[Adopted 11-29-2007 by Ord. No. 2007-07]
A.
COLLECTOR
COMPENSATION
EARNED INCOME AND NET PROFITS
EFFECTIVE DATE
EMPLOYEE
EMPLOYER
ENABLING ACT
ENACTMENT
GOVERNING BODY
OCCUPATION
REGULATIONS
TAX
TAXING AUTHORITY
TAXPAYER
TAX RETURN
TAX YEAR
The following words and phrases when used in this
article shall have the meaning ascribed to them in this section, unless
the context clearly indicates a different meaning:
The person or persons appointed by this article or by subsequent
enactment of the governing body to collect the tax imposed by this
article.
Salary, wages, commission, tip, bonus, fee or any other payment
or income.
Shall have the meanings as set forth in the Local Tax Enabling
Act, 53 P.S. § 6913.
January 1, 2008.
An individual paid compensation by an employer to perform
an occupation of any kind.
Any individual, partnership, limited partnership, unincorporated
association, institution, trust, corporation, government agency, or
other entity engaged in business or operating within the taxing authority,
employing one or more individuals engaged in an occupation.
The Local Tax Enabling Act, 53 P.S. § 6901 et seq.,
and as amended in the future.[1]
This article.
The Board of Supervisors of East Hempfield Township.
Any work, job, activity, livelihood, trade, profession, business
or enterprise of any kind, including services, domestic or other,
for which any compensation is received. A person may have more than
one occupation.
Regulations duly adopted by the Collector for administration
of the tax. To the extent allowed by law, including but not limited
to 1 Pa.C.S.A. § 1937, the governing body intends to incorporate
future amendments to the regulations. If a court prohibits such construction,
the governing body intends to incorporate the regulations as they
exist on the date of adoption of this article. A copy of the regulations
currently in force shall be available for public inspection.
The tax imposed by this article.
East Hempfield Township.
Any individual on whom the tax is imposed.
A form prescribed by the Collector for reporting the amount
of any tax deducted from an employee or otherwise owed under this
article.
The period from January 1 to December 31.
[1]
Editor's Note: Many sections of the Local
Tax Enabling Act were renumbered effective 7-2-2008; see now 53 P.S.
§ 6901 et seq. and 53 P.S. §§ 6924.101 to
6924.312.
B.
Word usage. The singular shall include the plural,
and the masculine shall include the feminine and the neuter.
A.
The taxing authority hereby imposes a tax of $52 on
each individual who engages in an occupation within the boundaries
of the taxing authority. The tax is imposed for the tax year starting
on the effective date and ending on the next December 31. The tax
is imposed for each tax year thereafter, without annual reenactment,
until this article is repealed or amended.
B.
The tax is based on an individual engaging in an occupation
within the taxing authority at any time during the tax year, and shall
be known as the local services tax or the occupation privilege tax.
The Enabling Act, as amended by Act 7 of 2007, has denominated any
occupation privilege tax as a local services tax.
C.
All provisions of the Enabling Act imposing requirements
applicable to a local services tax and all provisions of the regulations
are incorporated into this article. If there is any discrepancy between
the regulations and the Enabling Act, or the enactment and the Enabling
Act, the provisions of the Enabling Act shall control. The tax is
imposed and proceeds of the tax shall be used in accordance with all
applicable requirements of the Enabling Act.
D.
The tax is imposed and proceeds of the tax shall be
used in accordance with all applicable requirements of the Enabling
Act.
A.
An individual whose total earned income and net profits
from all sources within the taxing authority in any tax year is less
than $12,000 is exempt from the tax for the tax year.
B.
Individuals may also be exempt for other reasons,
including disability resulting from serving in the armed forces, active
duty as a member of a reserve component of the armed forces, and other
reasons as set forth in the regulations.
C.
An individual may obtain exemption prospectively by
filing a local services tax exemption certificate on a form provided
by the Collector in accordance with the regulations. The exemption
certificate shall be filed with the Collector, and if the individual
is an employee, also with the individual's employer.
D.
If an individual pays the tax and at the end of any
tax year has total income during the tax year that is less than the
income exemption amount, or otherwise qualifies for an exemption,
the taxing authority will, on request after the end of the tax year,
refund to the taxpayer the tax paid for the tax year.
Rules applicable to individuals who engage in
an occupation in multiple jurisdictions or have multiple employers
are as set forth in the regulations.
A.
Every employer not registered under the provisions
of an enactment of the taxing authority imposing a tax on earned income
and net profits shall, within 30 days after the effective date, or
within 30 days after first becoming an employer, register with the
Collector the employer's name, address and any other information required
by the Collector on an employer registration form prescribed by the
Collector.
B.
Every employer is required to deduct the tax as set
forth in the regulations from any compensation payable to any employee
on whom the tax is imposed, unless the employee has filed a local
services tax withholding exemption certificate in accordance with
the regulations. As set forth in the regulations, the full amount
of the tax shall be deducted in lump sum if the combined municipal
and school district tax rate is $10 or less. As set forth in the regulations,
the tax shall be deducted pro rata on a per-payroll basis if the combined
municipal and school district tax rate exceeds $10.
C.
As set forth in the regulations, no employee is required
to pay tax through more than one employer during any payroll period.
D.
An employer is excused from withholding to the extent
provided in the regulations if the employee has filed a local services
tax withholding exemption certificate in accordance with the regulations.
The exemption certificate may provide exemption from withholding based
on:
(1)
Low income or other exemption from tax as stated in
the regulations;
(2)
Withholding by another principal employer;
(3)
Prior payment to the taxing authority of the full
amount of the tax imposed by the taxing authority; or
(4)
Prior payment during the same tax year of $52 as a
tax imposed under the enabling act on an individual based on engaging
in an occupation in Pennsylvania.
E.
If an employee has filed a local services tax withholding
exemption certificate and it is determined as set forth in the regulations
that the employee is not eligible for exemption or no longer eligible
for exemption, the employer shall start or restart withholding as
set forth in the regulations.
F.
As to each taxpayer employed at any time after the
effective date and on or before March 31, every employer shall deduct
the tax from compensation payable to the taxpayer as set forth in
the regulations and shall file a tax return and pay to the Collector
on or before April 30 the amount of tax deducted on or before March
31. As to each taxpayer for whom the full amount of the tax has not
previously been deducted or paid directly by the taxpayer to the Collector,
who is employed at any time in any of the three-month periods ending
June 30, September 30, and December 31, every employer shall deduct
the tax from compensation payable to the taxpayer as set forth in
the regulations and shall file a tax return and pay to the Collector
on or before the following July 30, October 30, and January 30 the
amount of tax deducted on or before June 30, September 30, and December
31, respectively. Every employer shall follow this same procedure
in every tax year.
G.
Tax amounts deducted from compensation by an employer
shall at all times be the property of the taxing authority and shall
constitute a trust fund held by the employer until remitted to the
Collector, and deduction of tax from wages shall, as between the employee
and the taxing authority, constitute payment of the tax by the employee,
regardless of any insolvency or failure to remit by the employer.
H.
Any employer who fails to deduct the tax or who fails
to pay the tax to the Collector shall be liable for the tax and applicable
penalties in full as though the tax had originally been imposed against
such employer. If the employer is a partnership, the partners thereof
and, if the employer is a corporation, limited liability company,
or other organization or entity, all officers thereof and any other
person responsible for payment of taxes shall have the same liability
as the employer.
Every individual who is self-employed or whose tax for any other reason is not deducted by an employer under § 237-32 of this article shall file a tax return and pay the tax directly to the Collector. Except as otherwise stated in the regulations, every such individual engaged in an occupation within the taxing authority at any time after the effective date, and on or before March 31, shall file a tax return and pay the full amount of the tax to the Collector on or before April 30. Except as otherwise stated in the regulations, every such individual who has not previously paid the full amount of the tax who engages in an occupation within the taxing authority at any time in any of the three-month periods ending June 30, September 30, and December 31 shall file a tax return and pay the full amount of the tax to the Collector on of before the following July 30, October 30, and January 30, respectively. Every individual who is self-employed or whose tax for any other reason is not deducted by an employer under § 237-32 of this article shall follow this same procedure in every tax year.
By virtue of engaging in an occupation within
the taxing authority, both resident and nonresident individuals are
subject to the tax.
A.
The Collector shall collect the tax, fines and penalties
imposed by this article and shall keep records of collection.
B.
The Collector may examine the books, papers and records
of any individual or employer in order to verify compliance with this
article. Every individual the Collector believes might be subject
to the tax and every employer or person the Collector believes might
be an employer shall, on request, meet with and show to the Collector
all books, papers, and records requested by the Collector. Every employer
or person the Collector believes might be an employer shall also provide
access to the employer's books, papers, and records at the employer's
place of business and provide a place for the Collector's review of
such books, papers, and records. For purposes of this article, records
shall include records in any form, including computer and other electronic
records.
C.
The Collector may file suit in its name or in the
name of the taxing authority for recovery of any amount owed to the
taxing authority.
D.
Except as limited by any applicable law, the Collector
shall have all of the powers that the taxing authority has or that
the law prescribes for tax collectors relating to administration and
enforcement of this article.
E.
The Collector may promulgate and enforce regulations
relating to administration and enforcement of this article.
A.
If any tax is not paid when due, the following penalty
shall apply: a penalty of 5% of the amount unpaid for each month or
a fraction of a month during which the amount remains unpaid.
B.
Any individual or entity who or which fails or refuses
to pay the tax or other amounts owed or to pay a tax deducted from
employees shall, in addition to paying the amount owed, pay reasonable
costs incurred, as set forth in the regulations, by the taxing authority,
Collector or any other person or entity appointed to collect the amount,
to provide notices of delinquency or to implement similar procedures
to collect delinquent taxes.
C.
If legal proceedings are commenced for failure to
pay any amount owed, the person or entity liable therefor shall, in
addition to the amount owed, pay to the taxing authority, Collector,
or any other person or entity appointed to collect the tax the costs
of collection, including reasonable attorney's fees.
D.
Any individual or entity who or which fails or refuses
to file any employer registration form or tax return required by this
article or the regulations; who or which fails or refuses to pay the
tax or other amounts owed or to pay a tax deducted from employees;
who or which refuses to permit the Tax Collector to examine books,
papers, and records; or who or which makes any incomplete, false or
fraudulent filing or return shall, upon conviction thereof before
any Magisterial District Judge, 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, be subject to imprisonment for a period not
exceeding 30 days. If an employer is a partnership, the partners thereof
and, if an employer is a corporation, limited liability company, or
other organization or entity, all officers thereof and any other person
responsible for payment of taxes shall be subject to prosecution under
this section as the employer.
E.
The failure of any individual or entity to receive
or procure forms required for making a required filing or return shall
not excuse making such a filing or return.
The Lancaster County Tax Collection Bureau,
also doing business as Middletown Area Tax Collection Bureau, is appointed
Collector according to the terms of a tax collection agreement as
presented this date or previously executed. The officers of this taxing
authority are authorized to take any actions necessary or appropriate
to carry out the terms of this article and the tax collection agreement.
Any prior enactment or part of any prior enactment
conflicting with the provisions of this article is rescinded insofar
as the conflict exists. So far as they are the same as enactments
in force immediately prior to the adoption of this article, the provisions
of this article are intended as a continuation of such prior enactment
and not as a new enactment. If this article is declared invalid, any
prior enactment levying a similar tax shall remain in full force and
effect and shall not be affected in any manner by adoption of this
article. The provisions of this article shall not affect any act done
or liability incurred, nor shall they affect any suit or prosecution
pending or to be initiated to enforce any right or penalty or to punish
offense under the authority of any enactment in force prior to the
adoption of this article. Subject to the foregoing provisions of this
section, this article shall supersede and repeal on the effective
date any enactments levying an occupation privilege tax in force immediately
prior to the effective date.
