[1]
Editor's Note: This ordinance also superseded former Art.
II, Occupational Privilege Tax, adopted 12-30-1975 by Ord. No. C-173,
approved 12-30-1975, and Ord. No. C-501, Local Services Tax, adopted
11-24-2009 by Ord. No. C-501, approved 11-24-2009.
This article shall be known and may be cited as the "Borough
of Lititz Local Services Tax Ordinance." This article is enacted under
the authority of The Local Tax Enabling Act, 53 P.S. § 6901
et seq.,[1] and continues and redesignates the occupational privilege
tax pursuant to Act No. 7 of 2007.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
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.
The area within the corporate limits of the Borough of Lititz,
Lancaster County, Pennsylvania.
The person or agency appointed from time to time by the Council
of the Borough of Lititz to assess and collect the tax imposed under,
and to administer the provisions of, this article.
The governing body of the Borough of Lititz.
An individual, partnership, association, 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.
The twelve-month period beginning January 1, 2010, and ending
December 31, 2010, and thereafter each 12 months.
Indicates the singular and plural number as well as male,
female and neuter gender.
Earned income and net profits or as otherwise defined by
the Act.
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Borough of Lititz.
The Manager of the Borough of Lititz under whose direction
this tax shall be administered and enforced.
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 Borough for which
compensation is charged or received whether by means of salary, wages,
commissions or fees for services rendered.
The Warwick School District.
The local services tax in the amount of $52 per annum levied
by this article which was previously referred to in this article as
an occupational privilege tax.
Beginning January 1, 2010, the Borough of Lititz hereby levies
and imposes on each occupation engaged in by individuals within its
corporate limits during the fiscal year of 2010 and each fiscal year
thereafter a local services tax in the amount of $52 per annum, said
tax to be paid by the individuals so engaged; provided, however, that
all persons deriving less than $12,000 per year from such occupation,
and all other persons whom the Local Tax Enabling Act[1] exempts or shall in the future exempt from paying a local
services tax shall be exempt from paying the Borough of Lititz local
services tax. This tax is in addition to all other taxes of any kind
or nature heretofore levied by the Borough, and this tax shall continue
in force on a calendar-year basis, without annual reenactment, unless
the rate of the tax is subsequently changed or this article is repealed.
An individual may obtain a prospective exemption by filing an exemption
certificate on a form provided by the collector with the collector
and the individual's employer.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
Each employer who engages in business within the Borough is
hereby charged with the duty of collecting from each of his employees
engaged by him and performing for him within the Borough the said
tax of $52 per annum and making a return and payment thereof to the
collector. Notwithstanding the foregoing, no employer shall have an
obligation to collect the local services tax from an employee who
presents such employer with an exemption certificate meeting all requirements
of the Local Tax Enabling Act[1] unless such person who has presented the exemption certificate
earns in excess of $12,000 in a calendar year. If a person who claimed
an exemption for a given calendar year from the local services tax
becomes subject to the local services tax for such calendar year,
the employer shall withhold the tax in accordance with the requirements
of the Local Tax Enabling Act. If a person who is subject to the local
services tax ceases employment, such person shall make payment to
the Borough of the portion of the local services tax which the employer
did not withhold within 30 days after such person ceases to be employed
by such employer.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
A.
Each employer is hereby authorized to deduct the local services tax
from each employee in his employ, whether said employee is paid by
salary, wages or commission. Each employer shall deduct the tax in
accordance with the requirements of the Local Tax Enabling Act.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
B.
Local services taxes deducted from wages by an employer shall at
all times be and remain the property of this Borough and shall constitute
a trust fund in the employer's hands until remitted to the collector.
Deduction of taxes from wages shall, as between the employee and the
Borough, constitute payment of the tax by the employee, regardless
of any insolvency or failure to remit on the employer's part.
A.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied by the collector. If the employer
fails to file such return and pay such tax, whether or not he makes
collection thereof from the salary, wages or commissions paid by him
to such employee, the employer shall be responsible for payment of
the tax in full as though the tax had originally been levied against
him.
B.
Each employer shall remit the local services tax withheld from employees
within 30 days after the end of each quarter of a calendar year. If
the Local Tax Enabling Act is amended to require a different schedule
of remitting taxes withheld from employees, compliance with the Local
Tax Enabling Act[1] shall be considered compliance with this section.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
Each individual who shall have more than one occupation shall
be subject to the payment of the local services tax in accordance
with the provisions of the Local Tax Enabling Act[1] governing payment of taxes by a person who has more than
one employer.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
All self-employed individuals who perform services of any type
or kind or engage in any occupation or profession within the Borough
shall be required to comply with this article on April 30 of the fiscal
year or as soon thereafter as he engages in an occupation and earns
$12,000.
A.
It shall be the duty of the collector 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 Manager is hereby charged with the administration and enforcement
of this article and is hereby charged 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 processing of refund claims for the tax paid by any person
who is eligible for an exemption, the examination of the payroll records
of any employer subject to this article, and the examination and correction
of any return made pursuant to 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
Manager shall have the right to appeal to the Council of the Borough
of Lititz pursuant to the Local Agency Law.[1]
[1]
Editor's Note: See 2 Pa.C.S.A. § 551.
C.
The Manager or his 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 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 Manager or his duly authorized
representative or agent 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 date above set forth, the Borough may sue for the
recovery of any such tax due or unpaid under this article together
with the interest and penalty by any method permitted by the Act or
by any other appropriate remedy.
B.
If for any reason the tax is not paid when due, interest at the rate
of 6% per annum on the amount of said tax shall be calculated beginning
with the due date of said tax, and an additional penalty of 0.5% of
the amount of the unpaid tax for each month or fraction thereof during
which the tax remains unpaid shall be added and collected. Where suit
is brought for the recovery of this tax, the individual liable therefor
shall, in addition, be responsible and liable for the costs of collection,
including attorneys' fees.
The Borough shall use all revenue generated by the local services
tax for purposes authorized in the Local Tax Enabling Act.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
Any person 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 whoever
fails to pay local services taxes payable to such person commits a
violation of this article. If the Council of the Borough of Lititz
or the collector determines that a person has committed or permitted
the commission of a violation of this article, the Borough may institute
summary criminal proceedings and/or may seek equitable relief. In
the event summary criminal proceedings are instituted, the fine for
the first offense shall be not less than $100 and not more than $600.
The fine for a second offense shall not be less than $300 and not
more than $600. The fine for a third or greater offense shall not
be less than $500 and not more than $600. Each day or portion thereof
in which a violation exists shall be considered a separate violation
of this article. Each section of this article which is violated shall
also be considered a separate violation. The amount of any fine imposed
by a magisterial district judge or a court shall be in addition to
any other fine which may be imposed under any other provisions of
the Code of Ordinances of the Borough or under any statute. In default
of payment of any fine, such person shall be liable to imprisonment
for not more than 30 days. The action to enforce the article may be
instituted against any person in charge of the business of any employer
who shall have failed or refused to file a return required by this
article.
A.
Nothing contained in this article shall be construed to empower the
Borough to levy and collect the tax hereby imposed on any occupation
not within the taxing power of the Borough under the Constitution
of the United States and the laws of the Commonwealth of Pennsylvania.
B.
If the tax hereby imposed under the provisions of this article shall
be held to be in violation of the Constitution of the United States
or of the laws of the Commonwealth of Pennsylvania as to any individual,
such decision shall not affect or impair the right to impose or collect
said tax, or the validity of the tax so imposed, on other persons
or individuals as herein provided.
C.
It is the intent of this article that the entire burden of the tax
imposed on an occupation by the Borough and the Warwick School District
(if said School District shall impose any such tax) shall not exceed
the limitations prescribed in Sections 2 and 8 of The Local Tax Enabling
Act, 53 P.S. §§ 6902 and 6908,[1] and therefore the School District shall be entitled to
its share of the tax (if any) in accordance with the provisions of
said Sections 2 and 8, Act 222 of 2004, and Act 7 of 2007.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
