This article shall be known and may be cited
as the "Borough of Shippensburg 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 clearly indicates or requires a different
meaning:
BOROUGH
The area within the jurisdictional limits of the Borough
of Shippensburg.
COLLECTOR
The person or firm from time to time designated by motion
of the Borough Council of the Borough of Shippensburg to collect and
administer the provision of this article and collect the tax levied
by this article. Until changed by subsequent motion, the collector
shall be the same person or firm last designated to collect the emergency
and municipal services tax for the Borough of Shippensburg.
COUNCIL
The governing body of the Borough of Shippensburg.
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, corporation, governmental
body, agency or other entity employing one or more persons on a salary,
wage, commission, fee or other compensation basis, including a self-employed
person.
HE, HIS OR HIM
Shall include singular and plural number and male, female
and neuter gender.
INDIVIDUAL
Any person engaged in any occupation, trade or profession
within the jurisdictional limits of the Borough of Shippensburg whose
total earned income and net profits within the Borough of Shippensburg
are greater than $12,000 per calendar year.
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 1, 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 instruments 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 preformed within the jurisdictional limits of the Borough of
Shippensburg for which compensation is charged and/or received, whether
by salary, wages, commissions, fees or net profits 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 levied in this article.
The Borough of Shippensburg hereby levies and
imposes on every individual engaging in an occupation within the jurisdictional
limits of the Borough of Shippensburg a tax in the amount of $52 per
annum, beginning the first day of January 2009 and continuing on a
calendar basis annually thereafter, until modified or repealed by
subsequent ordinance. This tax is in addition to all other taxes of
any kind or nature heretofore levied by the Borough of Shippensburg.
Employers are required to make and file a local
services tax quarterly return 30 days after the end of each quarter
of a calendar year. The local services tax quarterly return shall
list the name, address, social security number of the employee; the
physical address of the employee's place of employment; the number
of payroll periods for which the local services tax was withheld;
and the amount of local services tax being remitted for each employee.
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 on July 30, October
30 and January 31 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 on July 30, October 30 and January 30, respectively.
All self-employed individuals and individuals
whose employer is not required to withhold local taxes (certain state
and federal agencies) will be billed quarterly for the local services
tax. The full amount of tax must be paid by the date indicated on
such billing. If such taxpayer qualifies for a low-income exemption,
the taxpayer may complete the required exemption certificate or make
application for a refund of the tax paid.
All employers and self-employed individuals
residing or having their place of business outside the Borough of
Shippensburg but who engage in any occupation within the Borough of
Shippensburg 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 Shippensburg. Further, any individual
engaged in an occupation within the Borough of Shippensburg and an
employee of a nonresident employer may, for the purpose of this article,
be considered a self-employed person, and in the event this tax is
not paid, the collector shall have the option of proceeding against
either the employer or employee for collection of this tax as hereinafter
provided.
Whoever 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 in order
to determine the number of employees subject to this tax who are in
his employment or who fails or refuses to file any return required
by this article or fails or refuses to pay the tax herein levied shall,
upon conviction, be sentenced to pay a fine of not more than $600
plus costs and, in default of payment of said fine and costs, be sentenced
to a term of imprisonment not to exceed 30 days. 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.
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 calendar year 2007 and all prior calendar years, or of an emergency
municipal services tax for calendar year 2008, as the same existed
prior to this enactment. The provisions of this article shall be severable.
If any of its provisions shall be held to be unconstitutional, illegal
or otherwise invalid, that decision shall not affect the remaining
provisions of this article of the Borough of Shippensburg Code of
Ordinances.
This article shall become effective in accordance
with applicable law, with the repeal of previous Occupational Privilege
Tax and Emergency and Municipal Services Tax Ordinances, effective
January 1, 2009.