[Adopted 12-15-1976 by Ord. No. 1777]
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:
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 VOLUME OF BUSINESS
Includes 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 by reason of any sale (including resales of goods, wares or merchandise taken by a dealer as a trade-in or as part payment for other goods, wares or merchandise) made by any wholesale or retail vendor or dealer or person engaged in conducting a restaurant or other place where food, drink or refreshments are sold. There shall be excluded from the gross volume of business the following:
A. 
The receipts from a sale of goods, wares or merchandise in which the goods are delivered 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 purchaser, provided that such delivery is not made for the purpose of evading this tax.
B. 
The amount of any allowance made for goods, wares or merchandise taken by a dealer as a trade-in or as part payment for other goods, wares or merchandise in the usual and ordinary course of business.
C. 
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 goods, wares or merchandise, provided that the other dealers are not the parent or subsidiary organization of the vendor or have no other cooperative arrangement with the vendor.
PERSON
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.[1] Persons exempted from taxation under this article shall include nonprofit corporations or associations organized for religious, charitable or educational purposes, agencies of the government of the United States or of the Commonwealth of Pennsylvania or any person vending or disposing of articles of his own manufacture for shipment or delivery from the place of the manufacture thereof or any farmer vending or disposing of his own produce or any other person exempted by law.
RETAIL DEALER or RETAIL VENDOR
Any person who is a dealer in or a vendor of goods, wares and merchandise, except a person who is a wholesale dealer or vendor or who is a wholesale and retail dealer or wholesale and retail vendor, as defined in this article.
SECRETARY
The Secretary of the Township of Lower Merion.
TAX YEAR
The twelve-month period beginning the first day of January.
TEMPORARY, SEASONAL OR ITINERANT BUSINESS
Any business that is conducted at one location for less than 60 consecutive calendar days.
TOWNSHIP
The Township of Lower Merion.
WHOLESALE AND RETAIL DEALER or WHOLESALE AND RETAIL VENDOR
Any person who sells to retail dealers or retail vendors, as defined in this article, and to other persons.
WHOLESALE DEALER or WHOLESALE VENDOR
Any person who sells to retail dealers or retail vendors, as defined in this article, and to no other persons.
[1]
Editor's Note: See 53 P.S. § 6901 et seq.
[Amended 4-18-2000 by Ord. No. 3568; 2-6-2008 by Ord. No. 3840; 10-19-2022 by Ord. No. 4252]
A. 
Every person desiring to continue to engage in or hereafter to begin to engage in the business of wholesale or retail, or wholesale and retail, vendor or dealer in goods, wares and merchandise, and any person conducting a restaurant or other place where food, drink or refreshments are sold in the Township shall, on or before the 15th day of April of each tax year or prior to commencing business in any such tax year, apply for and procure a mercantile license for each place of business in the Township from the Collector. Any business which engages in both retail and wholesale activities must apply for one license for each place of business. Each application for a license shall be signed by the applicant, if a natural person, and, in the case of an association or 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 license, when issued, shall be displayed in each place of business.
B. 
License fee. Every business or person is hereby assessed and shall pay a license 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. 
Any person who fails to apply for and obtain said license shall be subject to a penalty of $30 for each year that a license is not obtained. 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.
D. 
Any person who fails to file and pay any Township business tax as required by Chapter 138, Articles II, III and IV, shall not receive a registration until such time as the outstanding return(s) is filed and taxes paid.
A tax to provide revenue for general Township purposes is hereby levied, assessed and imposed for the tax year 1977 and for each tax year thereafter upon every person engaging in any of the following occupations or businesses in the Township, at the rates hereinafter set forth, and such person shall pay a mercantile license tax for each tax year at such rates, subject to the exemptions hereinafter set forth. The tax is hereby levied, assessed and imposed as follows:
A. 
Wholesale vendor or dealer in goods, wares and merchandise of every kind, at the rate of one mill on each dollar of the gross volume of business transacted by such person during the tax year.
B. 
Retail vendor or dealer in goods, wares and merchandise of every kind and all persons engaged in conducting restaurants or other places where food, drink or refreshments are sold, at the rate of one mill on each dollar of the gross volume of business transacted by such person during the tax year.
C. 
Wholesale and retail vendor or dealer in goods, wares and merchandise of every kind, at the rate of one mill on each dollar of the gross volume of wholesale business transacted and one mill on each dollar of the gross volume of retail business transacted by such person during the tax year.
The computation of the estimated and actual gross volume of business shall be made in the following manner:
A. 
The estimated gross volume of business for any 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 the tax year shall be the actual gross volume of business of such person during the 12 months preceding such January 1.
B. 
The estimated gross volume of business 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 the actual gross volume of business of such person during the months while engaged in business prior to such January 1.
C. 
The estimated gross volume of business 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 the gross volume of business of such person during the first month of business multiplied by the number of months remaining in the tax year.
D. 
Every person subject to the payment of the tax herein imposed who engages in business which is temporary, seasonal or itinerant by its nature shall compute the gross volume of business upon the actual amount of business transacted by such person during the tax year.
[Amended 11-15-1978 by Ord. No. 1838; 11-19-1980 by Ord. No. 1925; 4-18-2000 by Ord. No. 3568; 2-6-2008 by Ord. No. 3840]
A. 
Every return hereinafter required by this section shall be made upon a form furnished by the Collector and in accordance with regulations issued pursuant to § 138-32G hereof. Every person making such return shall certify the correctness thereof under the penalties of perjury.
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 the beginning of each tax year, 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 volume of business transacted by 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 the beginning of each tax year, 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 volume of business transacted by such person during the preceding year and the amount of tax estimated to be due.
D. 
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 volume of business transacted by such person during the first month of business and the amount of tax estimated to be due.
E. 
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 other information as may be necessary in arriving at the actual gross volume of business transacted by such person during such period and the amount of the tax due.
F. 
At the end of the tax year and on or before April 15 of the following year, every person subject to the tax imposed by this article shall make a final return to the Collector of the actual gross 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 the gross volume 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.
G. 
Any taxpayer whose gross volume of business in any tax year is 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. 
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 the filing of the first return, the person making the same shall pay the amount of the tax estimated to be due, as determined pursuant to §§ 138-27, 138-28 and 138-29 of this article.
B. 
At the time of filing 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 first return on the estimated computation and the amount of the tax finally shown to be due.
C. 
Any person subject to the payment of a mercantile license 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 4-20-1977 by Ord. No. 1793]
[1]
Editor's Note: See Art. II of this chapter.
[Added 12-16-1981 by Ord. No. 1979; 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.
[1]
Editor's Note: Former § 138-31, Alternate Tax, added 4-20-1977 by Ord. No. 1793, was repealed 11-19-1980 by Ord. No. 1925.
[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 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 person, based upon the facts contained in the return or upon any information within his 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 licensees who engage in a business which is temporary, seasonal or itinerant by its nature.
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 person and determine the amount due for taxes, penalties and interest thereon.
D. 
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. 
If the final return of the taxpayer shows an overpayment of the tax by reason of the fact that the gross volume of business as stated in the estimated computation was more than the actual gross volume of business 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. 
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.
H. 
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. 
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. 
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. 1893; 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.
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 the taxing power of the Township under the Constitution of the United States and the Constitution and laws of the Commonwealth of Pennsylvania.
[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 person, 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 person, 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 that this article takes effect after the beginning of a tax year, the tax imposed by § 138-27 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 § 138-28A, 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.