This article shall be known and may be cited
as the "Springfield Township Earned Income Tax Ordinance."
As used in this article, unless the context
clearly indicates a different meaning, the following definitions shall
apply:
ASSOCIATION
Partnership, limited partnership or any other unincorporated
group of two or more persons.
BUSINESS
An enterprise, activity, profession or any other undertaking
of an unincorporated nature conducted for profit, or ordinarily conducted
for profit, whether by persons, partnership, association or any other
entity.
CORPORATION
A corporation or joint-stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania or
any other state, territory, foreign country or dependency.
DOMICILE
The place where one lives and has his permanent home and
to which he has the intention of returning whenever he is absent.
Actual residence is not necessarily domicile, for domicile is the
fixed place of abode which, in the intention of the taxpayer, is permanent
rather than transitory. Domicile is the voluntary fixed place of habitation
of a person, not for a mere special or limited purpose, but with the
present intention of making a permanent home, until some event occurs
to induce him to adopt some other permanent home. In the case of a
business or association, the domicile is that place considered as
the center of business affairs and the place where its functions are
discharged.
EARNED INCOME
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent and whether in cash or property; not including, however,
wages or compensation paid to persons on active military service;
periodic payments for sickness, disability of other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workmen's compensation acts, occupational disease
acts and similar legislation; or payments commonly recognized as old
age benefits, retirement pay or pensions paid to persons retired from
service after reaching a specific age or after a stated period of
employment; compensation payments by any governmental agency; payments
to reimburse expenses; or payments made by employers or labor unions
for wage and salary supplemental programs, including but not limited
to programs covering hospitalization, sickness, disability or death,
supplemental unemployment benefits, strike benefits, social security
and retirements.
INCOME TAX OFFICER OR OFFICERS
The person, public employee or private agency designated
by the governing body to collect and administer the tax on earned
income and net profits.
EMPLOYER
A person, partnership, association, corporation, institution,
governmental body or unit or agency, or any other entity employing
one or more persons for a salary, or any other entity employing one
or more persons for a salary, wage, commission or other compensation.
NET PROFITS
The net income from the operation of a business, profession
or other activity, except corporations, after provision for all costs
and expenses incurred in the conduct thereof, determined either on
a cash or accrual basis in accordance with the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the taxing district.
RESIDENT
A person, partnership, association or other entity domiciled
in the taxing district.
TAXPAYER
A person, partnership, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
A tax at the rate of 1% on each dollar is hereby
imposed on all earned income and net profits, as defined herein, earned
by residents of the Township and on all earned income and net profits
earned by nonresidents of the Township for work done or services performed
or rendered in said Township. This tax shall become effective January
1, 2004, and shall remain in effect thereafter on a calendar year
basis without annual reenactment unless the rate of tax is subsequently
changed.
This article shall not apply to personal property
or persons on whom or which it is beyond the legal power of the Township
of Springfield to impose the tax herein specified, provided that this
section shall not operate to relieve or exempt any such entity from
collection at the source of the earned income of its employees and
remittance of such collections to the earned income tax collector.
[Added 7-13-2005 by Ord. No. 872]
A. All taxes due and unpaid under this article shall
be recoverable by the Township Solicitor or designated collector as
other debts due the Township are now by law recoverable. Any unpaid
tax at the end of the calendar year, together with interest penalties
to the extent permitted by law and all delinquent costs, shall be
a lien on the property served, which may be collected by action in
assumpsit, by distress and/or by a lien filed in the nature of a municipal
claim and/or by termination of services as and to the extent provided
by law. In addition, any costs and/or attorney's fees incurred by
Springfield Township shall be added to the unpaid tax along with the
penalties and interest as set forth above, and the aggregate of the
same shall be entered as a lien on the property served. Said costs
and/or attorney's fees shall be established by ordinance of the Board
of Commissioners.
B. The following fee schedule shall be set to pay legal
counsel for representation in proceedings to recover any delinquent
municipal claim. Township approves these fees and finds them fair
and reasonable for the services to be rendered and shall impose them
upon the property owner in proceedings to recover delinquent municipal
claims, together with any additional expenses.
Action
|
Legal Fee
|
---|
Open file and send demand letter
|
$135
|
File lien and send second letter
|
$125
|
Prepare and file writ of scire facias
|
$125
|
Reissue writ
|
$25
|
Prepare and mail correspondence per Pa. RCP
§ 237.1
|
$25
|
Motion for alternate service
|
$175
|
Motion for summary judgment
|
$175
|
Prepare and file default judgment
|
$125
|
Prepare and file writ of execution for Sheriff
sale
|
$600
|
With sale
|
$400
|
Charge for check which does not clear
|
$25
|
Miscellaneous litigation
|
Hourly rate not to exceed $135/hour
|
C. Adjudication. The taxpayer may petition the Court
of Common Pleas of Montgomery County, being the county in which the
property subject to the municipal claim and lien is located, to adjudicate
the reasonableness of the attorney's fees imposed.
D. Notices. At least 30 days prior to assessing or imposing
attorney fees in connection with the collection of a delinquent account,
the Township shall, by United States certified mail, return receipt
requested, postage prepaid, mail to the owner the notices as set forth
hereafter.
E. Refusal of mail. If within 30 days of mailing the
notice in accordance with the foregoing subsection, the certified
mail is refused or unclaimed, or the return receipt is not received,
then at least 10 days prior to assessing or imposing attorney's fees
in connection with the collection of a delinquent account, the Township
shall, by United States first class mail, mail to the owner the notice
required hereafter.
F. Contents of notice. This notice shall be mailed to the taxpayer's last known post office address; shall state that it is the intention of this Township to impose or assess attorney's fees within 30 days of mailing the notice pursuant to Subsection
D, hereof, or within 10 days of the mailing and the notice pursuant to Subsection
E, hereof, for services rendered in connection with the collection of the delinquent accounts due to the Township and providing for notices and opportunity for hearing, together with a statement setting forth the manner in which the imposition or assessment of attorney's fees may be avoided by payment of the delinquent account.