[Adopted 12-16-1986 as Ord. No. 1639;
amended in its entirety 12-15-1992 by Ord. No. 1767-92]
This Article shall be known and may be cited
as the "Business Privilege Tax Code," herein referred to as the "code".
The following terms, words or phrases as used
in this article shall have the meanings set forth below unless the
context clearly indicates a different meaning:
Carrying on or exercising whether for gain or
profit or otherwise within the Township any trade, business (including
temporary business or itinerant), including but not limited to financial
business as herein defined, profession, vocation, service, construction,
communication or commercial activity, or rendering service from or
attributable to a bona fide office or place of business within the
Township. Any person who has no office separate from his residence
located in the Township shall be considered as conducting his "business,
trade, occupation or profession" from his residence, but this provision
shall not be construed as permitting any business in a location where
zoning laws prohibit the conduct of a business.[1]
The term "business, trade, occupation and profession"
includes, without being limited to, any service or services rendered
by any person as enumerated below:
[Amended 4-17-2019 by Ord. No. 2383-19]
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Advertising and public relations agencies.
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Agents.
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Apartment and rooming house operators.
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Architects.
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Barbershop operators.
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Beauty shop operators.
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Bricklaying.
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Brokers.
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Cable television operators.
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Carpentry.
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Certified public accountants.
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Chemists.
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Chiropractors.
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Cleaning, pressing and dyeing establishment
operators.
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Commission merchants.
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Consultants.
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Contractors or subcontractors engaged in alteration,
building, construction, maintenance or repair of any kind of real
or personal property.
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Dentists.
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Electrical.
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Engineers.
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Equipment repair.
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Factors.
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Family day-care centers.
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Funeral directors.
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Health services.
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Heat.
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Hotel operators.
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Insurance brokers and agents.
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Laundry operators.
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Lawyers.
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Lessor's leasing of real and tangible personal
property for commercial or residential purposes.
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Management services of any kind pertaining to
any real or personal property situate within the Township.
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Manufacturer's representatives.
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Motel operators.
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Nurses.
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Operators of places of amusement providing either
passive or active recreation.
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Optometrists.
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Osteopaths.
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Parking lot and garage operators.
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Pharmacists.
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Physicians.
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Plastering, dry wall or insulation.
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Podiatrists.
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Promoters.
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Public accountants.
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Real estate brokers.
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Real estate developers.
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Shoe repair shop operators.
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Social workers.
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Surgeons.
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Tailors.
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Teachers.
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Therapists.
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Travel agents.
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Upholsterers.
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Vending machine operators.
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Ventilating.
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Veterinarians.
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Warehouse operators.
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The Finance Officer of the Township of Cheltenham or his
duly authorized or deputized agents.
Services and transactions rendered by banks, bankers, trust
companies, credit and investment banking companies, holding companies,
dealers, brokers in money, credits, commercial paper bonds, notes,
securities and stocks, commodities, options and monetary metals.
All gross receipts of cash, credits or property
of any kind or nature received in cash or credit transactions, allocable
or attributable to the Township whether derived from within or outside
the Township and regardless of the taxpayer's method of accounting,
for services rendered by any business, trade, occupation or profession,
without deduction therefrom on account of the cost of property sold,
materials used, labor, service or other cost, interest or discount
paid or any other expense.
The term "gross receipts" shall not include:
In the case of a financial business, the cost
of securities and other property sold, exchanged, paid at maturity
or redeemed or money received in payment of advances, credits and
loans (not to exceed the principal amount of such advances, credits
and loans) and deposits.
In the case of a broker, any portion of the
fees or commissions with respect to any transactions paid by him to
another broker, underwriter or insurer on account of a purchase or
sale of the contract for goods, commodities or insurance contract
initiated by or exercised or cleared in conjunction with such other
broker.
Federal excise tax or sales tax due to the Commonwealth
of Pennsylvania.
The Manager of the Township of Cheltenham.[2]
All definitions, conditions and provisions set forth in Article II of this chapter, known as the "Mercantile License Tax Code," are incorporated by reference and to be read in conjunction with the terms of this article.
Any individual, partnership, limited partnership, joint venture,
association, syndication, corporation or any other entity or taxpayer
of any kind engaged in a business, trade, occupation or profession
within the limits of the Township.
Any act or instance of helping or benefiting another for
consideration.
The twelve-month period beginning the first day of January
(or, in the case of a person commencing business any day after the
first day of January, the first day in the tax year in which a person
commences a business, trade, occupation or profession in the Township)
and ending the 31st day of December immediately following.
Any business, trade, occupation or profession that is conducted
or carried on within the limits of the Township for fewer than 30
consecutive business days during the tax year.
The Township of Cheltenham, a First Class Township governed
by the provisions of its Home Rule Charter, coextensive with the geographical
boundaries of such Township.
A.
Every person desiring to engage in a business, trade,
occupation or profession within the limits of the Township shall,
on or before the 15th day of April of the tax year or prior to commencing
business in such tax year, make application for registration for each
place of business in the Township. Such registration shall be made
by the completion of an application furnished by the Collector and
the payment of a fee, to be set forth from time to time by resolution
of the Board of Commissioners.[1] Each application for registration shall be signed by the
applicant, if a natural person, and in the case of an association
or a partnership, by a member or partner thereof, and in case of a
corporation, by an officer thereof. Each applicant shall receive a
certificate of registration from the Collector, which shall not be
assignable. In the case of loss, defacement or destruction of any
certificate, the person to whom the certificate was issued shall apply
to the Collector for a new certificate, for which a fee, to be set
forth from time to time by resolution of the Board of Commissioners,
shall be charged.[2]
B.
The failure or omission of any taxpayer subject to Article II, Mercantile License Tax, to properly comply with the requirements of this article shall result in that taxpayer's inability to renew or procure a mercantile license for his or her place of business. No such license shall be renewed or issued until the taxpayer has complied with the terms and requirements of this article. Should a business continue to engage in operations without a license, then such business is subject to pay a penalty as set forth in §§ 270-38 and 270-48 and further may be subject to closure by the Township.
A.
All persons required to pay a business privilege tax under the provisions of this article shall be exempted from paying such tax to the extent that gross receipts are derived from the sale of goods, wares and merchandise subject to Article II of this chapter, as amended from time to time, provided that such person has also paid the appropriate mercantile tax under said Article II and supplies in the regular course of business an itemized bill to his/her vendee separating the cost of services rendered and the cost of goods, wares and merchandise supplied. The Collector or his or her delegates shall have the authority to seek rulings or opinions from the Township Solicitor and to promulgate these opinions and rulings or issue regulations.
B.
Agencies of the Government of the United States or
of the Commonwealth of Pennsylvania, or political subdivisions thereof,
or not-for-profit corporations or trusts or associations organized
solely and exclusively for religious, educational or charitable purposes
and not conducting any regular or established business competing commercially
with any person subject to the tax imposed by this article, provided
that such exempt or not-for-profit corporation or entity is also exempt
from income tax under the Internal Revenue Code of 1986, as amended,
shall be exempt from tax under this article.
A.
There is imposed on every person exercising the privilege
of carrying on a business, trade, occupation or profession within
the limits of the Township an annual business privilege tax on gross
receipts for the preceding year beginning January 1, 1986, and each
year thereafter at the rate of four mills on such person's gross receipts
for the immediately preceding year; provided, however, that such gross
receipts shall not be taxable unless in excess of two thousand five
hundred ($2,500.) dollars per tax year.
B.
All taxes and estimated taxes due and payable under
this article shall bear interest at the rate of one and one-fourth
percent (1 1/4%) per month or fractional part of a month from
the day such tax becomes due and payable, until paid. If any person
shall neglect or refuse to make any return or payment by the date
as herein required, an additional 10% of the amount of tax shall be
added and collected in the same manner as such tax.
A.
In addition to the annual tax provided in § 270-38A above, every person shall pay an estimated business privilege tax at the rate of four mills of the annual estimated gross receipts for the current tax year in which engaged in a business, trade, occupation or profession within the limits of the Township, which estimated tax shall be computed as hereinafter provided.
B.
The following subsections refer to the computation
of the annual tax on estimated gross receipts:
(1)
Every person subject to the payment of the estimated
tax hereby imposed who has commenced business at least a full year
prior to January 1 of the tax year shall compute estimated gross receipts
based upon such person's actual gross receipts during the 12 months
preceding such January 1.
(2)
Every person subject to the payment of the estimated
tax hereby imposed who has commenced business less than one full year
prior to such January 1 shall compute estimated gross receipts by
multiplying by 12 the monthly average of such person's actual gross
receipts during the months while engaged in business prior to such
January 1.
(3)
Every person subject to the payment of the estimated
tax hereby imposed who commences business subsequent to such January
1 shall compute gross receipts for the tax year upon such person's
gross receipts for the first complete month of business multiplied
by the number of months remaining in the tax year.
C.
Every person subject to the estimated tax hereby imposed shall make a return and pay the estimated tax to the Collector based on the estimated gross receipts of the taxpayer on or before April 15 of the year following in the case of a taxpayer described in § 270-39A and within 60 days after commencing to engage in business, trade, occupation or profession in the case of a taxpayer described in § 270-39B(1), (2) and (3) above.
A.
Every return and estimated return as required by this
article shall be made upon a form furnished by the Collector, with
appropriate instructions to furnish such additional information as
may be reasonably necessary to determine proper tax liability and
to reconcile taxpayer's allocation of gross receipts with total gross
receipts. Every person making such return shall certify to the correctness
thereof by signing such return under penalties of perjury and criminal
prosecution therefor.
B.
Every person subject to the tax imposed by this article
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 Collector a return setting forth such person's name,
business and business address and such other information as may be
necessary to compute the annual gross receipts of such person during
the preceding year and the amount of tax estimated to be due.
C.
Every person subject to the tax imposed by this article
who has commenced business less than one full year prior to the beginning
of the tax year shall, on or before the 15th day of April following,
file with the Collector a return setting forth such person's name,
business and business address and such other information as may be
necessary to compute the annual gross receipts of such person during
the preceding year and the amount of tax estimated to be due.
D.
The Collector is authorized to grant extensions of
time for filing tax returns not to exceed 124 days based upon written
requests received on or before the due date of such return.
A.
At the time required for the filing of any return
or estimated return hereunder, the person required to make the same
shall pay the tax on the prior year's receipts and/or estimated tax
on the current year's projected receipts shown or expected to be due
on such return, without regard to any extension of time granted by
the Collector for the filing of returns.
B.
At the time of making the final return, if the full
amount of the tax due by the taxpayer for the tax year has not been
paid, the taxpayer shall pay the remaining balance of the tax which,
shall be the difference between the amount of the tax paid at the
time of making the estimated return on the estimated gross receipts
and the amount of tax shown to be finally due on the actual gross
receipts for the tax year.
C.
The Collector is not authorized to grant extensions
of time in which to make payment of tax or estimated tax due as provided
herein or to waive or abate the interest due thereon.
A.
It shall be the duty of the Collector to collect and
receive the taxes, interest, penalties and costs imposed hereunder.
It shall also be the duty of the Collector to keep appropriate tax
records for each tax year, showing the name and address of taxpayers,
the amount of the tax reported to be due, the amount received and
the date of payment(s).
B.
If no return is filed or if the Collector is not satisfied
with the return and payment of the tax required under the provisions
of this article, the Collector is hereby authorized and empowered
to prepare and send by certified or registered mail a notice of proposed
deficiency to the taxpayer's last known address, based upon the facts
contained in the return or upon such information and belief as is
available to the Collector. For this purpose, the Collector or the
Deputy or authorized agent of the Collector is authorized to request,
examine and obtain from any person legible copies of the books, papers,
records and federal and state income tax returns of such person reasonably
necessary to verify the accuracy of any return required to be made
under the provisions hereof. The taxpayer shall have 30 days from
the date of such notice of proposed deficiency in which to answer
the Collector's notice of proposed deficiency.
C.
Upon receipt of the taxpayer's answer, or if any person
shall neglect, fail or refuse to answer the Collector's notice of
proposed deficiency, then the Collector may prepare such returns and
assess and levy the tax, interest and penalty due as provided herein.
The Collector shall then submit such return to the taxpayer at his
last known address for signature, which may then be received by the
Collector as the return of such person, and an assessment may be entered
on the basis of such return.
D.
If any person fails to sign any return prepared by
the Collector or fails to complete and sign any return required by
law hereunder at the time prescribed therefor or makes, willfully
or otherwise, a false, incorrect or fraudulent return, the Collector
shall make such return from the knowledge and information available
to him, and, when subscribed by the Collector on behalf of the taxpayer,
the amount of tax due may be entered on the assessment roll or other
appropriate document and may thereafter be collected as provided herein.
E.
Any returns so submitted and subscribed as provided
herein shall be prima facie good and sufficient for all legal purposes,
and the taxpayer shall have the burden of proof in any legal proceeding
to rebut by clear and convincing evidence the Collector's assessment.
F.
If the final return of the taxpayer shows an overpayment
of the tax by reason of the fact that the gross receipts as stated
in the estimated computation were more than the actual gross receipts
of the taxpayer for the year or by reason of the fact that the taxpayer
did not continue to engage in business throughout the year, the Collector
shall petition the Township for a refund to the taxpayer the amount
of such overpayment, which shall be the difference between the amount
of tax, interest and penalties paid upon the filing of the first return
and the amount of the tax, interest and penalties finally shown to
be due.
G.
Any information contained on the returns of a taxpayer
and any information obtained as a result of the estimation of the
books and records of the taxpayer shall be confidential except for
official purposes and except for purposes of pursuing the judicial
remedies available to the Collector. The information on the license
application shall be a public record.
H.
The Collector may enter into such agreements, compacts
or covenants with any other authorities of other political subdivisions
of the Commonwealth of Pennsylvania or with the Secretary of the Treasury
of the United States for access to tax returns of persons considered
by the Collector to be engaged in a business, trade, occupation or
profession within the limits of the Township.
A.
The burden of proof shall be on any person claiming not to be engaged in carrying on a business, trade, occupation or profession within the limits of the Township or claiming any exemption from the provisions of this article or denying liability for the tax imposed hereunder unless such person demonstrates by clear and convincing evidence not to be liable for the tax assessed by the Collector pursuant to the provisions of the preceding § 270-42 herein.
B.
All persons, whether or not having an office in the
Township but engaged in carrying on any business, trade, occupation
or profession within the limits of the Township, shall keep adequate
written records of the transaction involved to support any claim that
the situs of the transaction is not allocable to the limits of the
Township. Absent such records, the taxpayer shall be deemed not to
have competent and adequate records to support an exclusion from taxation
hereunder.
C.
Every person subject to or considered by the Collector
to be subject to the tax imposed by this article shall make his books,
papers, records and federal income tax returns or copies thereof available
to the Collector at any reasonable time and place requested in writing
by the Collector or his Deputy or authorized agent, in order to enable
such Collector or his Deputy or authorized agent to make examination
thereof as may be necessary to verify the accuracy of any return or
payment made of the tax required by this article and/or the applicability
of this article to the taxpayer's gross profits. However, written
request or demand of any records of a taxpayer shall not be deemed
a condition precedent for commencement of any judicial proceeding
by the Collector against a taxpayer.
D.
It shall be the responsibility of all officers of any corporation subject to the taxes imposed herein to ensure that said corporation file the tax returns required by this article, and failure to do so shall subject each officer to a joint and several liability equal to these imposed by §§ 270-44 and 270-48 hereof and a civil fine of $600.
A.
In addition to all other remedies provided by law, the Collector shall have the power to collect unpaid taxes due under this article from any persons owing such taxes by commencing a civil action after the assessment procedure provided in § 270-42. To each civil complaint requested for such taxes, interest and penalty, there shall be added a civil penalty of 10% of the tax or $600, whichever is more, together with costs of the suit and reasonable attorney's fees incurred by the Township, as provided in the Local Tax Collection Act, Act of May 25, 1945, P.L. 1050, § 21, 72 P.S. § 5511.21 et seq.
B.
All taxes, interest, penalties and civil penalties,
costs of suit and reasonable attorney's fees received, collected or
recovered by the Collector under the provisions hereof shall be paid
into the treasury of the Township.
Nothing contained in this article shall be construed
to empower the Township to assess, 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 Township under the Constitution
of the United States and the Constitution and Laws of the Commonwealth
of Pennsylvania.
The Collector is hereby authorized to make rules
and regulations consistent with the provisions of this article relating
to the interpretation or application of any taxing section thereof
or with respect to any matter affecting the administration and enforcement
of this article, including provision for the examination, correction
of returns and the adjustment or refund of any overpayment of tax
within the time provided by law.
The provisions of this article are severable,
and if any of its provisions or exemptions shall be held to be illegal,
invalid or unconstitutional, or invalid or unconstitutional as to
any part of the period designated herein as the tax year, the decisions
of any court shall not affect or impair any of the remaining provisions
of this article, or affect or impair its application as to any other
part of said tax year, and the requirements as to the tax shall operate
as of the effective date of this article, and the computation of tax
and payment thereof shall be applied and adjusted accordingly.
[Amended 11-21-1995 by Ord. No. 1846-95]
Any person, as defined in this article, or any
officer, agent, servant or employee thereof, or other legal entity
who shall fail, neglect or refuse to comply with any of the terms
or provisions of this article shall, upon a finding thereof before
a District Justice, be required to pay a civil fine of not more than
$600, together with costs of suit for each offense, to be collected
as other fines and costs are collectible by law.
This Article has been enacted under the authority
of the Local Tax Enabling Act of the General Assembly of the Commonwealth
of Pennsylvania, approved December 31, 1965, P.L. 1257, as amended,
53 P.S. § 6901 et seq.
