This article shall be known as the "Business Privilege Tax Ordinance."
[Adopted 5-5-1983 by Ord. No. 440]
The following words and phrases, when used in this article, shall have the following meanings:
The Borough of Sinking Spring.
Any activity carried on or exercised for gain or profit within the Borough of Sinking Spring, including but not limited to:
The sale of merchandise or other tangible personalty.
The performance of services.
The rental of personalty and/or realty.
Those enterprises engaged in by hotel operators, motel operators, parking lot and garage operators, warehouse operators, lessors of real estate, lessors of tangible personal property, physicians and surgeons, osteopaths, podiatrists, chiropractors, veterinarians, optometrists, opticians, pharmacists, lawyers, dentists, engineers, surveyors, architects, chemists, accountants, certified public accountants, funeral directors, promoters, factors, commission merchants, agents, brokers, manufacturers' representatives, advertising and public relations agencies, real estate brokers, insurance brokers and agents, cable television operators, barbershop operators and beauty shop operators, cleaning, pressing and dyeing establishment operators, laundry operators, shoe repair operators, tailors, upholsterers, electrical, plastering, brick laying, carpentry, heat, ventilation, air conditioning, plumbing and painting contractors, general contractors of any nature or kind engaged in any class of building or construction, remodeling or alteration, repairers of electrical, electronic and automotive machinery and equipment or other machinery or equipment and other wares and merchandise.
All other persons engaged in any other activity whatsoever carried on or exercised for gain or profit within the Borough of Sinking Spring.
The period July 1 to June 30, inclusive, and because this article shall continue in force from year to year on a fiscal-year basis without annual reenactment, each and every successive fiscal year thereafter.
The actual gross consideration credited or received for or on account of sales made, rentals and/or services rendered by any business subject to this article.
Any individual, partnership, limited partnership, association, firm, corporation, or other entity engaging in business. As used in § 174-39, entitled "Violations and Penalties," the term "person" shall include the partners or members of an association and the officers of a corporation.
[Amended 12-28-2011 by Ord. No. 590]
Any act or instance of helping or benefiting another for a consideration.
[Added 12-28-2011 by Ord. No. 590]
The person duly appointed by the Borough Council of the Borough of Sinking Spring to administer and collect the within tax.
A person subject to the payment of the tax imposed by this article.[1]
The calendar year, January 1 through December 31, of a given year.
[Amended 12-28-2011 by Ord. No. 590]
The Treasurer of the Borough of Sinking Spring.
Any person who sells to dealers in or vendors of goods, wares and merchandise and to no other persons.
[1]
Editor's Note: The former definition of "tax quarter," which immediately followed this definition, was repealed 12-28-2011 by Ord. No. 590.
[Amended 12-28-2011 by Ord. No. 590]
There is hereby levied for the tax year and annually thereafter, without reenactment, a tax payable and due annually for general revenue purposes on the privilege of doing business as herein defined within the Borough of Sinking Spring, as follows:
A.
Rate and basis of tax. The rate of the tax on each and every dollar of the gross volume of business transacted within the territorial limits of the Borough shall be 1 1/2 mills. One and one-half mills shall mean $1.50 per $1,000 of gross volume of business, except that the rate of the tax on each and every dollar of the gross volume of business transacted by wholesale dealers or vendors within the territorial limits of the Borough shall be one mill. All nonwholesale business of such wholesale dealers or wholesale vendors shall be taxed at the general rate of 1 1/2 mills.
B.
Computation of volume of business.
(1)
Every person subject to the tax hereby imposed who has commenced business at least a full year prior to the beginning of the tax year shall compute the estimated whole volume of business for that tax year upon the actual gross amount of business transacted by such person during the 12 months preceding.
(2)
Every person subject to the tax hereby imposed who has commenced business less than one full year prior to the beginning of a tax year shall compute the estimated whole volume of business for that tax year by multiplying by 12 the monthly average of the actual gross amount of business transacted by him during the months he was engaged in business prior to January 1.
(3)
Every person subject to the tax hereby imposed who commences his business subsequent to the beginning of a tax year shall compute the estimated whole volume of business for that tax year upon the actual gross amount of business transacted by him during the first month of his engaging in business multiplied by the number of months remaining in the year.
(4)
Every person subject to the tax hereby imposed who engages in a business that is temporary, seasonal or itinerate in nature, shall compute his annual whole volume of business for the tax year upon the actual whole amount of business transacted by him during such tax year.
(5)
The Tax Administrator and/or Treasurer 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.
(6)
Payments made under the mercantile tax for business to which this tax is applicable shall be credited to this tax and vice versa.
C.
Persons, business and receipt 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 act of assembly are exempt from the provisions of this article.
(2)
No such tax shall be assessed and collected on the gross receipts from utility services of any person or company whose rates of service are fixed and regulated by the Pennsylvania Public Utility Commission; or 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.
(3)
State tax and 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, on sale or other transfers of title or possession of property.
(4)
Production and manufacture. No such tax shall be assessed and collected on goods and articles manufactured in the district or on the by-products of manufacture, or on minerals, timber, natural resources and foreign products produced in the district or on the preparation or processing thereof for use or market, or on any privilege, act or transaction related to the business of manufacturing; the production, preparation or processing of minerals, timber and natural resources, or foreign products, by manufacturers, by producers and by farmers with respect to the goods, articles and products of their own manufacture, production or growth, or on any privilege, act or transaction related 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 volume business. Gross volume of business upon which the tax hereunder is computed shall include the actual 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)
Refund, 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 Wilson School District.
E.
Partial exemptions. Where gross 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 of the Borough of Sinking Spring, shall establish rules and regulations and methods of allocation and evaluation so that only that part of the gross 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 the same tax on the same subject imposed under the Local Tax Enabling Act (1965), December 31, 1965, P.L. 1257, and its amendments,[1] 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 said enabling act permitting the imposition of such taxes.
[1]
Editor's Note: See 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 to show clearly, accurately and separately the amount of sales and services excluded from the tax and the amounts of sales and services which are entitled to be deducted from the gross volume of business as hereinbefore provided.
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 signature.
B.
Every person subject to the tax hereby imposed who has been in business or commenced business during the tax quarter of July 1, 1983, to September 30, 1983, must file a return and pay his tax on or before October 31, 1983.
C.
Beginning with tax year 2012 and for each subsequent tax year, every person subject to the tax hereby imposed who has commenced his business at least one full year prior to the beginning of the tax year shall, on or before the 15th day of April following, file with the Business Privilege Tax Collector a return setting forth his name, his business and business address and such other information as may be required by the Tax Collector to compute the actual gross volume of business transacted by him during the tax year immediately prior and the amount of tax estimated to be due for the then current tax year. Each return shall show the actual gross volume of business transacted by the taxpayer during the preceding tax year, the amount of tax paid previously as an estimate for the preceding tax year, the amount of tax, if any, remaining due for the preceding year, and the amount of estimated tax due for the current tax year.
[Amended 12-28-2011 by Ord. No. 590]
(1)
Every person subject to the tax hereby imposed who has commenced his business less than one full year prior to the beginning of the tax year shall, on or before the 15th of April following, file with the Business Privilege Tax Collector a return setting forth his name, his business and business address and such other information as may be required by the Tax Collector to compute the actual gross volume of business transacted by him during the tax year immediately prior and the amount of tax estimated to be due for the then current tax year. Each return shall show the actual whole volume of business transacted by the taxpayer during the preceding tax year, the amount of tax paid previously as an estimate for the preceding tax year, the amount of tax, if any, remaining due for the preceding year, and the amount of estimated tax due for the current tax year.
(2)
Every person subject to the tax hereby imposed who has commenced his business subsequent to the beginning of the tax year shall, within 60 days from the date of commencing such business, file with the Business Privilege Tax Collector a return setting forth his name, his business and business address and such other information as may be required by the Tax Collector and shall compute and show the amount of tax estimated to be due for the then current tax year.
D.
Every person subject to the tax hereby imposed who engages in a business which is temporary, seasonal or itinerate by its nature and of a duration not exceeding 60 days shall, within seven days from the day he completes such business, file with the Business Privilege Tax Collector a return setting forth his name, his business address and such other information as may be required by the Tax Collector to compute the actual gross amount of business transacted by him during such period and the amount of the tax due.
[Amended 12-28-2011 by Ord. No. 590]
E.
Any person ceasing to do business during the tax year shall, within 14 days from the date of ceasing to do business, file a final return showing the actual gross volume of business conducted during that portion of the tax year in which said person was actually in business and pay the tax due as computed thereon.
[Amended 12-28-2011 by Ord. No. 590]
F.
Payment of tax and penalties for late payments. The business privilege tax levied pursuant to this article shall be due and payable on the date which the taxpayer is required to file a return as set forth above. All taxes due under this article shall bear interest at the rate of 1 1/2% per month or fraction of the month from the day they are due and payable until paid. If any taxpayer shall neglect or refuse to make any return or payment as and when required, a penalty in the amount of 10% of the amount of the tax shall be added and collected.
[Amended 12-28-2011 by Ord. No. 590]
[Amended 12-28-2011 by Ord. No. 590]
A.
Any person who shall conduct, transact or engage in any of the businesses subject to the tax imposed by this article 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 or who commits any other violation subject to this article shall, upon conviction in a summary proceeding under the Pennsylvania Rules of Criminal Procedure, be guilty of a summary offense and shall be punishable by a fine of not more than $1,000, plus court costs and reasonable attorneys' fees incurred by the Borough in the enforcement proceedings. Upon judgment against any person by summary conviction, or by proceedings by summons on default of the payment of the fine or penalty imposed and the costs, the defendant may be sentenced and committed to the Borough correctional facility for a period not exceeding 10 days or to the county correctional facility for a period not exceeding 30 days. Each day that such violation exists shall constitute a separate offense, and each section of this chapter that is violated shall also constitute a separate offense. In addition to or in lieu of enforcement under this section, the Borough may enforce this chapter in equity in the Court of Common Pleas of Berks County.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
B.
This penalty shall be in addition to all other penalties and interest as may be set forth herein.
Each day on which such person violates this article may be considered as a separate offense and punishable as such as provided above.
A.
The Tax Administrator is charged with the duty of collecting and receiving the taxes, fines and penalties imposed by this article. It shall be the Tax Administrator's duty to keep a record showing the amount received from each person paying the tax and the date of such receipt.
B.
The Tax Administrator, under the direction of the Borough Council of the Borough of Sinking Spring, is hereby empowered 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 he is charged with enforcing the provisions of this article and any rules and/or regulations promulgated pursuant hereto.
C.
In the event that the person to be assessed neglects or refuses to make a return, then in such case the Tax Administrator shall assess said person or persons on such an amount of gross volume of business as the said Tax Administrator deems reasonable and appropriate. In all cases of assessment, the Tax Administrator 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 the making of 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 to verify all transactions. The Tax Administrator is 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.
The Tax Administrator shall promptly pay over to the Borough's Treasurer all moneys collected pursuant to this article.
F.
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 and/or Treasurer 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.
A.
Nothing contained in this article 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 Constitution of the Commonwealth of Pennsylvania.
B.
If the tax or any portion thereof imposed upon any person under the provisions of this article shall be held by any court of competent power or jurisdiction to be in violation of the Constitution of the United States or of the Commonwealth of Pennsylvania or any other provision of the 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.
This article is enacted pursuant to the authority of the Local Tax Enabling Act, December 31, 1965, P.L. 1257, as amended,[1] and shall become effective 30 days after it has been passed by the Borough Council of the Borough of Sinking Spring and shall continue thereafter without annual reenactment unless amended or repealed.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.