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[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30 days after it has been enacted by Council and signed by the Mayor and shall continue thereafter unless amended or repealed.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:
BUSINESS
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.
CALENDAR YEAR
The period of January 1 to December 31, inclusive.
CITY
The City of Easton.
LICENSE YEAR
The period from January 1 to December 31, inclusive.
PERSON
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]
TAXPAYER
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]
TAX YEAR
The period from January 1 to December 31, inclusive.
TREASURER
The Treasurer of the City of Easton.
WHOLESALE DEALER or WHOLESALE VENDOR
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]
(1) 
Failure to obtain a business privilege and mercantile tax license.
(2) 
Failure to make and file a required report or return.
(3) 
Failure to remit any tax.
(4) 
Knowingly making a false or fraudulent report or return.
[1]
Editor's Note: See Art. V, Business Privilege Tax.
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]
B. 
Each day on which any person violates any provision of this article may be considered as a separate offense and punishable as such as provided in Subsection A hereof.