[Adopted 11-20-2007 by Ord. No. 16-2007[1]]
[1]
Editor's Note: This ordinance also repealed
former Art. III, Emergency and Municipal Services Tax, adopted 3-21-2006
by Ord. No. 7-2006.
As used in this article, the following terms shall have the
meanings indicated:
The person designated by the governing body of the Borough
of Kutztown by resolution to administer and enforce or to assist in
the administration or enforcement of the tax in the place of the Tax
Collector.
The period of time beginning on the first day of January
and ending on the 31st day of December of each year.
An individual, partnership, limited partnership, association
or corporation that engages the services of any individual and makes
payment to said individual, whether by salary, wages, commission,
or otherwise. An "employer" shall include a self-employed person who
engages in his employ the services of one or more individuals besides
himself.
Any person, male or female, engaged in any occupation of
any nature, type or kind whatsoever within the corporate limits of
the Borough of Kutztown, whether in the employ of another or self-employed,
during the calendar year 2008 or any calendar year thereafter.
A tax of $52 per year levied on each engagement in any occupation,
as heretofore defined, within the corporate limits of the Borough
of Kutztown during the calendar year 2008 or any calendar year thereafter.
The exercising or carrying on by any manner or means of any
occupation whatsoever, whether it be trade, profession, business or
undertaking of any type or kind carried on or performed within the
corporate limits of the Borough of Kutztown, Berks County, for which
recompense is received, whether by means of salary, wages, commission
or otherwise, or whether the individual be self-employed, by payment
for services rendered.
The calendar year in which the tax is payable.
The Tax Collector of the Borough of Kutztown, Berks County,
Pennsylvania as appointed by the Borough of Kutztown to collect the
local services tax.
For the calendar year 2008 and annually thereafter, the Borough
of Kutztown hereby imposes on each individual, to be paid by said
individual exercising the privilege of engaging in any occupation
within the corporate limits of the Borough of Kutztown, an annual
local services tax in the manner and at the rates hereinafter set
forth.
Beginning on January 1, 2008, each engagement in an occupation
as hereinbefore defined shall be subject to the payment of a local
services tax of $52 to be paid by each individual exercising the privilege
of engaging in any occupation, as hereinbefore defined, within the
corporate limits of the Borough of Kutztown.
A.
Each individual exercising the privilege of engaging in any occupation
or occupations within the corporate limits of the Borough of Kutztown
and who shall earn less than $12,000 during the calendar year from
said occupation or occupations shall be exempt from the payment of
the local services tax of $52.
B.
Each individual who shall be engaged in more than one occupation
within the corporate limits of the Borough of Kutztown and who shall
earn a total of $12,000 or more from the two or more occupations engaged
in shall not be exempt from the local services tax of $52 though he
or she shall earn less than $12,000 in each one of the two or more
occupations he or she is engaging in within the corporate limits of
the Borough of Kutztown.
C.
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, the person is blind, a 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 disability, said person shall be exempt
from payment of the tax.
D.
Any person who has served as a member of a reserved component of
the armed forces and is called to active duty at any time during the
taxable year shall be exempt from payment of the tax. For the purposes
of this subsection, "reserved 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.
E.
Any individual exempt from the payment of the local services tax hereunder shall nevertheless pay said tax pursuant to the provisions of §§ 200-23, 200-26 or 200-27 hereof and shall, after December 31 of the subject taxable year but prior to June 30 next following the subject taxable year, file a claim for refund of said tax. The burden of proof shall be upon the individual claiming to be exempt to verify and furnish proof satisfactory to the Tax Collector, or his approved nominee, that he or she is exempt and is entitled to a refund of the tax previously paid. Upon the receipt of such proof supporting the exemption, the Tax Collector, or his approved nominee, is authorized to make refund of the tax previously paid to such individual having supplied such proof that he or she is exempt from payment of the tax.
A.
Each taxpayer or employer who becomes subject to the tax or the withholding
provisions of this article shall file the required returns and shall
pay the tax due according to the following schedule:
(1)
For all employees employed or self-employed persons engaging in an
occupation in the Borough between the dates of January 1 of the taxable
year and March 31 of the taxable year (first quarter), no later than
April 30 of the taxable year.
(2)
For all employees employed or self-employed persons engaging in an
occupation in the Borough between the dates of April 1 of the taxable
year, and June 30 of the taxable year (second quarter), no later than
July 31 of the taxable year.
(3)
For employees employed or self-employed persons engaging in an occupation
in the Borough between the dates of July 1 of the taxable year and
September 30 of the taxable year (third quarter), no later than October
31 of the taxable year.
(4)
For all employees employed or self-employed persons engaging in an
occupation in the Borough between October 1 of the taxable year and
December 31 of the taxable year (fourth quarter), no later than January
31 of the year following the taxable year.
B.
In the case of an individual who exercises the privilege of engaging in an occupation within the corporate limits of the Borough of Kutztown for the first time after the first day of January of the taxable year, said tax shall be due and payable at close of the quarter said privilege is so exercised, as set forth in § 200-22A above.
C.
Each taxpayer, employer or individual who becomes subject to the tax or withholding provisions of this article and fails to remit payment for said tax to the Borough, according to the schedule set forth in § 200-22A and B above, shall have levied against him/her a penalty equal to 10% of the amount due and interest computed at 1% per month for all amounts due and owing after the due date.
Each employer within the Borough of Kutztown is hereby charged with the duty of collecting and paying over to the Tax Collector of the Borough of Kutztown, or his approved nominee, from each employee engaged in his services, a pro rata share of the said tax of $52 per year upon the privilege of engaging in any occupation, as hereinbefore defined, from each individual employed by said employer who performs services on behalf of said employer within the Borough of Kutztown or who is engaged in an occupation, as hereinbefore defined, for the benefit of the said employer or in the service of said employer within the corporate limits of the Borough of Kutztown. The pro rata share of the tax assessed by the employer shall be determined by dividing the $52 tax by the number of payroll periods established by the employer for the year. For purposes of determining the pro rata share, the employer shall round down to the nearest 1/100 of a dollar. Each employer shall make returns and payments of such tax as required by this section and § 200-25 and is authorized to deduct the said local services tax at the rates hereby imposed from each employee in his service, whether said employee is paid by salary, wages, commission or otherwise. Each employer within the corporate limits of the Borough of Kutztown shall prepare and file a return showing a computation of the tax on a form to be obtained by him from the Tax Collector of the Borough of Kutztown, or his approved nominee. Each employer shall file returns as required by this section and § 200-25 obtained by him from the Tax Collector of the Borough of Kutztown, or his approved nominee, showing a computation of the tax. Each employer, by completing and filing said returns as required by this section and § 200-25, and making payments after deducting the tax from the salary, wages, commissions or other compensations payable by him to his employees, shall be entitled to retain a commission calculated at 1/2 of 1% on the gross tax due and payable by each individual, provided that such tax is collected and paid over by the employer within the one month next following the last day of the quarter in which it is due. It is further provided that if the employer fails to file said return and pay said tax, but makes collection thereof from the salary, wages, commissions or other compensation paid by him to said employee, the employer shall be responsible for payment of the tax in full without any deductions or commissions as though the tax had originally been levied against him. If said employer fails to file a return, deduct and remit the tax imposed on his employees within four months of the due date, the applicable penalty and interest shall be chargeable to the employer. It is the employer's responsibility to file the return and remit the tax on behalf of his employee whether or not he deducts the tax from the employee. It is further provided that the provisions of this section shall apply with respect to each and every employee earning less than $12,000 during the taxable year as defined and set forth under § 200-21. The burden of proof shall be upon the employee to verify and furnish proof to the Tax Collector, or his approved nominee, that he is exempt under § 200-21 and thus entitled to a refund.
Each individual who shall have more than one occupation within
the corporate limits of the Borough of Kutztown or a principal occupation
in another municipality which levies a local services tax shall be
subject to the payment of the annual local services tax solely upon
the privilege of engaging in his principal occupation, and his principal
employer shall deliver to him a certificate of payment in a form to
be furnished to the employer by the Tax Collector, or his approved
nominee, certifying to any other employer of such individual that
said local services tax has been paid by the employee to the employer
and, in turn, remitted by said employer to the Tax Collector, or his
approved nominee of said other municipality. Any employer receiving
such original certificate of payment of the local services tax by
another employer shall not deduct or collect the local services tax
imposed by this article.
Each employer in the Borough of Kutztown shall use his employment
records as of the first day of January in determining the number of
employees from whom the said local services tax shall be deducted
and paid over to the Tax Collector or his approved nominee. Each employer
who engages the services of any individual in an occupation to be
performed in the Borough of Kutztown on or after the first day of
January 2008 shall collect from said employee a pro rata share of
the fifty-two-dollar tax by dividing 52 by the number of payroll periods
established by the employer for the year and collecting that sum for
each remaining pay period from the employee's pay.
Each self-employed individual in the Borough of Kutztown who performs any services of any type or kind within the corporate limits of the Borough of Kutztown, whether the same is regarded either as a profession or as a business, shall be required to pay the local services tax of $52 for himself and shall, further, be required to deduct and pay over in the manner hereinbefore set forth in § 200-23, but in any event no less than $13 per quarter to the Tax Collector of the Borough of Kutztown, an annual local services tax of $52 for himself or herself and every individual in his employ who is engaged in the performance of any occupation or profession for him within the Borough of Kutztown. Any individual engaged in any occupation within the said Borough who is an employee of another shall be liable for the payment of the tax of $52 for himself and shall be treated and regarded as a self-employed individual if the location of the business of his employer is beyond the corporate limits of the Borough of Kutztown and said employee is not liable for a similar tax in another municipality. Each employer whose business location is beyond the corporate limits of the Borough of Kutztown shall be required to furnish to the Tax Collector of the Borough of Kutztown, or his approved nominee, a list of all individuals employed by him who exercise the privilege of engaging in any occupation of any type or kind within the corporate limits of the Borough of Kutztown during the calendar year and who are not liable for a similar tax in another municipality. It is further provided that the provisions of this section shall apply to each self-employed individual as defined herein earning less than $12,000 during the calendar year as defined and set forth under § 200-21. The burden of proof shall be upon the self-employed individual to verify and furnish proof to the Tax Collector that he is exempt under § 200-21 and thus entitled to a refund.
The tax imposed by this article shall be in addition to all
other taxes of any kind or nature heretofore or hereafter levied by
the Borough of Kutztown.
Where a person is engaged in domestic services for others and has more than one employer in the performance of such services, the employer by whom such domestic is employed on the first day of January of the taxable year shall be responsible for the collection and payment of the annual local services tax for such domestic to the Tax Collector of the Borough of Kutztown, or his approved nominee pursuant to §§ 200-23 and 200-25. In the event that the domestic is not employed by any person on the first day of January, the said responsibility for deducting and paying over the local services tax shall rest upon the employer of the domestic on the next succeeding date following the first day of January, and said employer shall furnish to said domestic employee a certificate of payment of said local services tax to be exhibited to all other employers of said domestic, and the producing of said certificate to such other employers shall excuse them from the deduction of any further local services tax from said domestic employee for the taxable year.
A.
It shall be the duty of the Tax Collector, or his approved nominee,
to collect, to receive and, when required by law or this article,
to make refunds of the taxes, fines or penalties imposed by this article.
It shall also be his duty to keep a record showing the amount received
by him from each self-employed person paying the tax and the date
of such receipt; and, further, it shall be his duty to keep a record
showing the amount received by him from every employer paying the
tax on behalf of his employees by deduction made by such employer
from the salary, wages, commissions or other forms of recompense.
B.
The Tax Collector, or his approved nominee, is hereby charged with
the administration and enforcement of the provisions of this article
and is hereby empowered to prescribe, adopt, promulgate and enforce
rules and regulations relating to any matter pertaining to the administration
and enforcement of this article, including a provision for the examination
of the payroll records of any employer within the Borough of Kutztown
and, further, for the reexamination and correction of any returns
made in compliance with this article and any payment alleged or found
to be incorrect or as to which overpayment or exemption is claimed
or found to have occurred. Any person aggrieved by any decision of
the Tax Collector, or his approved nominee, shall have the right to
appeal to the Court of Common Pleas of Berks County as in other cases
provided.
C.
The Tax Collector, or his approved nominee, is hereby authorized
to examine the books and payroll records of any employer in order
to verify the accuracy of any return made by any employer on behalf
of his employees or, if no return was made, to ascertain the local
services tax due. Each employer in the Borough of Kutztown is hereby
directed and required to give to the Tax Collector, or his approved
nominee, the means, facilities and opportunity for such examinations
and investigations as are hereby authorized.
D.
The records, books and accounts of the Tax Collector, or his approved
nominee, shall be audited by whoever from time to time is charged
with the auditing of the accounts of the Borough of Kutztown.
In the event that any tax under this article remains due or
unpaid at the end of the taxable year, the Tax Collector, or his approved
nominee, may sue for the recovery of any such tax due or unpaid under
this article, together with penalty. Where suit is brought for the
recovery of any local services tax, the individual liable therefor
shall, in addition, be responsible and liable for the costs of collection
and the interest and penalties herein imposed.
Whoever makes any false or untrue statements on any return or
exemption claim required by this article, or who refuses inspection
of the books, records or accounts in his custody or control in order
to determine the number of employees subject to the local services
tax who are in his employment or whoever fails or refuses to file
any return required by this article shall, upon conviction before
any District Justice having jurisdiction, be sentenced to pay a fine
of not more than $300 for each offense and, in default of payment
of said fine, to be imprisoned in Berks County Prison [Lancaster County
Prison] for a period not exceeding 30 days for each offense. It is
further provided that action to enforce the penalty herein provided
may be begun and instituted against any person in charge of the business
premises of any employer who has failed or who refuses to file a return
required by this article.
A.
Nothing contained in this article shall be construed to empower the
Borough of Kutztown to levy and collect the local services tax hereby
imposed on any occupation not within the taxing power of the Borough
of Kutztown under the Constitution of the United States and the laws
and Constitution of the Commonwealth of Pennsylvania, particularly
those laws which provide that no person shall pay more than $52 in
any calendar year as a local services tax irrespective of the number
of political subdivisions within which such person may be employed
within any given calendar year.
B.
If the local services tax hereby imposed under the provisions of
this article shall be held by any court of competent jurisdiction
to be in violation of the Constitution of the United States or of
the Commonwealth of Pennsylvania as to any individual, the decision
of the court shall not affect or impair the right to impose or collect
said local services tax or the validity of the tax so imposed upon
other persons or individuals as herein provided.
If any individual is engaged in any occupation of any type or
kind licensed by the Commonwealth of Pennsylvania, the tax imposed
by this article, nevertheless, shall be payable and due by said individual
for the privilege of maintaining a location within the corporate limits
of the Borough of Kutztown or for the carrying on of such occupation
or business so licensed within the corporate limits of the Borough
of Kutztown.
Any claim for refund of any local services tax paid during the
calendar year of 2008 or thereafter must be filed in writing with
the Tax Collector, or his approved nominee, on or before the 30th
day of June next following the subject taxable year. Any claim for
refund filed after said date shall be barred and disallowed.
