This article shall be known and may be cited
as the "Lower Allen Township Local Services Tax Ordinance."
This article is enacted under the authority
of the Local Tax Enabling Act, as amended by Act No. 7 of 2007.
The purpose of this article is to provide revenue
for police, fire and emergency services; road construction and maintenance;
the reduction of property taxes; and for such other purposes as may
be specified for such tax from time to time by the laws of the Commonwealth
of Pennsylvania.
The following words and phrases when used in
this article shall have the meanings ascribed to them in this section
except where the context clearly indicates or requires a different
meaning:
COLLECTOR
The person or firm, from time to time, designated by motion
of the Board of Commissioners of Lower Allen Township to collect and
administer the provision of this article and collect the tax levied
by this article. Until changed by subsequent motion, the Collector
shall be the same person or firm last designated to collect the emergency
and municipal services tax for Lower Allen Township.
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. Any housing allowance provided to a member of the clergy
shall not be taxable as earned income.
EMPLOYER
An individual, partnership, association, corporation, governmental
body, agency or other entity employing one or more persons on a salary,
wage, commission, fee or other compensation basis, including a self-employed
person.
HE, HIS or HIM
Includes singular and plural number, and male, female and
neuter gender.
INDIVIDUAL
Any person engaged in any occupation, trade or profession
within the jurisdiction limits of Lower Allen Township whose total
earned income and net profits within Lower Allen Township are greater
than $12,000 per calendar year.
NET PROFITS
The net income from the operation of a business, profession, or other activity, (except from 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 generated from monetary accounts or investment
instruments of the farming business;
B. Any gain on the sale of farming 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.
OCCUPATION
Any trade, profession, business or undertaking of any type,
kind or character, including services, domestic or other, carried
on or performed within the jurisdiction limits of Lower Allen Township
for which compensation is charged and/or received, whether by salary,
wages, commissions, fees or net profits for services rendered.
RESERVE COMPONENT OF THE ARMED FORCES
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.
TAX
The local services tax levied in the article.
Lower Allen Township hereby levies and imposes
on every individual engaging in an occupation within the jurisdictional
limits of Lower Allen Township 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 subsequent
ordinance. This tax is in addition to all other taxes of any kind
or nature heretofore levied by Lower Allen Township.
Employers are required to make and file a local
services tax quarterly return 30 days after the end of each quarter
of a calendar year. The local services tax quarterly return shall
list the name, address and social security number of the employee;
the physical address of the employee's place of employment; the number
of payroll periods for which the local services tax was withheld;
and the amount of local services tax being remitted for each employee.
Each employer shall use his employment and payroll
records from January 1 to March 31 each year for determining the number
of employees from whom said tax shall be deducted and paid over to
the Collector on or before April 30 of the same calendar year. Supplemental
reports shall be made by each employer on July 30, October 30 and
January 31 for new employees as reflected on his employment and payroll
records from April 1 to June 30, July 1 to September 30 and October
1 to December 31, and payments on these supplemental reports shall
be made on July 30, October 30 and January 30, respectively.
All self-employed individuals and individuals
whose employer is not required to withhold local taxes (certain state
and federal agencies) will be billed quarterly for the local services
tax. The full amount of tax must be paid by the date indicated on
such billing. If such taxpayer qualifies for a low-income exemption,
the taxpayer may complete the required exemption certificate or make
application for a refund of the tax paid.
All employers and self-employed individuals
residing or having their place of business outside Lower Allen Township
but who engage in any occupation within Lower Allen Township do by
virtue thereof agree to be bound by and subject themselves to the
provisions, penalties and regulations promulgated under this article
with the same force and effect as though they were residents of Lower
Allen Township. Further, any individual engaged in an occupation within
Lower Allen Township and an employee of a nonresident employer may
for the purpose of this article be considered a self-employed person
and, in the event this tax is not paid, the Collector shall have the
option of proceeding against either the employer or employee for collection
of this tax as hereinafter provided.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
Whoever makes any false or untrue statement
on any return required by this article, or who refuses inspection
of his books, records or accounts in his custody and control in order
to determine the number of employees subject to this tax who are in
his employment, or who fails or refuses to file any return required
by this article, or fails or refuses to pay the tax herein levied
shall, upon conviction in a summary proceeding under the Pennsylvania
Rules of Criminal Procedure, be guilty of a summary offense and shall
be punishable by a fine of not more than $1,000, plus court costs
and reasonable attorneys' fees incurred by the Township in the enforcement
proceedings. Upon judgment against any person by summary conviction,
or by proceedings by summons on default of the payment of the fine
or penalty imposed and the costs, the defendant may be sentenced to
imprisonment for a term not exceeding 90 days. Each day that such
violation exists shall constitute a separate offense, and each section
of this article that is violated shall also constitute a separate
offense. In addition to or in lieu of enforcement under this section,
the Township may enforce this article in equity in the Court of Common
Pleas of Cumberland County. 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 has
failed or refused to file a return required by this article.
The provisions of this article shall be severable.
If any of its provisions shall be held to be unconstitutional, illegal
or otherwise invalid, that decision shall not affect the remaining
provisions of this article or of the Lower Allen Township Code of
Ordinances.
This article shall become effective in accordance
with applicable law, with the repeal of previous occupational privilege
tax and emergency and municipal services tax ordinances, effective
January 1, 2008.