[1]
Editor's Note: This ordinance repealed former Art. IV, Emergency
and Municipal Services Tax, adopted 12-11-1967 by Ord. No. 67-7, approved
12-12-1967, as amended.
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:
A person, bureau, officer, clerk, collector or entity designated
by resolution of the Borough Council of the Borough of Steelton under
whose direction this tax shall be administered and enforced.
The area within the corporate limits of the Borough of Steelton.
Earned income, i.e., compensation as determined under § 303 of the Pennsylvania Tax Reform Code of 1971 (72 P.S. § 7303) and regulations in 61 Pa. Code, Part I, Subpart B, Art. 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,[1] and the amount of any housing allowance provided to a
member of the clergy shall not be taxable as earned income; and
Net profits, i.e., the net income from the operation of a business, profession or other activity, except corporations, determined under § 303 of the Tax Reform Code of 1971 (72 P.S. § 7303) and regulations in 61 Pa. Code, Part I, Subpart B, Art. 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:
Any interest earnings generated from any monetary accounts or
investment instruments of the farming business;
Any gain on the sale of farm machinery;
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
Any gain on the sale of other capital assets of the farm.
An individual, partnership, association, corporation, governmental
body, agency or other entity employing one or more persons on a salary,
wage, commission or other compensation basis, including a self-employed
person.
Indicates the singular and plural number as well as male,
female and neuter gender.
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Borough of Steelton.
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 Borough of Steelton
for which compensation is charged or received, whether by means of
salary, wages, commissions or fees for services rendered.
The emergency and municipal services tax in the amount of
$52 levied by this article.
[1]
Editor's Note: See 72 P.S. §§ 7301 through
7361.
A.
Imposition of tax. The Borough of Steelton levies and imposes on
each occupation engaged in by individuals within the Borough of Steelton
during the calendar year of 2008 and each calendar year thereafter
a local services tax. This tax is in addition to all other taxes of
any kind or nature hereto before levied by the Borough of Steelton.
B.
Exemption from tax. The following persons shall be exempt from the
local services tax:
(1)
Any person who 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, 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 100% permanent disability.
(2)
Any person who serves as member of a reserve component of the Armed
Forces and is called to active duty at any time during the taxable
year. For the purposes of this subsection, "reserve component of the
Armed Forces" shall mean the United States Army Reserve, United States
Coast Guard Reserve, United States Navy Reserve, United States Marine
Corps Reserve, United States Air Force Reserve, The Pennsylvania Army
National Guard or the Pennsylvania Air National Guard.
(3)
Any person whose total earned income and net profits from all sources
within Steelton Borough is less than $12,000 for the calendar year
in which the tax is levied.
(4)
Exemption forms and certificate; tax withholding; employer responsibilities.
(a)
A person seeking to claim an exemption from the local services
tax may annually file an exemption certificate with the Borough of
Steelton and with the person's employer affirming that the person
reasonably expects to receive earned income and net profits from all
sources within the Borough of Steelton of less than $12,000 in the
calendar year for which the exemption certificate is filed. In the
event the Borough of Steelton utilizes a tax collection officer pursuant
to the Local Tax Enabling Act (53 P.S. § 6910),[1] the Borough of Steelton shall provide a copy of the exemption certificate to that officer. The exemption certificate shall have attached to it a copy of all of the employee's last pay stubs or W-2 forms from employment within the Borough of Steelton for the year prior to the fiscal year for which the employee is requesting to be exempted from the local services tax. Upon receipt of the exemption certificate and until otherwise instructed by the Borough of Steelton or except as required by Subsection B(4)(b), the employer shall not withhold the tax from the person during the calendar year or the remainder of the calendar year for which the exemption certificate applies. Employers shall ensure that the exemption certificate forms are readily available to employees at all times and shall furnish each new employee with a form at the time of hiring. The uniform exemption certificates required by this subsection shall be developed by and made available to the Borough of Steelton and employers by the Department of Community and Economic Development.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
(b)
With respect to a person who claimed an exemption for a given calendar year from the local services tax, upon notification to an employer by the person or by the Borough of Steelton that the person has received earned income and net profits from all sources within the Borough of Steelton equal to or in excess of $12,000 in that calendar year or that the person is otherwise ineligible for the tax exemption for that calendar year, or upon an employer's payment to the person of earned income within the Borough of Steelton in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the local services tax from the person under Subsection B(4)(c).
(c)
If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the tax for the calendar year under Subsection B(4)(b), the employer shall withhold the tax for the remainder of that calendar year. The employer shall withhold from the person, for the first payroll period after receipt of the notification under Subsection B(4)(b), a lump sum equal to the amount of tax that was not withheld from the person due to the exemption claimed by the person under this subsection, plus the per payroll amount due for that first payroll period. The amount of tax withheld per payroll period for the remaining payroll periods in that calendar year shall be the same amount withheld for other employees. In the event the employment of a person subject to withholding of the tax under this subsection is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due and the Borough of Steelton may pursue collection under this article.
A.
Beginning with the first day of January 2008, each occupation, as herein before defined in § 102-22, engaged in within the corporate limits of the Borough of Steelton, shall be subject to a local services tax in the amount of $52 per annum, said tax to be paid by the individual so engaged during any portion of each calendar year in which the tax is effective.
B.
All funds derived from the local services tax may be used only for:
(1)
Emergency services, which shall include emergency medical services,
police services and/or fire services.
(2)
Road construction and/or maintenance.
(3)
Reduction of property taxes.
(4)
Property tax relief through implementation of a homestead and farmstead
exclusion in accordance with 53 Pa.C.S.A. Ch. 85, Subch. F (relating
to homestead property exclusion), and pursuant to the provisions of
Section 22.6 of the Local Tax Enabling Act (53 P.S. § 6922.6).[1]
[1]
Editor's Note: 53 P.S. § 6922.6 was repealed July
2, 2008, by P.L. 197, No. 32, § 34. See now 53 P.S. §
6924.330.
C.
No less than 25% of the funds derived from the local services tax shall be used for emergency services, otherwise the allocation of the funds derived from said tax among the purposes of Subsection B(1), (2), (3), or (4) above shall be determined solely by the Borough Council of the Borough of Steelton.
The employer shall collect the local services tax by assessing
each employee a pro rata share of the tax for each payroll period
which the employee is engaging in an occupation. The pro rata share
of the tax assessed on the employee for a payroll period shall be
determined by dividing $52 levied for the calendar year by the number
of payroll periods established by the employer for the calendar year.
For purposes of determining the pro rata share, an employer shall
round down the amount of the tax collected each payroll period to
the nearest one-hundredth of a dollar. Collection of the local services
tax levied pursuant to this article shall be made on a payroll period
basis for each payroll period in which the employee is engaged in
an occupation, except that in a case of concurrent employment, an
employer shall refrain from withholding the local services tax, if
the employee provides a recent pay statement from a principal employer
that includes the name of the employer, the length of the payroll
period and the amount of the local services tax withheld and a statement
from the employee that the pay statement is from the employee's principal
employer and the employee will notify other employers of a change
in principal place of employment within two weeks of its occurrence.
The employee shall utilize the uniform employees statement form provided
by the Pennsylvania Department of Community and Economic Development.
A.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to him by the Administrator, Municipal
Building, 123 North Front Street, Steelton, PA 17113. Each employer
shall file this return and make payment of the tax withheld from its
employees. If the employer fails to file said return and pay said
tax whether or not he makes the 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 as though the tax
had originally been levied against him.
B.
In the event of the overpayment by an employee of the local services tax, which overpayment in that calendar year exceeds $1, the employee shall be entitled to a refund of such overpayment. Any claim for refund shall be made pursuant to the provisions of Article VIII, Local Taxpayers Bill of Rights, of this chapter. Refunds made within 75 days of a refund request or 75 days after the last day the employer is required to remit the local services tax for the last quarter of the calendar under Section 9 of the Local Tax Enabling Act (53 P.S. § 6909),[1] whichever is later, shall not be subject to interest imposed under § 102-59, Schedule I, paragraph 108 of Article VIII of this chapter.[2]
Each employer shall, in each calendar year, use his employment
records from the first day of January to the 31st day of March for
determining the number of employees from whom said tax shall be deducted
and paid over to the Administrator on or before April 30. Supplemental
reports shall be made by each employer on July 31, October 31 and
January 31 of the following calendar year of new employees as reflected
on his employment records from April 1 to June 30; July 1 to September
30 and October 1 to December 31. Payments on these supplemental reports
shall be made on July 31, October 31 and January 31 of the following
calendar year, respectively.
A.
Each individual who shall have more than one occupation within the
Borough of Steelton 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 deductions on a form to be
furnished to the employer by the Administrator, 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's wages, but to include such employee on
his return by setting forth his name, address and the name and account
number of the employer who deducted this tax.
B.
In the event a person is engaged in more than one occupation, that
is, concurrent employment, or an occupation which requires his working
in more than one political subdivision during a payroll period, the
priority of claim collects such local services tax shall be in the
following order:
(1)
First, the political subdivision in which a person maintains his
principal office or is principally employed;
(2)
Second, the political subdivision in which the person resides and
works, if such a tax is levied by that political subdivision;
(3)
Third, the political subdivision in which a person is employed and
which imposes the tax nearest in miles to the person's home. The place
of employment shall be determined as of the day the taxpayer first
becomes subject to the tax during each payroll period.
C.
It is the intent of this provision that no person shall be subject
to the payment of the local services tax in any payroll period by
more than one political subdivision, irrespective of the number of
political subdivisions within which such person may be employed within
any given payroll period. In case of dispute, a tax receipt of the
taxing of authority for that payroll period declaring that the taxpayer
has made prior payment constitutes prima facie certification of payment
to all other political subdivisions.
All self-employed individuals who perform services of any type or kind and who engage in any occupation or profession within the Borough of Steelton shall be required to comply with this article and pay the tax to the Administrator on April 30 of the calendar year or as soon thereafter as they engage in an occupation. In the event that a self-employed person is engaged in more than one occupation within or without the Borough or an occupation which requires his working in more than one political subdivision during the year, reporting priority of claims and prima facie certification of payment shall be in accordance with § 102-28A and B.
All employers and self-employed individuals residing or having
their place of business outside of the Borough of Steelton, but performing
services of any type or kind or engaging in any occupation or profession
within the Borough of Steelton, 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 Borough of Steelton. Further, any individual
engaged in an occupation within the Borough of Steelton and an employee
of a nonresident employer may, for the purpose of this article, be
considered a self-employed person, and in the event that this tax
is not paid, the Borough 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 Administrator of Borough of Steelton,
and/or such other bureau, clerk, collector, private agency or person
appointed by resolution of the Borough Council of the Borough of Steelton,
to accept and receive payments of this tax and to keep a record thereof
showing the amount received by this Administrator, bureau, agency,
or person from each employer or self-employed person together with
the date the tax was received.
B.
The Administrator of Borough of Steelton, and/or such other bureau, clerk, collector, private agency or person appointed by resolution of the Borough Council of the Borough of Steelton, 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 specific provisions for 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 due have occurred, said rules and regulations to supplement the provisions and requirements of Article VI of this chapter.
C.
The Administrator of Borough of Steelton and/or such other bureau,
clerk, collector, private agency or person appointed by resolution
of the Borough Council of the Borough of Steelton 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 Administrator and/or such other
bureau, clerk, collector, private agency or person 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 dates above set forth, the Administrator 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 shall be 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 therefore shall,
in addition, be responsible and liable for the reasonable costs incurred
to provide notices of delinquency or to implement similar procedures
utilized to collect delinquent taxes from a taxpayer.
Whoever makes any false or untrue statement on any return required
by this article or 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 shall, upon a summary
conviction before the District Justice,[1] be sentenced to pay a fine of not more than $600 for each
offense and, in default of payment of said fine and costs, be imprisoned
in the local or Dauphin County jail 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
refused to file a return required by this article.
[1]
Editor's Note: Now Magisterial District Judge.
If the 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 laws 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 tax or the
validity of the tax so imposed on other persons or individuals as
herein provided.
This article is enacted under the authority of the Act of December
31, 1965, P. L. 1257, as amended.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
