[Adopted 12-23-1971 by Ord. No. 2118 (Art.
339 of the 1965 Codified Ordinances)]
This article is enacted pursuant to the authority
of the Local Tax Enabling Act, Act 511, enacted December 31, 1965,
P.L. 1257, and shall become effective 30 days after it has been enacted
by Council and signed by the Mayor and shall continue thereafter unless
amended or repealed.
[1]
Editor's Note: Act 160 of 1967 removes from
Act 511, the Local Tax Enabling Act, the provisions of Sections 4,
5 and 7 of the Act relating to annual reenactment of taxes and specifies
that every tax levied under the provisions of the Act would continue
in force on a calendar- or fiscal-year basis without annual reenactment
unless the rate of the tax is subsequently changed.
The following words and phrases, when used in
this article, shall have the meanings 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 City, including, but not limited to, the sale of merchandise or
other tangible personalty or the performance of services.
The period of January 1 to December 31, inclusive.
The City of Easton.
The period from January 1 to December 31, inclusive.
A natural person, individual, partnership, association, corporation,
limited partnership, limited-liability company, firm, estate, trustee,
fiduciary, corporate officer, or any other entity subject to or claiming
exemption from the tax or under a duty to perform an act for itself
or for another under or pursuant to the City of Easton privilege and
mercantile tax.
[Amended 4-28-2010 by Ord. No. 5252]
A person, partnership, association or any other entity subject
to the payment of tax imposed by this article.
[Amended 4-28-2010 by Ord. No. 5252]
The period from January 1 to December 31, inclusive.
The Treasurer of the City of Easton.
Any person who sells to dealers in or vendors of goods, wares
and merchandise and to no other persons.
[Amended 11-26-2002 by Ord. No. 4219]
There is hereby levied for the tax year 1972
and annually thereafter a tax for general revenue purposes on the
privilege of doing business as herein defined in the City as follows:
A.
Rate and basis of tax. The rate of the tax on every
dollar of the whole or gross volume of business transacted within
the territorial limits of the City shall be 1 1/2 mills (1 1/2
mills means $1.50 per $1,000 of gross volume of business), except
that the rate of the tax on every dollar of the whole or gross volume
of business transacted by wholesale dealers or wholesale vendors within
the territorial limits of the City shall be one mill (one mill means
$1 per $1,000 of gross volume of business). All nonwholesale business
of such wholesale dealers or wholesale vendors shall be taxed at the
general rate of 1 1/2 mills. The rate of the tax on every dollar
of the whole or gross volume of business transacted by owners of commercial,
residential or other real property within the territorial limits of
the City of Easton shall be 2 1/2 mills or $2.50 per $1,000 of
gross rental business.
[Amended 1-11-2006 by Ord. No. 4766]
B.
Computation of volume of business.
(1)
Every person subject to the payment of the tax hereby
imposed who has commenced his business prior to the full calendar
year prior to the tax year shall compute his annual estimated gross
volume of business upon the actual gross amount of business transacted
by him during the immediately preceding calendar year.
(2)
Every person subject to the payment of the tax hereby
imposed who has commenced or who commences his business before the
beginning of the tax year but after the beginning of the full calendar
year prior to the tax year shall compute his estimated annual gross
volume of business for the tax year upon the gross volume of business
transacted by him during the prior calender year, taking the monthly
average during the period and multiplying the same by 12. In the event
that he shall be in business fewer than 90 days in the prior calendar
year, he shall be permitted to use sufficient days in the calendar
year in which the tax year begins to equal 90 successive days after
commencement of business to take a monthly average thereon and so
multiply the average by 12.
(3)
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, if there are less than three months
from the commencement of his business to the end of the tax year,
shall compute his annual gross volume of business upon the actual
gross amount of business transacted by him during the tax year; if
there are more than three months from the commencement of his business
to the end of the tax year, he shall compute his estimated gross volume
of business for such tax year upon the gross volume of business transacted
by him during the period from the commencement of his business to
the end of the tax year, taking the monthly average during the first
three months of business and multiplying the same by the number of
months from the commencement of business to the end of the tax year.
(4)
Every person subject to the payment of the tax hereby
imposed who engages in a business which is temporary, seasonal or
itinerant by nature shall compute his estimated gross amount of business
to be transacted by him for the period such person engages in such
temporary, seasonal or itinerant business within the City by a method
to be determined by the License Officer.
(5)
No such tax or fee shall be assessed and collected
on rental received by an owner from a building originally erected
as a private dwelling house and occupied as a residence by such owner
during the tax year.
(6)
No such tax or fee shall be assessed or collected
on any receipts which are subject to a gross receipts tax under any
other ordinance of the City.
C.
Persons, businesses and receipts exempted.
(1)
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 the Commonwealth of Pennsylvania and 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.[1]
[1]
Editor's Note: Former Sec. 339.03(c)(2), Subjects
of state tax or license fee, which previously followed this subsection,
was repealed 11-14-1973 by Ord. No. 2223.
(2)
Utilities. No such tax shall be assessed and collected
on the gross receipts from utility service of 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 such public utility service.
(3)
State tax on tangible property. No such tax shall
be assessed and collected on the privilege of employing such tangible
property as is subject to a state tax except on sales of admission
to places of amusement or on sales or other transfer of title or possession
of property.
(4)
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 City, or on the preparation
or processing thereof for use at 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, 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.
D.
Determination of gross or whole volume business. The
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 and/or services rendered, subject
only to the following allowable deductions and exemptions:
(1)
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 and merchandise, except to the extent that the resale price
exceeds the trade-in allowance.
(2)
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 or merchandise returned.
(3)
Any commissions paid by a broker to another broker
on account of a purchase or sales contract initiated, executed or
cleared with such other broker.
(4)
Bad debts, where the deduction is also taken in the
same year for federal income taxation purposes.
(5)
Taxes collected as agent for the United States of
America, Commonwealth of Pennsylvania or the City of Easton.
E.
Partial exemptions. Where the gross or whole volume
of business in its entirety cannot be subjected to the tax imposed
by this article by reason of the provisions of the Constitution of
the United States or any other provision of law, the License Officer
under the direction of the Mayor shall establish rules and regulations
and methods of allocation and evaluation so that only that part of
the gross or whole volume of business which is properly attributable
and allowable to doing business in the City shall be taxed hereunder.
F.
Rate when same tax is imposed by two taxing bodies.
If any person is liable for the same tax on the same subject imposed
under the Local Tax Enabling Act, Act 511, enacted December 31, 1965,
P.L. 1257 and its amendments, to the City and one or more political
subdivisions of the state, then and in that event the tax shall be
paid to the City for only that part of the gross or whole volume of
business which is properly attributable to doing business in the City
of Easton over a period of 15 or more days (consecutively or individually)
over the calendar year, but in no event shall the combined taxes of
both subdivisions exceed a maximum rate of tax as fixed by the enabling
act permitting the imposition of such taxes.
[Amended 9-9-2020 by Ord. No. 5711]
G.
Records. 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 as hereinbefore provided.
H.
The Finance
Director is hereby authorized to accept "payment in protest" of the
amount of the business privilege tax claimed to be due to the Tax
Bureau in any case where the taxpayer disputes the validity or the
amount of the City's claim for tax. If it is thereafter judicially
determined by the Tax Appeal Hearing Officer or a court of competent
jurisdiction that the City has been overpaid, the amount of the overpayment
shall be refunded to the taxpayer.
[Added 4-28-2010 by Ord. No. 5252]
I.
Every
person subject to the provisions of this article, whose annual gross
receipts can be reasonably calculated to exceed $2,000,000, shall
file quarterly declarations of estimated tax and pay 25% of the estimated
annual tax with each filing.
[Added 4-28-2010 by Ord. No. 5252]
(1)
Every
person filing a declaration shall certify the correctness of the affidavit.
The fact that an individual’s name is signed on the return shall
be prima facie evidence that the individual is authorized to sign
the return on behalf of the taxpayer.
(2)
Every
person filing a declaration of estimated tax shall file such a declaration
and make payment of the estimated tax in quarterly installments of
25% of the total estimated tax to be due for the year. Payments of
the quarterly estimated installments are due on April 30, July 31,
October 31 and January 31 of the succeeding year.
(3)
An
overpayment of the quarterly estimated installments may be credited
to the next year's first quarterly installment or refunded directly
to the taxpayer.
(4)
Every
person subject to filing a quarterly return levied pursuant to this
article shall be due and payable on the quarterly date as set forth
above, and if the same is not paid on such quarterly date when due,
interest at the rate of 6% per annum on the amount of such quarterly
payment, and an additional penalty of 0.5% of the amount of the unpaid
tax for each month or fraction thereof during which the tax remains
unpaid, shall be added and collected. Where suit is brought for recovery
of any such tax, the person liable therefor shall, in addition, be
liable for the costs of allocation and the interest and penalties
herein imposed.
A.
Every return shall be made upon a form furnished by
the License Officer. 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 previous to the beginning of any tax year shall, on or before
the first day of April of the tax year, file with the License Officer
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.
C.
Every person subject to the tax imposed by this article who has commenced his business before the beginning of the tax year shall, on or before April 15 or 105 days after the end of the fiscal year, if the taxpayer files his/her federal return on a fiscal-year basis, file with the License Officer a return, setting forth his/her name, his/her business, business address and such other information as may be necessary in arriving at the estimated gross amount of business transacted by him/her as calculated under § 535-32B(2) and the amount of tax due.
[Amended 3-9-2005 by Ord. No. 4648]
D.
Every person subject to the tax imposed by this article who commences business subsequent to the beginning of any tax year shall, within 100 days from the date of commencing such business, file a return with the License Officer, setting forth his name, his business and business address and such information as may be necessary in arriving at the estimated or actual gross amount of business transacted by him as calculated under § 535-32B(2) hereof and the amount of the tax 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, at the time application is made for the business privilege license, file a return with the License Officer, setting forth his name, his business, his 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 § 535-32B(4).
F.
Any person going out of or ceasing to do business
shall, within seven 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 that 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 the return. If such tax
has been previously paid based upon estimated gross receipts, the
taxpayer shall be entitled to a refund of any excess tax paid for
the tax year in which business was terminated.
G.
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 and, if the same is
not paid on such date, then 10% shall be added thereto, plus an additional
1% per month or fractional part of a month until paid.
[Amended 3-9-2005 by Ord. No. 4648]
H.
The Treasurer shall, upon payment to him of the business
privilege tax, give the person paying the same a receipt therefor.[1]
[1]
Editor's Note: Former Section 339.05, License;
fee, which previously followed this section, as amended 12-18-1996
by Ord. No. 3482, was repealed 1-11-2006 by Ord. No. 4766.
I.
Every
person required to file a return by this article shall attach to such
a return a copy of the Internal Revenue Service schedule or form that
said person uses to report the business activity to the Internal Revenue
Service.
[Added 4-28-2010 by Ord. No. 5252]
J.
The Finance
Director is hereby authorized to accept "payment in protest" of the
amount of business privilege tax claimed to be due to the Tax Bureau
in any case where the taxpayer disputed the validity or the amount
of the City's claim for tax. Such payment must be clearly marked "payment
in protest" and must include the taxpayer's name, address, identification
number, and tax period for which the payment is being made.
[Added 4-28-2010 by Ord. No. 5252]
The license issued shall be conspicuously posted
in the place of business for which such license is issued and shall
remain in effect for the license year or fraction of year for which
such 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 of payment of the tax due
hereunder shall be refused a license until such tax is paid in full.
A.
The City 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 from each person paying the tax and the date of such receipt.
B.
License Officer.
[Amended 1-4-1988 by Ord. No. 2933]
(1)
The License Officer and his duly appointed deputies,
under the direction of the Mayor, are hereby authorized with the approval
of the Mayor to 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, and charged
with enforcing the provisions of this article and any rules and/or
regulations promulgated pursuant hereto.
(2)
Without limiting the foregoing, the License Officer
is specifically empowered to promulgate a regulation or regulations
requiring any person filing a return hereunder to include copies of
appropriate schedules from said person's federal income tax return
for the corresponding year in order to assist in verifying the income
set forth in the business privilege tax return.
C.
In the event the person to be assessed neglects or
refuses to make a return, then the License Officer or his duly appointed
deputies shall assess the person on such an amount of whole or gross
volume of business as the License Officer or his deputies deem reasonable
and appropriate. In all cases of assessment, the License Officer or
his duly appointed deputies shall give the parties assessed a notice
in which shall be stated the trade, business, occupation or class,
and the amount of the business privilege tax imposed or levied.
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 License Officer or his deputies
to verify all transactions. The License Officer 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, to ascertain the tax due.
E.
Any person aggrieved by a decision of the License
Officer shall have the right to appeal to the Court of Common Pleas
as in other cases.
Any information gained by the License Officer
or any other official, agent or employee of the City 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 License Officer or his duly appointed deputies
shall have the power in the name of the City to institute proceedings
against any and all persons who violate the provisions of this article.
B.
If for any reason the tax is not paid when due and
suit is brought for the recovery of any such tax, the person liable
therefor shall, in addition, be liable for the costs of collection
and interest and penalties herein imposed.
C.
The Finance Director and/or a member of the Finance Department may file a nontraffic citation against any taxpayer who violates any provision of Chapter 535, Article V, of the Code of the City of Easton. Each twenty-four-hour period beginning May 1 of the calendar year the tax is due, during which such violation continues, shall be considered a separate and distinct offense punishable as outlined in the Business Privilege Tax Ordinance.[1] Such violations include, but are not limited to:
[Added 4-28-2010 by Ord. No. 5252]
A.
Nothing contained in this article shall be construed
to authorize the City 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 City 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 is 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.
A.
Any person who conducts, transacts or engages in any
of the businesses subject to the tax imposed by this article without
having first secured a business privilege license for the year, or
any person who fails to file a tax return as required by the provisions
of this article, or any person who willfully files a false return,
shall, upon summary conviction before any Magisterial District Judge
in the County of Northampton, be fined not more than $500 for any
one offense, recoverable with costs, or imprisonment not exceeding
90 days if the amount of the fine and costs are not paid.
[Amended 4-28-2010 by Ord. No. 5252]
