§ 225-51Levy and amount of tax.
§ 225-52Exemptions and refunds.
§ 225-53Duty of employers.
§ 225-55Dates for determining tax liability
§ 225-56Individuals engaged in more than
§ 225-57Self-employed individuals.
§ 225-58Employers and self-employed individuals
residing outside of Borough.
§ 225-59Administration of tax.
§ 225-60Suits for collection.
§ 225-61Violations and penalties.
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:
- EMERGENCY AND MUNICIPAL SERVICE TAX
- A tax per year levied on each engagement in any occupation, as herein defined, within the corporate limits of the Borough of Danville during the fiscal year 2008 and in each and every year thereafter.
- 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.
- Earned income and net profits from sources within the Borough of Danville.
- Any person, male or female, engaged in any occupation, trade or profession within the corporate limits of the Borough of Danville who attains or is over the age of 18 years on the first day of January, 2008, and on the first day of January in each and every year thereafter.
- 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 Danville for which compensation is charged or received whether by means of salary, wages, commissions, net profits, retained earnings or fees for services rendered.
- TAX RECEIVER
- The person designated by the Borough of Danville for the collection of the local services tax.
The Borough of Danville hereby levies and imposes, on each individual engaged in an occupation during the fiscal year of 2008 and during each and every year thereafter within the corporate limits of the Borough of Danville, a Local Services Tax. Each individual engaged in an occupation, as hereinbefore defined within the Borough of Danville, shall be required to pay a Local Services Tax in the amount of $52 per annum. The revenue derived from this tax shall be used for police, fire or road maintenance purposes. This tax is in addition to all other taxes of any kind or nature heretofore levied by the Borough of Danville.
Exemptions. Individuals earning less than $12,000 per annum shall be exempt from this tax. In addition, the following persons are exempt from payment of the tax:
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 double or quadruple amputee or has a service-connected disability declared by the United States Veterans' Administration or its successor to be a total 100% disability.
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.
Procedure to claim exemption.
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the political subdivision and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the political subdivision 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 the political subdivision 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 political subdivision 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 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 political subdivision.
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 the political subdivision that the person has received earned income and net profits from all sources within the political subdivision 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 and employer's payment to the person of earned income within the municipality 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 Subsection B(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 Subsection B(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 Subsection B(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 the 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 the political subdivision may pursue collection under this article.
Except as provided in Subsection Blause (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.
Refunds. The Tax Receiver, in consultation with 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 provision of the general municipal law relating to refunds of overpayments and interest on overpayments. Any refunds made shall not be subject to interest. No refunds shall be made for amounts overpaid in a calendar year that do not exceed $1. The Tax Receiver shall determine eligibility for exemption and provide refund to exempt persons.
Each employer within the Borough of Danville, as well as those employers situated outside the Borough of Danville but who engage in business within the Borough of Danville, is hereby charged with the duty of collecting from each of his employees engaged by him and performing for him within the Borough of Danville the annual local services tax and making a return and payment thereof to the Tax Receiver. Said tax should be withheld from each employee pro rated as total tax divided by number of payroll periods established by the employer for the calendar year. Further, each employer is hereby authorized to deduct this tax from each employee in his employ, whether said employee is paid by salary, wages or commission and whether or not part of or all of such services are performed within the Borough of Danville.
Each employer shall prepare and file a return showing a computation of the tax on forms to be supplied to him/her by the Borough of Danville. 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 him/her.
In each tax year, each employer shall use his or her employment records to determine the number of employees from whom such tax shall be deducted and paid over to the Tax Receiver on or before the 30th day following the end of each calendar quarter of each such calendar tax year.
Each individual who shall have more than one occupation within the Borough of Danville shall be subject to the payment of this tax on his principal occupation, and his principal employer shall deduct this tax and deliver to him evidence of deductions on a form to be furnished to the employer by the Tax Receiver, which form shall be evidence of deductions 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, address and the name and account number of the employer who deducted this tax.
The situs of such tax shall be the place of employment, but, in the event a person 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 a person maintains his principal office or is principally employed;
Second. The political subdivision in which the person resides and works, if such tax is levied by that political subdivision;
Third. The political subdivision in which the person is employed and which imposes the tax nearest in miles to the person's home.
All self-employed individuals who perform services of any type or kind or engage in any occupation or profession within the Borough of Danville shall be required to comply with this article and pay the tax to the Tax Receiver on or before April 30, 2008, or thereafter in accordance with the payment schedule specified in § 225-55 above in the event that said individual becomes subject to this article after March 31, 2008.
All employers and self-employed individuals residing or having their places of business outside of the Borough of Danville, but who perform services of any type or kind or engage in any occupation or profession within the Borough of Danville, 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 Danville. Further, any individual engaged in an occupation within the Borough of Danville 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 Borough shall have the option of proceeding against either the employer or employee for the collection of this tax, as hereinafter provided.
It shall be the duty of the Tax Receiver to accept and receive payments of this tax and to keep a record thereof showing the amount received by him/her from each employer or self-employed person, together with the date the tax was received.
The Tax Receiver 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 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 or found to have occurred. Any person aggrieved by any decision of the Tax Receiver shall have the right to appeal to the Court of Common Pleas of Montour County, as in other cases provided.
The Tax Receiver 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 Receiver the means, facilities and opportunity for such examination.
In the event that any tax under this article remains due or unpaid 30 days after the due date above set forth, the Tax Receiver may sue for the recovery of any such tax due or unpaid under this article, together with interest and penalty.
If for any reason the tax is not paid when due, interest at the rate of 6% on the amount of said tax shall be calculated beginning with the due date of said tax and, a penalty of 5% shall be added to the flat rate of said tax for nonpayment thereof. 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.
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 setting forth the number of employees subject to this tax who are in his employment, or whoever fails or refuses to file any return and pay the tax as required by this article, shall, upon conviction thereof, be sentenced to pay a fine of not more than $300 for each offense and in default of payment of said fine be imprisoned in Montour County Prison for a period not exceeding 30 days for each offense. 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.
Nothing contained in this article shall be construed to empower the Borough of Danville 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.
If the tax hereby imposed under the provisions of this article shall be held by any court of competent jurisdiction to be in violation of the Constitution of the United States or of the laws of the Commonwealth of Pennsylvania as to any individual, the decision of the court 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.