PRINTER'S NO. 2082
No. 1755 Session of 1981
INTRODUCED BY ITKIN, IRVIS, COWELL, PISTELLA, DAWIDA AND
GRABOWSKI, JULY 1, 1981
REFERRED TO COMMITTEE ON URBAN AFFAIRS, JULY 1, 1981
AN ACT
1 Amending the act of June 20, 1947 (P.L.745, No.320), entitled
2 "An act to provide revenue for school districts of the first
3 class by imposing a temporary mercantile license tax on
4 persons engaging in certain occupations and businesses
5 therein; providing for its levy and collection; for the
6 issuance of mercantile licenses upon the payment of fees
7 therefor; conferring and imposing powers and duties on boards
8 of public education, receivers of school taxes and school
9 treasurers in such districts; saving certain ordinances of
10 council of certain cities, and providing compensation for
11 certain officers, and employes and imposing penalties,"
12 editorially revising the act and further providing for
13 penalties on delinquent taxes.
14 The General Assembly of the Commonwealth of Pennsylvania
15 hereby enacts as follows:
16 Section 1. The title, act of June 20, 1947 (P.L.745,
17 No.320), entitled "An act to provide revenue for school
18 districts of the first class by imposing a temporary mercantile
19 license tax on persons engaging in certain occupations and
20 businesses therein; providing for its levy and collection; for
21 the issuance of mercantile licenses upon the payment of fees
22 therefor; conferring and imposing powers and duties on boards of
23 public education, receivers of school taxes and school
1 treasurers in such districts; saving certain ordinances of
2 council of certain cities, and providing compensation for
3 certain officers, and employes and imposing penalties," act
4 reenacted and amended May 12, 1949 (P.L.1238, No.374), is
5 amended to read:
6 AN ACT
7 To provide revenue for school districts of the first class A by
8 imposing a temporary mercantile license tax on persons
9 engaging in certain occupations and businesses therein;
10 providing for its levy and collection; for the issuance of
11 mercantile licenses upon the payment of fees therefor;
12 conferring and imposing powers and duties on boards of public
13 education, receivers of school taxes and school treasurers in
14 such districts; saving certain ordinances of council of
15 certain cities, and providing compensation for certain
16 officers, and employes and imposing penalties.
17 Section 2. Clause (10) of section 1 of the act is amended to
18 read:
19 Section 1. Definitions.--The following words and phrases
20 when used in this act shall have the meanings ascribed to them
21 in this section unless the context clearly indicates a different
22 meaning.
23 * * *
24 (10) "Collector" shall mean the receiver of school taxes, or
25 in a school district of the first class A in which there is no
26 such receiver of school taxes, the school treasurer.
27 Section 3. Section 2 of the act, amended May 9, 1949
28 (P.L.1015, No.294), is amended to read:
29 Section 2. Authority to Levy and Collect Tax; Use of Tax.--
30 (a) For the year one thousand nine hundred forty-eight and
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1 annually thereafter, every school district of the first class A
2 shall issue mercantile licenses and levy and collect an annual
3 mercantile license tax in the manner and at the rates
4 hereinafter set forth. Such tax shall be in addition to any
5 other tax every such school district is empowered to levy and
6 collect under any existing law. The license fees, taxes and
7 penalties collected under the provisions of this act, shall be
8 used by every such school district for general public school
9 purposes.
10 (b) On and after the first day of January, one thousand nine
11 hundred fifty, in any school district of the first class A
12 which, after such date, has no authority to levy or does not
13 levy the tax imposed by this act, the collector is authorized to
14 and shall continue to collect delinquent taxes owing such school
15 district under any levy for any prior year, under the provisions
16 of this act, until such taxes are either collected or until the
17 collector is exonerated with respect to such taxes. The
18 delinquent taxes so collected shall be used by every such school
19 district for general public school purposes.
20 Section 4. Sections 3 and 4 of the act are amended to read:
21 Section 3. License Fees.--Beginning in the year one thousand
22 nine hundred forty-eight, and annually thereafter, every person
23 desiring to continue to engage in, or hereafter to begin to
24 engage in, the business of wholesale or retail vendor of, or
25 dealer in, goods, wares and merchandise, broker, conducting a
26 restaurant or other place where food, drink or refreshments are
27 sold, or place of amusement in a school district of the first
28 class A, shall on or before the first day of January of each
29 license year, or prior to commencing business in any such
30 license year, procure a mercantile license for his place of
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1 business, or if more than one, for each of his places of
2 business in the school district from the receiver of school
3 taxes or school treasurer, who shall issue the same upon the
4 payment of a fee of two dollars ($2) for a wholesale license or
5 a retail license, and four dollars ($4) for a wholesale and
6 retail license for his place of business, or if more than one,
7 for each of his places of business in the school district for
8 each license year. Such license shall be conspicuously posted at
9 the place of business or each of the places of business of every
10 such person at all times.
11 Section 4. Imposition and Rate of Tax.--Every person
12 engaging in any of the following occupations or businesses in
13 any school district of the first class A shall pay an annual
14 mercantile license tax at the rate set forth:
15 (1) Wholesale vendors or dealers in goods, wares and
16 merchandise and brokers, at the rate of one-half (1/2) mill on
17 each dollar of the volume of the annual gross business
18 transacted by him;
19 (2) Retail vendors, or dealers in goods, wares and
20 merchandise; all persons engaged in conducting restaurants or
21 other places where food, drink or refreshments are sold, and all
22 persons conducting places of amusement at the rate of one (1)
23 mill on each dollar of the volume of the annual gross business
24 transacted by him;
25 (3) Wholesale and retail vendors or dealers in goods, wares
26 and merchandise, at the rate of one-half (1/2) mill on each
27 dollar of the volume of the annual gross wholesale business
28 transacted by him, and one (1) mill on each dollar of the volume
29 of the annual gross retail business transacted by him;
30 (4) The tax imposed by this section shall not apply to the
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1 dollar volume of annual business covering the resale of goods,
2 wares or merchandise taken by a dealer as a trade-in or as part
3 payment for other goods, wares and merchandise except to the
4 extent that the resale price exceeds the trade-in allowance.
5 Section 5. Subsection (b) of section 9 of the act, amended
6 April 12, 1956 (1955 P.L.1470, No.483) and May 10, 1956 (1955
7 P.L.1559, No.517), is amended to read:
8 Section 9. Suit on Collection; Penalty.--
9 * * *
10 (b) If for any reason the tax is not paid when due in each
11 year, interest at the rate of six per centum (6%) per annum or
12 at a per annum rate which does not exceed the Federal Reserve
13 Discount Rate in effect for Federal Reserve District Four on
14 December 1 of the preceding tax year, whichever is greater, on
15 the amount of said tax, and an additional penalty of one-half of
16 one per centum (1/2%) of the amount of the unpaid tax for each
17 month, or fraction thereof, during which the tax remains unpaid,
18 shall be added and collected: Provided, That [the maximum
19 penalty which shall be imposed on a tax not paid when due shall
20 be seven (7%) percent] a school district shall, on or before
21 December 31, establish by resolution the specific per annum
22 interest rate to be imposed on unpaid taxes during the following
23 tax year. Where suit is brought for the recovery of any such tax
24 the person shall be liable for, and in addition to the tax
25 assessed against such person, the costs of such collection, and
26 the interest and penalties herein imposed shall be collected.
27 * * *
28 Section 6. Section 13 of the act is repealed.
29 Section 7. This act shall take effect immediately.
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