This ordinance shall be known and may be cited
as the "Palmer Township Local Services Tax Ordinance."
This ordinance is enacted under the authority
of the Local Tax Enabling Act, as amended by Act No. 7 of 2007.
The purpose of this ordinance is to provide
revenue for police, fire and emergency services; road construction
and maintenance; the reduction of property taxes; and for such other
purposes as may be specified for such tax from time to time by the
laws of the Commonwealth of Pennsylvania.
The following words and phrases, when used in
this ordinance, shall have the meanings ascribed to them in this section,
except where the context clearly indicates or requires a different
meaning:
COLLECTOR
The person or firm from time to time designated by motion
of the governing body of Palmer Township to collect and administer
the provisions of this ordinance and collect the tax levied by this
ordinance. Until changed by subsequent motion, the collector shall
be the same person or firm last designated to collect the emergency
and municipal services tax for Palmer Township.
EARNED INCOME
Compensation, as determined under Section 303 of the Act
of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of
1971," and regulations in 61 Pa. Code Part I, Subpart B, Article
V (relating to personal income tax), not including, however, wages or compensation paid to individuals on active military service. Employee business expenses are allowable deductions as determined under Article
III of the Tax Reform Code of 1971. Any housing allowance provided to a member of the clergy
shall not be taxable as earned income.
EMPLOYER
An individual, partnership, association, corporation, governmental
body, agency or other entity employing one or more persons on a salary,
wage, commission, fee or other compensation basis, including a sell-employed
person.
HE, HIS or HIM
Shall include singular and plural number, and male, female
and neuter genders.
INDIVIDUAL
Any person engaged in any occupation, trade or profession
within the jurisdictional limits of Palmer Township whose total earned
income and net profits within Palmer Township are $12,000 or greater
per calendar year.
NET PROFITS
The net income from the operation of a business, profession
or other activity (except from corporations), determined under Section
303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax
Reform Code of 1971," and regulations in 61 Pa. Code Part I, Subpart B, Article
V (relating to personal income tax). The term does not include
income which is not paid for services provided and which is in the
nature of earnings from an investment. For taxpayers engaged in the
business, profession or activity of farming the term shall not include:
A.
Any interest generated from monetary accounts
or investment instruments of the farming business;
B.
Any gain on the sale of farming machinery;
C.
Any gain on the sale of livestock held 12 months
or more for draft, breeding or dairy purposes; and
D.
Any gain on the sale of other capital assets
of the farm.
OCCUPATION
Any trade, profession, business or undertaking of any type,
kind or character, including services, domestic or other, carried
on or performed within the jurisdictional limits of Palmer Township
for which compensation is charged and/or received, whether by salary,
wages, commissions, fees or net profits for services rendered.
RESERVE COMPONENT OF THE ARMED FORCES
The United States Army Reserve, United States Navy Reserve,
United States Marine Corps Reserve, United States Coast Guard Reserve,
United States Air Force Reserve, the Pennsylvania Army National Guard
or the Pennsylvania Air National Guard.
TAX
The local services tax levied in this ordinance.
Palmer Township hereby levies and imposes on
every individual engaging in an occupation within the jurisdictional
limits of Palmer Township a tax in the amount of $52 per annum, beginning
the first day of January 2008, and continuing on a calendar basis
annually thereafter, until modified or repealed by subsequent ordinance.
This tax is in addition to all other taxes of any kind or nature heretofore
levied by Palmer Township.
Employers are required to make and file a local
services tax quarterly return 30 days after the end of each quarter
of a calendar year. The local services tax quarterly return shall
list the name, address and social security number of the employee;
the physical address of the employee's place of employment; the number
of payroll periods for which the local services tax was withheld;
and the amount of local services tax being remitted for each employee.
Each employer shall use his employment and payroll
records from the first day of January to March 31 each year for determining
the number of employees from whom said tax shall be deducted and paid
over to the collector on or before April 30 of the same calendar year.
Supplemental reports shall be made by each employer on July 30, October
30 and January 31 for new employees as reflected on his employment
and payroll records from April 1 to June 30, July 1 to September 30
and October 1 to December 31, and payments on these supplemental reports
shall be made on July 30, October 30 and January 30, respectively.
All self-employed individuals and individuals
whose employer is not required to withhold local taxes will be billed
quarterly for the local services tax. The full amount of tax must
be paid by the date indicated on such billing. If such taxpayer qualifies
for a low-income exemption, the taxpayer may complete the required
exemption certificate or make application for a refund of the tax
paid.
All employers and self-employed individuals
residing or having their place of business outside Palmer Township
but who engage in any occupation within Palmer Township do, by virtue
thereof, agree to be bound by and subject themselves to the provisions,
penalties and regulations promulgated under this ordinance with the
same force and effect as though they were residents of Palmer Township.
Further, any individual engaged in an occupation within Palmer Township
and an employee of a nonresident employer may, for the purpose of
this ordinance, be considered a self-employed person, and in the event
this tax is not paid, the collector shall have the option of proceeding
against either the employer or employee for collection of this tax
as hereinafter provided.
Whoever makes any false or untrue statement
on any return required by this ordinance, or who refuses inspection
of his books, records or accounts in his custody and control in order
to determine the number of employees subject to this tax who are in
his employment, or who fails or refuses to file any return required
by this ordinance, or fails or refuses to pay the tax herein levied
shall, upon conviction, be sentenced to pay a fine of not more than
$600, plus costs, and, in default of payment of said fine and costs,
be sentenced to a term of imprisonment not to exceed 30 days. It is
further provided that the action to enforce the fine and penalty herein
provided may be instituted against any person in charge of the business
of any employer who has failed or refused to file a return required
by this ordinance.
The provisions of this ordinance shall be severable.
If any of its provisions shall be held to be unconstitutional, illegal
or otherwise invalid, that decision shall not affect the remaining
provisions of this ordinance or of the Palmer Township Code of Ordinances.
This ordinance shall become effective in accordance
with applicable law, with the repeal of previous Occupational Privilege
Tax and Emergency and Municipal Services Tax Ordinances, effective
January 1, 2008.