[Adopted 11-20-2007 by Ord. No. 07-16[1]]
[1]
Editor's Note: This ordinance also superseded former Art. VIII, Emergency and Municipal Services Tax, adopted 11-28-2005 by Ord. No. 05-28.
The following words and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context or language clearly indicates or requires a different meaning.
EMPLOYER
An individual, partnership, association, corporation, governmental body, agency or other entity employing one or more persons on a salary, commission or other compensation basis, including a self-employed person.
HE, HIS or HIM
Means and indicates the singular and plural number as well as male and neuter gender.
INDIVIDUAL
Any person, male or female, who after the first day of January 2008, engages in any occupation, trade or profession of any nature, type or kind whatsoever, within the corporate limits of the Municipality of Norristown, whether in the employ of another or self-employed.
LOCAL SERVICES TAX RECEIVER
The person designated by Municipal Council for the collection of this tax.
OCCUPATION
Any trade, profession, business, or undertaking of any type, kind or character, including services, domestic or other, carried on or performed within the corporate limits of the Municipality of Norristown for which compensation is charged or received, whether by means of salary, wages, commissions or fees for services rendered.
TAX
The Local Services Tax in the amount of $52 levied by this article on each individual engaged in any occupation as hereinbefore defined, within the corporate limits of the Municipality of Norristown.
From the effective date of this article and annually thereafter, the Municipality of Norristown hereby levies and imposes on each person engaged in an occupation as herein defined within its corporate limits a local services tax. This tax is in addition to all other taxes of any kind or nature heretofore levied by the Municipality of Norristown. It shall be the obligation of each such person so engaged in an occupation to pay or cause to be paid the tax herein imposed. The adoption of this article shall constitute notice and demand for payment of the tax.
The amount of the local services tax shall be $52 to be paid by each individual so engaged in an occupation as herein defined.
Any person who derives less than $12,000 per year from such occupations shall be exempt from the payment of the tax.
Employers are required to stop withholding the local services tax if an employee files an upfront exemption certification. In order to receive an upfront exemption, employees must file an annual upfront exemption form (developed by DCED) with the Municipality and the employee's employer. The exemption certificate would verify that the employee receive earned income and net profits of less than $12,000 for the year. A copy of the employee's last pay stubs or W-2 forms must be attached to the exemption certificate.
Employers must restart withholding the local services tax from an employee who files an exemption certificate in the following circumstances:
A. 
If instructed to do so by the Municipality.
B. 
If notified by the employee that he or she is no longer eligible for the exemption; or
C. 
If the employer pays the employee more than $ 12,000 for a calendar year.
Every employer within the Municipality of Norristown, as well as those employers situated outside the Municipality of Norristown, but who engage in business within the said Municipality, is hereby charged with the duty of collecting from each of his employees engaged by him and performing for him within the Municipality, the said tax of $52 per annum and making a return and payment thereof to the Local Services Tax Receiver. Further, each employer is hereby authorized to deduct this tax for each employee in his employ, whether said employee is paid by salary, wages or commission and whether or not part or all such services are performed within the Municipality. The tax must be assessed and collected on a pro rata basis determined by the number of payroll periods established by an employer for the calendar year. The pro rata share of the tax assessed on each taxpayer for a payroll period is calculated by dividing combined rate of the local services tax by the number of payroll periods established by the employer. When calculating the pro rata share, employers are required to round down to the nearest 1/100 of a dollar. Employers must remit withheld taxes to the designated tax collector 30 days after the end of each calendar quarter.
Each employer shall prepare and file a return showing a computation of the tax forms to be supplied to him by the Local Services Tax Receiver. Each employer in filing this return and making payment of the tax withheld from his employees shall be entitled to retain a commission calculated at the rate of 2% of the gross tax due and payable, provided that such tax is collected and paid over by the employer on or before the dates hereinafter set forth. It is further provided that if the employer fails to file said return and pay said tax, whether or not he makes collection thereof from the salary, wages or commissions paid by him to said employee, the employer shall be responsible for the payment of the tax in full without deducting a commission and as though the tax had originally been levied against him.
Each employer shall use his employment records as of the first day of May, in determining the number of employees from whom the said local services tax shall be deducted and paid over to the Local Services Tax Receiver, said payment to be made on or before July 31. Each employer who engages the services of any individual in an occupation to be performed in the Municipality of Norristown on or after the first day of May shall require said employee to furnish to him any certificate of payment from the Local Services Tax Receiver showing that the local services tax has theretofore been paid. In the event that such employee has not previously paid his local services tax, the employer shall deduct same within 30 days after the employee is hired and remit to the Local Tax Receiver.
Each individual who shall have more than one occupation within the Municipality of Norristown shall be subject to the payment of this tax on his principal occupation, and his principal employer shall deduct this tax and deliver to him evidence of deduction on a form to be furnished to the employer by the Local Services Tax Receiver, which form shall be evidence of deduction having been made and when presented to any other employer shall be authority for such employer to not deduct this tax from the employee wages, but to include such employee on his return by setting forth his name and account number of the employer who deducted this tax.
If a taxpayer has two or more jobs in different political subdivisions during a payroll period, the priority claim to collect the local services tax is as follows:
A. 
Where the taxpayer maintains his/her principal office or is principally employed;
B. 
Where the taxpayer resides and works; and
C. 
Where the taxpayer is employed that is nearest in miles to the taxpayer's home.
All self-employed individuals who perform services of any type or kind, engage in any occupation or profession within the Municipality of Norristown shall be required to comply with this article and pay the tax to the Local Services Tax Receiver on July 31, or as soon thereafter as he engages in an occupation. The tax for self-employed individuals should be pro rated on a quarterly basis. Self-employed taxpayers shall pay the tax 30 days after each quarter ends.
All employers and self-employed individuals residing or having their place of business outside of the Municipality of Norristown, but who perform services of any type or kind, or engage in any occupation or profession within the Municipality of Norristown 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 the Municipality of Norristown. Further, any individual engaged in an occupation within the Borough 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 Local Services Tax Receiver shall have the option of proceeding against either the employer or employee for the collection of this tax as hereinafter provided.
A. 
It shall be the duty of the Local Services Tax Receiver to accept and receive payments of this tax and to keep a record thereof showing the amount received by him from each employer or self-employed person, together with the date the tax was received.
B. 
The Local Services Tax Receiver is hereby charged with the administration and enforcement of this article and is hereby charged and empowered to prescribe, adopt, and promulgate rules and regulations relating to any matter pertaining to the administration and enforcement of this article, including provisions for the examination of the payroll records of any employer subject to this article; the examination and correction of any return made in compliance with this article and any payment alleged or found to be incorrect, or as to which overpayment is claimed or found to have occurred. Any person aggrieved by any decision of the Local Services Tax Receiver shall have the right to appeal to the Court of Common Pleas of Montgomery County as in other cases provided.
C. 
The Local Services Tax Receiver is hereby authorized to examine the books and payroll records of any employer in order to verify the accuracy of any return made by an employer, or if no return was made, to ascertain the tax due. Each employer is hereby directed and required to give the Local Services Tax Receiver the means, facilities and opportunity for such examination.
A. 
In the event that any tax under this article remains due or unpaid 30 days after the due date above set forth, the Local Services Tax Receiver may sue for the recovery of any such tax due or unpaid under this article together with interest and penalty.
B. 
If for any reason the tax is not paid when due, interest at the rate of 6% on the amount of said tax calculated beginning with the due date of said tax and a penalty of 5% shall be added to the flat rate of said tax for nonpayment thereof. Where suit is brought for the recovery of this tax, the individual liable therefor shall, in addition, be responsible and liable for the costs of collection.
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 setting forth the number of employees subject to this tax who are in his employment, or, whoever fails or refuses to file any return required by this article, or who shall fail to pay tax due, shall, upon conviction before any court of competent jurisdiction, be sentenced to pay a line of not less than $300 and not more than $1,000 for each offense and in default of payment of said fine and costs be imprisoned in Montgomery County Prison for a period not exceeding 30 days for each offense. 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 refuses to file a return required by this article.