INTRODUCTION AND LEGISLATIVE QUALIFICATIONS AND RESTRICTIONS
The Regulations and Rules herein have been prepared as a supplement, addition, and interpretation of the Business Privilege Tax Ordinance. Consequently, these Regulations are not independent, but should be read and interpreted in conjunction with the aforementioned Bill. Content of Article 353 is, therefore, not repeated in these Regulations, except where considered necessary for clarification. All businesses in the Borough are subject to the Tax, except those which Article 353 specifically excludes:
1. Businesses subject to the Mercantile Tax.
2. Business of any political subdivision.
3. Employment for a wage or salary.
4. Any business which the law prohibits from taxing.
Article 353, has been passed under the authority of the Local Tax Enabling Act (Act 511 of 1965, as amended). Section 2 of this Act provides the general power to levy a tax on "persons, transactions, occupations, privileges," etc. The same Section of Act 511 also lists business activities which may not be taxed by local authorities. Consequently, the gross revenues, income, and receipts of the following types of businesses are not subject to the Business Privilege Tax:
1. Sales subject to a State Tax or License Fee.
(Case decisions have interpreted this to be a "true" tax or license fee: see National Biscuit Company vs. Philadelphia, 374 Pa.; for example, mere annual or one-time license fees paid by beauticians, barbers, accountants, etc. to the Commonwealth are not true license fees.)
2. Gross receipts of utilities whose rates and services are fixed and regulated by the Pennsylvania Public Utility Commission.
3. Gross receipts derived from manufacturing, mining, farming, processing, or sales related thereto, including the transportation and storage of such products.
4. Membership dues, fees, or assessments of charitable, religious or non-profit organizations.
The following Regulations do not repeat the qualifications and restrictions recited above, except where necessary for clarification. However, all of the narrative preceding, titled, "Introduction and Legislative Qualifications and Restrictions," is an inherent part of these Regulations and Rules.