[HISTORY: Adopted by the Borough Council
of the Borough of Aldan as indicated in article histories. Amendments
noted where applicable.]
[Adopted 7-9-1987 by Ord. No. 415]
This article shall be known as the "Realty Transfer
Tax Article of the Borough of Aldan."
A realty transfer tax for general revenue purposes
is hereby imposed upon the transfer of real estate or interest in
real estate situated within the Borough of Aldan, regardless of where
the documents making the transfer are made, executed or delivered
or where the actual settlements on such transfer took place, as authorized
by Article XI-D, Local Real Estate Transfer Tax, 72 P.S. § 8101-D
et seq.
As used in this article, the following terms
shall have the meanings indicated:
A partnership, limited partnership or any other form of unincorporated
enterprise owned or conducted by two or more persons other than a
private trust or decedent's estate.
A corporation, joint-stock association, business trust or
banking institution which is organized under the laws of this commonwealth,
the United States or any other state, territory, foreign country or
dependency.
Any deed, instrument or writing which conveys, transfers, demises, vests, confirms or evidences any transfer or demise of title to real estate. "Document" does not include wills, mortgages, deeds of trust or other instruments of like character given as security for a debt and deeds of release thereof to the debtor, land contracts whereby the legal title does not pass to the grantee until the total consideration specified in the contract has been paid or any cancellation thereof unless the consideration is payable over a period of time exceeding 30 years, or instruments which solely grant, vest or confirm a public utility easement. "Document" shall also include a declaration of acquisition required to be presented for recording under § 231-2 of this article.
A corporation of which at least 75% of its assets are devoted
to the business of agriculture and at least 75% of each class of stock
of the corporation is continuously owned by members of the same family.
The business of agriculture shall not be deemed to include:
A.
Recreational activities, such as but not limited to
hunting, fishing, camping, skiing, show competition or racing;
B.
The raising, breeding or training of game animals
or game birds, fish, cats, dogs or pets or animals intended for use
in sporting or recreational activities;
C.
Fur farming.
D.
Stockyard and slaughterhouse operations; or
E.
MEMBERS OF THE SAME FAMILY
PERSON
REAL ESTATE
Manufacturing or processing operations of any kind.
Any individual, such individual's brothers and sisters, the
brothers and sisters of such individual's parents and grandparents,
the ancestors and lineal descendants of any of the foregoing, a spouse
of any of the foregoing, and the estate of any of the foregoing. Individuals
related by the half blood or legal adoption shall be treated as if
they were related by the whole blood.
Every natural person, association or corporation. Whenever
used in any clause prescribing and imposing a fine or imprisonment,
or both, the term "person," as applied to associations, shall include
the responsible members or general partners thereof and, as applied
to corporations, the officers thereof.
Includes:
F.
All lands, tenements or hereditaments within this
Borough of Aldan, including, without limitation, buildings, structures,
fixtures, mines, minerals, oil, gas, quarries, spaces with or without
upper or lower boundaries, trees and other improvements, immovables
or interests which by custom, usage or law pass with a conveyance
or land, but excluding permanently attached machinery and equipment
in an industrial plant.
G.
A condominium unit.
H.
REAL ESTATE COMPANY
A tenant-stockholder's interest in a cooperative housing
corporation, trust or association under a proprietary lease or occupancy
agreement.
A corporation or association which is primarily engaged in
the business of holding, selling or leasing real estate, 90% or more
of the ownership interest in which is held by 35 or fewer persons
and which:
I.
Derives 60% or more of its annual gross receipts from
the ownership or disposition of real estate; or
J.
TITLE TO REAL ESTATE
(1)
(2)
TRANSACTION
VALUE
(1)
(2)
(3)
(4)
Holds real estate, the value of which comprises 90%
or more of the value of its entire tangible asset holdings exclusive
of tangent assets which are freely transferable and actively traded
on an established market.
Any interest in real estate which endures for
a period of time, the termination of which is not fixed or ascertained
by a specific number of years, including without limitation an estate
in fee simple, life estate or perpetual leasehold; or
Any interest in real estate enduring for a fixed
period of years but which, either by reason of the length of the term
or the grant of a right to extend the term by renewal or otherwise,
consists of a group of rights approximating those of an estate in
fee simple, life estate or perpetual leasehold, including, without
limitation, a leasehold interest or possessory interest under a lease
or occupancy agreement for a term of 30 years or more or a leasehold
interest or possessory interest in real estate in which the lessee
has equity.
The making, executing, delivering, accepting or presenting
for recording of a document.
In the case of any bona fide sale of real estate
at arm's length for actual monetary worth, the amount of the actual
consideration therefor paid or to be paid, including liens or other
encumbrances thereon existing before the transfer and not removed
thereby, whether or not the underlying indebtedness is assumed, and
ground rents, or a commensurate part thereof where such liens or other
encumbrances and ground rents also encumber or are charged against
other real estate, provided that where such documents shall set forth
a nominal consideration, the value thereof shall be determined from
the price set forth in or actual consideration for the contract of
sale;
In the case of a gift, sale by execution upon
a judgment or upon the foreclosure of a mortgage by a judicial officer,
transactions without consideration or for consideration less than
the actual monetary worth of the real estate, a taxable lease, an
occupancy agreement, a leasehold or possessory interest, any exchange
of properties or the real estate of an acquired company, the actual
monetary worth of the real estate determined by adjusting the assessed
value of the real estate for local real estate tax purposes for the
common level ratio factor developed by the Pennsylvania Department
of Revenue for Pennsylvania realty transfer tax base calculations;
In the case of an easement or other interest
in real estate the value of which is not determinable under clause
(1) or (2), the actual monetary worth of such interest; or
The actual consideration for or actual monetary
worth of any executory agreement for the construction of buildings,
structures or other permanent improvements to real estate between
the grantor and other persons existing before the transfer and not
removed thereby or between the grantor, the agent or principal of
the grantor of a related corporation, association or partnership and
the grantee existing before or effective with the transfer.
A.
Every person who makes, executes, delivers or accepts
or presents for recording any documents or in whose behalf any document
is made, executed, delivered, accepted or presented for recording
shall be subject to pay for and in respect to the transaction or any
part thereof a tax at the rate of 1% of the value of the real estate
represented by such document, which tax shall be payable at the earlier
of the time the document is presented for recording or within 30 days
after acceptance of such document or within 30 days of becoming an
acquired company.
B.
The payment of the tax imposed herein shall be evidenced
by the affixing of an official stamp or writing by the Recorder, whereon
the date of the payment of the tax, amount of the tax and the signature
of the collecting agent shall be set forth.
C.
It is the intent of this article that the entire burden
of the tax imposed herein on a person or transfer shall not exceed
the limitations prescribed in The Local Tax Enabling Act, Act of December
31, 1965, P.L. 1257, 53 P.S. § 6901 et seq., so that if
any other political subdivision shall impose or hereafter shall impose
such tax on the same person or transfer, then the tax levied by the
Borough of Aldan under the authority of that Act shall during the
time such duplication of the tax exists, except as hereinafter otherwise
provided, be 1/2 of the rate and such 1/2 rate shall become effective
without any action on the part of the Borough of Aldan; provided,
however, that the Borough of Aldan and any other political subdivision
which imposes such tax on the same person or transfer may agree that,
instead of limiting their respective rates to 1/2 of the rate herein
provided, they will impose respectively different rates, the total
of which shall not exceed the maximum rate permitted under The Local
Tax Enabling Act.
D.
If for any reason the tax is not paid when due, interest
on the unpaid balance shall be added and collected. The interest rate
shall be 10% per annum unless fixed at a different rate by law.
The United States, the commonwealth or any of
their instrumentalities, agencies or political subdivisions shall
be exempt from payment of the tax imposed by this article. The exemption
of such governmental bodies shall not, however, relieve any other
party to a transaction from liability for the tax.
A.
The tax imposed by § 231-4 shall not be imposed upon:
(1)
A transfer to the commonwealth or to any of its instrumentalities,
agencies or political subdivisions, by gift, dedication or deed in
lieu of condemnation or deed of confirmation in connection with condemnation
proceedings, or a reconveyance by the condemning body of the property
condemned to the owner of record at the time of condemnation, which
reconveyance may include property line adjustments, provided that
said reconveyance is made within one year from the date of condemnation.
(2)
A document which the Borough of Aldan is prohibited
from taxing under the Constitution or statutes of the United States.
(3)
A conveyance to a municipality, township, school district
or county pursuant to acquisition by the municipality, township, school
district or county of a tax delinquent property at sheriff sale or
Tax Claim Bureau sale.
(4)
A transfer for no or nominal actual consideration
which corrects or confirms a transfer previously recorded, but which
does not extend or limit existing record legal title or interest.
(5)
A transfer of division in kind for no or nominal actual
consideration of property passed by testate or intestate succession
and held by co-tenants; however, if any of the parties take shares
greater in value than their undivided interest, tax is due on the
excess.
(6)
A transfer between husband and wife, between persons
who were previously husband and wife who have since been divorced,
provided that the property or interest therein subject to such transfer
was acquired by the husband and wife or husband or wife prior to the
granting of the final decree in divorce, between parent and child
or the spouse of such child, between brother or sister or spouse of
a brother or sister and brother or sister or spouse of a brother or
sister, and between a grandparent and grandchild or the spouse of
such grandchild, except that a subsequent transfer by the grantee
within one year shall be subject to tax as if the grantor were making
such transfer.
(7)
A transfer for no or nominal actual consideration
of property passing by testate or intestate succession from a personal
representative of a decedent to the decedent's devisee or heir.
(8)
A transfer for no or nominal actual consideration
to a trustee of an ordinary trust where the transfer of the same property
would be exempt if the transfer was made directly from the grantor
to all of the possible beneficiaries, whether or not such beneficiaries
are contingent or specifically named. No such exception shall be granted
unless the Recorder of Deeds is presented with a copy of the trust
instrument that clearly identifies the grantor and all possible beneficiaries.
(9)
A transfer for no or nominal actual consideration
from a trustee to a beneficiary of an ordinary trust.
(10)
A transfer for no or nominal actual consideration
from trustee to successor trustee.
(11)
A transfer for no or nominal actual consideration
between principal and agent or straw party or from or to an agent
or straw party where, if the agent or straw party were his principal,
no tax would be imposed under this article. Where the document by
which title is acquired by a grantee or statement of value fails to
set forth that the property was acquired by the grantee from or for
the benefit of his principal, there is a rebuttable presumption that
the property is the property of the grantee in his individual capacity
if the grantee claims an exemption from taxation under this clause.
(12)
A transfer made pursuant to the statutory merger
or consolidation of a corporation or statutory division of a nonprofit
corporation, except where the Department reasonably determines that
the primary intent for such merger, consolidation or division is avoidance
of the tax imposed by this article.
(13)
A transfer from a corporation or association
of real estate held of record in the name of the corporation or association
where the grantee owns stock of the corporation or an interest in
the association in the same proportion as his interest in or ownership
of the real estate being conveyed and where the stock of the corporation
or the interest in the association has been held by the grantee for
more than two years.
(14)
A transfer from a nonprofit industrial development
agency or authority to a grantee of property conveyed by the grantee
to that agency or authority as security for a debt of the grantee
or a transfer to a nonprofit industrial development agency or authority.
(15)
A transfer from a nonprofit industrial development
agency or authority to a grantee purchasing directly from it, but
only if the grantee shall directly use such real estate for the primary
purpose of manufacturing, fabricating, compounding, processing, publishing,
research and development, transportation, energy conversion, energy
production, pollution control, warehousing or agriculture; and the
agency or authority has the full ownership interest in the real estate
transferred.
(16)
A transfer by a mortgagor to the holder of a
bona fide mortgage in default in lieu of a foreclosure or a transfer
pursuant to a judicial sale in which the successful bidder is the
bona fide holder of a mortgage, unless the holder assigns the bid
to another person.
(17)
Any transfer between religious organizations
or other bodies or persons holding title for a religious organization
if such real estate is not being or has not been used by such transferor
for commercial purposes.
(18)
A transfer to a conservancy which possesses
a tax exempt status pursuant to Section 501(c)(3) of the Internal
Revenue Code of 1954 [68A Stat. 3, 26 U.S.C. § 501 (c)(3)]
and which has as its primary purpose preservation of land for historic,
recreational, scenic, agricultural or open space opportunities.
(19)
A transfer of real estate devoted to the business
of agriculture to a family farm corporation by a member of the same
family which directly owns at least 75% of each class of the stock
thereof.
(20)
A transfer between members of the same family
of an ownership interest in a real estate company or family farm corporation.
(21)
A transaction wherein the tax due is $1 or less.
(22)
Leases for the production of extraction of coal,
oil, natural gas or minerals and assignments thereof.
B.
In order to exercise any exclusion provided in this
section, the true, full and complete value of the transfer shall be
shown on the statement of value. A copy of the Pennsylvania Realty
Transfer Tax Statement of Value may be submitted for this purpose.
For leases of coal, oil, natural gas or minerals, the statement of
value may be limited to an explanation of the reason such document
is not subject to tax under this article.
Except as otherwise provided in § 231-6, documents which make, confirm or evidence any transfer or demise of title to real estate between associations or corporations and the members, partners, shareholders or stockholders thereof are fully taxable. For the purposes of this article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
A.
A real estate company is an acquired company upon
a change in the ownership interest in the company however effected,
if the change does not affect the continuity of the company; and of
itself or together with prior changes has the effect of transferring,
directly or indirectly, 90% or more of the total ownership interest
in the company within a period of three years.
B.
With respect to real estate acquired after February
16, 1986, a family farm corporation is an acquired company when, because
of voluntary or involuntary dissolution, it ceases to be a family
farm corporation or when, because of issuance or transfer of stock
or because of acquisition or transfer of assets that are devoted to
the business of agriculture, it fails to meet the minimum requirements
of a family farm corporation under this article.
C.
Within 30 days after becoming an acquired company,
the company shall present a declaration of acquisition with the Recorder
of each county in which it holds real estate for the affixation of
documentary stamps and recording. Such declaration shall set forth
the value of real estate holdings of the acquired company in such
county. A copy of the Pennsylvania Realty Transfer Tax Declaration
of Acquisition may be submitted for this purpose.
A.
Where there is a transfer of a residential property
by a licensed real estate broker, which property was transferred to
him within the preceding year as consideration for the purchase of
other residential property, a credit for the amount of the tax paid
at the time of the transfer to him shall be given to him toward the
amount of the tax due upon the transfer.
B.
Where there is a transfer by a builder of residential
property which was transferred to the builder within the preceding
year as consideration for the purchase of new, previously unoccupied
residential property, a credit for the amount of the tax paid at the
time of the transfer to the builder shall be given to the builder
toward the amount of the tax due upon the transfer.
C.
Where there is a transfer of real estate which is
leased by the grantor, a credit for the amount of tax paid at the
time of the lease shall be given the grantor toward the tax due upon
the transfer.
D.
Where there is a conveyance by deed of real estate
which was previously sold under a land contract by the grantor, a
credit for the amount of tax paid at the time of the sale shall be
given the grantor toward the tax due upon the deed.
E.
If the tax due upon the transfer is greater than the
credit given under this section, the difference shall be paid. If
the credit allowed is greater than the amount of tax due, no refund
or carry-over credit shall be allowed.
In determining the term of a lease, it shall
be presumed that a right or option to renew or extend a lease will
be exercised if the rental charge to the lessee is fixed or if a method
for calculating the rental charge is established.
The tax herein imposed shall be fully paid and
have priority out of the proceeds of any judicial sale of real estate
before any other obligation, claim, lien, judgment, estate or costs
of the sale and of the writ upon which the sale is made except the
state realty transfer tax, and the Sheriff or other officer conducting
said sale shall pay the tax herein imposed out of the first moneys
paid to him in connection therewith. If the proceeds of the sale are
insufficient to pay the entire tax herein imposed, the purchaser shall
be liable for the remaining tax.
A.
As provided in 16 P.S. § 11011-6, as amended
by Act of July 7, 1983 (P.L. 40, No. 21), the Recorder of Deeds shall
be the collection agent for the local realty transfer tax, including
any amount payable to the Borough of Aldan based on a redetermination
of the amount of tax due by the Commonwealth of Pennsylvania of the
Pennsylvania realty transfer tax, without compensation from the Borough
of Aldan.
B.
In order to ascertain the amount of taxes due when
the property is located in more than one political subdivision, the
Recorder shall not accept for recording such a deed unless it is accompanied
by a statement of value showing what taxes are due each municipality.
C.
On or before the 10th of each month, the Recorder
shall pay over to the Borough of Aldan all local realty transfer taxes
collected, less 2% for use of the county, together with a report containing
the information as is required by the Commonwealth of Pennsylvania
in reporting collections of the Pennsylvania Realty Transfer Tax.
The two-percent commission shall be paid to the county.
D.
Upon a redetermination of the amount of realty transfer
tax due by the Commonwealth of Pennsylvania, the Recorder shall rerecord
the deed or record the additional realty transfer tax form only when
both the state and local amounts and a rerecording or recording fee
has been tendered.
Every document lodged with or presented to the
Recorder of Deeds for recording shall set forth therein and as a part
of such document the true, full and complete value thereof or shall
be accompanied by a statement of value executed by a responsible person
connected with the transaction showing such connection and setting
forth the true, full and complete value thereof or the reason, if
any, why such document is not subject to tax under this article. A
copy of the Pennsylvania Realty Transfer Tax Statement of Value may
be submitted for this purpose. The provisions of this section shall
not apply to any excludable real estate transfers which are exempt
from taxation based on family relationship. Other documents presented
for the affixation of stamps shall be accompanied by a certified copy
of the document and statement of value executed by a responsible person
connected with the transaction showing such connection and setting
forth the true, full and complete value thereof or the reason, if
any, why such document is not subject to tax under this article.
A.
If any part of any underpayment of tax imposed by
this article is due to fraud, there shall be added to the tax an amount
equal to 50% of the underpayment.
B.
In the case of failure to record a declaration required
under this article on the date prescribed therefor, unless it is shown
that such failure is due to reasonable cause, there shall be added
to the tax 5% of the amount of such tax if the failure is for not
more than one month, with an additional 5% for each additional month
or fraction thereof during which such failure continues, not exceeding
50% in the aggregate.
The tax imposed by this article shall become
a lien upon the lands, tenements or hereditaments, or any interest
thereon, lying, being situated, wholly or in part within the boundaries
of the Borough of Aldan, which lands, tenements, hereditaments or
interest therein are described in or conveyed by or transferred by
the deed which is the subject of the tax imposed, assessed and levied
by this article, said lien to begin at the time when the tax under
this article is due and payable and continue until discharged by payment
or in accordance with the law, and the Solicitor is authorized to
file a municipal or tax claim in the Court of Common Pleas of Delaware
County, in accordance with the provisions of the Municipal Claims
and Liens Act of 1923, 53 P.S. § 7101 et seq., its supplements
and amendments.
All taxes imposed by this article, together
with interest and penalties prescribed herein, shall be recoverable
as other debts of like character are recovered.
The Secretary of the Borough Council of the
Borough of Aldan is charged with enforcement and collection of the
tax interest and penalties hereby imposed and is empowered to promulgate
and enforce reasonable regulations for enforcement and collection
thereof, subject to the approval of the Borough Council. The regulations
which have been promulgated by the Pennsylvania Department of Revenue
under 72 P.S. § 8101-C et seq. are incorporated into and
made a part of this article.
Any person who shall fail, neglect or refuse
to comply with any of the provisions of this article, in addition
to any other penalty herein provided, shall, upon summary conviction
before a District Justice, be sentenced to pay a fine not to exceed
$300 and costs of prosecution for each and every offense and further
shall be required to pay the amount of the tax, together with all
interest and penalties, which should have been paid under the terms
of this article or to undergo imprisonment for not more than 30 days
for nonpayment of the same within 10 days from the due date.
[Adopted 12-12-2007 by Ord. No. 496[1]]
[1]
Editor's Note: This ordinance also repealed
former Art. II, Emergency and Municipal Services Tax, adopted 12-29-2005
by Ord. No. 493.
This article shall be known and may be cited
as the "Borough of Aldan Local Services Tax Ordinance."
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 Aldan.
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
Compensation, as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
December 31, 1965, P.L. 1257, § 13, as amended, 53 P.S.
§ 6913, as amended.
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.
Indicates the singular and plural number, as well as male,
female and neuter genders.
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Borough of Aldan.
The net income from the operation of a business, profession,
or other activity, as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
December 31, 1965, P.L. 1257, § 13, as amended, 53 P.S.
§ 6913, as amended.
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 of Aldan
for which compensation is charged or received, whether by means of
salary, wages, commission or fees for services rendered.
The local services tax at the rate fixed § 231-21 of this article.
The person, public employee or private agency designated
by the Borough of Aldan to collect and administer the tax herein imposed.
The period from January 1 until December 31 in any year;
a calendar year.
A.
For specific revenue purposes, an annual tax is hereby
levied and assessed, commencing January 1, 2008, upon the privilege
of engaging in an occupation with a primary place of employment within
the Borough of Aldan during the tax year. Each natural person who
exercises such privilege for any length of time during any tax year
shall pay the tax for that year in the amount of $52, assessed on
a pro rata basis, in accordance with the provisions of this article.
B.
This tax may be used solely for the following purposes
as the same may be allocated by the Borough Council from time to time:
C.
The Borough shall use no less than 25% of the funds
derived from the tax for emergency services.
D.
This tax is in addition to all other taxes of any
kind or nature heretofore levied by the Borough of Aldan.
E.
The tax shall be no more than $52 on each person for
each calendar year, irrespective of the number of political subdivisions
within which a person may be employed.
A.
Exemption. Any person whose total earned income and
net profits from all sources within the Borough is less than $12,000
for any calendar year in which the tax is levied is exempt from the
payment of the tax for that calendar year. In addition, the following
persons are exempt from payment of the tax:
(1)
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 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 total, one-hundred-percent disability.
(2)
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. For the purposes of this subsection, "reserve component
of the armed forces" shall mean 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.
B.
Procedure to claim exemption.
(1)
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Borough and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the Borough of less than $12,000 in the calendar year for which the exemption certificate is filed. In the event the Borough utilizes a tax collection officer, it shall provide a copy of the exemption certificate to that officer. The exemption certificate shall have attached to it a copy of all the employee's last pay stubs or W-2 forms from employment within the Borough for the year prior to the fiscal year for which the employee is requesting to be exempted from the tax. Upon receipt of the exemption certificate and until otherwise instructed by the Borough or except as required by Subsection B(2), the employer shall not withhold the tax from the person during the calendar year or the remainder of the calendar year for which the exemption certificate applies. Employers shall ensure that the 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. The exemption certificate form shall be the uniform form provided by the Borough.
(2)
With respect to a person who claimed an exemption from the tax for a given calendar year, upon notification to an employer by the person or by the Borough that the person has received earned income and net profits from all sources within the Borough 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 the Borough 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 pursuant to Subsection B(3) of this section.
(3)
If a person who claimed an exemption from the tax for a given calendar year becomes subject to the tax for the calendar year pursuant to Subsection B(2) of this section, the employer shall withhold the tax for the remainder of that calendar year. The employer shall withhold from the person, for the first payroll period after receipt of the notification under Subsection B(2) of this section, 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 subsection, 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 the employment of a person subject to withholding of the tax pursuant to Subsection B(2) of this section is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due, and the Borough may pursue all collection remedies provided generally or by this article.
C.
Refunds. The Borough, in consultation with the Tax
Official and DCED, shall establish procedures for the processing of
refund claims for any tax paid by any person who is eligible for exemption,
which procedures shall be in accord with provisions of the general
municipal law relating to refunds of overpayments and interest on
overpayments.* Refunds issued within 75 days of a refund request or
75 days after the last day the employer is required to remit the tax
for the last quarter of the calendar year, whichever is later, shall
not be subject to interest. No refunds shall be made for amounts overpaid
in a calendar year that do not exceed $1. The Borough or the Tax Official
shall determine eligibility for exemption and provide refunds to exempt
persons.
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NOTES:
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* With respect to refunds, see 53 Pa.C.S.A.
§ 8425; with respect to interest, see 53 Pa.C.S.A. § 8426.
|
A.
Each employer within the Borough of Aldan, as well
as those employers situated outside the Borough of Aldan but who engage
in business within the Borough of Aldan is hereby charged with the
duty of collecting the tax from each of his employees engaged by him
or performing for him within the Borough of Aldan and making a return
and payment thereof to the Tax Official. Further, each employer is
hereby authorized to deduct this tax from each employee in his employ,
whether said employee is paid by salary, wage or commission and whether
or not all such services are performed within the Borough of Aldan.
B.
A person subject to the tax shall be assessed by the employer a pro rata share of the tax for each payroll period in which the person is engaging 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 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 1/100 of a dollar. Collection of the tax shall be made on a payroll-period basis for each payroll period in which the person is engaging in an occupation, except as provided in Subsection D of this section. For purposes of this subsection, "combined rate" shall mean the aggregate annual rate of the tax levied by the school district and the Borough.
C.
No person shall be subject to the payment of the local
services tax by more than one political subdivision during each payroll
period.
D.
In the case of concurrent employment, an employer
shall refrain from withholding the 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 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. The employee's statement shall be provided
on the form approved by DCED.
E.
The tax shall be no more than $52 on each person for
each calendar year, irrespective of the number of political subdivisions
within which a person may be employed. The Borough shall provide a
taxpayer a receipt of payment upon request by the taxpayer.
F.
No employer shall be held liable for failure to withhold
the tax or for the payment of the withheld tax money to the Borough
if the failure to withhold taxes 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.
G.
Employers shall be required to remit the local services
taxes 30 days after the end of each quarter of a calendar year.
Each employer shall prepare and file a tax return
showing a computation of the tax on forms to be supplied to the employer
by the Tax Official. If an employer fails to file the tax 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.
In each tax year, each employer shall use his
employment records to determine the number of employees from whom
such tax shall be deducted and paid over to the Tax Official on or
before the 30th day following the end of each calendar quarter of
each such tax year.
Each self-employed individual who performs services
of any type or kind or engages in any occupation or profession within
a primary place of employment within the Borough of Aldan shall be
required to comply with this article and pay the pro rata portion
of the tax due to the Tax Official on or before the 30th day following
the end of each quarter.
A.
The situs of the tax shall be the place of employment
on the first day the person becomes subject to the tax during each
payroll period. In the event a person is engaged in more than one
occupation, that is, concurrent employment, or an occupation which
requires that the person work in more than one political subdivision
during a payroll period, the priority of claim to collect the local
services tax shall be in the following order:
(1)
First, the political subdivision in which a person
maintains his principal office or is principally employed;
(2)
Second, the political subdivision in which the person
resides and works if the tax is levied by that political subdivision;
(3)
Third, the political subdivision in which a person
is employed and which imposes the tax nearest in miles to the person's
home.
B.
In case of dispute, a tax receipt of the taxing authority
for that calendar year declaring that the taxpayer has made prior
payment constitutes prima facie certification of payment to all other
political subdivisions.
All employers and self-employed individuals
residing or having their places of business outside of the Borough
of Aldan but who perform services of any type or kind or engage in
any occupation or profession within the Borough of Aldan 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 Aldan. Further, any individual engaged in an occupation within
the Borough of Aldan 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 Borough shall have
the option of proceeding against either the employer or employee for
the collection of this tax as hereinafter provided.
A.
It shall be the duty of the Tax Officer 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 Tax Officer is charged with the administration
and enforcement of this article and is charged and empowered to prescribe,
adopt or promulgate rules and regulations relating to any matter pertaining
to the administration and enforcement of this article, including provisions
for the examination of the 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 over payment is claimed or found to
have occurred.
C.
The Tax Officer is authorized to enter the premises
of the employer and examine the books in the case where no return
has been issued by the employer, and be accompanied by either a police
officer or a constable to accomplish same, when said employer refuses
to file a return subsequent to 30 days' written notice. The Tax Officer
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 Tax Officer the
means, facilities and opportunity for such examination.
A.
Failure of any employee or employer to comply with
the provisions of this article or to file a local services tax return
shall, upon conviction of same, be guilty of a summary offense. Further,
any employee or employer, or any other individual or person, issuing
any false or untrue statement upon any tax 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 summary
offense.
B.
A conviction pursuant to this section shall result
in a fine of no more than $600 and, in default thereof, a term of
imprisonment not to exceed 30 days. Each day that the violation continues
shall constitute a separate and distinct offense.
C.
The action to enforce the penalty herein prescribed
may be instituted against any person in charge of the business of
any employer who shall have failed or who refuses to file a return
required by this article.
D.
The Tax Officer, or such other designee, may further,
in the name of the Borough, proceed with an action in equity (or any
other action) in a Court of competent jurisdiction in order to require
or mandate that the employer or employee violating the terms of this
article be required to cease and desist from said violation and to
file a local services tax return for all appropriate quarters or time
periods which are outstanding. Within such an equity proceeding, though,
the Borough, operating through the Tax Officer, may further request
and receive all costs for this collection proceeding, including, but
not limited to, attorneys' fees, court costs, witness fees and administrative
expenses.
A.
In the event that any tax under this article remains
due or unpaid 30 days after the due date above set forth, the Tax
Officer (or his designee) may commence a civil proceeding for the
recovery of any such tax due or unpaid pursuant to this article, together
with interest and penalty.
B.
If for any reason the tax is not paid when due, a
penalty of 10% shall be added to the principal of all taxes due for
nonpayment thereof.
C.
If for any reason the tax is not paid when due, interest
at the rate of 12% per annum on the amount of both the principal tax
due and the ten-percent penalty shall be calculated beginning with
the due date of said tax.
D.
When proceedings are commenced for the collection
or recovery of the principal tax, penalty and interest, the employee
or employer liable thereof shall also be responsible and liable for
all costs of collection, which shall include, but are not limited
to the following: attorneys' fees, court costs, witness fees and administrative
expenses.
