[Adopted 10-20-1986 by Ord. No. 236]
This article shall be known as the "Business
Privilege Tax and Mercantile Tax Ordinance."
As used in this article, the following terms
shall have the meanings indicated, unless the context clearly indicates
a different meaning:
All businesses, trades, occupations and professions in which
there is offered any service or services to the general public or
a limited number thereof, including, without limitation, those enterprises
engaged in by hotel operators, motel operators, office building operators,
apartment and rooming house operators, parking lot and garage operators,
warehouse operators, lessors of tangible personal property, social
workers, consultants, teachers, nurses, therapists, physicians and
surgeons, osteopaths, podiatrists, dentists, lawyers, engineers, architects,
chemists, certified public accountants, public accountants, funeral
directors, promoters, factories, manufacturers' representatives, agents,
brokers, advertising and public relations agencies, real estate brokers,
insurance brokers and agents, cable television operators, 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, heat, 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, repairers
of electrical, electronic and automotive machinery and equipment or
other machinery and equipment and other wares and merchandise and
other businesses, trades, occupations and professions in which there
is offered any service or services to the general public or a limited
number thereof.
The Director of the Department of Finance of the Township
of East Norriton and/or any Township-designated agent.
The Department of Finance of the Township of East Norriton.
The gross amount of cash, credit or property of any kind
or nature received in both cash and credit transactions allocable
or attributable to the Township by reason of any sale made, service
rendered (including labor and any materials employed in or becoming
part of the service) or commercial or business transactions in connection
with any business, trade, occupation or profession.
Includes both the owner of a hotel, motel, office and/or
residential apartment building, parking lot, garage or warehouse and
any person the owner may engage for hire to supervise the operation
of such hotel, motel, office and/or residential apartment building,
parking lot, garage or warehouse.
Any individual, partnership, limited partnership, association,
corporation, trust or other legally recognized or recognizable entity,
except such as are wholly exempt from taxation under the Act of December
31, 1965, P.L. 1257, as amended.[1]
Any person who is a dealer in or a vendor of goods, wares
and merchandise who is not a wholesale dealer or vendor, or a wholesale
and retail dealer or vendor as herein defined.
Any act or instance of helping or benefiting another for
a consideration.
The calendar year.
Any business, trade, occupation or profession that is conducted
within the Township for less than 60 calendar days.
The Township of East Norriton.
Any person who sells to dealers in, or vendors of, goods,
wares and merchandise and to no other persons.
[1]
Editor's Note: See 53 P.S. § 6902.
For the tax year beginning January 1, 1987,
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 a 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 for registration for each
place of business in the Township, and if such person has no place
of business within the Township, then such person shall apply for
one registration with the collector. Such registration shall be made
by the completion of an application furnished by the collector and
the payment of a fee of $10 for each place of business. Each application
for registration shall be signed by the applicant, if an actual 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. Each applicant
shall receive a certificate of registration from the collector, which
shall not be assignable. Those persons subject to both the business
privilege tax and the mercantile tax hereunder need only obtain one
certificate of registration for each place of business. In 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 of $10 shall be charged. Such certificate
shall be conspicuously posted at each place of business in the Township
at all times.
The following tax rates shall be applicable
to businesses, trades, occupations and professions in the Township.
A.
Imposition of mercantile tax.
(1)
Wholesale vendors. Wholesale vendors or dealers in
goods, wares and merchandise of every kind shall be taxed at the rate
of one mill on each dollar of gross receipts of business transacted
by him during the tax year.
(2)
Retail vendors. Retail vendors or dealers of goods,
wares and merchandise of every kind and all persons engaged in conducting
restaurants or other places where food, drink or refreshments are
sold shall be taxed at the rate of 1 1/2 mills on each dollar
of gross receipts of business transacted by him during the tax year.
(3)
Wholesale and retail vendors. Wholesale and retail
vendors or dealers in goods, wares and merchandise of every kind shall
be taxed at the rate of one mill on each dollar of the gross volume
of wholesale business transacted by him and 1 1/2 mills on each
dollar of the gross receipts of retail business transacted by him
during the tax year.
(4)
Resale. The tax imposed by this section shall not
apply to the dollar volume of annual business transacted by wholesale
and retail dealers derived from the resale of goods, wares and merchandise,
taken by any dealer as a trade-in or as a partial payment for other
goods, wares and merchandise, except to the extent that the resale
price exceeds the trade-in allowance.
A.
Form. Every return as hereinafter required by this
article shall be made upon a form furnished by the collector and in
accordance with such regulations as may hereafter be issued by the
Department. Each person making such return shall certify the correctness
thereof under the penalties of perjury and shall supply the collector
with a copy of the appropriate schedule of such person's federal tax
return indicating such person's gross receipts for prior tax year.
B.
First return.
(1)
Every person subject to the tax imposed by this article
who engaged in business at least one full year prior to the beginning
of any tax year shall, on or before the 15th day of April of each
year, file with the Township a return setting forth such person's
name and business address and such 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.
(2)
Every person subject to the tax imposed by this article
who has commenced business less than one full year prior to the beginning
of any tax year shall, on or before the 15th day of April of each
year, file with the Township a return setting forth such person's
name and business address and such information as may be necessary
in arriving at the actual gross amount of business transacted during
the first month of business and the amount of tax estimated to be
due.
(3)
Every person subject to the tax imposed by this article
who commences business subsequent to the beginning of the tax year
shall, within 45 days from the date of commencing such business, file
a return with the collector setting forth his name, business and business
address and such information as may be necessary to compute the actual
gross volume of business transacted by him during the tax year and
the amount of tax estimated to be due.
(4)
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 Township 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 tax due. Such persons shall deposit with the collector, prior to the commencement of business, funds in such amount as may be determined by the collector pursuant to § 182-48C below.
(5)
Every person subject to the tax imposed by this article
who ceases to do business which is subject to the tax imposed by this
article shall, within 14 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 the person ceased
doing business and pay the tax due as computed thereon at the rate
herein provided for at the time of filing said 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 the business was terminated.
C.
Final return. On or before April 15 following the end of the tax year, every person shall file a final return as provided in § 182-45B below. The initial such final return under this article shall be filed on or before April 15, 1987, by those persons who were subject to the mercantile license tax during the year 1986. Otherwise, the initial final return shall be filed on or before April 15, 1988.
A.
Estimated tax.
(1)
Every person subject to the payment of the tax hereby
imposed who has engaged in business at least a full year prior to
January 1, 1987, shall compute the gross receipts of business upon
the actual gross amount of business transacted during the 12 months
preceding January 1, 1987.
(2)
Every person subject to the payment of the tax hereby
imposed who has commenced business less than one full year prior to
January 1, 1987, shall compute the gross receipts of business by multiplying
by 12 the monthly average of the actual gross amount of business transacted
during the months prior to January 1, 1987.
(3)
Every person subject to the payment of the tax hereby
imposed who commences business subsequent to January 1, 1987, shall
compute the gross receipts of business for the tax year upon the gross
volume of business transacted by them during the first month of engaging
in business, multiplied by the number of months remaining in the tax
year.
B.
Actual tax. At the end of the tax year, every person subject to the tax hereby imposed shall make a final return to the collector of the actual volume of business transacted by the taxpayer during the period for which the taxpayer is subject to the tax. Such final return shall state the amount of gross receipts of business as set forth in the first return, the amount of tax paid at the time of the filing of the first return and the amount of tax due upon the final computation. The initial such final return under this article shall be filed on or before April 15, 1987, by those persons subject to the mercantile license tax during the year 1986. Such final return shall be filed in addition to the first return due pursuant to § 182-44B above.
A.
First return. At the time of filing the first return,
the person making the same shall pay the amount of the tax estimated
to be due.
B.
Final return. At the time of the filing of 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 will 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. Payment of the tax due on gross receipts earned during the year 1986 shall be remitted with the initial final return required under § 182-45B above.
A.
Joint returns. All persons required to pay a business
privilege tax under the provisions of this article shall be exempted
from paying such tax upon the same subject matter of taxation upon
which such persons are required to pay a mercantile tax hereunder.
Any person required to pay both a business privilege tax and a mercantile
tax may file one joint return.
B.
Governmental or educational purposes. 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.
C.
Utilities. No tax shall be assessed and collected
on the gross receipts from utility service to any company whose rates
of service are fixed and regulated by the Pennsylvania Public Utility
Commission or on any privilege or transaction involving the rendering
of any such public utility service.
D.
Production and manufacture. No tax shall be assessed
and collected hereunder on goods, articles and products or on materials,
timber, natural resources and farm products manufactured, produced
or grown in the Township or on the preparation or processing thereof
for use or market or on any privilege, act or transaction related
to the business of manufacturing, the production, preparation or processing
of minerals, timber and natural resources or farm products by manufacturers,
producers and farmers with respect to the goods, articles and products
of their own manufacture, production or growth or on any privilege,
act or transaction relating to the business of processing by-products
of manufacture or on the transportation, loading, unloading, dumping
or storage of such goods, articles or by-products.
E.
Religious and charitable organizations. Nonprofit
corporations or associations organized solely and exclusively for
religious, educational and charitable purposes are exempt from the
provisions of this article generally, except that such exemptions
shall not apply to the receipts from any regular or established business
competing commercially with any persons subject to the tax imposed
by this article, nor shall such exemption apply to receipts from any
noncharitable services or nontraditional activities.
F.
Adjustments. Refunds, credits or allowances given
by a person to a customer on account of defects in services rendered
or in goods, wares and merchandise sold or returned may be deducted
from the amount of the gross receipts of the person. Adjustments allowed
to customers may be deducted from gross receipts if they are deducted
on the face of the invoice as a medium of adjusting the price or fee
for the service and if they are not reimbursed to the person by his
supplier or some other person. Federal, state and local taxes are
not included in gross receipts if they are collected from the customer
and are separately stated on the evidence of charge or sale or the
customer produces satisfactory proof of payment of the federal, state
or local taxes.
G.
Services performed outside the Township. Specifically
excluded from the definition of "gross receipts" hereunder are receipts
from services performed from a place of business regularly maintained
outside the Township by the taxpayer to a place of business regularly
maintained outside the Township by the customer, provided that such
performance is not made for the purpose of evading the tax. Services
or deliveries to a residence located outside the Township do not qualify
for this exclusion.
H.
Limited taxation. Where the gross receipts of the
taxpayer cannot in their entirety be subjected to the tax imposed
by this article by reasons of provisions of the Constitution of the
United States, the Constitution of the Commonwealth of Pennsylvania
or any other provisions of law, the Manager shall establish rules
and regulations and methods of allocation and evaluation so that only
that part of the gross receipts which is properly attributable to
doing business in the Township shall be taxed by this article.
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 tax received and the date of payment.
B.
The collector or any agent designated by the collector
and/or the Department are hereby authorized to examine the books,
papers and records of any taxpayer or of any person whom the collector
reasonably believes to be a taxpayer, in order to verify the accuracy
of any return or, if no return was filed, to ascertain the tax due.
Every taxpayer and every person whom the officer reasonably believes
to be a taxpayer is hereby directed and required to give to the collector
or any agent designated by the collector the means, the facilities
and opportunity for such examination and investigations as are hereby
authorized.
C.
If the collector is not satisfied with the return
and the payment of tax made by any 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 obtained by
the collector. 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, at his discretion, require reasonable deposits to
be made by persons who engage in a business which is temporary, seasonal
or itinerant by its nature.
D.
If any person shall neglect or refuse to make any
return or payment of tax required by this article or if, as a result
of any investigation by the collector, a return is found to be incorrect,
the collector shall estimate the tax due by such person and determine
the amount due for taxes, penalties and interest thereon.
E.
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 the legal right of such exemption to
the satisfaction of the collector.
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 through any returns, investigations,
hearings or verifications shall be confidential except for official
purposes and except in accordance with a proper judicial order or
as otherwise provided by law.
G.
Every person subject to the taxation under this article
shall maintain such records and books of account as will enable such
person to make a true and accurate return in accordance with the provisions
of this article. Such accounts and records must disclose detail of
the gross receipts and other data pertaining to the taxpayer's gross
volume of business and must be sufficiently complete to enable the
collector or his deputies to verify all transactions.
H.
The collector is hereby empowered to prescribe, adopt,
promulgate and enforce rules and regulations relating to any matter
pertaining to the administration and enforcement of this article,
including provisions for the reexamination and correction of returns
and all payments alleged or found to be incorrect or as to which an
overpayment is claimed or found to have occurred and to make refunds
in case of overpayment, for any period of time not to exceed six years
subsequent to the date of payment of the sum involved, and to prescribe
forms necessary for the administration of this article. A copy of
such rules and regulations currently enforced shall be available for
a public inspection.
A.
All taxes due and unpaid under this article shall
be recoverable by the Township Solicitor as other debts due the Township
are now by law recoverable. Persons liable for tax hereunder which
remains unpaid when due shall be liable for the cost of collection
and interest and penalties herein imposed.
B.
All taxes due under this article shall bear interest
at the rate of 1 1/2% per month or a fractional part of a month
from the day they are due and payable until paid. If any taxpayer
shall neglect or refuse to make any return or payment as herein required,
an additional 10% of the amount of the tax shall be added by the collector
and collected.
C.
All taxes, interests 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.
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 or any portion of any business not within
taxing power of the Township under the Constitution of the United
States and the Constitution and laws of the Commonwealth of Pennsylvania.
[Amended 12-19-1988 by Ord. No. 274]
Any person 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 shall, upon conviction
before a District Justice, be sentenced to pay a fine not to exceed
$600 and costs of prosecution for each offense, to be collected as
other fines and costs are now by law collectible, or imprisonment
not exceeding 90 days, if the amount of said fine and costs shall
not be paid. The fine imposed by this section shall be in addition
to any other penalty imposed by any other section of this article.
Each day on which such person violates this article will be considered
as a separate offense and punishable as provided herein.
