ord. 1592, passed 11-20-1979]

The provisions of this chapter shall become effective January 1, 1979.

§ 886.15 Violations.

[Ord. 1592, passed 11-20-1979]

No person shall:

Make a false or untrue statement on his or her return;

Refuse to permit inspection of the books, records or accounts of a business in his or her custody or control when the right to make, such inspection by the Manager is requested;