OFFICIAL

TOWNSHIP OF NORTH HUNTINGDON 

PROPOSED ORDINANCE NO. 1 OF 2003

ORDINANCE NO. 1085

AN ORDINANCE OF THE TOWNSHIP OF NORTH HUNTINGDON, COUNTY OF WESTMORELAND AND COMMONWEALTH OF PENNSYLVANIA UNDER THE AUTHORITY OF THE APPLICABLE PROVISIONS OF THE FIRST CLASS TOWNSHIP CODE 53 P.S. SECTIONS 55101 et. seq. AND THE LOCAL TAX ENABLING ACT BEING No. 511 of 1965, 53 P.S. 6901 et.seq.; TO PROVIDE REVENUE FOR THE TOWNSHIP OF NORTH HUNTINGDON BY IMPOSING A GROSS RECEIPTS TAX ON ALL BUSINESSES OPERATING OR CONDUCTING A BUSINESS WITHIN THE TOWNSHIP AND PROVIDING FOR IT’S LICENSING, LEVY AND COLLECTION OF THE TAX, AND CONFERRING AND IMPOSING POWERS AND DUTIES ON THE COLLECTOR OF THE TAX FOR THE TOWNSHIP OF NORTH HUNTINGDON.

BE IT ORDAINED AND ENACTED by the Township of North Huntingdon, and it is HEREBY ORDAINED AND ENACTED by the authority of the same, that, under and by virtue of the First Class Township Code 53 P.S. Section 55101 et. seq. and the Local Tax Enabling Act being No. 511 of 1965, 53 P.S. 6908, as amended, HEREBY ENACTS and ORDAINS as follows:

SECTION I. DEFINITIONS

As used in this Ordinance, certain terms are defined as follows:

(A) BUSINESS

(1) Carrying on or exercising whether for gain or profit or otherwise within the Township of North Huntingdon any trade, business, including but not limited to financial business as herein defined, profession, vocation, service, construction, communication or commercial activity, or rendering services from or attributable to a bona fide Township of North Huntingdon office or place of business.

(2) Any corporation organized under the business corporation law of any state or commonwealth.

(3) WHOLESALE DEALER or VENDOR. Any person who sells to dealers in or vendors of goods, wares and merchandise and to no other persons, whether or not such vending or dealing is the primary business activity of such person.

(4) RETAIL DEALER or VENDOR. Any person who is a dealer in or vendor of goods, wares, and merchandise, who is not a wholesale dealer or vendor, whether or not such vending or dealing is the primary business activity. RETAIL DEALER or VENDOR shall not include agencies of the federal, state or local government.

(5) PLACE OF AMUSEMENT or ENTERTAINMENT. Any place whether incidental to some other business or occupation, indoors or outdoors where the general public or a limited or selected number thereof, may, upon payment of any established price, attend or engage in any amusement, entertainment, exhibition, contest, recreation, including among other places, theaters, opera houses, motion picture houses, amusement parks, stadium, arenas, baseball or football parks or fields, skating rinks, circus or carnival tents or grounds, fair grounds, bowling alleys, billiard or pool rooms, shuffle board rooms riding academies, golf courses, bathing and swimming places, dance halls, tennis courts, archery, rifle or shotgun ranges, arcades and other like places. The term does not include any exhibitions, amusements, performances or contests conducted by a nonprofit corporation or association.

(6) RESTAURANT OR OTHER PLACE WHERE FOOD, DRINK OR REFRESHMENTS ARE SOLD. Includes places conducted incidental to some other business or occupation, but does not include the facilities of nonprofit corporations or beneficial associations which are deemed or considered to be services under either statutory or case law, or any other such facility which is exempt by law.

BUSINESS. Does not include the following: the business of any political subdivision; any employment for a wage or salary; any business conducted by a non profit corporation or association organized for religious, charitable or educational purposes or any business upon which the power to levy a tax is prohibited by law.

(B) FINANCIAL BUSINESS. The services and transactions of banks and bankers, trust, credit and investment companies, holding companies, dealers and brokers in money, credits, commercial paper, bonds, notes, securities and stocks, monetary metals, factors and commission merchants. FINANCIAL BUSINESS shall not include installment sales and lease transactions involving the use of personal property such as automobiles or trucks.

(C) LICENSE YEAR: The twelve-month period from January 1 to December 31, which coincides with the calendar year and tax year.

(D) TAX YEAR. The twelve-month period from January 1 to December 31, which coincides with a calendar year.

(E) TEMPORARY, SEASONAL OR ITINERANT BUSINESS. Any business that is conducted at one (1) location for less than sixty (60) consecutive calendar days.

(F) GROSS RECEIPTS. Cash, credits, property of any kind or nature, received in or allocable or attributable to the Township of North Huntingdon from any business including retail and wholesale sales, or services rendered, or commercial or business transactions without deduction therefrom on account of the cost of property sold, materials used, labor, service or other cost, interest or discount paid, or any other expense. GROSS RECEIPTS excludes the following:

(1) In the case of a financial business, the cost of securities and other property sold, exchanged, paid at maturity, or redeemed, and moneys or credits received in repayment of advances, credits and loans, but not to exceed the principal amount of advances, credit and loans, and deposits.

(2) In the case of a financial business which is not a bank, those receipts which are generated by transactions in moneyed capital, but only if and to the extend that the Township of North Huntingdon is prohibited by law from taxing receipts of a state or national bank which originate from the same types of transactions.

(3) In the case of a broker of financial paper, commissions paid by him to another broker on account of a purchase or sales contract initiated, executed or cleared in conjunction with such other broker.

(4) The amount of any allowance made for goods, wares or merchandise taken by a dealer as a trade-in or as part payment for other goods, wares and merchandise in the usual and ordinary course of his or her business except to the extent that the resale price exceeds the trade-in allowance.

(5) Receipts by dealers from sales to other dealers in the same line where the dealer transfers title or possession at the same price for which he or she acquired the goods, wares or merchandise.

(6) Receipts or that portion thereof attributable to interstate or foreign commerce or to an office or place of business regularly maintained by the taxpayer, outside the Township of North Huntingdon limits, and not for the purpose of evading payment of this tax and those receipts which the Township of North Huntingdon is prohibited from taxing by law. The receipts shall be segregated so that only that part of the receipts which is properly attributable and allocable to the doing of business in the Township of North Huntingdon shall be taxed hereunder.

(G) GROSS VOLUME OF BUSINESS. Value received, regardless of form including receipts from sales to governments, governmental agencies and institutions of purely public charity.

(H) TAX COLLECTOR/TREASURER. That person authorized by law to collect Act 511" Taxes in North Huntingdon Township.

(I) PERSON. A person shall mean any individual, partnership, limited partnership, association or corporation.

SECTION II. LICENSE REQUIRED; FEE, ISSUANCE AND POSTING.

Each person desiring to begin or continue to engage in any business in North Huntingdon Township shall, on or before January 1 of the license year, or prior to commencing business in the license year, obtain a license for each place of business in the Township of North Huntingdon. The Tax Collector shall issue a license upon payment of a fee of ten dollars ($10.00) for each license. A separate license shall be required for each type of business conducted on the same premises. Licenses shall be conspicuously posted at each place of business of every person at all times.

SECTION III. TAX LEVY AND RATE.

Every person engaging in any business in the Township of North Huntingdon shall pay an annual tax at the rate of seventy (70%) percent one (1) mill ($.001) based upon each dollar of volume of the gross annual receipts with the maximum taxable amount of gross annual receipts being $12,000,000.00.

SECTION IV. COMPUTATION OF TAX

(A) Every person subject to the payment of the tax hereby imposed, who has commenced his or her business at least one (1) full year prior to the beginning of any license year, shall compute his or her annual gross volume of business upon the annual gross amount of business transacted by him or her during the preceding calendar year.

(B) Every person subject to the payment of the tax hereby imposed, who has commenced or who commences his or her business less than one (1) full year prior to the beginning of any license year, shall compute his or her annual gross volume of business for the license year upon the gross volume of business transacted by him during the first month he engages in business multiplied by twelve (12).

(C) Every person subject to the payment of the tax hereby imposed, who commences his or her business subsequent to the beginning of any license year, shall compute his or her annual gross volume of business for the license year upon the gross volume of business transacted by him or her during the first month of his or her engaging in business in the license year multiplied by the number of months or fractions thereof he engages in business.

(D) 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.

(E) Every person who shall discontinue business during any license year after having paid the mercantile tax for the entire year, upon making proper application to the Tax Collector, shall be entitled to receive a refund of prorata amount of the tax paid, based upon the period of time he was not in business during the license year.

SECTION V: RETURNS AND REGISTRATION

(A) Every person subject to the tax imposed by this Ordinance shall forthwith register with the Tax Collector and set forth his name, address, business address and the nature of the business activity in which he or she is engaged.

(B) Every return shall be made upon a form furnished by the Tax Collector. Every person making a return shall certify the correctness thereof.

(C) Every person subject to the tax imposed by this Ordinance who has commenced his business at least one (1) full year prior to the beginning of any tax year shall, on or before the following May 15 and annually, thereafter, file with the Tax Collector a return setting forth his or her name, business, business address and other information as may be necessary in arriving at the annual gross volume of business transacted by him or her during the preceding year and pay the amount of the tax due.

(D) Every person subject to the tax imposed by this Ordinance who has commenced his or her business less than one (1) full year prior to the beginning of the tax year shall, on or before the following May 15, file with the Tax Collector a return setting forth his or her name, residence, business, business address and other information as may be necessary in arriving at the actual volume of business transacted by him during the period of operation prior to January 1 of that tax year, and pay the amount of the tax due.

(E) Every person subject to the tax imposed by this Ordinance who commences business subsequent to the beginning of the tax year, shall, within forty (40) days from the date of commencing business, file a return with the Tax Collector setting forth his name, business, business address and other information as may be necessary in arriving at the actual volume of business transacted by him or her during his or her first month of business and pay the amount of tax due.

(F) Every person subject to the payment of the tax imposed by this Ordinance who engages in a business, temporary, seasonal or itinerant by its nature, shall, within seven (7) days from the day he or she completes the business, file a return with the Tax Collector setting forth his or her name, business, business address and other information as may be necessary in arriving at the actual gross volume of business during the tax period and pay the amount of tax due.

SECTION VI. PAYMENT AT TIME OF FILING RETURN.

At the time of filing the return, the person making the same shall pay the amount of tax shown as due thereon to the Tax Collector.

SECTION VII. SUIT ON COLLECTION; PENALTY:

(A) All taxes by this Ordinance, together with the penalties imposed under this Ordinance, shall be recoverable by the Tax Collector as other debts are recoverable.

(B) If, for any reason, the tax is not paid when due, interest at the rate of twelve (12%) percent per annum on the amount of said tax, and an additional penalty of one (1%) percent on 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 the recovery of any such tax, the person liable therefor shall, in addition, be liable for the costs of collection including attorneys fees and the interest and penalties herein imposed.

SECTION VIII. FINES AND PENALTIES:

Whoever makes any false or untrue statement on his return, or who refuses to permit inspection of the books, records or account of any business in his custody or control, when the right to make such inspection by the Collector or his authorized agent is requested, and whoever fails or refuses to file a return required under this Ordinance, or whoever fails or refuses to procure a mercantile license when so required under this Ordinance, or fails to keep his license conspicuously posted at his place of business as required herein, shall, upon conviction before any magistrate, be sentenced to pay a fine of not more than Three Hundred ($300.00) Dollars for each offense, and in default of payment of said fine, to be imprisoned in the Westmoreland County Jail for a period not to exceed thirty (30) days for each offense.

SECTION IX - SAVING CLAUSE:

(A) Nothing contained in this Ordinance 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 on any person under the provisions of this Ordinance shall be held by any court of competent jurisdiction to be in violation of the Constitution of the United States or of the Commonwealth of Pennsylvania , the decisions of the Court shall not affect nor 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 Ordinance are severable, and if any of its provisions shall be held illegal, invalid or unconstitutional, the decision of the Court shall not affect nor impair any of the remaining provisions of this Ordinance. It is hereby declared to be the intent of the Township of North Huntingdon that this Ordinance would have been adopted if such illegal, invalid or unconstitutional provisions had not been included therein.

SECTION X. REPEALER:

(A) If any sentence, clause, section or part of this Ordinance is for any reason found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality, or invalidity shall not affect or impair any of the remaining provisions, sentences, clauses, sections or parts of this Ordinance. It is hereby declared as the intent of the Board of Commissioners that this Ordinance would have been adopted had such unconstitutional, illegal or invalid sentence, clause, section or part thereof not been included herein.

(B) All Ordinances, or parts thereof, conflicting herewith or repealed hereby, be and the same are hereby repealed.

ORDAINED AND ENACTED at a regular meeting of the Board of Commissions for the Township of North Huntingdon, Westmoreland County, Commonwealth of Pennsylvania, a full quorum being present this ______ day of ____________________, 2003.

TOWNSHIP OF NORTH HUNTINGDON

BOARD OF COMMISSIONERS

ATTEST:

By: ___________________________________

Thomas L. Kerber, President

______________________________ Board of Commissioners

John M. Shepherd, Secretary

SEAL

SOLICITOR: Bruce E. Dice, Esquire

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