[Adopted 12-23-1985 by Ord. No. 221]
This article shall be known as the "Business
Privilege Tax Ordinance."
The following words and phrases, when used in
this article, shall have the meaning ascribed to them in this section,
except where the context clearly indicates a different meaning:
Any activity carried on or exercised for gain or profit in
the Township of Exeter, including, but not limited to, the sale of
merchandise or other tangible personalty or the performance of services
and the rental of personalty and/or realty.
The period of January 1 to December 31, exclusive.
The period from January 1 to December 31, inclusive.
Any individual, partnership, limited partnership, association,
firm or corporation.
[Amended 9-12-2016 by Ord. No. 769]
The person duly appointed by the Board of Supervisors of
Exeter Township to administer the within tax.
The period from January 1 to December 31, inclusive.
A person subject to the payment of the tax imposed by this
article.
The Township of Exeter.
The Treasurer of the Township of Exeter.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and to no other persons.
There is hereby levied for the tax year 1986
and annually thereafter a tax for the general revenue purposes on
the privilege of doing business as herein defined in the Township
of Exeter.
The rate of the tax on each and every dollar
of the whole or gross volume of business transacted within the territorial
limits of the Township of Exeter shall be 1 1/2 mills; 1 1/2
mills shall mean $1.50 per $1,000 of gross volume of business, except
that the rate of tax on each and every dollar of the whole or gross
volume of business transacted by wholesale dealers or wholesale vendors
within the territorial limits of the Township of Exeter shall be one
mill. All nonwholesale businesses of such wholesale dealers or whole
vendors shall be taxed at the general rate of 1 1/2 mills.
A.
Every person subject to the payment of the tax hereby imposed who
has commenced his business prior to the full calendar year preceding
the tax year shall compute his annual gross volume of business for
the tax year upon the actual gross amount of business transacted by
him during said immediately preceding full calendar year.
[Amended 9-12-2016 by Ord. No. 769]
B.
Every person subject to the payment of the tax hereby imposed who
has commenced or who commences his business prior to the beginning
of the tax year but after the beginning of the full calendar year
immediately preceding the tax year shall compute his annual gross
volume of business for the tax year by taking the monthly average
volume of business during the prior partial calendar year and multiplying
said average by 12.
[Amended 9-12-2016 by Ord. No. 769]
C.
Every person subject to the payment of the tax hereby imposed who
has commenced or commences his business subsequent to the beginning
of the tax year shall file his tax return for the tax year within
100 days of the commencement of business and shall compute his annual
gross volume of business for the tax year by taking the monthly average
volume of business during the first three months after commencing
business and multiplying that monthly average by the number of months
from the commencement of business to the end of the tax year.
[Amended 9-12-2016 by Ord. No. 769]
D.
Every person subject to the payment of the tax hereby
imposed who engages in a business temporary, seasonal or itinerant
by nature, shall compute his estimated gross amount of business to
be transacted by him for the period said person engages in such temporary,
seasonal or itinerant business within the Township by a method to
be determined by the Tax Administrator.
E.
The Tax Administrator is hereby authorized to accept
payment under protest of the amount of business privilege tax claimed
by the Township in any case where the taxpayer disputes the validity
or amount of the Township's claim for tax. If it is thereafter judicially
determined by a court of competent jurisdiction that no tax is due
or that the taxpayer has overpaid, the amount of the payment or overpayment
shall be refunded to the taxpayer. The provisions of this section
shall be applicable to cases in which the facts are similar to those
in a case litigated in other courts of competent jurisdiction, outside
of Berks County.
[Amended 9-12-2016 by Ord. No. 769]
F.
Payments made under any Mercantile License Tax Ordinance
which may be in effect or hereafter adopted for business to which
this tax is applicable shall be credited to this tax and vice versa.
A.
Persons and businesses. Persons employed for a wage
or salary, 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 and the business
of any political subdivision, or of any municipality authority created
or organized under and pursuant to any act of assembly are exempt
from the provisions of this article.
B.
No such tax shall be assessed and collected on a privilege,
transaction, subject or occupation which is subject to a state tax
or license fee, and which tax or license fee has been held by the
Courts of Pennsylvania to be the basis for exemption from the imposition
of a business privilege tax by a municipality.
C.
Utilities. No such tax shall be assessed and collected
on the gross receipts from utility service or any person or company
whose rates of service are fixed and regulated by the Pennsylvania
Public Utility Commission; or on any public utility service rendered
by any such person or company or on any privilege or transaction involving
the rendering of any such public utility service.
D.
State tax on tangible property. No such tax shall
be assessed and collected on the privilege of employing or using any
tangible property which is subject to a state tax except on sales
of admission to places of amusement or on sales or other transfers
of title or possession of property.
E.
Production and manufacture. No such tax shall be assessed
and collected on goods, articles and products, or on by-products of
manufacture, or on minerals, timber, natural resources and farm products,
manufactured, produced or grown in the Township of Exeter, or on the
preparation or processing thereof for use or market, or on any privilege,
act or transaction relating to the business of manufacturing, the
production, preparation or processing of minerals, timber and natural
resources or farm products, by manufacturers, by producers and by
farmers with respect to the goods, articles and products of their
own manufacture, production or growth, or any privilege act or transaction
relating to the business of processing by-products of manufacture,
or on the transportation, loading, unloading or dumping or storage
of such goods, articles, products or by-products.
Gross or whole volume of business upon which
the tax hereunder is computed shall include the gross consideration
credited or received for or on account of sales made, rentals and/or
services rendered, subject only to the following allowable deductions
and exemptions:
A.
The dollar volume of business transacted by wholesale
and retail dealers derived from the resale of goods, wares and merchandise
taken by any dealer as trade-in or as part payment for other goods,
wares or merchandise, except to the extent that the resale price exceeds
the trade-in allowance.
B.
Refunds, credits or allowances given by a taxpayer
to a purchaser on account of defects in goods, wares or merchandise
sold, or on account of goods, wares and merchandise returned.
C.
Any commission paid by a broker to another broker
on account of a purchase or sales contract initiated, executed or
cleared with such other broker.
D.
Bad debts, where the deduction is also taken in the
same year for federal income taxation purposes.
E.
Taxes collected as agent for the United States of
America, Commonwealth of Pennsylvania or the Township of Exeter.
Where gross of whole volume of business in its
entirety cannot be subjected to the tax imposed by this article by
reason of the provision of the Constitution of the United States or
any other provision of law, the Board of Supervisors of Exeter Township
shall establish rules and regulations and methods of allocation and
evaluation so that only that part of the gross volume of business
which is properly attributable and allowable to doing business in
the Township shall be taxed hereunder.
If any person is liable for the same tax on
the same subject imposed under the Local Tax Enabling Act, 1965, December
31, P.L. 1257 and its amendments, to the Township and one or more
political subdivisions of the state, then and in that event the tax
shall be apportioned by such percentage as may be agreed upon by such
political subdivisions, but in no event, shall the combined taxes
of said subdivisions exceed a maximum rate of tax as fixed by the
said enabling act permitting the imposition of such taxes.
The taxpayer, to obtain the foregoing enumerated
exclusions and deductions, shall keep books and records of his business
so as to show clearly, accurately and separately the amount of such
sales and services as are excluded from the tax and the amounts of
such sales and services which he is entitled to deduct from the gross
volume of business and hereinbefore provided.
A.
Every return shall be made upon a form furnished by
the Tax Administrator. Every person making a return shall certify
the correctness thereof by affidavit.
B.
Every person subject to the tax imposed by this article who commenced
his business on or before January 1 of the full calendar year immediately
preceding the beginning of any tax year shall, on or before the 15th
day of May of the tax year, file with the Tax Administrator a return
setting forth his name, his business, business address and such other
information as may be necessary in arriving at the actual gross amount
of business transacted by him during the preceding calendar year and
the amount of the tax due.
[Amended 9-12-2016 by Ord. No. 769]
C.
Every person subject to the tax imposed by this article who commenced his business before the beginning of the tax year but after January 1 of the full calendar year immediately preceding the beginning of the tax year shall, on or before the 15th day of May of the tax year, file with the Tax Administrator a return setting forth his name, his business, business address and such other information as may be necessary in arriving at the actual gross amount of business transacted by him as calculated under § 340-13B hereof and the amount of tax due. Every person subject to the tax imposed by this article who commenced his business after the beginning of the tax year shall file his return on the 15th day of May of the tax year, unless as of May 15 he has not been in business for 100 days, in which case he shall file his return within 100 days of the commencement of his business.
[Amended 9-12-2016 by Ord. No. 769]
D.
Every person subject to the payment of the tax imposed by this article who engages in a business temporary, seasonal or itinerant by its nature shall at the time of application is made for the business privilege license file a return with the Tax Administrator setting forth his name, his business, business address and such information as may be necessary in arriving at the estimated gross amount of business to be transacted by him as calculated in accordance with § 340-13D.
E.
Every person who has gone out of or ceased to do business after the
commencement of the tax year but prior to May 15 of the tax year shall,
no later than May 15 of the tax year, file a final tax return on which
he shall compute his gross volume of business for the tax year by
taking the monthly average volume of business during the previous
full calendar year and multiplying that monthly average by the number
of months from January 1 of the tax year to the date within the tax
year that the person went out of or ceased to do business. Every person
who has gone out of or ceased to do business within the tax year after
May 15 shall be required to file a final tax return within seven days
of ceasing to do business and may seek a partial refund of tax principal
that was paid for the full tax year based on the portion of the year
remaining after which the person ceased to do business.
[Amended 9-12-2016 by Ord. No. 769]
[Amended 9-12-2016 by Ord. No. 769]
The business privilege tax levied pursuant to this article shall
be due and payable on the date on which the taxpayer is required to
file a return as set forth above. All taxes due under this article
shall bear interest at the rate of 1 1/2% per month or any fractional
part of a month from the day the taxes are due and payable until paid.
If any taxpayer shall neglect or refuse to make any return or payment
as and when herein required, an additional 10% of the amount of the
tax shall be added to the amount due.
The Treasurer shall, upon payment to him of
the business privilege tax, give the person paying the same receipt
therefor.
[Amended 8-13-2007 by Ord. No. 640; 9-12-2016 by Ord. No. 769]
A.
After
the effective date of this section, any person desiring to conduct
or to continue to conduct any business as herein defined, within the
Township of Exeter, shall file with the Tax Administrator an application
for a business privilege license and shall pay a fee of $20 for each
renewal thereof.
B.
License for branch establishments. In the event that a licensee conducts business at more than one location in the Township, an additional license is required for each additional place of business (except vending machines). Additional licenses shall be posted in accordance with § 340-23 below. There shall be no fee for such additional licenses.
[Added 4-23-2018 by Res.
No. 2018-14[1]]
[1]
Editor's Note: This resolution provided an effective date
of 1-1-2019.
The license issued shall be conspicuously posted
in the place of business for which the license is issued and shall
remain in effect for the license year or fraction of year for which
said license was issued. In cases where more than one place of business
is conducted, a separate license shall be issued for each place of
business. Any taxpayer who is in default in payment of tax hereunder
shall be refused a license until such tax is paid in full.
[Amended 8-13-2007 by Ord. No. 640; 9-12-2016 by Ord. No. 769]
A.
Any person who fails, neglects, or refuses to make any declaration
or return required by this article, or who refuses to permit the Tax
Administrator or any agent designated by him to examine his books,
records, and papers and any person who knowingly makes any incomplete,
false or fraudulent return, or attempts to do anything whatsoever
to avoid the full disclosure of the amount of his gross volume of
business in order to avoid the payment of the whole or any part of
the tax imposed by this article shall, upon judgment by any Magisterial
District Judge or court of competent jurisdiction, be fined a civil
fine of not more than $500 for each offense. Any such fines imposed
shall be in addition to any other penalty or penalties imposed by
any other section of this article. For purposes of this subsection,
the term "person" shall mean not only the taxpayer, but the partners
or members of the taxpayer and, as applied to corporations, the officers
thereof.
B.
Any person who divulges any information which is confidential
under the provisions of this article shall, upon conviction therefor,
before any Magisterial District Judge, or court of competent jurisdiction,
be sentenced to pay a fine of not more than $500 for each offense,
and costs, and in default of payment, to be imprisoned for a period
not exceeding 30 days.
C.
(Reserved)
D.
The failure of any person to receive or procure forms
required for making the declaration or returns required by this article
shall not excuse him from making such declaration or return.
Each day on which a person commits a violation
of this article may be considered as a separate offense and punishable
as such as afore provided.
A.
The Treasurer is charged with the duties of collecting
and receiving the taxes, fines and penalties imposed by this article.
It shall be his duty to keep a record showing the amount received
by him for each person paying the tax and the date of such receipt.
B.
The Board of Supervisors, by resolution(s), may 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
and payments alleged or found to be incorrect, or as to which an overpayment
is claimed, or found to have occurred. The Tax Administrator is charged
with enforcing the provisions of this article and any rules and/or
regulations promulgated pursuant hereto.
C.
In the event the person to be assessed neglects or refuses to make
a return, then in such case the Tax Administrator or his duly appointed
deputies shall assess said person or persons on such an amount or
whole or gross volume of business as the said Tax Administrator or
his duly appointed deputies shall determine and shall give the parties
assessed a notice in which shall be stated the trade or business,
and the amount of the business privilege tax imposed or levied.
[Amended 9-12-2016 by Ord. No. 769]
D.
The taxpayer shall maintain such records and books
of account as will enable him to make a true and accurate return in
accordance with the provisions of this article. Such accounts and
records must disclose in detail the gross receipts and other data
pertaining to the taxpayer's gross volume of business, and must be
sufficiently complete to enable the Tax Administrator or his deputies
to verify all transactions. The Tax Administrator or his deputies
are hereby authorized 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, in order to verify the accuracy of the
return made, or if no return was made, ascertain the tax due.
E.
Any person aggrieved by any decision of the Tax Administrator
shall have the right to appeal to the Court of Common Pleas, as provided
by law.
Any information gained by the Tax Administrator
or any other official, agent or employee of the Township, as a result
of any returns, investigations, hearings or verifications required
or authorized by this article, shall be confidential, except in accordance
with proper judicial order or as otherwise provided by law.
A.
The Tax Administrator or his duly appointed deputies
shall have the power in the name of the Township to institute proceedings
against any and all persons who violate the provisions of this article.
B.
If for any reason a return is not filed when due, or the tax is not paid when due, and suit is brought for the recovery of any such tax, including, but not limited to, suit to impose fines as noted in § 320-24A (Violations and penalties), as amended, the person liable therefor shall, in addition, be liable for the costs of collection, including attorneys' fees at the flat and hourly rates shown below and at the rate of $250 per hour for any work not included in the fees shown below:
[Amended 9-12-2016 by Ord. No. 769]
|
Activity
|
Legal Fees
|
Court Fees
|
Sheriff Fees
|
|---|---|---|---|
|
Verify account information and data, establish and open file;
prepare and send demand letter; account for monies received
|
$200
|
N/A
|
N/A
|
|
Prepare and file civil complaint in Magisterial District Court;
account for monies received
|
$250
|
According to fee schedule
|
Varied
|
|
Represent taxing authority at any MDJ hearing - includes preparation
of case; preparation of witnesses and any exhibits; attendance at
any hearings or conferences; post-hearing pleadings or exhibits
|
$250/hour
|
N/A
|
N/A
|
|
Prepare and file request to certify judgment with County; account
for monies received
|
$125
|
According to fee schedule
|
N/A
|
|
Execution of judgment against delinquent taxpayer, e.g., prepare
praecipe for writ of execution and all related documents
|
$250/hour
|
According to fee schedule
|
Varied
|
A.
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 laws and Constitution of the Commonwealth
of Pennsylvania.
B.
If the tax, or any portion thereof, imposed upon any
person under the provisions of this article shall be held by any court
of competent power or jurisdiction to be in violation of the Constitution
of the United States or of the Commonwealth of Pennsylvania or any
other provision of the law, the decisions of the court shall not affect
or impair the right to impose the taxes, or the validity of the taxes
so imposed upon other persons as herein provided.
C.
The provisions of this article are severable, and
if any of its provisions shall be held illegal, invalid or unconstitutional,
the decision of the court shall not affect or impair any of the remaining
provisions of this article. It is hereby declared to be the intention
of the Board of Supervisors of Exeter Township that this article would
have been adopted if such illegal, invalid or unconstitutional provisions
had not been included herein.
