[Adopted 12-15-1976 by Ord. No. 1778]
A.Â
BUSINESS, TRADE, OCCUPATION or PROFESSION
COLLECTOR
FINANCIAL BUSINESS
GROSS RECEIPTS
(1)Â
(2)Â
(3)Â
(4)Â
(5)Â
(6)Â
OPERATOR
PERSON
SECRETARY
SERVICE
TAX YEAR
TEMPORARY, SEASONAL OR ITINERANT BUSINESS, TRADE, OCCUPATION
OR PROFESSION
TOWNSHIP
The following words and phrases, as used in this article,
shall have the meanings ascribed to them in this section unless the
context clearly indicates a different meaning:
Any business, trade, occupation or profession in which there
is offered any service or services to the general public or a limited
number thereof, including but not limited to financial businesses
and those enterprises engaged in by hotel operators; motel operators;
office and/or residential apartment building operators; parking lot
and garage operators; warehouse operators; lessors of tangible personal
property; physicians and surgeons; osteopaths; podiatrists; chiropractors;
veterinarians; optometrists; pharmacists; lawyers; dentists; engineers;
architects; chemists; certified public accountants; public accountants;
funeral directors; promoters; agents; brokers; manufacturers' representatives;
advertising and public relations agencies; real estate brokers; insurance
brokers and agents; cable television operators; operators of places
of amusement providing either passive or active recreation; vending
machine operators; barbershop operators and beauty shop operators;
cleaning, pressing and dyeing establishment operators; laundry operators;
shoe repair shop operators; tailors; upholsterers; electrical, plastering,
bricklaying, carpentry, heating, ventilating, plumbing and painting
contractors engaged in the class of heavy building or other construction
of any kind or in the alteration, maintenance or repair thereof;[1] and repairers of electrical, electronic and automotive
machinery and equipment or other machinery and equipment and other
wares and merchandise.
The Chief Financial Officer/Director of Finance of the Township
of Lower Merion or his duly authorized representative.
[Amended 2-6-2008 by Ord. No. 3840]
The services and transactions of banks and bankers; trust,
credit and investment companies; holding companies; dealers and brokers
in money, credits, commercial paper, bonds, notes, securities and
stocks; and monetary metals, factors and commission merchants.
[Amended 12-16-1998 by Ord. No.
3509]
The gross amount of cash, credits or property of any kind
or nature received in both cash and 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 (including labor and any materials employed
in or becoming part of the service) or commercial or business transaction
performed by any business, trade, occupation or profession. "Gross
receipts" shall not include:
(Reserved)
(Reserved)
(Reserved)
In the case of a financial business, the cost
of securities and other property sold, exchanged, paid at maturity
or redeemed, and moneys or credits received in repayment 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 transaction paid by him to
another broker on account of a purchase or sale contract initiated
by or exercised or cleared in conjunction with such other broker.
(Reserved)
Includes both the owner of a hotel, motel, office and/or
residential apartment building, parking lot, garage or warehouse and
any person whom the owner may engage for hire to supervise the operation
of such hotel, motel, apartment building, parking lot, garage or warehouse.
Any individual, partnership, limited partnership, association,
corporation, trust or other legally recognizable entity, except such
as are wholly exempt from taxation under the Act of December 31, 1965,
P.L. 1257, as amended.[2] Persons exempted from taxation under this article shall
include agencies of the government of the United States or of the
Commonwealth of Pennsylvania or political subdivisions thereof, and
nonprofit corporations 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.
The Township Secretary of the Township of Lower Merion.
Any act or instance of helping or benefiting another for
a consideration.
The twelve-month period beginning the first day of January.
Any business, trade, occupation or profession that is conducted
at one location for less than 60 consecutive calendar days.
The Township of Lower Merion.
B.Â
The masculine includes the feminine; the singular
includes the plural, and the plural includes the singular.
[Amended 11-17-1999 by Ord. No. 3547; 4-18-2000 by Ord. No.
3568; 2-6-2008 by Ord. No. 3840; 10-19-2022 by Ord. No. 4252]
A.Â
Every person desiring to continue to engage in or
hereafter to begin to engage in a business, trade, occupation or profession
at an actual place of business in 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 with the Collector for registration
for each place of business in the Township, and if such person has
no actual place of business within the Township, then one registration.
Such registration shall be made by the completion of an application
furnished by the Collector. 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, or by the
authorized person of any other legal entity. The Collector shall,
upon receipt of the completed registration form, issue a certificate
of registration to such person which must be displayed in each place
of business.
B.Â
Registration fee. Every business or person is hereby assessed and shall pay a registration fee for each business location, as set forth in Chapter A167, for each calendar year, or part thereof, that the business or person is required to register.
C.Â
Any person who fails to apply for and obtain said registration shall be subject to a penalty of $30 or as determined by the Board of Commissioners in Chapter A167 referring to fees for licenses/registrations for each year the registration remains outstanding. The Collector may abate this penalty in situations involving voluntary compliance where an offending person pays all outstanding fees and files any outstanding returns within 60 days of an assessment by the Collector for outstanding licenses and taxes or if the taxpayer voluntarily comes forward to the Township.
[Amended 12-17-1980 by Ord. No. 1934]
Every person engaging in a business, trade,
occupation or profession in the Township shall pay an annual business
privilege tax for the year beginning January 1, 1981, and for each
tax year thereafter, at the rate of 1.5 mills on such person's gross
receipts.
[Amended 10-19-2022 by Ord. No. 4252]
All persons required to pay a business privilege tax under the provisions of this article shall be exempted from paying such tax on the same subject matter of taxation as such persons are required to pay a mercantile license tax under Article III above. Any person required to pay both a business privilege tax and a mercantile license tax may file one joint return and need pay only one registration/license fee for each place of business, as set forth in Chapter A167, for each calendar year, or part thereof, that the business or person is required to register.
Computation of estimated and actual gross receipts
shall be made in the following manner:
A.Â
The estimated gross receipts for any tax year of any
person subject to the payment of the tax hereby imposed who has commenced
business at least a full year prior to January 1 of that tax year
shall be the actual gross receipts of that person during the 12 months
preceding such January 1.
B.Â
The estimated gross receipts for any tax year of any
person subject to the payment of the tax hereby imposed who has commenced
business less than one full year prior to January 1 of that tax year
shall be computed 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.
C.Â
The estimated gross receipts for any tax year of any
person subject to the payment of the tax hereby imposed who commences
business subsequent to January 1 of that tax year shall be computed
for that tax year by multiplying such person's actual gross receipts
for the first month of business by the number of months remaining
in the tax year.
D.Â
Every person subject to the 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.
[Amended 11-15-1978 by Ord. No. 1837; 11-17-1999 by Ord. No.
3547; 2-6-2008 by Ord. No. 3840]
A.Â
Every return as hereinafter required by this section shall be made upon a form furnished by the Collector and in accordance with such regulations as may hereafter be issued pursuant to § 138-47G hereof. Every person making such return shall certify the correctness thereof under the penalties of perjury.
B.Â
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 actual gross receipts of such person during
the preceding year and the amount of tax estimated to be due.
C.Â
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 actual gross receipts of such person during
the preceding year and the amount of tax estimated to be due.
D.Â
Every person subject to the tax imposed by this article
who commences business subsequent to the beginning of the tax year
shall, within 40 days from the date of commencing such business, 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 actual gross receipts of such person during the first
month of business and the amount of tax estimated to be due.
E.Â
Every person subject to the payment of the tax imposed
by this article who engages in a business which is temporary, seasonal
or itinerant by its nature shall, within seven days from the date
of completion of such business, file with the Collector a return setting
forth such person's name, business and business address and such information
as may be necessary in arriving at the actual gross receipts of such
person during such period and the amount of the tax due.
F.Â
At the end of the tax year and on or before April
15 of the following year, every person subject to the tax hereby imposed
shall make a final return to the Collector of the actual gross receipts
of the taxpayer during the period for which the taxpayer is subject
to the tax. Such final return shall state the amount of the gross
receipts as set forth in the first return, the amount of tax paid
at the time of filing the first return and the amount of tax due upon
the final computation.
[Amended 10-19-2022 by Ord. No. 4252]
G.Â
Any taxpayer whose gross receipts in any tax year are equal to or less than $25,000 may elect to file only the returns required by Subsection E, relating to temporary, seasonal or itinerant business and Subsection F, relating to final returns, of this section on the condition that the value of the cash, credits or property received by the taxpayer from any source allocable or attributable to any place outside the Township or otherwise excluded from tax by operation of law does not exceed $1,000. The Collector shall prepare a short form return to be filed by eligible taxpayers who elect to file under this section.
H.Â
Every person subject to this tax which terminates
its business within the Township, whether by ending the business or
moving from within the Township shall file a final return with the
Collector no later than 40 days after the business within the Township
terminates.
B.Â
At the time of filing the final return, if the fall
amount of 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 first return on the estimated computation and the amount
of the tax finally shown to be due.
C.Â
Any person subject to the payment of a business privilege
tax under the provisions of this article and who is also subject to
and has paid the Lower Merion Township occupational privilege tax[1] during any tax year may deduct the amount of such occupational
privilege tax payment from the amount of tax due and owing for that
tax year under the provisions of this article.
[Added 12-16-1981 by Ord. No. 1978;
amended 2-6-2008 by Ord. No. 3840]
Every person subject to or supposedly subject
to the tax imposed by this article shall make his books, papers and
records readily available at any reasonable time and place required
by the Collector or the deputy or authorized agent of the Collector,
in order that the Collector or the deputy or authorized agent of the
Collector can examine such books, papers and records to verify the
accuracy of any return or payment made under the provisions of this
article or to ascertain whether the taxes imposed by this article
have been paid.
[Amended 2-6-2008 by Ord. No. 3840]
A.Â
It shall be the duty of the Collector to collect and
receive the taxes, fines and penalties imposed by this article. It
shall also be the duty of the Collector to keep a record showing the
amount of the tax received and the date of payment. A receipt shall
be given to the person, paying the tax.
B.Â
If the Collector is not satisfied with the return
and payment of tax made by any taxpayer or supposed taxpayer under
the provisions of this article, the Collector is hereby authorized
and empowered to make a determination of the tax due by such person,
based upon the facts contained in the return or upon any information
within the Collector's possession or that shall come into his possession,
and for this purpose the Collector or the deputy or authorized agent
of the Collector is authorized to examine the books, papers and records
of any such person to verify the accuracy of any return or payment
made under the provisions hereof or to ascertain whether the taxes
imposed by this article have been paid. The Collector is hereby authorized
and directed to make and keep such records, prepare such forms and
take such other measures as may be necessary or convenient to carry
this article into effect and may, in his discretion, require reasonable
deposits to be made by persons who engage in a business which is temporary,
seasonal or itinerant by its nature.
C.Â
If any taxpayer or supposed taxpayer shall neglect
or refuse to make any return and payment of tax required by this article
or if, as a result of an investigation by the Collector, a return
is found to be incorrect, the Collector shall have the power to estimate
the tax due by such person and determine the amount due for taxes,
penalties and interest thereon.
D.Â
The burden is hereby imposed upon any person claiming
an exemption from the payment of the tax hereby imposed to prove by
clear and convincing evidence his legal right to such exemption.
E.Â
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 refund to the taxpayer the amount of such overpayment, which
shall be the difference between the amount of tax paid upon the filing
of the first return and the amount of the tax finally shown to be
due.
F.Â
Any information contained on the returns of a taxpayer
and any information obtained as a result of the examination of the
books and records of the taxpayer shall be confidential except for
official purposes and except for purposes of judicial order.
G.Â
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 section of this article
or to any matter affecting the administration and enforcement of this
article, including provision for the reexamination and correction
of returns and the adjustment or refund of any overpayment of tax.
H.Â
The Collector
shall have the authority to change the due date of an annual tax return
from the stated date of April 15 of each year to another date due
to a declared state of emergency or to conform with any change of
due dates declared by the Federal Internal Revenue Service for individual
income tax returns. Such change shall be noted on the Finance Department
page of the Township of Lower Merion website.
[Added 10-19-2022 by Ord. No. 4252]
[Amended 2-6-2008 by Ord. No. 3840; 10-19-2022 by Ord. No.
4252]
A.Â
In the
event that any tax under this article remains due or unpaid 30 days
after the due dates above set forth, the Collector may sue for the
recovery of any such tax due or unpaid under this article, together
with interest and penalty. Where suit is brought for the recovery
of this tax or other appropriate remedy undertaken, the individual
liable therefor shall, in addition, be responsible and liable for
the costs of collection, including attorney and professional fees.
B.Â
The Collector
may seek to impose a civil fine, not to exceed $600 per violation,
on any person or entity subject to tax who fails to comply with the
provisions of this article. The person or entity will also be subject
to payment of costs, including court filing fees and the Township's
attorney fees. The fine imposed by this section shall be in addition
to any other penalty imposed by this article.
[Amended 2-21-1980 by Ord. No. 1895; 2-6-2008 by Ord. No. 3840]
If for any reason the tax is not paid when due,
interest at the rate of 1 1/2% per month on the amount of such tax
shall be calculated beginning with the due date of the tax and a penalty
of 10% shall be added to the flat rate of such tax for nonpayment
thereof. The Collector may establish regulations for the imposition
and collection of interest and penalty.
All taxes, interest and penalties received,
collected or recovered under the provisions of this article shall
be paid into the treasury of the Township for the use and benefit
of the Township.
A.Â
Nothing contained in this article shall be construed
to empower the Township to levy and collect the taxes hereby imposed
on any person or any business, trade, occupation or profession or
any portion of any business, trade, occupation or profession 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.
B.Â
It is not the intention of the Board of Commissioners
in adopting this article to impose, nor should any portion of this
article be construed to mean that the Board of Commissioners has imposed,
by adopting this article, a room tax on hotels or motels in the Township
of Lower Merion or any other tax which is an invalid duplication of
any tax imposed by the Commonwealth of Pennsylvania. Rather, all taxes
imposed by this article are taxes on the privilege of conducting businesses,
trades, occupations and professions, including the business of operating
a hotel or motel.
C.Â
It is the intent of the Board of Commissioners to
impose a tax on the privilege of conducting the business of operating
an office and/or residential apartment building, and the renting of
space to tenants of such buildings shall be deemed to be the minimum
sufficient activity to constitute the conduct of a business under
the terms of this article, and such minimum activity shall not be
deemed to be merely preserving the asset of the property.
[Amended 9-21-1977 by Ord. No. 1802; 1-18-1989 by Ord. No.
3133; 2-6-2008 by Ord. No. 3840; 9-23-2009 by Ord. No. 3889]
The Collector is empowered to proceed by citation
against any institution, as defined in this article, or any officer,
agent, servant or employee thereof, who shall fail, neglect or refuse
to comply with any of the terms or provisions of this article. Upon
conviction thereof before a Magisterial District Judge, such institution,
officer, agent, servant or employee shall be sentenced to pay a fine
or penalty not exceeding $600 and costs of prosecution for each offense,
to be collected as like fines or penalties and costs are now by law
collectible. The fine or penalty imposed by this section shall be
in addition to any other penalty imposed by this article.
In the event this article takes effect after the beginning of a tax year, the tax imposed by § 138-42 hereof shall be imposed on the gross receipts for that portion of the tax year commencing with the effective date of this article, and the estimated gross receipts determined under § 138-44A, B and C of this article shall be apportioned accordingly.
