[Adopted 11-15-2007 by Ord. No. 2007-05]
This article shall be known as the "Abbottstown
Borough Local Services Tax Ordinance."
For purposes of this article, the following
definitions shall apply:
The Local Tax Enabling Act, 53 P.S. § 6924.101
et seq., as amended by Act 7 of 2007.
Abbottstown Borough, Adams County, Pennsylvania.
The person or entity appointed or designated by the Borough
to collect the local services tax pursuant to this article.
The aggregate annual rate of the local services tax levied
by both the Borough and Conewago Valley School District.
The Pennsylvania Department of Community and Economic Development.
This term shall have the same meaning as is given in Division
I of Section 13 of the Act.
Any person who, as a result of his or her employment occupation,
is subject to this tax, or to an exemption.
This term shall have the same meaning as is given in Division
I of Section 13 of the Act.
Any employee or other person who is subject to, or exempt
from, the tax imposed by this article.
The place in which the person maintains his or her principal
office or is principally employed, as determined pursuant to the Local
Tax Enabling Act, 53 P.S. § 6924.101 et seq., which shall
be determined as of the day the taxpayer first becomes subject to
the tax during any calendar year.
The United States Army, Navy, Marine Corps, Coast Guard,
or Air Force Reserve or the Pennsylvania Army or Air National Guard.
The local services tax adopted and levied by this article.
Any person who is subject to the tax imposed by this article.
The Borough Council of Abbottstown Borough hereby
enacts and levies the tax in the amount of $47 per year on each person
whose place of employment is within the Borough.
This tax shall be imposed on a calendar year
basis.
In the event that any person is engaged in more
than one occupation, that is, concurrent employment, or in an occupation
which requires him or her to work in more than one political subdivision
during the calendar year, then the priority of claims to collect this
tax shall be in the following order: First, the political subdivision
in which the person maintains his or her principal office or is principally
employed; second, the political subdivision in which the person resides
and works, if such tax is levied by that political subdivision; and
third, the political subdivision in which the person is employed and
which imposes the tax nearest in miles to the person's home.
A.
It is the intent of this article that no person shall
pay more than $47 on this tax in any calendar year, excluding any
such tax paid to the Conewago Valley School District or other school
district. In the event that, prior to his or her employment in the
Borough in any calendar year, an employee has previously paid a local
services tax in any other political subdivision, then the employer
shall refrain from withholding the tax, so long as the employee provides
a recent pay statement from a principal employer whether within or
outside of the commonwealth that includes the name of the employer,
the length of the payroll period, and the amount of the local services
tax withheld, and a statement from the employee that the pay statement
is from the employee's principal employer and that the employee will
notify other employers of a change in the principal place of employment
within two weeks of its occurrence. Forms for such notification shall
be the same as those prepared by DCED, as required by Section 2(f)(9)(v)
of the Act. It shall be the responsibility of the employer and employee
to provide such form properly completed to the Borough or its collection
agent.
B.
In the event that a person's employer within the Borough
withhold this tax, and the person has previously paid a local services
tax in another political subdivision pursuant to this section, then,
upon written request of the taxpayer, pursuant to regulations adopted
by the Borough pursuant to Section 2(f)(9)(vii) of the Act, the Borough
or its collection agent shall refund such overpayment, except that
the Borough shall only be required to provide refunds for overpaid
amounts that exceed $1. Refunds made within 75 days of the refund
request or within 75 days after the last day the employer is required
to remit the tax for the last quarter of the calendar year, whichever
is last, shall not be subject to interest. The amount of the refund
shall be limited to the amount of any local services tax paid by the
Taxpayer in another political subdivision, but in no event shall exceed
the amount of this tax fixed by the Borough for the calendar year
in which the refund was sought.
C.
In the event that a person has in any calendar year
previously paid a local services tax in another political subdivision,
but such tax was less than $47, then the taxpayer shall be liable
for the difference between the tax actually paid in the other political
subdivision and the amount due for this tax to the Borough.
A.
The following persons shall be exempt from the tax:
(1)
Any person whose total earned income and net profits
from all sources within the Borough is less than $12,000 in the calendar
year in which the tax is levied.
(2)
Any person who served in any war or armed conflict
in which the United States was engaged, and is honorably discharged
or released under honorable circumstances from active service, if,
as a result of military service, the person is blind, paraplegic,
or a double or triple amputee, or has a service-connected disability
declared by the United States Veterans' Administration or its successor
to be 100% permanent disability.
(3)
Any person who serves as a member of a Reserve Component
of the Armed Forces and is called to active duty at any time during
the taxable year.
B.
A person seeking exemption from the tax pursuant to
this section may annually file an exemption certificate with the Borough
and with his or her employer affirming that he or she reasonably expects
to receive earned income and net profits from all sources within the
Borough of less than $12,000 in the calendar year for which the exemption
certificate is filed. The exemption certificate shall have attached
to it a copy of the employee's last pay stubs or W-2 forms from employment
within the Borough for the year prior to the year for which the exemption
is requested. Upon receipt of the exemption certificate and until
notified otherwise by the Borough, the employer shall not withhold
the tax from the person for the calendar year, or the remainder of
the calendar year, for which the exemption certificate applies. The
exemption certificate shall be on a form prepared by DCED, pursuant
to section 2(e)(1) of the Act.
C.
For any person who claims an exemption pursuant to
this section, upon notification to an employer by the person or by
the Borough that the person has received earned income and net profits
from all sources within the Borough equal to or in excess of $12,000
in that calendar year, or that the person is otherwise ineligible
for the exemption for that calendar year, or upon an employer's payment
to the person of earned income within the Borough of $12,000 or more
in that calendar year, the employer shall withhold the tax from the
person for the remainder of the calendar year, and shall withhold
from the person, for the first payroll period after receipt of the
notification or after the person equals or exceeds $12,000 in earned
income, a lump sum equal to the amount of the tax not previously withheld
in the current calendar year due to the exemption, plus the per payroll
amount due for that first payroll period. The amount of tax withheld
per payroll period for the remaining payroll periods in the calendar
year shall be the same amount withheld for other employees.
It shall be the duty of every employer within
the Borough, or every employer of a person whose place of employment
as defined in this article is the Borough, to collect this tax from
and on behalf of each such person whose place of employment is the
Borough from the employee in a manner set forth in Section 2(f)(9)(i)
of the Act, which is by a pro rata share of the tax for each payroll
period in which the employee is engaging in an occupation. The pro
rata share of the tax assessed on a person shall be determined by
dividing the combined rate of the tax levied for the calendar year
by the number of payroll periods established by the employer for the
calendar year, or, in the case of a person who becomes employed after
the beginning of the calendar year, by the number of payroll periods
remaining in the calendar year. In the event that the employment of
a person is subsequently severed, the person shall be liable for any
outstanding balance of the tax due to the Borough for that calendar
year, which the Borough may collect as permitted by law.
The Borough hereby designates the York Adams
Tax Bureau (YATB) as its collection agent for this tax. YATB's current
mailing address is: 1415 North Duke Street, P.O. Box 15627, York,
PA 17405-0156. This section may be amended from time to time by resolution.
A.
It shall be the responsibility of every employer of
every taxpayer whose place of employment is in the Borough to collect
and remit said taxes to the Borough's collection agent no later than
30 days after the end of each quarter of a calendar year. Nothing
in this section or this article is intended, or shall be construed,
to relieve any taxpayer whose place of employment is the Borough from
the responsibility and liability for the payment of this tax. In the
event that any such taxpayer's employment fails to collect or remit
such tax to the Borough or its collection agent, then it shall be
the responsibility of the taxpayer to do so.
B.
Notwithstanding the provisions of this article, no
employer shall be held liable for failure to withhold the tax or for
the payment of the withheld tax money to the Borough if the failure
to withhold the tax arises from incorrect information submitted by
the employee as to the employee's place or places of employment, the
employee's principal office, or where the employee is principally
employed. An employer shall also not be liable for payment of the
tax in an amount exceeding the amount withheld by the employer if
the employer complies with the provisions of sections 2, 2(e) and
2(f)(9) of the Act.
The Borough Council shall, in their sole discretion,
determine the use of the revenues generated by this tax, except that
the use shall be limited to one or more of the following purposes
and amounts:
A.
Emergency services, which shall include emergency
medical, police and/or fire services; provided that at least 25% of
the funds derived from the tax shall be used for this purpose.
B.
Road construction and/or maintenance.
C.
Reduction in property taxes.
D.
Property tax relief in the event that the Borough implements a homestead and farmstead exclusion in accordance with 53 Pa. S.S. Chapter 85 subchapter F (relating to homestead property exclusion), and Section 22.6 of the Act.
E.
Any other uses permitted by law.
A.
Subject to the limitations of § 190-56, and of the Act, any person, employee, employer, partnership, corporation, or any other entity which violates any of the provisions of this article shall commit a summary offense, and, upon conviction thereof by a Magisterial District Judge (formerly known as "District Justice"), shall be subject to a fine of up to $1,000 for each tax which is due pursuant to this article, together with the tax and costs of collection.
B.
In addition to the penalties in Subsection A, the Borough and its collection agent shall be entitled to any and all civil remedies available by law for the collection of such tax, and shall be entitled to all costs of collection, as approved by the Borough from time to time by resolution. The Borough and its collection agent are further authorized to collect this tax by any other lawful means available to them, whether in law or equity.
C.
The Borough specifically authorizes its collection agent to act on its behalf and as its agent to collect all such taxes pursuant to this section and this article, and to initiate and prosecute on its behalf any summary criminal actions pursuant to Subsection A, and any other legal actions for remedies as authorized in Subsection B.
D.
If for any reason the tax is not paid when due, interest
at the rate of 6% on the amount of such tax shall be calculated beginning
with the due date of the tax, and penalty of 5% shall be added to
the flat rate of such tax for nonpayment thereof. Where suit is brought
for the recovery of this tax or other appropriate remedy undertaken,
the person liable therefore shall, in addition, be responsible and
liable for the costs of collection.
The tax imposed by this article shall be effective
on January 1, 2008, and all calendar years thereafter unless repealed
or modified by ordinance of the Borough Council.
