[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Editor's Note: This ordinance also superseded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.
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.
Means and indicates the singular and plural number as well
as male and neuter gender.
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.
The person designated by Municipal Council for the collection
of this tax.
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.
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:
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:
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.
