[Adopted 9-10-2009 by Ord. No. 881[1]]
[1]
Editor's Note: This ordinance also repealed former Art. III, Occupational Privilege Tax, adopted 12-28-1970 by Ord. No. 255, as amended.
The following words and phrases, when used in this article, shall have the meaning 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
Indicates the singular and plural number as well as male, female and neuter genders.
INDIVIDUAL
Any person, male or female, who after the first day of January 2009, engages in any occupation, trade or profession of any nature, type or kind whatsoever, within the corporate limits of the Township of Whitemarsh, whether in the employ of another or self-employed (sometimes referred to herein as "employee").
LOCAL SERVICES TAX RECEIVER
The person designated by the Board of Supervisors 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 Township of Whitemarsh 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 Township of Whitemarsh.
From the effective date of this article and annually thereafter, the Township of Whitemarsh 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 Township of Whitemarsh. 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 individual who derives less than $12,000 per year from any such occupation, shall be exempt from the payment of the tax.
Each employer is required to stop withholding the local services tax if an employee files an upfront exemption certification. In order to receive an upfront exemption, an employee must file an annual upfront exemption form, provided by the Pennsylvania Department of Community and Economic Development, with the Township and the employee's employer. The exemption certificate shall verify that the employee earned income and net profits of less than $12,000 for the relevant tax year. A copy of the employee's most recent pay stubs or W-2 form must be attached to the exemption certificate.
Each employer must resume 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 Township;
B. 
If notified by the employee that he is no longer eligible for the exemption; or
C. 
If the employer pays the employee more than $12,000 for a calendar year.
Each employer within the Township of Whitemarsh, as well as those employers situated outside the Township of Whitemarsh but who engage in business within said Township, are hereby charged with the duty of collecting from each of his employees engaged by him and performing for him within the Township said tax of $52 per annum and making a return and payment thereof to the Local Services Tax Receiver. Further, 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 Township, shall be subject to the tax. 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 employee for a payroll period is calculated by dividing the 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. Each employer must remit withheld taxes to the designated Local Services Tax Receiver 30 days after the end of each calendar quarter.
Each employer shall prepare and file a return showing a computation of the tax on forms to be supplied to him by the Local Services Tax Receiver. Each employer, in filing the 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. If the employer fails to file said return and pay said tax, whether or not said employer makes collection thereof from the salary, wages or commissions paid by him to an 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 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 Township of Whitemarsh 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 shall remit such tax to the Local Services Tax Receiver.
Each individual who shall have more than one occupation within the Township of Whitemarsh shall be subject to the payment of the local services tax on his principal occupation, and his principal employer shall deduct this tax and deliver to the employee evidence of deduction on a form to be furnished to the employer by the Local Services Tax Receiver. Said form shall be evidence of deduction having been made and, when presented to any other employer, shall be authority for such employer to refrain from deducting the local services tax from the employee's wages, but such employer shall include such employee on his return by setting forth the employee's name and the account number of the employer who deducted the tax from said employee.
If an individual 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. 
The political subdivision where the individual maintains his/her principal office or is principally employed;
B. 
The political subdivision where the individual resides and works; and
C. 
The political subdivision where the individual is employed that is nearest in miles to the individual's residence.
All self-employed individuals who perform services of any type or kind or engage in any occupation or profession within the Township of Whitemarsh shall be required to comply with this article and pay the tax to the Local Services Tax Receiver on or before July 31 or as soon thereafter as he engages in any such occupation or profession within the Township. The tax for self-employed individuals shall be pro-rated on a quarterly basis. Self-employed individuals shall pay the tax 30 days after the end of each quarter.
All employers and self-employed individuals residing or having their place of business outside of the Township of Whitemarsh, but who perform services of any type or kind or engage in any occupation or profession within the Township of Whitemarsh, 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 Township of Whitemarsh. Further, any individual engaged in an occupation within the Township of Whitemarsh who is an employee of a nonresident employer may, for the purpose of this article, be considered a self-employed individual and, in the event the local services tax is not paid by such individual, the Local Services Tax Receiver shall have the option of proceeding against either the employer or such individual for the collection of the tax as hereinafter provided.
A. 
It shall be the duty of the Local Services Tax Receiver to accept and receive payments of the local services tax and to keep a record thereof showing the amount received by him from each employer or self-employed individual, 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.
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 afford 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 set forth herein, 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 penalty 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 the tax, the individual liable therefor shall, in addition, be responsible and liable for the costs of collection.
Any employer who 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 the tax due shall, upon conviction before any court of competent jurisdiction, be sentenced to pay a fine 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 any 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. No penalty as provided herein shall be imposed if such penalty is inconsistent with the provisions of Act 11, as amended.