[Adopted 12-27-2006 by Ord. No. 14-2006; amended in its entirety 12-16-2009 by Ord. No. 21-2009 (Art. 307 of the 1979 Codified Ordinances)]
The following words and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
BUSINESS
Means any activity carried on or exercised for gain or profit in the City including, but not limited to, the sale of merchandise or other tangible personality or the performance of services and the rental of personality and/or realty.
CALENDAR YEAR
Means the period January 1 to December 31, inclusive.
CITY
Means the City of Chester.
LICENSE YEAR
Is the period from January 1 to December 31, inclusive.
PERSON
Means any individual, partnership, limited partnership, association, firm or corporation. Whenever used in any clause prescribing 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 thereof.
TAX ADMINISTRATOR
Is the person duly appointed by Council to administer the within tax.
TAX YEAR
Is the period from January 1 to December 31, inclusive.
TAXPAYER
Means a person subject to the payment of the tax imposed by this article.
TREASURER
Means the Treasurer of the City.
WHOLESALE DEALER or WHOLESALE VENDOR
Means any person who sells to dealers in or vendors of goods, wares and merchandise for resale.
[Amended 12-21-2011 by Ord. No. 11-2011; 12-26-2012 by Ord. No. 20-2012; by Ord. No. 11-2013; 12-24-2013 by Ord. No. 11-2014; 12-30-2015 by Ord. No. 11-2015; 12-28-2016 by Ord. No. 24-2016; 11-22-2017 by Ord. No. 14-2017; 11-28-2018 by Ord. No. 9-2018; 12-11-2019 by Ord. No. 11-2019; 12-23-2020 by Ord. No. 9-2020; 12-22-2021 by Ord. No. 9-2021; 12-28-2022 by Ord. No. 8-2022; 12-18-2024 by Ord. No. 12-2024; 12-10-2025 by Ord. No. 9-2025]
There is hereby levied for 2014 and annually thereafter a tax for general revenue purposes on the privilege of doing business as herein defined in the City of Chester as follows:
A. 
Rate and basis 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 City shall be 2.0 mills (.002). Two mills means $2 per $1,000 of the gross volume of business; except that the rate of tax on each and every dollar of the whole or gross volume of business transacted by wholesale dealers or wholesale vendors within the territorial limits of the City shall be 3.0 mills (.003). All nonwholesale business of such wholesale dealers or wholesale vendors shall be taxed at the general rate of three mills. There is a minimum fee of $20 per year.
B. 
Computation of volume of business.
(1) 
Every person subject to the payment of the tax hereby imposed who has commenced his business prior to the full calendar year prior to the tax year shall compute his annual estimated gross volume of business upon the actual gross amount of business transacted by him during the immediately preceding calendar year.
(2) 
Every person subject to the payment of the tax hereby imposed who has commenced or who commences his business before the beginning of the tax year but after the beginning of the full calendar year prior to the tax year, shall compute his estimated annual gross volume of business for the tax year upon the gross volume of business transacted by him during prior calendar year, taking the monthly average during such period and multiplying the same by 12. In the event that he shall be in business fewer than 90 days in the prior calendar year, he shall be permitted to use sufficient days in the calendar year in which the tax year begins to equal 90 successive days after commencement of business, to take a monthly average thereon, and to multiply the average by 12.
(3) 
Every person subject to the payment of the tax hereby imposed who has commenced or commences his business subsequent to the beginning of the tax year, if there shall be less than three months from the commencement of his business to the end of the tax year, shall compute his annual gross volume of business upon the actual gross amount of business transacted by him during the tax year; if there shall be more than three months from the commencement of his business to the end of the tax year he shall compute his estimated gross volume of business for such tax year upon the gross volume of business transacted by him during the period from the commencement of his business to the end of the tax year, taking the monthly average during the first three months of business and multiplying the same by the number of months from the commencement of business to the end of the tax year.
(4) 
Every person subject to the payment of the tax hereby imposed who engages in a business temporary, seasonal or itinerant by nature, shall compute his estimated gross amount of business to be transacted by him for the period such person engages in such temporary, seasonal or itinerant business within the City by a method to be determined by the Tax Administrator.
(5) 
The Tax Administrator is hereby authorized to accept payment under protest of the amount of business privilege tax claimed by the City in any case where the taxpayer disputes the validity or amount of the City's claim for tax. If it is thereafter judicially determined by a court of competent jurisdiction that the City has been overpaid, the amount of the overpayment shall be refunded to the taxpayer. The provisions of this section shall be applicable to cases in which the facts are similar to those in a case litigated in a court of competent jurisdiction.
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 in the City, or on the preparation of 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 of 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.
D. 
Determination of gross or whole volume business. 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 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) 
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.
(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 City of Chester.
E. 
Partial exemptions. Where 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 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 which is properly attributable and allowable to doing business in the City 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, Pamphlet Law 1257 and its amendments, to the City 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 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 his business so as to show clearly, accurately, and separately the amount of such sales and services as are excluded from the tax and the amounts of such sales and services which he is entitled to deduct 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 affidavit.
B. 
Every person subject to the tax imposed by this article who commenced his business on or before January 1 of the full calendar year previous to the beginning of any tax year shall, on or before the 15th day of April of the tax year, file with the Tax Administrator a return setting forth his name, his business name, business address and such other information as may be necessary in arriving at the actual gross amount of business transacted by him during the preceding calendar year and the amount of tax due. He shall submit a Schedule "C," Form 1065 or Form 1120, whichever is applicable for verification. At that time he shall pay any balance due for the preceding calendar year, together with the estimated tax for the forthcoming year based upon the profit and loss sheets submitted for the previous year.
C. 
Every person subject to the tax imposed by this article who has commenced his business before the beginning of the tax year but after January 1 of the full calendar year previous to the beginning of the tax year shall, on or before the 15th day of April of the tax year, file with the Tax Administrator a return setting forth his name, his business name, business address, and such other information as may be necessary in arriving at the estimated gross amount of business transacted by him as calculated under § 503-29B(2) hereof and the amount of tax due, provided 100 days have elapsed from the commencement of the business to April 15 of the tax year. If a taxpayer has not been in business for 100 days as of April 15 of the tax year, whether or not he commenced business within the tax year, his return shall be filed within 100 days of the commencement of his business.
D. 
Every person subject to the payment of the tax imposed by this article who engages in a business 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 Administrator setting forth his name, his business name, his business address and such information as may be necessary in arriving at the estimated gross amount of business to be transacted by him as calculated in accordance with § 503-29B(4).
E. 
Any person going out of 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 the tax year in which such 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. 
Payment of tax and penalties for late payment. 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 return as set forth above and if the same is not paid on such date, 10% penalty shall be added thereto, plus an additional 1% interest per month or fractional part of a month until paid.
G. 
Receipt. The Treasurer shall, upon payment to him of the business privilege tax, give the person paying the same a receipt therefor.
After the effective date of this section, any person desiring to conduct, or to continue to conduct any business, as herein defined, within the City shall file with the Tax Administrator an application for a business privilege license and shall pay a fee of $5 for the initial license and $5 for each renewal thereof.
The license issued shall be conspicuously posted in the place of business for which the 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 tax due hereunder shall be refused a license until such tax is paid in full.
A. 
The Treasurer is charged with the duties of receiving the taxes, fines and penalties imposed by this article. It shall be his duty to keep a record showing the amount received by him from each person paying the tax and the date of such receipt.
B. 
The Tax Administrator and his duly appointed deputies under the direction of the Director of Accounts and Finance are hereby empowered with the approval of Council 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 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 Administrator or his duly appointed deputies shall assess the person or persons on such an amount of whole or gross volume of business as the Tax Administrator or his deputies deem reasonable and appropriate. In all cases of assessment, the Tax Administrator or his duly appointed deputies 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 him to make 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 or his deputies to verify all transactions. The Tax Administrator or his deputies are 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. 
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 City, as a result of any returns, investigations, hearings or verifications required or authorized by this article, shall be confidential, except in accordance with proper juridical order or as otherwise provided by law.
A. 
The Tax Administrator or his duly appointed deputies shall have the power in the name of the City 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 City 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 City 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 article shall be 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 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 Council that this article would have been adopted if such illegal, invalid or unconstitutional provisions had not been included herein.
A. 
Any person who conducts, transacts or engages in any of the businesses subject to the tax imposed by this article, without having first secured a business privilege license for the year, or any person who fails to file a tax return as required by the provisions of this article, or any person who willfully files a false return, shall, upon summary conviction before any District Justice, be sentenced to pay a fine not to exceed the sum of $300 for any one offense, recoverable with costs, or imprisonment not exceeding 90 days, if the amount of such fine and costs shall not be paid.
B. 
Each day on which such person violates this article may be considered as a separate offense and punishable as such as aforeprovided.