[Adopted 1-20-1982 by Ord. No. 1991; amended in its entirety 5-19-1982 by Ord. No. 1997]
A. 
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:
COLLECTOR
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]
GROSS RECEIPTS
Cash, credits or property of any kind or nature received in or allocable to the Township by any institution by reason of any service rendered, without deduction therefrom on account of property sold, materials used, labor, service or other cost, interest or discount paid or any other expense. "Gross receipts" excludes receipts subject to the mercantile license tax (Article III of this chapter) and the business privilege tax (Article IV of this chapter), membership fees, voluntary contributions unrelated to individual services or assessments which fall equally on all members.
INSTITUTION
Any social or recreational organization, corporation or unincorporated association, operating under a nonprofit charter or organized as a nonprofit entity, which regularly, steadily and customarily provides service to the general public or to any select or limited number thereof on premises which it owns or on premises which it leases from another for a continuous period of time in excess of 24 hours. "Institution" includes, but is not limited to, country clubs and veterans organizations. "Institution" does not include any political subdivision, any agency of the federal, commonwealth or local government, any school, hospital, nursing home, college or university or any truly public charity in respect to transactions directly related to its principal charitable purpose.[1]
SERVICE
The serving or provision of food or beverages or tobacco products or gathering space for social events, such as dances, parties and wedding receptions, or recreational facilities, for which a charge is made and which is not a business subject to the mercantile license tax (Article III of this chapter) or to the business privilege tax (Article IV of this chapter).
TAX YEAR
The twelve-month period beginning the first day of January.
TOWNSHIP
The Township of Lower Merion.
[1]
Editor's Note: The former definition of "Secretary," which definition immediately followed this definition, was repealed 4-18-2000 by Ord. No. 3568.
B. 
The masculine includes the feminine; the singular includes the plural; and the plural includes the singular.
[Amended 4-18-2000 by Ord. No. 3568; 2-6-2008 by Ord. No. 3840]
A. 
For the tax year beginning January 1, 2008, and for each tax year thereafter, 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 and the payment of a fee of $20 for each place of business. 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. 
Any person who fails to apply for said registration will be subject to the interest and penalty provisions of § 138-67, as amended.
A. 
Every institution engaging in any institutional or nonprofit service in the Township shall pay an annual institution and service privilege tax for the tax year beginning January 1, 1982, and for each tax year thereafter, at the rate of one mill on such institution's gross receipts.
B. 
Any activity conducted by a beneficial, charitable, religious, political or educational nonprofit corporation, foundation or unincorporated association, the receipts of which inure in their entirety to such beneficial, charitable, religious, political or educational entity, and which activity is sponsored and conducted solely and completely by and for that entity by unpaid volunteers, shall be excluded from the institution and service privilege tax.
Computation of estimated and actual gross receipts shall be made in the following manner:
A. 
The estimated gross receipts for any tax year of any institution subject to the payment of the tax hereby imposed which has commenced activity at least a full year prior to January 1 of that tax year shall be the actual gross receipts of that institution during the 12 months preceding such January 1.
B. 
The estimated gross receipts for any tax year of any institution subject to the payment of the tax hereby imposed which has commenced activity 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 institution's actual gross receipts during the months while engaged in activity prior to such January 1.
C. 
The estimated gross receipts for any tax year of any institution subject to the payment of the tax hereby imposed which commences activity subsequent to January 1 of that tax year shall be computed for that tax year by multiplying such institution's actual gross receipts for the first month of activity by the number of months remaining in the tax year.
[Amended 4-18-2000 by Ord. No. 3568; 2-6-2008 by Ord. No. 3840]
A. 
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 § 138-65G hereof. Every natural person making such return on behalf of an institution shall certify the correctness thereof under the penalties of perjury.
B. 
Every institution subject to the tax imposed by this article which has commenced activity 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 institution's name, activity and principal address and such other information as may be necessary to compute the actual gross receipts of such institution during the preceding year and the amount of tax estimated to be due.
C. 
Every institution subject to the tax imposed by this article which has commenced activity 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 institution's name, activity and principal address and such other information as may be necessary to compute the actual gross receipts of such institution during the preceding year and the amount of tax estimated to be due.
D. 
Every institution subject to the tax imposed by this article which commences activity subsequent to the beginning of the tax year shall, within 40 days from the date of commencing such activity, file with the Collector a return setting forth such institution's name, activity and principal address and such other information as may be necessary to compute the actual gross receipts of such institution during the first month of activity and the amount of tax estimated to be due.
E. 
At the end of the tax year and on or before April 15 of the following year, every institution 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.
F. 
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.
A. 
At the time of filing the first return, the institution making the same shall pay the amount of the tax estimated to be due, as determined pursuant to §§ 138-60, 138-61 and 138-62 of this article.
B. 
At the time of filing the final return, if the full 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.
[Amended 2-6-2008 by Ord. No. 3840]
Every institution subject to or supposedly subject to the tax imposed by this article shall make its 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. 
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 or institution paying the tax.
B. 
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 institution, 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 institution 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.
C. 
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 institution and to determine the amount due for taxes, penalties and interest thereon.
D. 
The burden is hereby imposed upon any institution claiming an exemption from the payment of the tax hereby imposed to prove by clear and convincing evidence its legal right to such exemption.
E. 
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 activity 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. 
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. 
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.
[Amended 2-6-2008 by Ord. No. 3840]
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.
[Amended 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.
The tax imposed by this article shall not apply to any person or institution as to which it is beyond the legal power of the Township to impose the tax herein provided for under the Constitution of the United States and the Constitution and laws of the Commonwealth of Pennsylvania.
[Amended 8-3-1988 by Ord. No. 3104; 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 § 138-60 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 § 138-61A, B and C of this article shall be apportioned accordingly.
This article has been adopted 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.[1]
[1]
Editor's Note: See 53 P.S. § 6901 et seq.