This article shall be known as the "Business Privilege Tax Ordinance."
[Adopted 11-28-2011 by Ord. No. 385 (Ch. XXIX, Part 9, of the 2013 Code of Ordinances)]
The following words and phrases, when used in this article, shall have the following meanings:
Any activity carried on or exercised for gain or profit within the Township of 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; and including, but not limited to,
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, manufacturer's representatives, advertising and public relations agencies, real estate brokers, insurance brokers and agents, cable television operators, barber shop 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, and all other Persons, engaged in any other activity, whatsoever, carried on or exercised for gain or profit within the Township of Spring.
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. For the purposes of this article, "Gross Volume of Business" is intended to also mean "Whole Volume of Business."
Any individual, partnership, limited partnership, association, firm, corporation or other entity engaging in business. As used in § 408-70 below, the term "Person" shall include the partners or members of an association and the officers of a corporation.
Any person who is a dealer in, or vendor of, goods, wares and merchandise who is not a Wholesale Dealer or a Wholesale and Retail Dealer as herein defined.
Any act or instance of helping or benefiting another for consideration.
The Person duly appointed by the Board of Supervisors of the Township of Spring to administer and collect the within tax.
The Township of Spring's fiscal year, which is the period from January 1 to December 31, inclusive, and because this article shall continue in force from year to year on a Township fiscal year basis without annual reenactment, each and every successive Township fiscal year thereafter.
A Person subject to the payment of the tax imposed by this article.
Any business that is conducted at one location for less than 60 consecutive days.
The Township of Spring, Berks County, Pennsylvania.
The period January 1 to December 31, inclusive, and because this article shall continue in force from year to year on a Township calendar year basis without annual reenactment, each and every successive Township calendar year thereafter.
The Treasurer of the Township of Spring.
Any person who sells to dealers in, or vendors of, goods, wares and merchandise and to no other Persons.
Any person who sells to dealers in, or vendors of goods, wares and merchandise and to no other Persons.
There is hereby levied for the second half of Township Fiscal Year 1983, i.e., from July 1, 1983, to December 31, 1983, and annually thereafter on the Township Fiscal Year basis, without reenactment, a tax payable and due for general revenue purposes on the privilege of doing business as herein defined within the Township of 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 Township shall be 1 1/2 mils 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 Township shall be one mil. All non-wholesale business of such Wholesale Dealers or Vendors shall be taxed at the general rate of 1 1/2 mils.
B.
Computation of whole 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 a 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 during the months engaged in business prior to January 1.
(3)
Every Person subject to the tax hereby imposed, who commences business subsequent 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 during the first month of engaging in business, multiplied by the number of months remaining in the Tax Year.
(4)
Every Person subject to the tax hereby imposed, who engages in a business that is temporary, seasonal or itinerant in nature, shall compute their annual Whole Volume of Business for the Tax Year upon the actual whole amount of business transacted during such Tax Year.
(5)
The Tax Collector and/or Treasurer is hereby authorized to accept payment under protest of the amount of business privilege tax claimed by the Township in any case where the Taxpayer disputes the validity or amount of the Township'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.
(7)
Beginning January 1, 2012, and for each Tax Year thereafter, the Tax Year shall be a calendar year, January 1 through December 31. To effect the transition from fiscal year quarterly filing to calendar year annual filing, the immediate prior fiscal year, July 1, 2010, through June 30, 2011, shall end on June 30, 2011. Each Taxpayer shall file a tax return for the tax quarter July 1, 2011, through September 30, 2011, and pay taxes due on Gross Volume of Business in said quarter, on or before October 31, 2011. Each Taxpayer shall file a tax return for the tax quarter October 1, 2011, through December 31, 2011, and pay all taxes due on Gross Volume of Business in said quarter, on or before January 31, 2012. Beginning January 1, 2012, and for each Tax Year thereafter, each Taxpayer shall file an annual tax return on April 15 of each year as provided in this article.
C.
Persons, business and receipts 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 a privilege, transaction, subject or occupation which is subject to a state tax or license fee, and which tax or license fee has been held by the courts of Pennsylvania to be the basis for exemption from the imposition of a business 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)
Production and manufacture. No such tax shall be assessed and collected on goods, articles and products, or on by-products of manufacture, or on minerals, timber, natural resources and farm products, manufactured, produced or grown within the Township 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.
(6)
Construction of or improvement to residential dwellings. No such tax shall be assessed and collected on the construction of or improvement to residential dwellings.
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 of 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 Township of Spring.
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 Collector, with the approval of the Board of Supervisors of the Township of 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 Township 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 31, 1965, P.L. 1257, and its amendments, to the Township 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 Local Tax 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 their 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.
Beginning with Tax Year 2012 and for each subsequent Tax Year, every Person subject to the tax hereby imposed who has commenced 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 Tax Collector a return setting forth his name, business name, 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.
B.
Every Person subject to the tax hereby imposed who has commenced business less than one year prior to the beginning of the Tax Year shall, on or before the 15th day of April following, file with the Tax Collector a return setting forth his name, business name, business address and such other information as may be required by the Tax Collector to compute the actual Gross Volume of Business transacted 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 Tax Year, and the amount of estimated tax due for the current Tax Year.
C.
Every Person subject to the tax hereby imposed who commences business subsequent to the beginning of the Tax Year shall, within 60 days from the date of commencing such business, file with the Tax Collector a tax return setting forth his name, business name 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 Temporary, Seasonal or Itinerant Business by nature and of a duration not exceeding 60 days shall, within seven days from the date they complete such business, file with the Tax Collector a return setting forth their name, business name, business address and any other information as may be required by the Tax Collector to determine the actual Gross Volume of Business for the period they engaged in business during the tax quarter and pay the amount due.
E.
Any person going out of or ceasing to do business during the Tax Year shall, within 14 days from the date of ceasing to do business, file a 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.
F.
All taxes due under this article shall bear interest at the rate of 1 1/2% per month or fraction of a month from the date 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.
Any person who shall conduct, transact or engage in any of the businesses subject to the tax imposed by this article who fails, neglects or refuses to comply with any of the terms or provisions of this article or of any regulations or requirements made pursuant hereto and authorized hereby, or who knowingly makes any false or untrue statement on his return, or who refuses to permit inspection of any books, records or accounts of any person when the right to make such inspection is requested by the Tax Collector, or who fails or refuses to file a return required by this article, or who fails or refuses to pay any tax, interest or penalties required by this article, shall, upon conviction thereof before any Magisterial District Judge of Berks County, be sentenced to pay a fine of not more than $300 and costs of prosecution for each offense, and in default of the payment of said fine and costs he shall be imprisoned in the Berks County Prison for a period not exceeding 30 days for each offense. Each and every day that any such offense occurs or continues shall be considered a separate offense. The fine imposed by this section shall be in addition to any other penalty imposed by any other section of this article.
Each day on which such Person violates this article may be considered as a separate offense and punishable as such as aforeprovided.
A.
At the time of filing a tax return, each Taxpayer shall pay an estimated tax for the current year and any balance of taxes due for the Tax Year immediately preceding. The estimated tax shall be calculated as provided above. The balance of tax due for the preceding Tax Year shall be the difference between the amount of the tax paid as an estimate for said preceding Tax Year and the amount of the tax finally shown to be due.
B.
All taxes, interest and penalties imposed under the provisions of this article shall be payable to the Tax Collector.
A.
The Tax Collector is charged with the duty of collecting and receiving the taxes, fines and penalties imposed by this article. It shall be the Tax Collector'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 Collector, under the direction of the Board of Supervisors of the Township of Spring, is hereby empowered to prescribe, adopt and promulgate rules and regulations relating to any matter pertaining to the administration and enforcement 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 charged with enforcing the provisions of this article and any rules and/or regulations promulgated pursuant hereto.
C.
In the event the Person to be assessed neglects or refuses to make a return, then in such case the Tax Collector shall assess said Person or Persons on such an amount of Gross Volume of Business as the said Tax Collector deems reasonable and appropriate. In all cases of assessment, the Tax Collector 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 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 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 due tax due.
E.
The Tax Collector shall promptly pay over to the Township's Treasurer all monies collected pursuant to this article.
Any information gained by the Tax Collector or any other official, agent or employee of the Township 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 Collector and/or Treasurer shall have the power in the name of the Township 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 therefore 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 Township to levy and collect the taxes hereby imposed on any person, any business, or any portion of any business not within the taxing power of the District under the Constitution of the United States and the laws of the 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.
C.
The provisions of this article are severable, and if any of its provisions shall be held illegal, invalid or unconstitutional, the decision of the court shall not affect or impair any of the remaining provisions of this article. It is hereby declared to be the intention of the Board of Supervisors of the Township of Spring that this article would have been adopted if such illegal, invalid or unconstitutional provisions had not been included herein.