[Adopted 2-8-1971 by Ord. No. 116; amended in its entirety 11-25-2008 by Ord. No. 580[1]]
[1]
Editor's Note: This ordinance also provided an effective date of 1-1-2009.
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:
EMPLOYEE'S PLACE OF EMPLOYMENT
The actual location from which the employee or self-employed individual works. The employer's headquarters or location where payroll checks are prepared does not determine the place of employment unless the employee or self-employed individual actually works from that location.
EMPLOYER
A person, partnership, association, corporation, governmental body, agency or other entity employing one or more individuals on a salary, wage, 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 gender.
INDIVIDUAL
Any person, male or female, engaged in any occupation within the boundaries of the Township of Derry
OCCUPATION
Any trade, profession, business, employment or undertaking of any type, kind or character, including services, domestic or other, carried on or performed within the boundaries of the Township of Derry for which compensation is charged or received in salary, wages, commissions, fees for services rendered or any other basis.
RESERVE COMPONENT OF THE ARMED FORCES
The United States Army Reserve, United States Naval Reserve, United States Marine Corps Reserve, United States Coast Guard Reserve, United States Air Force Reserve, the Pennsylvania Army National Guard or the Pennsylvania Air National Guard.
TAX
The local services tax in the amount of $52 levied by this article.
Pursuant to the authority granted by the Local Tax Enabling Act (53 P.S. § 6901 et seq.),[1] the Township of Derry hereby levies and imposes on each occupation engaged in by individuals within the Township of Derry during the fiscal year 2009, and each fiscal year thereafter, a local services tax in the amount of $52. This tax shall be in addition to all other taxes of any kind or nature heretofore levied by the Township of Derry and by any other municipality or taxing body and shall be collected by the Township of Derry Tax Collection Association or by such other person or agency as the Board of Supervisors may from time to time hereafter appoint. Such tax shall continue in force on a fiscal-year basis, without annual reenactment, unless the rate of tax is subsequently changed.
[1]
Editor's Note: Sections 6901 to 6909 were renumbered as 53 P.S. §§ 6924.101 to 6924.312 by P.L. 197, No. 32, §§ 2, 3.1 to 11, 7-2-2008, effective immediately.
The following individuals or classes of individuals shall be exempt from the local services tax:
A. 
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 one-hundred-percent permanent disability.
B. 
Any person who serves as a member of a reserve component of the armed forces and is called to active duty at any time during the taxable year, excepting the person's annual active duty for training.
C. 
Any individual subject to this tax who derives less than $12,000 in total earned income and net profits per year from all occupations engaged in within the boundaries of the Township of Derry, Dauphin County, Pennsylvania, shall be exempt from the local services tax established by this article.
D. 
Claim exemption process.
(1) 
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Township and with the individual's employer affirming that the individual reasonably expects to receive earned income and net profits from all sources within the Township of less than $12,000 in the calendar year for which the exemption certificate is filed.
(2) 
Required information for the exemption certificates. All exemption certificates submitted to an employer and the Township shall have attached to it a copy of all of the employee's last pay stub(s) or W-2 forms from employment within the Township for the year prior to the fiscal year for which the employee is requesting to be exempt from the local services tax.
Each employer within the Township of Derry, as well as those employers situated outside of the Township of Derry but who have employees who engage in business within the Township of Derry, is hereby charged with the following duties:
A. 
To collect from each of his employees engaged by him and performing duties or services for him within the Township of Derry the aforesaid local services tax of $52 per annum. Each employee subject to the local services tax shall be assessed a pro rata share of the tax for each payroll period in which the individual is engaging in an occupation. The pro rata share of the tax assessed on the individual for a payroll period shall be determined by dividing the combined rate of the local services tax for the calendar year by the number of payroll periods established by the employer for the calendar year (example: tax of $52 divided by 26 pay periods equals a prorated deduction of $2 per pay period). For the purposes of determining, the pro rata share, the employer shall round down the amount collected each payroll period to the nearest one-hundredth of a dollar.
B. 
To make a return and make payment of the local services tax collected hereunder to the Township of Derry Tax Collection Association or to such other agent designated by the Board of Supervisors to collect such taxes.
C. 
To deduct this tax from each employee in his employment, whether said employee is paid by salary, wages or commissions, and whether or not part or all of such services are performed in the Township of Derry.
D. 
To secure from the Township of Derry Tax Collection Association (or other designated agent) the tax return forms for reporting the taxes collected. Employers are also required to secure copies of: the exemption certificate forms; the uniform employee statement forms; and any other relevant forms for its employees that are created by the Pennsylvania Department of Community and Economic Development.
E. 
To prepare and file a quarterly local services tax return showing the computation of the prorated share of the tax on the forms supplied by the Township. Each return and payment of the prorated tax collected from each employee will also be accompanied by any exemption certificates (See Subsection G.) submitted by employees to the employer. All employers shall remit the local services taxes collected, any summary report, and any exemption forms to the Township after the end of each quarter of the calendar year, with the first payment due on April 30. The remaining quarterly reports shall be made by each employer on or before July 31, October 31 and January 31 of the following year as reflected upon his employment records.
F. 
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 or employees, the employer shall be responsible for the payment of the tax in full, as though the tax had originally been levied against the employer unless the employer is able to provide a copy of the employee's exemption certificate together with the supporting documentation such as a recent payroll statement or similar documentation evidencing entitlement to the exemption.
G. 
Exemption certificates.
(1) 
Upon receipt of an exemption certificate from an employee, employers shall forward a copy of the exemption certificate to the Township or its designated collection agent with the employer's quarterly return.
(2) 
Until otherwise instructed by the Township or its designated collection agent, the employer shall not withhold the local services tax from an employee during the calendar year or the remainder of the calendar year for which the exemption certificate applies.
(3) 
Employers shall ensure that 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.
H. 
Restoration of collection of tax if exemption status changes.
(1) 
All 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 Township or its designated collection agent.
(b) 
If notified by the employee that he is no longer eligible for the exemption.
(c) 
If the employer pays the employee equal to or in excess of $12,000 for the calendar year.
(2) 
If any of the circumstances listed above are met, the employer will collect the local services tax from the previously exempted employee for the remainder of that calendar year. The employer shall withhold from the person, for the first payroll period after the individual becomes subject to the tax, a lump sum equal to the amount of the tax that was not withheld from the individual due to the exemption plus the prorated per payroll amount due for that first pay period. The amount of tax withheld per payroll period for the remaining payroll periods in that calendar year shall be the same amount withheld in the same manner as other nonexempt employees.
I. 
Tax obligation when exempt employee's employment is severed. In the event the employment of an individual who was exempt and becomes subject to the local services tax is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of the tax due, and the Township or its designated collection agent may pursue collection of the tax.
Each employer shall use employment records from the first day of January of each year for determining the number of employees from whom said tax shall be deducted and paid over to the agent for collection of the same designated by the Board of Supervisors of the Township of Derry. The local services tax shall be applicable to employment in the period beginning January 1 of the current year and ending December 31 of the current year. Taxes imposed for the first time shall become effective from January 1 of the year and shall continue in force on a calendar year. Supplemental reports shall be made by each employer with the quarterly tax payments due on or before July 31, October 31 and January 31 of each year for changes in employees as reflected upon his employment records from April 1 to June 30, July 1 to September 30 and October 1 to December 31.
A. 
Each individual who shall have more than one occupation within the Township of Derry 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 recent pay stub or the equivalent of a pay stub, which be evidence of the deduction having been made and, when presented to any other employer, shall be authority for such employer not to deduct this tax from the employee's wages but shall, nevertheless, require the employer to include such employee on his return of taxes and shall require the employer to set forth his name and address and the name and account number of the employer who deducted this tax.
B. 
In the event that a person is engaged in more than one occupation, or an occupation which requires his working in more than one political subdivision during the calendar year, and thereby subjects the employee to the possibility of payment of multiple local services taxes, the priority of claim to collect such tax shall be in the following order: first, the political subdivision in which a person maintains his principal office or is principally employed; second, the political subdivision in which the person resides and works, if such a tax is levied by that political subdivision; and 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 the calendar year. It is the intent of this provision that no person shall pay more than $52 in local services taxes in any calendar year, irrespective of the number of political subdivisions within which such person may be employed within any given calendar year. In case of dispute, a tax receipt of the taxing authority for a disputed calendar year, declaring that the taxpayer has made prior payment, shall constitute prima facie certification of payment to all other political subdivisions.
C. 
In the 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 on uniform forms developed by the Pennsylvania Department of Community and Economic Development.
All self-employed individuals who perform services of any type or kind or engage in any occupation or profession within the Township of Derry shall be required to comply with this article and pay the tax to the agent for collection of the same designated by the Board of Supervisors on a quarterly basis on or before April 30, July 31, October 31, and January 31 of each year, or as soon thereafter as he engages in an occupation.
All employers and self-employed individuals residing or having their place of business outside the Township of Derry but who perform services of any type or kind, or engage in any occupation or profession, within the Township 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 Derry. Further, any individual engaged in an occupation within the Township of Derry who is 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 Township of Derry shall have the option of proceeding against either the employer or the employee for the collection of this tax as hereinafter provided.
A. 
It shall be the duty of the agent for the collection of the local services tax of the Township of Derry 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 agent for the collection of the local services tax 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 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 agent for the collection of the local services tax shall have the right to appeal to the Board of Supervisors and to the Court of Common Pleas of Dauphin County, as in other cases provided.
C. 
The agent for the collection of the local services tax, or its duly authorized representative or agent, is hereby authorized to examine the books and payroll records of any employer in order to verify the accuracy of any return of taxes 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 agent for the collection of the local services tax, or his duly authorized representative or agent, the means, facilities and opportunity for such examinations.
D. 
In accordance with the Local Tax Enabling Act, as amended (53 P.S. § 6901 et seq.),[1] all tax proceeds from local service taxes collected shall be used for police, fire and/or emergency services; road construction and/or maintenance; and/or reduction of property taxes. All taxes collected shall be deposited in the Local Services Tax Fund established by resolution of the Board of Supervisors.
[1]
Editor's Note: Sections 6901 to 6909 were renumbered as 53 P.S. §§ 6924.101 to 6924.312 by P.L. 197, No. 32, §§ 2, 3.1 to 11, 7-2-2008, effective immediately.
E. 
The Township shall provide any local services taxpayer a receipt of payment upon request by the taxpayer.
F. 
No employer shall be held liable for failure to withhold the local services tax or for the payment of the withheld tax money to a political subdivision if the failure arises from incorrect information submitted by the employee as to the employee's place or places of employment, the employee's principal office or where the employee is principally employed. The employer shall also not be liable for payment of the local services tax in an amount exceeding the amount withheld by the employer if the employer complies with the provision of this article and remits the amount so withheld accordingly.
A. 
In the event that any tax under this article remains due or unpaid 30 days after the due dates above set forth, the agent for the collection of the tax 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 1 1/2% per month on the amount of said tax shall be calculated beginning with the due date of said tax, until paid, and a penalty of 10% shall be added to the flat rate of said tax for nonpayment thereof. Suit may be brought for the recovery of this tax, and where suit is brought, the individual liable for the payment of the tax shall, in addition, be responsible and liable for the costs of collection.
Whoever makes any false or untrue statement on any return of taxes required by this article; whoever refuses inspection of his books, records or accounts in his custody and control setting forth the number of employees to this tax who are in his employment; whoever fails or refuses to file any return required by this article; or whoever fails or refuses to pay any tax required by this article shall, upon conviction before any District Justice, be sentenced to pay a fine of not more than $600 for each offense, plus costs. 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. It is further provided that, upon judgment against any person by summary conviction, or by proceedings by summons on default of the payment of the fine or penalty imposed and the costs, the defendant may be sentenced and committed to the county prison for a period not exceeding 30 days.
The relevant provisions of the Local Tax Enabling Act (53 P.S. § 6901 et seq.),[1] as amended, are incorporated herein by reference and to the extent of any inconsistency between this article and the statute, or the noninclusion of statutory provisions, the language or provisions of the statute shall prevail.
[1]
Editor's Note: Sections 6901 to 6909 were renumbered as 53 P.S. §§ 6924.101 to 6924.312 by P.L. 197, No. 32, §§ 2, 3.1 to 11, 7-2-2008, effective immediately.
The provisions of this article are severable, and the determination of illegality, invalidity, or unconstitutionality of any provision, section, sentence, or clause shall not affect or impair any other part hereof, it hereby being declared to be the intent of the Board of Supervisors that this article would have been adopted as if such part had not been included herein.