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Ordinance 1778

The City of Warren administration has released a list of answers to commonly asked questions regarding the city's recently approved Business License ordinance, which charges businesses operating in the city a yearly fee of $10 to $50.

The business license is required by all businesses operating within the city and application for said license needs to be made before business can commence.

According to the city's administration, exemptions apply to:

Any business activity not within the taxing power of the city under the Constitution of the United States and Laws of the Commonwealth of Pennsylvania.

Employees or agencies of the government of the United States or Pennsylvania.

Any temporary, seasonal or itinerant businesses that is subject to Chapter 13, Part 3 of the Code of the City of Warren relating to peddling, soliciting or transient.

Non-profit corporations or associations solely for religious, education or charitable purpose not conducting any regular or established business competing commercially with any business subject to the fee.

Farmers who offer for sale or sell or peddle from house to house or in markets, farm or garden products raised by farmer from lands occupied and cultivated by him within the Commonwealth.

Garage/yard sales, provided such sales are operated for three days/three times per year.

Applications for the business license will be mailed out to all registered businesses on a annual basis on or before Dec. 31 of the proceeding year. New businesses can apply online or pick up the application at the city tax office after Nov. 30.

The new ordinance goes into effect on Jan. 1, 2010. Business owners will have until May 15 to acquire a license without penalty.

The license must be posted on the premises doing business, carried on the person when the business is not physically located within the city and/or posted in a conspicuous place when business is conducted from a vehicle.

A pro-rata fee will be available for new businesses operating after Jan. 1 in any given year.

A business license cannot be transferred to another person if the business is sold or closed.

The fees for the license is as follows: $50 for a business with gross receipts over $100,000 per year; $25 for gross receipts between $5,000 and $100,000; $10 for gross receipts of up to $5,000 or a new business.

The city may request a copy of IRS Form Schedule C or Schedule E or such other form or schedule that is acceptable to the IRS for federal income tax purposes if a businesses declared gross is challenged by the city.

Any business serving food or drink to the public must still have a health license under the business license ordinance.

The city state that businesses licensed under the new ordinance will not be subject to routine inspections. However, if the city receives reports of conditions that may affect the public health, morals or welfare, such an inspection may occur, which could result in the revocation of the license.