[Adopted 11-13-2007 by Ord. No. 2007-04[1]]
[1]
Editor's Note: This ordinance superseded Ord.
No. 2004-11, adopted 12-29-2004, the Emergency and Municipal Services
Tax Ordinance.
This article shall be known and may be cited
as the "The Uwchlan Township Local Services Tax Ordinance of 2008."
A.
Every individual who engages in an occupation within
the Township of Uwchlan shall pay a local services tax to the Township
in the amount of $52 per individual per calendar year.
B.
In the event that an individual is engaged in more
than one occupation, or in an occupation which requires his working
in more than one political subdivision during the calendar year, then
the provisions of the Local Tax Enabling Act, the Act of December
31, 1965, P.L. 1257, Section 2, as amended, 53 P.S. § 6902,
shall determine the priority of Uwchlan Township's claim to collect
such local services tax.
C.
All taxes imposed by this article, together with all
interest, penalties and costs, shall be recoverable by the Solicitor
of Uwchlan Township as debts of like amounts are recoverable by law.
D.
The tax imposed under this article shall be used for
police, fire or emergency services, road maintenance or real estate
tax reduction purposes, as provided for under the provisions of the
Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257, Section
22.6, as amended, 53 P.S. § 6922.6.
E.
This article is enacted under the authority of the
Local Tax Enabling Act, as amended (53 P.S. § 6901 et seq.).
As used in this article, the following terms
shall have the meanings indicated except where the context or language
clearly indicates or requires a different meaning. Use of the masculine
gender shall include the feminine and neuter, and reference to the
masculine singular shall include the plural.
Shall have the same meaning as provided for in the Local
Tax Enabling Act, Act of December 31, 1965, P.L. 1257, Section 13,
Division I, as amended, 53 P.S. § 6913.
An individual whose compensation is subject to the withholding
of federal income tax and who performs services for an employer.
An individual, partnership, association, corporation, governmental
body, agency or other entity employing one or more individuals on
a salary, commission or other compensation basis, including a self-employed
individual.
Any person, male or female, engaged in any occupation, trade
or profession of any nature within the corporate limits of Uwchlan
Township, whether in the employ of another or self-employed.
The Treasurer of Uwchlan Township, his designated representative
or a person or corporation engaged for this purpose by contract with
Uwchlan Township.
Shall have the same meaning as provided for in the Local
Tax Enabling Act, Act of December 31, 1965, P.L. 1257, Section 13,
Division I, as amended, 53 P.S. § 6913.
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 Uwchlan Township for
which compensation is charged or received, whether by means of salary,
wages, commission, fees or otherwise, for services rendered.
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.
The Downingtown Area School District.
The local services tax in the amount of $52 levied by this
article on each individual engaged in any occupation, as hereinbefore
defined, within the corporate limits of Uwchlan Township.
The calendar year.
A.
Duty of employer to collect and make payment. Each
employer within Uwchlan Township, as well as each employer situated
outside of Uwchlan Township but who engages in business within Uwchlan
Township, is hereby charged with the duty of collecting from each
employee engaged by the employer and performing for the employer within
Uwchlan Township the tax of $52 per annum and making a return and
payment thereof to the Local Services Tax Collector. Subject to the
withholding requirements of this section, each employer is hereby
authorized to deduct the tax from the compensation of each employee
in its employ, whether said employee is paid by salary, wages or commissions
and whether or not part or all of such services are performed within
Uwchlan Township. Each employer shall pay the tax to the Local Services
Tax Collector, as provided herein, whether or not the tax was deducted
from the compensation of each employee in its employ.
(1)
An employer required hereunder to collect the tax shall withhold a pro-rata share of the total tax per annum for each payroll period in which the person is engaged in an occupation. The pro-rata share of the tax assessed on the person for a payroll period shall be determined by dividing the combined rate of the local services tax levied for the calendar year by the number of payroll periods established by the employer for the calendar year. For purposes of determining the pro-rata share, an employer shall round down the amount of the tax collected each payroll period to the nearest one-hundredth of a dollar. Collection of the local services tax levied under this section shall be made on a payroll period basis for each payroll period in which the person is engaging in an occupation, except as provided for in Subsection A(3).
(2)
Upon notification to an employer by the person or
by Uwchlan Township that a person has received earned income and net
profits from all sources within Uwchlan Township equal to or in excess
of $12,000 in that calendar year or that the person is otherwise ineligible
for the tax exemption for that calendar year, or upon an employer's
payment to the person of earned income within Uwchlan Township in
an amount equal to or in excess of $12,000 in that calendar year,
an employer shall withhold the local services tax from the person
for the remainder of that calendar year. The employer shall withhold
from the person, for the first payroll period after receipt of the
notification hereunder, a lump sum equal to the amount of tax that
was not withheld from the person due to the exemption claimed by the
person under this section, plus the per-payroll amount due for that
first payroll period. The amount of tax withheld per payroll period
for the remaining payroll periods in that calendar year shall be the
same amount withheld for other employees. In the event that the employment
of a person subject to withholding of the tax under this clause is
subsequently severed in that calendar year, the person shall be liable
for any outstanding balance of tax due, and Uwchlan Township may pursue
collection of the tax.
(3)
In the case of an employee who has concurrent employment,
an employer shall refrain from withholding the local services tax
if the employee provides a recent pay stub 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 employer's principal
employer and the employee will notify other employers of a change
in principal place of employment within two weeks of its occurrence.
B.
Returns; responsibility for payment. Each employer
shall prepare and file a return showing a computation of the tax on
forms to be supplied to him by the Local Services Tax Collector. 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, the
employer shall be responsible for the payment of the tax in full as
though the tax had originally been levied against the employer. A
tax return must be filed for each calendar quarter, regardless of
whether withholdings were completed or any tax liabilities exist.
C.
Dates for determining liability and payment. Each
employer shall use his employment record as of each payroll period
in the calendar year to determine from whom the tax shall be deducted.
An employer shall be required to remit quarterly payments of the tax
to the Local Services Tax Collector on or before the 30th day after
the end of each quarter of a calendar year on forms prescribed by
the Local Services Tax Collector.
D.
Self-employed individuals. Every taxpayer who is self-employed and has not filed an exemption certificate with the Tax Collector, or whose tax for any other reason is not collected under § 230-40 of this article, shall file a return on a form prescribed by the Tax Collector and shall pay a pro-rata share of the tax directly to the Tax Collector within 30 days after the end of each calendar quarter. The pro-rata share of the tax assessed on a taxpayer for a calendar quarter shall be determined by dividing the rate of the tax levied under this article for the year by four.
E.
Persons residing outside the Township. All self-employed
individuals and employers residing or having their place of business
outside the corporate limits of Uwchlan Township and engaging in an
occupation within the Township do by virtue thereof agree to be bound
by and subject themselves to the provisions of this article and the
regulations promulgated hereunder with the same force and effect as
though they had their place of business in or were residents of Uwchlan
Township. Further, any individual engaged in an occupation within
Uwchlan Township and as an employee of a nonresident employer may,
for the purpose of this article, be considered a self-employed person,
but in the event the tax is not paid, the Local Services Tax Collector
shall have the option of proceeding against either the employer or
employee for the collection as hereinafter provided.
F.
Individuals engaged in more than one occupation.
(1)
Each employee who shall have more than one occupation
within Uwchlan Township shall be subject to the payment of this tax
on his principal occupation, and his principal employer shall deduct
this tax. The principal employer shall deliver to such employee evidence
of deduction. This evidence of deduction, showing that payment having
been made and when presented to any other employer, shall be authority
for such employer to not deduct this tax from the employee's wages
but to include such employee on his return by setting forth his name,
social security number and the name of the employer who deducted this
tax.
(2)
In the event that an individual is engaged in more
than one occupation or an occupation which requires his working in
more than one political subdivision during the calendar year, the
priority of claim to collect such local services tax shall be in the
following order: first, the political subdivision in which an individual
maintains his principal office or is principally employed; second,
the political subdivision in which the individual resides and works
if such a tax is levied by that political subdivision; third, the
political subdivision in which an individual is employed and which
imposes the tax nearest in miles to the individual'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.
(3)
It is the intent of this provision that no individual
shall pay more than $52 in any calendar year as a local services tax,
irrespective of the number of political subdivisions within which
such individual may be employed within any given calendar year. In
case of dispute, a proof of payment that the tax has been paid for
that calendar year shall constitute prima facie certification of payment
to all other political subdivisions.
G.
Each employer shall ensure that exemption certificate
forms are readily available to employees at all times and shall furnish
each new employee with an exemption certificate form at the time of
hiring and prior to the first payroll period of each year.
A.
Powers and duties of Tax Collector.
(1)
It shall be the duty of the Local Services Tax Collector
to accept and receive payments of the tax and to keep a record thereof
showing the amount received by him from each employer or self-employed
individual, together with the date the tax was received.
(2)
The Local Services Tax Collector 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 the books, accounts and 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 and found to have
occurred.
(3)
The Local Services Tax Collector is hereby authorized
to examine the books, accounts 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 Local Services Tax Collector
the means, facilities and opportunity for such examination.
B.
Late payment; recovery. If for any reason the tax
is not paid when due, a penalty of 10% shall be added to the tax,
and interest at the rate of 1% per month or fraction thereof shall
also be added. Where legal action is brought for the recovery of the
tax, the individual or employer thereafter shall, in addition, be
responsible and liable for collection costs including attorneys' fees.
C.
Violations and penalties. Any person who makes any
false or untrue statement on any return or record required by this
article refuses inspection of his books, records or accounts in his
custody and control, fails or refuses to file any return required
by this article or fails to pay the tax due shall be subject to a
fine in an amount not to exceed $600, for each offense, plus all court
costs, including reasonable attorneys' fees incurred by the Township.
Upon a finding of liability for committing said violation, or permitting
said violation, in a civil enforcement proceeding commenced by the
Township, the defendant shall pay the fine plus costs and attorneys'
fees. No judgment shall be imposed until the date of determination
of a violation by a court of competent jurisdiction. If the defendant
neither pays nor timely appeals the judgment, the Township may enforce
the judgment pursuant to the applicable Rules of Civil Procedure.
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 refuses to file a return
required by this article.[1]
A.
Any person whose total earned income and net profits
from all sources within Uwchlan Township is less than $12,000 per
calendar year in which the tax is levied shall be exempt from this
tax upon the filing of an exemption certificate with the Local Services
Tax Collector.
B.
Any person who has 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 services 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 total one-hundred-percent disability shall be exempt from
this tax upon the filing of an exemption certificate with the Local
Services Tax Collector.
C.
Any person who serves as a member of a reserve component
of the armed forces and is called to active duty at anytime during
the taxable year shall be exempt from this tax upon the filing of
an exemption certificate with the Local Services Tax Collector.
D.
The Local Services Tax Collector is hereby charged
and empowered to adopt regulations for the processing of claims for
exemptions under this article.
E.
A person seeking exemption from the tax under § 230-42 must annually file an exemption certificate with the employer and the Local Services Tax Collector. If a person claims an exemption from the tax under § 230-42A, the exemption certificate shall have attached to it a copy of all of the employee's last pay stubs or W-2 forms from employment within Uwchlan Township for the calendar year prior to the calendar year for which the employee is requesting to be exempt from the tax. The exemption certificate for any exemption under § 230-42 must be in a form substantially similar to the uniform exemption certificate prescribed by the Pennsylvania Department of Community and Economic Development.
A.
A person who overpaid the local services tax for a
calendar year shall be entitled to a refund of the tax by filing a
refund request with the Local Services Tax Collector. A person shall
only be entitled to a refund of tax for amounts overpaid in a calendar
year that exceed $1.
B.
The Local Services Tax Collector is hereby charged
and empowered to adopt regulations for the processing of refund claims
for overpaid local services tax consistent with 53 Pa.C.S.A. § 8425,
as amended (relating to refunds of overpayments), and 53 Pa.C.S.A.
§ 8426, as amended (relating to interest on overpayments).
C.
A person shall not be entitled to interest on the amount of refunded tax if the Township pays the refund within 75 days of the refund request or 75 days after the last day the employer is required to remit the local services tax for the last quarter of the calendar year under § 230-40C, whichever is later.
A.
If the Downingtown Area School District levies a local services tax during the year on persons employed within Uwchlan Township, and the combined rate of the Township's local services tax and the School District's local services tax exceeds $10, then the Local Services Tax Collector shall collect the tax on behalf of the School District based on payroll periods as provided for under § 230-40A(1).
The provisions of Ordinance No. 86-04, known
as the "Uwchlan Township Emergency and Municipal Services Tax Ordinance
of 2005," shall remain in full force and effect until December 31,
2007.
This article shall become effective on or after
five days after enactment and shall apply to tax years commencing
on or after January 1, 2008.
