[Adopted 2-15-2000 by Ord. No. 284; amended in its entirety 12-18-2007 by Ord. No. 340]
Editor's Note: This ordinance stated that it shall become effective 1-1-2008.
This article shall be known as the "Local Services Tax" of the Township of Doylestown, Bucks County, Pennsylvania, hereinafter referred to as "the Township."
This article is enacted and adopted under and by virtue of the authority of the Act of December 31, 1966, P.L. 1257, effective January 1, 1967, the Local Tax Enabling Act, and all other provisions or sections thereof (53 P.S. § 6901 et seq.), supplements and amendments, including the amendments effectuated by the adoption of Act 7 of 2007, which are incorporated by reference.
As used in this article, the following terms shall have the meanings indicated, unless a different meaning clearly appears from the text:
- Salaries, wages, commissions, tips, bonuses, fees, gross receipts or other earned income.
- Any person, partnership, limited partnership, unincorporated association, institution, trust, corporation, governmental agency, or any other body engaged in business situate in the Township of Doylestown employing one or more employees engaged in any occupation, other than domestic servants.
- Any livelihood, job, trade, profession, business or enterprise of any kind, including services, domestic or otherwise, for which monetary compensation is received or charged.
- TAX COLLECTOR
- The Tax Collector duly appointed by the Township.
- Any natural person liable for the tax levied by this article.
A tax for general revenue purposes, except, no less than 25% of the tax receipts derived from the tax shall be used for emergency services, is hereby imposed upon every person who lives and/or works within the Township in the year 2008, after the effective date of this article, and each following calendar year. Each natural person who resides and/or works for any length of time in any calendar year beginning with the year 2008, after the effective date of this article, shall pay the tax in accordance with the provisions hereof; provided, however, that the tax hereby levied shall not be imposed on any natural person whose earned income and net profits during the taxable year is any figure less than or equal to $12,000.
If an individual who earns compensation from one or more sources as described in this article, derives less than $12,000 gross income from such employment during the fiscal year, and to the extent the individual paid all or a part of the local services tax, the Tax Collector shall refund the tax paid by him or her, to him or her, if the tax was paid by him or her or deducted from his or her salary, wages, or commissions. When an individual is entitled to a refund under this section, the refund shall be in an amount not to exceed $47, which represents the portion of the tax retained by Doylestown Township.
Any taxpayer who earns an annual gross income, from all employment sources, of less than $12,000 shall be exempted from the payment of the tax only upon the filing of a low income exemption certificate, said certificate to be the form adopted by the Pennsylvania Department of Community and Economic Development, and filed with his/her employer, that he/she anticipates earnings to be less than the exempted income threshold in a given tax year. To the extent that he/she paid any of the tax to which he/she is due a refund, said refund shall be made upon the submission of a copy of the prior year's final pay stub or a copy of the prior year's W-2 affixed to the affidavit and low income exemption certificate form when it is submitted to an employer. The employee shall file the income exemption certificate with both the Township and his/her employer. The presentation of said proof shall be made by April 1 of the fiscal year immediately after the tax was due and payable.
All individuals who are on active military duty who have been called to active military duty any time within the taxing year shall be exempt from the payment of tax. Also exempted from the payment of the tax is any former/current member of the military who is a paraplegic, double and/or quadruple amputee or has any service-related disability and is declared by the United States Veterans' Administration, or its successor, to have a total or one-hundred-percent disability.
Any individual due a refund pursuant to the provisions of this article shall make said application on forms prepared by the Tax Collector, and said forms shall incorporate the rules so as to address refunds due taxpayers based on an employer's failure to allow the use of the affidavit and other forms required pursuant to this article.
Each employer shall register with the Tax Collector the employee's name, address and other information which the Tax Collector may require within 15 days of the effective date of this article or within 15 days after first becoming an employee.
For each taxpayer employed for any length of time after the effective date of this article, each employer shall deduct the tax on a payroll-based deduction. The employee will only be responsible to pay the tax for the number of weeks in which he/she is employed within the municipality. The employer shall withhold and remit only for the period the employee is employed in the Township. Deductions shall be such that enough shall be deducted from the employee's payroll check so that after the employee receives one year of compensation, at least $52 shall have been deducted from the employee's payroll compensation and deducted equally as part of each payroll period. Monies shall be due from the employer 30 days after the close of the prior period, with the first quarter payment being due April 30, the second quarter payment being due July 31, the third quarter payment being due October 31, and the fourth quarter payment being due on January 31 of the next year. Employees shall only be responsible to pay the tax for the number of weeks in which they are employed within the Township. If the employee shall leave during the tax year, no additional taxes shall be due from the employee. The return by the employer shall be in a form prescribed by the Tax Collector, and the employer shall pay said tax to said Tax Collector in the full amount deducted for the preceding quarter.
Any employer who discontinues business or ceases operation before December 31 of any year during which this tax is in effect shall file a return hereinabove required and pay the tax to the Tax Collector within 15 days after discontinuing business or ceasing operations.
The failure of any 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 any such tax to the Tax Collector, shall be liable for such tax in full, as though the tax had originally been levied against such employer.
Every taxpayer who is self-employed or whose tax for any other reason is not collected under § 158-35 of this article shall file a return on a form prescribed by the Tax Collector and shall pay the tax directly to said Tax Collector. Each such taxpayer who first becomes subject to the tax after the effective date of this article shall file the return and pay the tax on or before April 30 of the current tax year, and each such taxpayer who first becomes subject to the tax after March 31 of the current tax year shall file the return and pay the tax on or before July 31 or October 31 of the current tax year, or January 31 of the following year, whichever of such payment dates first occurs at least 30 days after the taxpayer becomes subject to the tax.
Both resident and nonresident taxpayers shall be obligated to pay the tax, except, however, the person shall not be required to pay the tax in more than one jurisdiction per payroll period. If an individual works in more than one taxing area, the tax shall be due in the area of residence if employed there or, in the absence of that criteria, the taxing authority closest to the place of residence.
The Tax Collector shall collect and receive the taxes, interests, fines and penalties imposed by this article and shall maintain 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 the article. The Tax Collector and agents designated by him/her may examine the records of any employer and/or supposed employer or of any 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 Tax Collector and any agent designated by him all means, facilities and opportunity for the examinations hereby authorized. Upon request, the Tax Collector shall provide a receipt of payment to the taxpayer. The Central Bucks School District, which shares, in part, the tax as referenced herein, shall utilize the Township's Tax Collector for its portion of the tax. The Tax Collector shall remit taxes to the Central Bucks School District as collected.
The Tax Collector shall collect, by suit or otherwise, all taxes, interest, costs, fines and penalties due under this article 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 taxes and an additional penalty of 1/2 of 1% of the amount of the unpaid tax, for each month or fraction of month during which the tax 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 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, together with interest at 6% per annum. Any action instituted for such judicial determination shall be instituted within two years of the last day of the period for which the tax is disputed or claim made. All refunds shall be made in conformity with the procedure prescribed by the Board of Supervisors.
An employer or taxpayer who makes a false or untrue statement on any return required by this article, who refuses inspection of his records in his custody and control setting forth his employees subject to this tax, who fails or refuses to file a return required by this article or who violates any other provisions of this article shall, upon conviction thereof, be sentenced to pay a fine of not more than $600, and, in default of payment, to imprisonment for a term not to exceed 30 days.