There is hereby levied for the tax year beginning January 1, 1997, a tax for general revenue purposes on the privilege of doing business as herein defined in the City.
(Ord. 14-1996. Passed 12-17-96.)
(a) Rate and Basis of Tax. The rate of tax on every dollar of the whole or gross volume of business transacted within the territorial limits of the City shall be calculated as follows: (Ord. 21-1987 §2. Passed 7-21-87.)
(1) Business Privilege Tax. On receipts attributable to the performance of service, including any labor and materials entering into or becoming component parts of the service performed, the rate imposed shall be three and one-half mills or three dollars and fifty cents ($3.50) per one thousand dollars ($1,000) of gross volume of business. Collections of past due taxes, penalties and interest shall not be construed to levy an increase on the annual rate of the tax.
(Ord. 14-1996. Passed 12-17-96.)
(2) Wholesale merchantile rate. On receipts attributable to wholesale sales of merchandise, the rate imposed shall be one mill or one dollar ($1.00) per thousand dollars ($1,000) of gross volume of business. Collections of past due taxes, penalties and interest shall not be construed to levy an increase on the annual rate of the tax.
(Ord. 21-1987 §2. Passed 7-21-87.)
(3) Retail mercantile rate. On receipts attributable to retail sales of merchandise, the rate imposed shall be one and one-half mills or one dollar and fifty cents ($1.50) per thousand dollars ($1,000) of gross volume of business. Collections of past due taxes, penalties and interest shall not be construed to levy an increase on the annual rate of the tax.
(Ord. 27-1987 §1. Passed 10-6-87.)
(b) Computation of Volume of Business.
(1) For businesses that started in the current “tax year”, the tax shall be due on April 15 of the current year and shall be based on the “gross volume of business” transacted in the first full month of operation multiplied by the number of full months that business shall be in operation for the year. If the business starts operations after April 15 of the current “tax year” that tax shall be computed in the same manner but shall not be due until the fifteenth day of the month following the first full month of operation. At the end of the year every business that started that year shall reconcile the estimated tax payment to the figure they reported on the gross receipts or sales line of their federal tax return. If the amount of the tax paid is less than the figure reported on the federal tax return, the business shall remit payment to the City within thirty days of filing their return. If the estimated amount paid is more than the figure reported on the federal tax return, the business owner shall contact the City for an adjustment.
(2) For a business that started operations in the year preceding the current "tax year" the business shall pay its tax in the current year based on the gross receipts sales line of their federal tax return for the preceding year pro-rated to twelve months. The tax shall be paid in full on or before April 15 of the current "tax year".
(3) For a business that has been in operation one full year or more prior to the current "tax year", the tax shall be computed based on the gross volume of business transacted in the preceding "tax year" and shall be due in full on or before April 15 of the current year.
(Ord. 1-1993 §1. Passed 1-19-93.)
(4) 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 gross amount of business within the City from his actual gross receipts for the license year.
(c) Persons, Business and Receipts Exempted from the Payment of Tax.
(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 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.
(2) Court exemptions. No such tax shall be assessed and collected on a privilege, transaction, subject or occupation which is subject to a revenue producing 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 or mercantile 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 of other transfers of title or possession of property.
(5) Landlords and rental property. No such tax shall be assessed and collected on the gross receipts received as rent by a landlord or his agent.
(6) 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 or 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 or dumping or storage of such goods, articles or products of by-products.
(7) Gross receipts tax or fee. No such tax or fee shall be assessed or collected on any receipts which are subject to a gross receipts tax or fee under any other ordinance of the City.
(d) Determination of Gross or Whole Volume of 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 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 a 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 in 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 or a purchase or sales contract initiated, executed or cleared with such other broker; and
(4) Bad debts, where the deduction is also taken in the same year for Federal income taxation purposes.
(Ord. 21-1987 §2. Passed 7-21-87.)
(e) Partial Exemptions. Where 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 provisions of law, including, but not limited to, Court decisions from Pennsylvania Courts of competent jurisdiction, 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. (Ord. 7-1993 §1. Passed 3-16-93.)
(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, 1965, December 31, P.L. 1257 (53 P.S. 6901 et seq.), to the City 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 both subdivisions exceed a maximum rate of tax as fixed by such Enabling Act permitting the imposition of such taxes.
(g) Records. The exempt or partially exempt taxpayer, to obtain the foregoing enumerated exclusions and deductions, shall keep the books and records of his business so as to show clearly, accurately and separately the amount of such sales and services which he is entitled to deduct from the gross volume of business as hereinbefore provided. (Ord. 21-1987 §2. Passed 7-21-87.)