This article shall be known and may be cited
as the "Local Services Tax Ordinance."
This article is enacted under the authority
of Act 511 of 1965, as amended, known as "The Local Tax Enabling Act."
As used in this article, unless the context
clearly indicates a different meaning, the following words shall have
the meanings set forth below:
CALENDAR YEAR
The twelve-month period beginning January 1 and ending December
31st.
COLLECTOR
Person, public employee, public agency, or private agency
designated by governing body of the Township of College to collect
and administer the tax.
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. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
EMPLOYER
A person, partnership, association, corporation, institution,
governmental body or unit or agency, or any other entity employing
one or more persons for a salary, wage, commission or other compensation,
including self-employed individuals.
EXEMPTION CERTIFICATE
An exemption certificate substantially in the form of the
uniform certificate prescribed by the Pennsylvania Department of Community
and Economic Development affirming that the person reasonably expects
to receive earned income and/or net profits from all sources within
the municipality of less than $12,000 in the calendar year for which
the exemption certificate is filed, which exemption certificate has
attached to it a copy of all of the employee's last pay stubs or W-2
forms from employment within the municipality for the year prior to
the calendar year for which the employee is requesting to be exempted
from the tax. In addition to the income exemptions, provision has
been made for certain military exemptions.
LOCAL SERVICES
Emergency services, road construction and/or maintenance,
reduction of property taxes, and property tax relief through implementation
of a homestead and farmstead exclusion in accordance with 53 Pa. C.S.A.
Subchapter F.
NET PROFITS
The net income from the operation of a business, profession,
or other activity, except 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 earnings generated from any monetary
accounts or investment instruments of the farming business;
B.
Any gain on the sale of farm 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. (definition amended December 9, 2002, P.L. 1364, No.
166)
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the municipality.
OCCUPATION
Any livelihood, job, trade, profession, business or enterprise
of any kind, including services, domestic or otherwise, for which
any earned income and/or net profits are charged and received from
sources within the municipality.
POLITICAL SUBDIVISION
Any county, city, borough, incorporated town, township, school
district, vocational school district and county institutional district
TAX
The tax imposed by §
184-14 of this article.
TAXPAYER
Any natural person liable for the tax levied by §
184-14 of this article.
The municipality hereby levies and imposes on
every individual engaging in an occupation within the jurisdictional
limits of the municipality 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 a subsequent ordinance.
This tax is in addition to all other taxes of any kind or nature heretofore
levied by the municipality.
The tax levied by §
184-14 shall not be imposed upon the following persons:
A. 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 quadruple amputee or has a service-connected disability
declared by the United States Veterans' Administration or its successor
to be a total one-hundred-percent permanent disability.
B. 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 calendar year. For purposes of this subsection, "reserve component
of the Armed Forces" shall mean 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.
C. Any person whose total earned income and/or net profits
from all sources within the municipality is less than $12,000 for
the calendar year in which the local services tax is levied.
Every taxpayer who is self-employed and has not filed an exemption certification with the Collector or whose tax for any other reason is not collected under §
184-16 of this article shall file a return on a form prescribed by the Collector and shall pay a pro rata share of the tax directly to the Collector within 30 days after the end of each calendar quarter. The pro rata share of the tax assessed on a taxpayer for a calendar quarter shall be determined by dividing the rate of the tax levied $52 for the calendar year by four.
Both resident and nonresident taxpayers shall,
by virtue of engaging in an occupation within the municipality, be
subject to the tax and the provisions of this article.
The Collector, on behalf of the municipality,
shall collect and receive the taxes, interest, fines and penalties
imposed by this article; shall maintain records showing interest,
fines and penalties imposed by this article; and shall maintain records
showing the amounts received and the dates such amounts were received.
The Collector shall prescribe and issue all forms necessary for the
administration of the tax and shall enforce regulations adopted by
the governing body relating to any matter pertaining to the administration
of this article, including, but not limited to, requirements for collection
through employers, requirements for evidence and records, and provisions
for the examination and correction of returns. The Collector and any
designated agents may examine the records of any employer or supposed
employer or of any taxpayer or supposed taxpayer in order to ascertain
the tax due or verify the accuracy of any return. Every employer or
supposed employer and every taxpayer or supposed taxpayer shall give
the Collector and any designated agent all means, facilities and opportunity
for the examinations hereby authorized. Any such examination shall
be conducted within this municipality or at the office where the tax
return is processed.
The municipality or it's collector of the tax
may collect unpaid taxes from the taxpayer or employer owing such
taxes by suit as provided for by Act 511 of 1965, as amended, know
as "The Local Enabling Tax Act."
[Amended 12-21-2017 by Ord. No. O-17-07]
A. If for any reason the tax is not paid when due, a one-time penalty
of 10% of the unpaid tax shall be added, plus interest at the rate
of 0.5% per month of the unpaid tax for each month or fraction thereof
during which the tax remains unpaid. Where suit is brought for the
recovery of any such tax, the taxpayer or employer liable for the
tax shall, in addition, be liable for the costs of collection and
the interest and penalties herein imposed. Costs of collection to
be paid to the Collector, as designated by resolution, are as follows:
[Amended 1-3-2023 by Res. No. R-23-08]
Activity
|
Cost To Taxpayer
|
---|
First notice - late payment, underpayment, nonpayment, late
filing, failure to file
|
$0
|
Second notice - late payment, underpayment, nonpayment, late
filing, failure to file
|
$25
|
Returned check or returned electronic payment
|
$25 in addition to bank service fee(s)
|
Stop payment of check or electronic payment
|
$25 in addition to bank service fee(s)
|
Establishment of payment plan
|
$5 per payment
|
Notice prior to wage attachment
|
$25
|
Preparation of District Justice complaint (civil or criminal)
|
$100
|
Preparation of District Justice hearing (civil or criminal)
|
$100
|
Attendance at District Justice hearing (civil or criminal)
|
$100 per hour
|
Preparation for appeal to the Court of Common Pleas
|
$150
|
Attendance at Court of Common Plea proceeding or artibration
|
$100 per hour
|
Initiation of and attendance at execution sale
|
$100 per hour
|
Preparation of filing bankruptcy proof of claim
|
$100 per hour
|
District Justice, Court of Common Pleas, Bankruptcy Court -
filing fees and costs
|
Actual fees and costs
|
Fees and costs incurred to engage legal counsel with collection
efforts - District Justice, Court of Common Pleas, Bankruptcy Court
|
Actual fees and costs
|
Fees and costs incurred for audit resulting in the assessment
of tax, interest, or penalties
|
Actual fees and costs
|
Generation of employer's local services tax return(s) from
Earned Income Tax data for tax returns failed to be filed by employer
|
$50 per hour
|
Coding of incomplete employer's quarterly local services
tax return(s) (worksite allocations, incorrect account numbers, and/or
incomplete details)
|
$50 per hour
|
B. The above-referenced costs of collection may be amended by resolution.
C. The fees and penalties imposed under this section shall be in addition
to any other penalty imposed by any other section in this article.
The Collector shall provide a taxpayer a receipt
of payment of the tax upon request by the taxpayer. A stamped self-addressed
envelope shall be furnished by the taxpayer if a receipt via return
mail is desired.
The tax shall not apply to any subject of tax
or person not within the taxing power of the municipality under the
Constitution of the United States and the laws of the Commonwealth
of Pennsylvania.
This article shall continue in force from one
calendar year to another without annual reenactment.