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Part 9
Business Privilege Tax
Business Privilege Tax
The following words and phrases, when used in this Part, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning:
Business–any activity carried on or exercised for gain or profit in the Township of Plains, Luzerne County, Pennsylvania, which is not subject to the Mercantile License Tax Resolution of February 29, 1972, including, but not limited to, the performance of services and the rental of personal property and/or realty.
Calendar year–the period January 1 to December 31, inclusive.
Gross volume of business–shall include all cash, credit and barter transactions.
License year–the period beginning January 1 and ending December 31 of the calendar year for which the tax is levied.
Person–any individual, partnership, limited partnership, association, firm or corporation. Whenever used in any clause prescribing or imposing a penalty, the term “person” as applied to associations shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
Tax Administrator–the person(s) duly appointed by the Commissioners of Plains Township to administer the within tax.
Taxpayer–a person subject to the payment of the tax imposed by this Part.
Township–Plains Township, Luzerne County, Pennsylvania.
(Res. 11/–/1986, §II)
There is hereby levied for the license year 1987 and annually thereafter a tax for general revenue purposes of the privilege of doing business as herein defined in the Township of Plains Luzerne County, Pennsylvania, as follows:
A. Licenses. Beginning on the first day of January, 1987, and for the balance of the calendar year, every person desiring to continue to engage in, or hereafter to begin to engage in business as herein defined, shall, on or before the first day of January, 1987, and for the balance of the calendar year, every person desiring to continue to engage in, or hereafter to begin to engage in business as herein defined, shall, on or before the first day of January, 1987, procure a business privilege license for his or her place of business, or if more than one, for each of his or her places of business in Plains Township from the Business Privilege Tax Collector as required by law. Such license shall be conspicuously posted at the place of business of every person at all times.
B. Rate and basis of tax. The rate of the tax on each and every dollar of the whole or gross volume of business transacted within the territorial limits of Plains Township shall be three-fourths mills. Three-quarters mills shall mean $0.75 per $1,000 of gross volume of business.
C. Computation of volume of business.
(1) Every person subject to the payment of the tax hereby imposed who has commenced his or her business at least one year prior to the beginning of the license year shall compute his or her annual gross volume of business upon the actual gross amount of business transacted by him or her during said immediately preceding calendar year.
(2) Every person subject to the payment of the tax hereby imposed who has commenced or who commences his or her business less than one full year prior to the beginning of the license year, shall compute his or her annual gross volume of business for such license year upon the gross volume of business transacted by him or her during the first month in business multiplied by 12.
(3) Every person subject to the payment of the tax hereby imposed who commences his or her business subsequent to the beginning of the license year, shall compute his or her annual gross volume of business for such license year upon the gross volume of business transacted by him or her during the first month of his or her engaging in business multiplied by the number of months he or she engages in business in such license year.
(4) Every person subject to the payment of the tax hereby imposed who engages in a business temporary, seasonal or itinerant by its nature, shall compute his or her annual gross volume of business upon the actual gross amount of business transacted by him or her during the license year. The aforementioned shall be required to make a minimum payment in an amount determined by the Tax Administrator prior to their engaging in business.
(5) 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 the Township has been overpaid, the amount of the over payment 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 a court of competent jurisdiction.
(6) Payments made under the mercantile license tax for business to which this tax is applicable shall be credited to this tax and vice versa.
D. Persons, business 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 of 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 Part.
(2) State tax or license fee. 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.
(3) 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 any such public utility service.
(4) 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 transfers of title or possession of property.
(5) Other. Any other person exempt by law from the imposition of this tax.
E. Determination of gross or whole volume business. 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:
(1) 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.
(2) Bad debts, where the deduction is also taken in the same year for federal income taxation purposes.
(3) Taxes collected as agent for the United States of America, Commonwealth of Pennsylvania or the Township of Plains.
F. Partial exemptions. Where gross or whole volume of business in its entirety cannot be subjected to the tax imposed by this Part by reason of the provisions of the Constitution of the United States or any other provision of law, the Tax Administrator with the approval of the Plains Township Board of Commissioners shall establish rule 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 Township shall be taxed hereunder.
G. Rate when same tax is imposed by two taxing bodies. It is the intent of this Part, pursuant to the sharing provisions of the Local Tax Enabling Act, and its amendments, 53 P.S. §§ 6924.101 et seq., that this tax is to be in addition to and not included in the business privilege tax passed by the Wilkes-Barre School District on June 30, 1986. [Res. 12/10/1987]
H. Records. The taxpayer, to obtain the foregoing enumerated exclusions and deductions, shall keep books and records of his or her 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 or she is entitled to deduct from the gross volume of business as hereinbefore provided.
(Res. 11/–/1986, §III; as amended by Res. 12/10/1987, § 7)
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