[Adopted 2-2-1981 by Ord. No. 81-1; amended in its entirety 11-13-2007 by Ord. No. 2007-16]
This article shall be known and may be cited as the "Local Services Tax Ordinance."
As used in this article, 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 or situated in the Township employing one or more employees engaged in any occupation, other than household employees.
- LOCAL SERVICES TAX COLLECTOR
- The Secretary-Manager of the Township of Marple or his designated representative.
- Includes any livelihood, job, trade, profession, business or enterprise of any kind, including services, household or other, for which any compensation is received.
- The tax imposed by this article.
- Any natural person liable for the tax levied by this article.
- The Township of Marple.
For general revenue purposes, a tax under the Act of December 31, 1965, P.L. 1257, as amended, known as the "Local Tax Enabling Act," is hereby levied upon the privilege of engaging in an occupation within the Township from the effective date hereof, for the calendar year 2008 and thereafter in each following calendar year. 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 article; provided, however, that the tax hereby levied shall not be imposed upon any natural person whose total compensation during the tax year is less than $12,000 or less.
Editor's Note: See 53 P.S. § 6901 et seq.
Every employer shall, within 30 days after the effective date of this article or within 30 days after first becoming an employer, register with the Local Services Tax Collector the employer's name, address and such other information as the Local Services Tax Collector may require.
Each employer within the Township of Marple is hereby charged with the duty of collecting and paying over to the collector, quarterly, from each employee engaged in his or her services said tax of $52 per year upon each individual employed by said employer who performs services on behalf of said employer within the geographical limits of the Township of Marple, of who is engaged in an occupation as hereinafter defined, for the benefit of said employer or in the service of said employer within the geographical limits of the Township of Marple. Each employee subject to the local services tax shall be assessed a pro rata share of the tax for each payroll period in which the person is engaging in an occupation. The pro rata share of the taxes assessed on the person for a payroll period shall be determined by dividing the combined rate of the local services tax levied for the calendar year by the number of payroll periods established by the employer for the calendar year. For purposes of determining the pro rata share, the employer shall round down the amount of the tax collected each payroll period to the nearest 100th of a dollar. Collection of the local services tax shall be made on a payroll-period basis for each payroll period in which the person is engaging in an occupation.
Any employer who discontinues business or ceases operation before December 31 of any tax year shall, within 15 days after discontinuing business or ceasing operation, file and return hereinabove required and pay the tax to the Local Services Tax Collector.
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 such tax to the Local Services Collector, shall be liable for such tax in full, as though the tax had originally been levied against such employer.
As to employees who present official receipts evidencing prior payment of the tax either directly or by collection through other employers, the employer shall not deduct the tax but shall maintain adequate records concerning such employees.
Every taxpayer who is self-employed or whose tax for any other reason is not collected under § 274-75 of this article shall file a return on a form prescribed by the local services tax collector and shall pay the tax to the local services tax collector. The tax shall be paid on a quarterly basis.
Both resident and nonresident taxpayers shall, by virtue of engaging in an occupation within the Township, be subject to the tax and the provisions of this article.
Any taxpayer who reasonably expects to receive earned income and/or net profits from all sources within the Township less than $12,000 in a calendar year may file an exemption certificate with the employer and the Township. The exemption certificate shall have attached to it a copy of all of the employee's last pay stubs or W-2 forms from employment within the Township for the year prior to the fiscal year for which the employee is requesting to be exempted from the local services tax. Upon receipt of the exemption certificate and until otherwise instructed by the Township levying the tax or except as required by this section, the employer shall not withhold the tax from the person during the calendar year or the remainder of the calendar year for which the exemption certificate applies. The employer shall ensure that the exemption certificate forms are readily available to employees at all times and shall furnish each new employee with a form at the time of hiring.
With respect to a person who claimed an exemption for a given calendar year from the local services tax, upon notification to an employer by the person or by the Township that the person has received earned income and/or net profits from all sources within the Township equal to or in excess of $12,000 in that calendar year or that the person is otherwise ineligible for tax exemption for that calendar year, or upon an employer's payment to the person of earned income within the Township in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the local services tax from the person.
If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the tax for the calendar year, the employer shall withhold the tax for the remainder of that calendar year. The employer shall withhold from the person, from the first payroll period after receipt of the notification, a lump sum equal to the amount of the tax that was not withheld from the person due to the exemption claimed by the person under this subsection, plus the payroll amount due for that first payroll period. The amount of tax withheld per payroll period for the remaining payroll periods in that calendar year shall be the same amount withheld for other employees. In the event the employment of the person subject to withholding of the tax under this section is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of the tax due and the Township may pursue collection.
The following persons are exempt from payment of the tax:
[Added 10-10-2011 by Ord. No. 2011-9]
Any person who has 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, theperson is blind, paraplegic or a double or quadruple amputee or has a service-connected disability declaured by the United States Veterans Administration or its successor to be a total, one-hundred-percent permanent disability.
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. 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.
Editor's Note: This ordinance also provided that it would be applicable to eligible taxes as of 1-1-2011.
The Local Services Tax Collector, on behalf of the Township, shall collect and receive the taxes, interest, fines and penalties imposed by this article and shall maintain records showing the amounts received and the dates such amounts were received. The Local Services 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 article, 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 Local Services Tax Collector and agents designated by him 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 Local Services Tax Collector and any agent designated by him all means, facilities and opportunity for the examinations hereby authorized.
The Local Services 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 tax and an additional penalty of 1/2 of 1% of the amount of 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 Local Services 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 Local Services Tax Collector, the Local Services Tax Collector shall refund the amount of the overpayment to the person who paid under protest.
[Amended 6-12-2000 by Ord. No. 2000-10]
Whoever makes any false or untrue statement on any record required by this article or who refuses inspection of his books, records or accounts in his custody and control, setting forth the number of employees subject to this tax who are in his employment, or whoever fails or refuses to file any return by this article or who fails to collect or withhold or, having collected and withheld, fails to pay the tax due, shall, upon conviction thereof, be punishable by a fine of not more than $1,000, plus costs of prosecution, and in default of payment of such fine and costs by imprisonment for not more than 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 violates the requirements set forth above.
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 of this article or the application of any provision to any circumstances to be illegal or unconstitutional, the other provisions of this article or the application of such provision to other circumstances shall remain in full force and effect. The intention of the Board of Commissioners is that the provisions of this article shall be severable and that this article would have been adopted if any such illegal or unconstitutional provisions had not been included.
This article shall become effective 30 days after its enactment and shall remain in full force and effect thereafter, from year to year, on a calendar-year basis, without annual reenactment.