[Ord. 325, 11/11/2007]
This Part shall be known and may be cited as the "Local Services
Tax."
[Ord. 325, 11/11/2007]
As used in this Part, unless the context indicates clearly a
different meaning, the following words shall have the meanings set
forth below:
Salaries, wages, commissions, tips, bonuses, fees, gross
receipts or any other income.
Any person, partnership, limited partnership, unincorporated
association, institution, trust, corporation, governmental agency
or any other body engaged in business in or situated in the Township,
employing one or more employees engaged in any occupation, other than
domestic servants.
Any livelihood, job, trade, profession, business or enterprise
of any kind or service, domestic or other, for which any compensation
is received.
Any natural person liable for the tax levied by this Part.
[Ord. 325, 11/11/2007; as amended by Ord. 349, 11/27/2012]
For general purposes, a tax is hereby levied upon the privilege
of engaging in an occupation within the Township of North Strabane
during the calendar year 2008, from the effective date of this Part,
and thereafter, without reenactment by the Board of Supervisors. Such
tax shall be referred to as the “local services tax (LST).”
Each natural person who exercises such privilege for any length of
time shall pay tax in the amount of $52 in accordance with the provisions
of this Part.
[Ord. 325, 11/11/2007]
1.
Every employer not registered under the provisions of Part 2, earned income tax, of this chapter shall, within 30 days after first becoming an employer, register with the Township Tax Collector, or with such other person as shall be designated by resolution of the Board of Supervisors, the employer's name, address, the names and addresses of Township employees, and such other information as the Tax Collector shall require.
2.
As to each taxpayer employed for any length of time, each employer
shall deduct the tax from compensation payable to the taxpayer and
file a return on a form prescribed by the Township Tax Collector on
a pro-rata basis according to the number of payroll periods established
by the employer for a calendar year. Typical examples of payroll periods
established by employers are weekly, biweekly, twice per month, and/or
monthly.
3.
All employers with work sites within the Township are required to
deduct the LST at the site of employment.
4.
Any employer who discontinues business or ceases operation before
December 31 of any calendar year shall, within 15 days after discontinuing
business or ceasing operation, file the return hereinabove required
and pay the tax to the Tax Collector.
5.
The failure of the employer to deduct the tax shall not relieve the
employee from the duty to file a return and pay the tax. Any employer
who fails to deduct the tax as required by this section or who fails
to pay such tax to the Tax Collector shall be liable for such tax
in full, without deduction of the fee hereinafter provided, as though
the tax has originally been levied against such employer.
6.
Withholding.
A.
Employers are only required to withhold the LST on the payroll-period
basis for those payroll periods in which the taxpayer is employed.
B.
When two or more employers employ a taxpayer in a payroll period,
an employer is not required to withhold the LST if the taxpayer provides
a pay stub from his/her principal employer accompanied by an employee
statement of principal employment that the pay stub is from the taxpayer's
principal employer and that the taxpayer will notify the employer
of any change in employment. Employers are relieved of liability for
the tax if they fail to withhold the tax due to incorrect information
provided by the taxpayer regarding the taxpayer's principal employer
or if the employer complies with the provisions establishing the collection
of the tax on a payroll-period basis.
C.
Concurrent Employment. If a taxpayer has two or more jobs in different
political subdivisions during a payroll period, the priority of claim
to collect the LST shall be as follows:
7.
Self-Employed Individuals. The tax for self-employed individuals
shall be prorated on a quarterly basis as if their payroll period
is a calendar quarter and shall be paid within 30 days of the end
of each calendar quarter.
8.
Remittance. Employers shall remit withheld taxes to the Tax Collector
within 30 days after the end of each calendar quarter.
9.
Up-Front Exemption. In order to receive an up-front exemption, employees
must file an annual up-front exemption form (developed by the Pennsylvania
DCED) with the Tax Collector levying the LST and the employee's
employer. The exemption certificate will verify that the employee
reasonably expects to receive earned income and net profits of less
than $12,000 from all sources within the Township for the calendar
year for which the exemption certificate is filed. A copy of the employee's
last pay stubs or W-2 forms from employment within the Township for
the year prior or the calendar year for which the employee is requesting
an exemption must be attached to the exemption certificate. Employers
must make up-front exemption forms readily available to employees
at all times and provide new employees with the forms at the time
of hiring.
10.
Suspension of Withholding. Upon receipt of an up-front exemption
form and until otherwise instructed by the Township imposing the tax,
employers must stop withholding the LST for the specific calendar
year from employees for whom the exemption applies.
11.
Restoration of Withholding.
A.
Employers shall restart withholding the LST from an employee who
files an exemption certificate in the following circumstances:
B.
Employers restart withholding of the LST by withholding a "catch-up"
lump-sum tax equal to the amount of tax that was not withheld from
the employee as a result of the exemption and the same amount per
payroll period that is withheld from other employees.
12.
Military Exemption. The Township shall exempt from the LST members
of a reserve component of the armed forces called to duty and honorably
discharged veterans who served in any war or armed conflict who are
blind, paraplegic, or a double or quadruple amputee as a result of
military service or who are 100% disabled from a service-connected
disability.
[Ord. 325, 11/11/2007]
Every taxpayer who is self-employed, or whose tax for any other
reason is not collected under § 604 of this Part, shall
file a return on a form prescribed by the Tax Collector and shall
pay the tax directly to the Collector.
[Ord. 325, 11/11/2007]
Both resident and nonresident taxpayers shall, by virtue of
engaging in an occupation within North Strabane Township, be subject
to the tax and the provisions of this Part.
[Ord. 325, 11/11/2007]
The Tax Collector, or such other person as shall be designated
by the Board of Supervisors, on behalf of the Township, shall collect
and receive the taxes, interest, fines and penalties imposed by this
Part and shall maintain good records showing the amounts received
and the dates such amounts were received. The Tax Collector shall
prescribe and issue all forms necessary for the administration of
the tax and may adopt and enforce regulations relating to any matter
pertaining to the administration of this Part, including but not limited
to requirements for collection through employers, requirements for
deductions, requirements for evidence and records, and provisions
for the examination and correction of returns. The Tax Collector and
agents designated by him shall be provided all means, facilities and
opportunity for the examinations hereby authorized.
[Ord. 325, 11/11/2007]
The Tax Collector, or other such person shall be designated
by the Board of Supervisors, shall collect, by suit or otherwise,
all taxes, interest, costs, fines and penalties due under this Part
and unpaid. If, for any reason, any tax is not paid when due, interest
at the rate of 6% per year on the amount of unpaid tax, and an additional
penalty of 1/2 of 1% of the amount of unpaid tax that remains unpaid,
shall be added and collected. Whenever suit is brought for the recovery
of unpaid tax, the taxpayer shall, in addition, be liable for the
costs of collection as well as for interest and penalties. The Tax
Collector may accept payment under protest of the tax claimed by the
Township in any case where any person disputes the Township's
claim for the tax. If a court of competent jurisdiction thereafter
decides that there has been overpayment to the Tax Collector, the
Tax Collector shall refund the amount of the overpayment to the person
who paid under protest.
1.
Any person or employer who violates any provision of this Part or
any regulation adopted pursuant thereto shall, upon conviction thereof
before any District Justice or other court of competent jurisdiction,
be sentenced to pay a fine of not more than $500 for each offense,
and costs, and in default of payment of said fine and costs, shall
be imprisoned for a period not exceeding 30 days.
2.
Any person who divulges any information which is confidential under
the provisions of the Part shall, upon conviction thereof before any
District Justice or other court of competent jurisdiction, be sentenced
to pay a fine of not more than $500 for each offense, and costs, and
in default of payment of said fine and costs, shall be imprisoned
for a period not exceeding 30 days.
[Ord. 325, 11/11/2007]
The tax shall not apply to any subject of tax or person 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. If a final decision of a court of competent jurisdiction
holds any provision or any circumstances to be illegal or unconstitutional,
the other provisions of this Part, or the application of such provision
to other circumstances, shall remain in full force and effect. The
intention of the Board of Supervisors is that the provisions of this
Part shall be severable and that this Part would have been adopted
if any such illegal or unconstitutional provisions had not been included.
[Ord. 325, 11/11/2007]
This Part shall become effective immediately upon passage or
as otherwise provided by law.
