Beginning with the effective date of this article, the amount of the tax levied under §
116-35 of this article is the sum of $52 per annum.
Each employer within Chadds Ford Township, as
well as those employers located outside Chadds Ford Township but who
engage in business within the Chadds Ford Township, is hereby required
to collect from each of the employees engaged by him and having an
occupation within Chadds Ford Township who is subject to the tax,
the said tax of $52 per annum and make a return and pay the same over
to the Occupational Tax Officer. Each employer is hereby required
to deduct said tax from each employee in his employ whether said employee
is paid by salary, wages, commission or fees, where part or all of
such services are performed within Chadds Ford Township.
Each employer shall file a return showing the
number, names and addresses of employees in his employ subject to
this tax and compute the tax on forms to be supplied to him by the
Occupational Tax Officer. If the employer fails to file said return
and pay said tax, whether or not he makes collection thereof from
the salary, wages, commissions or fees paid by him to said employee,
the employee shall be responsible for the payment of said tax. The
failure of any employer residing either within or without Chadds Ford
Township to make such return and/or pay such tax shall not relieve
the employee from the responsibility for making the returns and paying
the tax.
All employers and self-employed individuals
residing or having their place of business outside Chadds Ford Township
but who perform services of any type or kind or engage in any occupation
or profession within Chadds Ford Township are hereby required 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 Chadds Ford Township. Any individual engaged
in an occupation within Chadds Ford Township and any 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
Occupational Tax Officer shall have the option of proceeding against
either the employer or the employee for the collection of this tax
as hereinafter provided.
[Added 11-21-2011 by Ord.
No. 123]
A. Exemption. Any person whose total earned income and net profits from
all sources within Chadds Ford Township is less than $12,000 for any
calendar year in which the tax is levied is exempt from the payment
of the tax for the calendar year. In addition, the following persons
are also 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 Chadds Ford Township's Tax Collector and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within Chadds Ford Township of less than $12,000 in the calendar year for which the exemption certificate is filed. 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 Chadds Ford Township 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 Chadds Ford Township or except as required by §
116-44A(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 Chadds Ford Township.
(2) With respect to a person who claimed an exemption for a given calendar year from the tax, upon notification to an employer by the person or by Chadds Ford Township that the person has received earned income and net profits from all sources within Chadds Ford 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 Chadds Ford 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 under §
116-44B(3).
(3) If a person who claimed an exemption for a given calendar year from the tax becomes subject to the tax for the calendar year under §
116-44B(2), 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 §
116-44B(2), 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 under this subsection is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due, and Chadds Ford Township may pursue collection under this article.
(4) Except as provided in §
116-44B(2), it is the intent of this subsection that employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from the local services tax.
(5) Refunds shall be available within three years after the due date
for filing a return or one year after actual payment, whichever is
later, in conformity with the Local Taxpayers' Bill of Rights,
for any amounts paid in error or overpaid. This provision shall be
retroactive to January 5, 2009, the date the local services tax was
first enacted by the Township.
C. Refunds. Chadds Ford Township, in consultation with the Tax Collector
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 made 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. Chadds Ford Township or
the Collector shall determine eligibility for exemption and provide
refunds to exempt persons.
[Added 11-21-2011 by Ord.
No. 123]
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 the person
to 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
or her 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.