[Adopted 4-13-1988 as Ord. No. 8-1988[1]]
[1]
Editor's Note: The provisions of this Article
shall become effective on the 31st day following enactment. This ordinance
also repealed former Art. VIII, Business Privilege Tax, adopted 5-9-1984
as Ord. No. 4-1984.
This Article shall be known and may be cited
as the "West Chester Borough Business Privilege Tax Ordinance of 1988."
This Article is enacted under authority of the
Local Tax Enabling Act, being Act No. 511 of December 31, 1965, P.L.
1257, as amended.[1]
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
A.
The singular shall include the plural, and the plural,
the singular. Words used in the masculine gender shall include the
feminine and neuter. Words used in the past or present tense shall
include the future.
B.
BOROUGH
BUSINESS
FINANCIAL BUSINESS
GROSS RECEIPTS
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
NONPROFIT CORPORATIONS OR ASSOCIATIONS:
(1)
(2)
(3)
PERSON
SERVICE
TAX COLLECTOR
TAX YEAR
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
The following words and phrases, when used in this
Article, shall have the meanings ascribed to them in this section
unless the context clearly indicates a different meaning:
The Borough of West Chester.
Conduct or exercise of any trade, occupation, profession,
financial business or other commercial activity, the sale of merchandise
or other tangible personal property, the sale of real estate by brokers
or agents, the rental of personal property or real estate and the
performance of any service or services to the general public or a
limited number thereof within, irrespective of whether it is conducted
from an office located within the borough, or attributable to a place
of business within the Borough of West Chester, except to the extent
that such business is excluded from the imposition of the tax hereby
imposed by any statute, regulation or judicial interpretation thereof.
[Amended 6-15-1994 by Ord. No. 6-1994]
The services and transactions of banks and bankers, of trust,
credit and investment companies, of holding companies, of dealers
and brokers in money, credits, commercial paper, bonds, notes, securities,
stocks and monetary metals and of factors and commission merchants,
except to such extent as such business is excluded from the imposition
of the tax hereby imposed by any statute, regulation or judicial interpretation
thereof.
Cash, credit or property of any kind or nature, received
or allocable or attributable to business conducted in the Borough
of West Chester, without deduction therefrom on account of the cost
of property sold, of the material used or the labor, the service performed
or any other cost of doing business. "Gross receipts" shall exclude,
however, those which are:
Discounts allowed to purchasers as cash discounts
for prompt payment of their bills.
Charges advanced by a seller for freight, delivery
or other transportation for the purchaser in accordance with the terms
of a contract of sale.
Received upon the sale of an article of personal
property which was acquired by the seller as a trade-in to the extent
that the gross receipts in the sale of the article taken in trade
does not exceed the amount of the trade-in allowance made in acquiring
such article.
Refunds, credits or allowances given to a purchaser
on account of defects in goods sold or merchandise returned.
Taxes collected as agent for the United States,
the Commonwealth of Pennsylvania and/or its political subdivisions.
Based on the value of exchanges or transfers
between one seller and another seller who transfers property with
the understanding that property of an identical description will be
returned at a subsequent date; however, when sellers engaged in similar
lines of business exchange property and one of them makes payment
to the other in addition to the property exchanged, the additional
payment received shall be included in the gross receipts of the seller
receiving such additional cash payments.
Receipts by dealers from sales to other dealers
in the same line where the dealer transfers title or possession at
the same price for which he acquired the merchandise.
Transfers between one department, branch or
division of a corporation or other business entity of goods, wares
and merchandise to another department, branch or division of the same
corporation or business entity and which are recorded on the books
to reflect such interdepartmental transactions.
Receipts from utility service of any person
or company whose rates and services are fixed and regulated by the
Pennsylvania Public Utility Commission or on any public utility services
rendered by any such person or company or on any privilege or transaction
involving the rendering of any such public utility service.
Receipts from goods and articles manufactured
in the borough, from the by-products of such manufacturer, from minerals,
timber, natural resources and farm products manufactured, produced
or grown in the borough, or from preparation and processing thereof,
or from any business relating to manufacturing, production, preparation
or processing of materials, timber and natural resources or farm products
by manufacturers, producers and farmers with respect to goods, articles
and products of their own manufacture, production or growth including
transportation, loading, unloading, dumping and storage of such goods,
articles, products or by-products.
Receipts of nonprofit corporations or associations
organized and operating under the laws of the Commonwealth of Pennsylvania
or another state or associations organized for religious, charitable
or educational purposes, agencies of the government of the United
States or of the Commonwealth of Pennsylvania; the business of any
political subdivision or of any authority created or organized under
and pursuant to any act of assembly; or membership dues, fees or assessments
of charitable, religious, beneficial or nonprofit organizations, including
but not limited to sportsman's clubs, recreational clubs, golf clubs
and tennis clubs, and Girl and Boy Scout troops and councils.
Organizations not for profit but for the establishment
and maintenance of a public or private college, secondary and elementary
school or other educational institutions for the academic instruction
and cultivation of the mind and/or the inculcation of moral and spiritual
values, but not including an institution or organization directed
primarily to physical training or development of physical or manipulative
skills or any organization organized as such solely or primarily for
the purpose of evading this Article.
Organizations not for profit, such as a convent,
monastery, church or similar institutions, but not including one organized
for a purpose not otherwise permitted by any such organization or
solely or primarily as a religious institution for the purpose of
evading this Article.
Organizations not for profit, organized and
operating for the relief of poverty, the advancement of education,
the advancement of religion or the promotion of health, government
or other municipal purpose, but not including any organization organized
as such solely or primarily for the purpose of evading this Article.
Any individual, partnership, limited partnership, association,
corporation or other legal entity, except individuals employed for
a wage or a salary, nonprofit corporations or associations as defined
in this Article, agencies of the United States Government, agencies
of the Commonwealth of Pennsylvania, political subdivisions of the
Commonwealth of Pennsylvania and any authority or instrumentality
created or organized under and pursuant to any act of assembly of
the Commonwealth of Pennsylvania. Whenever used in any clause prescribing
or imposing a penalty, the term "person," as applied to an association,
shall mean the partners or members thereof and, as applied to a corporation,
the officers thereof.
Any act or instance of assisting, helping or benefiting another
for a valuable consideration in money or money's worth.
A person duly appointed by resolution of the Council of the
Borough of West Chester to administer and collect the within tax.
The twelve-month period beginning the first day of January
and ending the 31st day of December in each such year.
Any business that is conducted at one (1) location for less
than sixty (60) consecutive calendar days.
A.
For the tax year beginning January 1, 1988, and each
tax year thereafter, every person who engages in or who continues
to engage in or thereafter begins to engage in a business at an actual
place of business in the borough shall, on or before the 30th day
of January of each tax year, but in tax year 1988 on or before June
1, 1988, make application for registration for each place of business
in the borough to the Tax Collector.
B.
Every person subject to the tax imposed by this Article who commences business subsequent to the due date for registration designated in Subsection A shall make application for registration to the Tax Collector within thirty (30) days of commencing such business.
C.
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 the case
of a corporation, by an officer thereof. The application shall be
made on a form furnished by the Tax Collector and shall be accompanied
by an application fee of ten dollars ($10.). The Tax Collector shall
thereupon issue a certificate of registration to the applicant which
shall not be assignable and which must be displayed at every business
location or produced on demand. In the event of loss, defacement or
destruction of any such certificate, the applicant to whom the certificate
has been issued shall apply to the Tax Collector for a new certificate,
for which a fee of two dollars ($2.) shall be charged.
For the tax year beginning January 1, 1988, and for each tax year thereafter, the borough hereby imposes an annual business privilege tax on every person engaging in a business, as defined in this Article, in the amount of one hundred fifty dollars ($150.); provided, however, that the registration fee required by § 99-59C shall be credited against the tax due. Persons engaged in more than one (1) business in the borough shall pay a separate tax under this Article for each such business.
[1]
Editor's Note: This section was amended 12-1-1988
by Ord. No. 24-1988. Said ordinance, however, was declared invalid
by the Court of Common Pleas of Chester County, which declaration
was upheld by the Commonwealth Court of Pennsylvania 11-20-1989 and
which declaration has caused this section to revert to the provisions
in effect prior to the above-stated amendment.
Any person required to pay a business privilege
tax under the provisions of this Article shall be exempted from paying
such tax if such person's annual gross receipts are fifteen thousand
dollars ($15,000.) or less.
[1]
Editor's Note: This section was amended 12-1-1988
by Ord. No. 24-1988. Said ordinance, however, was declared invalid
by the Court of Common Pleas of Chester County, which declaration
was upheld by the Commonwealth Court of Pennsylvania 11-20-1989 and
which declaration has caused this section to revert to the provisions
in effect prior to the above-stated amendment.
A.
Every person subject to payment of the tax hereby
imposed who has commenced business at least one (1) full year prior
to the beginning of the tax year shall estimate his annual gross receipts
for the tax year upon the actual gross receipts received by him during
the twelve (12) calendar months preceding such tax year.
B.
Every person subject to payment of the tax hereby
imposed who has commenced or commences business before the beginning
of the tax year but after the beginning of the full calendar year
prior to the tax year shall estimate his annual gross receipts for
the tax year upon the gross receipts of the prior calendar year, taking
the monthly average during said period and multiplying the same by
twelve (12). In the event that he shall be in business fewer than
ninety (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 ninety (90) successive days after commencement of
business, to take a monthly average thereon, and to multiply the average
by twelve (12).
C.
Every person subject to payment of the tax hereby
imposed who has commenced or commences business subsequent to the
beginning of the tax year shall estimate his gross receipts for such
tax year upon the gross receipts collected 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 (3) months of business
and multiplying the same by the number of months from the commencement
of the business to the end of the tax year. In the event that such
person shall be in business fewer than ninety (90) days in the tax
year, he shall be permitted to use sufficient days in the next succeeding
calendar year to equal ninety (90) successive days after commencement
of business to take a monthly average thereon and to multiply the
average by the number of months from the commencement of his business
to the end of the tax year.
D.
Every person subject to payment of the tax hereby
imposed who engages in business which is temporary, seasonal or itinerant
by its nature shall compute gross receipts upon such person's actual
gross receipts during the tax year.[1]
[1]
Editor's Note: Ordinance No. 24-1988, adopted
12-1-1988, which had added former Subsection E, immediately following
this subsection, was declared invalid by the Court of Common Pleas
of Chester County, which declaration was upheld by the Commonwealth
Court of Pennsylvania 11-20-1989.
A.
Forms; certification. Every return shall be made upon
a form prepared by and furnished by the Tax Collector. Every person
making a return shall certify the correctness thereof by affidavit.
B.
Estimated returns and final returns. Unless otherwise provided in this Article or by rules or regulations pertaining to the administration of this Article as authorized by § 99-65 hereof, every person subject to the tax imposed by this Article shall be required to file two (2) separate tax returns for each tax year, an estimated return and a final return. Each time an estimated return is required to be filed, a final return shall be filed the following calendar year by the date required. If, at the time of filing the final return, it is determined that the amount of tax paid with the estimated return was greater than required by the final return, the taxpayer shall be entitled to either apply the overpayment to the estimated return due for the following tax year or, in the alternative, to a tax refund. If at the time of filing the final return it is determined that the amount of tax paid with the estimated return was less than required by the final return, the taxpayer shall be liable to pay said tax upon the filing of the final return, plus interest and penalty as set forth in § 99-64C.
[Amended 1-17-1996 by Ord. No. 1-1996]
C.
Filing due dates.
[Amended 1-17-1996 by Ord. No. 1-1996]
(1)
Every person subject to the tax imposed by this Article
who has commenced business on or before January 1 of the full calendar
year prior to the beginning of any tax year shall, on or before the
15th day of April of the tax year, file with the Tax Collector, on
a form prepared by the Tax Collector, an estimated return setting
forth his name, business, business address and such other information
as may be necessary in arriving at the total gross receipts of the
business transacted by him during the preceding calendar year and
the amount of the tax due.[1]
[1]
Editor's Note: This subsection was amended
12-1-1988 by Ord. No. 24-1988. Said ordinance, however, was declared
invalid by the Court of Common Pleas of Chester County, which declaration
was upheld by the Commonwealth Court of Pennsylvania 11-20-1989 and
which declaration has caused this subsection to revert to the provisions
in effect prior to the above-stated amendment.
(2)
Every person subject to the tax imposed by this Article who has commenced or commences business before the beginning of the tax year but after the beginning of the full calendar year prior to the tax year shall, on or before the 15th day of April of the tax year, file with the Tax Collector, on a form prepared by the Tax Collector, an estimated return setting forth his name, business, business address and such other information as may be necessary in arriving at the estimated gross receipts of the business transacted by him as calculated under § 99-62B hereof and the amount of tax due.[2]
[2]
Editor's Note: This subsection was amended
12-1-1988 by Ord. No. 24-1988. Said ordinance, however, was declared
invalid by the Court of Common Pleas of Chester County, which declaration
was upheld by the Commonwealth Court of Pennsylvania 11-20-1989 and
which declaration has caused this subsection to revert to the provisions
in effect prior to the above-stated amendment.
(3)
On or before April 15 of the calendar year following
the tax year, every person subject to the tax imposed by this Article
shall make and file a final return with the Tax Collector, on a form
prepared by the Tax Collector, setting forth his name, business, business
address and the actual amount of the gross receipts of the taxpayer
for the tax year, the amount of tax paid at the time of filing of
the estimated return and the amount of tax due or the amount of overpayment.[3]
[3]
Editor's Note: This subsection was amended
12-1-1988 by Ord. No. 24-1988. Said ordinance, however, was declared
invalid by the Court of Common Pleas of Chester County, which declaration
was upheld by the Commonwealth Court of Pennsylvania 11-20-1989 and
which declaration has caused this subsection to revert to the provisions
in effect prior to the above-stated amendment.
A.
The tax levied pursuant to this Article shall be due
and payable on the date on which the taxpayer is required to file
his estimated return and shall be remitted with the estimated return
on the due date of its filing.
B.
If it is determined that the amount of tax paid with the estimated return was less than required by the final return, the taxpayer shall pay the remaining balance due by remitting that balance, together with the final return, on or before the date by which the final return is required to be filed, together with interest and penalty as required by Subsection C of this section.
C.
In the event that the amount of tax due and payable
is not paid on the due date established in this Article, interest
at the rate of one-half of one percent (1/2 of 1%) per month or fractional
part of a month shall be added thereto from the day on which such
taxes are due and payable until such taxes are paid. In addition,
a penalty of ten percent (10%) of the amount of taxes due and unpaid
shall be imposed if any taxpayer shall neglect or refuse to make any
return on the due date thereof, or pay any tax, on the due date thereof
as required herein; provided, however, that in the event that at the
time of the filing of the estimated return the taxpayer pays eighty
percent (80%) or more of the amount of tax determined to be due and
payable for the tax year in the final return or by the Tax Collector,
as otherwise set forth herein, no penalty shall be imposed or payable.
A.
The Tax Collector is empowered and shall be charged
with the duty of collecting and receiving all fees, taxes, fines and
penalties imposed by this Article and of keeping such records as necessary
to reflect all amounts received by him, from whom received and the
date or dates of such receipt, together with such other records as
the Collector shall deem necessary and appropriate.
B.
The Tax Collector and his duly appointed agents are
hereby empowered, with the approval of the Council of the borough,
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, for payments alleged or found to be incorrect or for overpayments
claimed or found to have occurred and to enforce the provisions of
this Article and any rules and regulations promulgated pursuant hereto.
C.
In the event that any person required by this Article
to file a return or to pay the tax imposed hereby neglects or refuses
to make a return, then in such event the Tax Collector or his duly
appointed agents shall assess said person on such an amount of gross
receipts as said Tax Collector or his agents shall determine. In all
cases of assessment, the Tax Collector or his duly appointed agents
shall give the person assessed written notice in which shall he stated
the taxpayer's name, if known, the business, business address, the
determined amount of gross receipts and the amount of the tax imposed.
D.
Every business shall maintain such records and books
of account as shall enable it to make a true and accurate return in
accordance with this Article. Such accounts and records must disclose
in detail the gross receipts of the business and such other data as
is necessary to determine such gross receipts and must be sufficiently
complete to enable the Tax Collector or his agents to verify all transactions.
The Tax Collector or his agents are hereby authorized and empowered
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
for the purpose of verifying the accuracy of a return made or, if
no return has been made, the ascertainment of the amount of tax due.
The Tax Collector or his agents are authorized and empowered in their
discretion to require reasonable deposits on account of the tax due
to be made by persons who engage in a business which is temporary,
seasonal or itinerant by its nature.
E.
The burden of proof is hereby imposed upon any person
claiming an exclusion of gross receipts for tax purposes by virtue
of the definition of that term or an exemption from the payment of
the tax hereby imposed to prove by clear and convincing evidence the
legal right to such exclusion or exemption to the satisfaction of
the Tax Collector, including the submission of all books, records
and documents upon which such claim is based.
Any information gained by the Tax Collector
or any official, agent or employee of the borough as the result of
any returns, investigations or verifications required or authorized
by this Article shall be confidential except for official purposes,
proper judicial order or as otherwise provided by law.
A.
All fees, taxes, interest and penalties due and unpaid
under this Article shall be recoverable by the Tax Collector, the
Borough Manager or the Borough Solicitor as other debts due the borough
are now by law enforceable or as provided under the Local Tax Enabling
Act. All such remedies shall be cumulative, and none shall be deemed
to be exclusive.
B.
If for any reason any fee, tax, interest or penalty
is not paid when due and suit is brought for the recovery thereof,
the person liable therefor shall, in addition, be liable for all costs
of collection together with an attorney's reasonable commission for
collection, not to exceed ten percent (10%) of the total indebtedness.
C.
All fees, taxes, interest and penalties received,
collected or recovered under the provisions of this Article shall
be paid into the treasury of the borough for the use and benefit of
the borough.
Nothing contained in this Article shall be construed
to empower the borough to levy and collect the tax hereby imposed
on any person or any business or any part of any business not within
the taxing power of the borough under the Constitution of the United
States or the Constitution and laws of the Commonwealth of Pennsylvania.
[Amended 5-10-1989 by Ord. No. 11-1989]
Any person who shall conduct, transact or engage in any business subject to the tax imposed by this Article without registration of such business and receipt of a certificate of registration by the borough, pursuant to § 99-59 hereof, or any person who shall fail to file a tax return required to be filed by the provisions of this Article or any person who shall willfully file a false return shall, upon conviction thereof in a summary proceeding before a District Justice of the Peace, be sentenced to pay a fine not to exceed six hundred dollars ($600.), together with the costs of prosecution, or to suffer imprisonment for a term not to exceed thirty (30) days, or both.[1]
