This article shall be known and may be cited as the "East Stroudsburg
Borough Local Services Tax Ordinance."
This article is enacted under the authority of the Local Tax Enabling
Act, as amended by Act No. 7 of 2007.
The purpose of this article is to provide revenue for police, fire and
emergency services; road construction and maintenance; the reduction of property
taxes; and for such other purposes as may be specified for such tax from time
to time by the laws of the Commonwealth of Pennsylvania.
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:
COLLECTOR
The person, public employee or private agency designated by the political
subdivision to collect and administer the tax herein imposed.
DCED
The Department of Community and Economic Development of the Commonwealth
of Pennsylvania.
EARNED INCOME
Compensation, as determined under Section 303 of the Act of March
4, 1971, (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Part I, Subpart B, Article
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. Any housing allowance provided to a member of the clergy shall not be taxable as earned income.
EMPLOYER
An individual, partnership, association, limited-liability corporation,
limited-liability partnership, 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.
HE, HIS or HIM
Indicates the singular and plural number, as well as male, female
and neuter genders.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade or profession
within the corporate limits of the political subdivision.
NET PROFITS
The net income from the operation of a business, profession, or other activity (except from corporations), determined under Section 303 of the Act of March 4, 1971, (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Part I, Subpart B, Article
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:
A.
Any interest generated from monetary accounts or investment instrument
of the farming business;
B.
Any gain on the sale of farming machinery;
C.
Any gain on the sale of livestock held 12 months or more for draft,
breeding or dairy purposes; and
D.
Any gain on the sale of other capital assets of the farm.
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 political subdivision for which compensation
is charged or received, whether by means of salary, wages, commission or fees
for services rendered.
RESERVE COMPONENT OF THE ARMED FORCES
The United States Army Reserve, United States Navy 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 at the rate fixed in §
144-25 of this article.
TAX YEAR
The period from January 1 until December 31 in any year; a calendar
year.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to the employer by the Collector. If an
employer fails to file the return and pay the tax, whether or not the employer
makes collection thereof from the salary, wages or commissions paid by him
to an employee, except as provided hereafter in this article, the employer
shall be responsible for the payment of the tax in full as though the tax
had been originally levied against the employer.
Each employer shall use his employment and payroll records from the
first day of January to March 31 each year for determining the number of employees
from whom said tax shall be deducted and paid over to the Collector on or
before April 30 of the same calendar year. Supplemental reports shall be made
by each employer by July 30, October 30, and January 30 for new employees
as reflected on his employment and payroll records from April 1 to June 30,
July 1 to September 30 and October 1 to December 31, and payments on these
supplemental reports shall be made by July 30, October 30, and January 30,
respectively.
Each self-employed individual who has earned income or realizes net
profit, as those terms are defined herein, within the political subdivision
shall be required to comply with this article and pay the tax due to the Collector
on or before the 30th day following the end of each quarter.
All employers and self-employed individuals residing or having their
places of business outside of the political subdivision but who perform services
of any type or kind or engage in any occupation or profession within the political
subdivision 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 political
subdivision. Further, any individual engaged in an occupation within the political
subdivision and an employee of a nonresidential employer may, for the purpose
of this article, be considered a self-employed person, and in the event his
tax is not paid, the political subdivision shall have the option of proceeding
against either the employer or employee for the collection of this tax as
hereinafter provided.
Whoever makes any false or untrue statement on any return required by
this article, or whoever refuses inspection of the 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 be guilty of a violation and, upon conviction
thereof, shall be sentenced to pay a fine of not more than $600 and costs
of prosecution and, in default of payment of such fine and costs, to imprisonment
for not more than 30 days. The action to enforce the penalty herein prescribed
may be instituted against any person in charge of the business or any employer
who shall have failed or who refuses to file a return required by this article.
Except as set forth hereafter, all ordinances or parts of ordinances
inconsistent herewith are hereby repealed. Nothing herein shall be construed
to repeal the imposition and collection of an occupation privilege tax, plus
applicable penalties and interest, for the calendar year 2005 and all prior
calendar years, or of an emergency and municipal services tax, plus applicable
penalties and interest, for the calendar years 2006 and 2007, as the same
exist prior to the adoption of this article.
This article shall become effective in accordance with applicable law,
with the repeal of previous occupational privilege and emergency and municipal
services tax ordinances, effective January 1, 2008. The tax imposed by this
article shall be effective on January 1, 2008 and all calendar years thereafter,
unless repealed or modified by ordinance of the Borough of East Stroudsburg.