[Adopted 11-14-2007 by Ord. No. 554[1]]
[1]
Editor's Note: This ordinance also superseded
former Art. IV, Emergency and Municipal Services Tax, adopted 3-9-2005
by Ord. No. 537.
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 limits and jurisdiction of the Borough
of Freedom, Beaver County, Pennsylvania.
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 and ending December
31.
Indicates the singular and plural number, as well as male,
female, and neuter gender.
Any person, male or female, engaged in any occupation, trade,
or profession within the limits of the Borough of Freedom.
The person, public employee, or private agency designated
by the Borough of Freedom to collect and administer the local services
tax hereby imposed.
Any trade, profession, business, or undertaking of any type,
kind or character, including services, domestic or other, carried
on or performed within the limits of the Borough of Freedom, for which
compensation is charged or received by means of salary, wages, commissions
or fees for services rendered.
The local services tax in the amount of $52 levied by this
article.
The Borough of Freedom hereby levies and imposes, on each individual
engaged in any occupation within the territorial limits of the Borough
of Freedom during this fiscal year and each fiscal year thereafter,
a local services tax. This tax is an addition to all other taxes of
any kind or nature heretofore levied by the Borough of Freedom, provided
that all individuals deriving less than $12,000 per year from all
sources of income shall be exempt from the local services tax. In
addition, disabled veterans and members of the Armed Forces Reserves
on active duty during the tax year shall be exempt from the local
services tax. Uniform exemption forms will be provided by the Pennsylvania
Department of Economic Development and shall be made available by
the Borough of Freedom. The local services tax in the amount as herein
levied is due in its entirety to the Borough of Freedom, and $5 per
payment per year from said tax shall be tendered to the Freedom Area
School District.
Beginning with the first day of January, each occupation as
hereinbefore defined, engaged in within the limits of the Borough
of Freedom, shall be subject to a local services tax in the amount
of $52 per annum, said tax to be paid by the individual so engaged.
Each employer within the Borough of Freedom, as well as those employers situated outside the Borough of Freedom, is hereby charged with the duty of collecting, from each of his employees engaged by him and performing for him within the Borough of Freedom, the said tax of $52 per annum, and making a return and payment thereof to the local services tax officer. Further, each employer is hereby authorized to deduct this tax from each employee in his employ, whether the said employee is paid by salary, wages, or commission, and whether or not part or all of such services are performed within the Borough of Freedom. Each employer shall deduct said tax on a pro rata basis determined by the number of payroll periods established by an employer for a calendar year for each such employee for each period as set forth in § 184-34, unless the tax has previously been withheld from the employee in the fiscal year by the employer or the employee provides verification to the employer that the tax has previously been withheld for a like amount in the fiscal year. In the event the tax has been withheld in an amount less than the rate of tax herein levied, then, in such event, the employer shall deduct an amount equal to the difference between the amount previously withheld in such fiscal year and the tax herein levied by the Borough of Freedom.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied by the tax officer. 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. The failure to receive notice
shall not relieve the employer or any person subject to this article
from the withholding or payment of any taxes imposed by the Borough
of Freedom, and such employer or taxpayer, as the case may be, shall
be charged with the taxes as though he had received notice.
For each fiscal year, each employer shall use his employment
records from January 1 to March 31, in conjunction with his employment
records from April 1 to June 30, in conjunction with his employment
records from July 1 to September 30, in conjunction with his employment
records from October 1 to December 31, for determining the number
and names of those employees from whom the said tax shall be deducted
and paid to the local services tax officer. Payment of said tax, when
applicable, by the aggregate earnings of an employee shall be made
by the employer to the local services tax officer on or before the
last day of April, July, October and January for each year this tax
is in force, except that when the employer has in his possession local
services taxes in excess of $500, then, in such an event, the taxes
shall be forwarded to the designated officer 30 days after the end
of the month the tax was withheld, and in no event beyond the designated
due dates, whichever first occurs. The Borough of Freedom shall provide
a receipt to taxpayers upon request.
Each individual who shall have more than one occupation within
the Borough of Freedom 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 deduction on a form to be
furnished by the employer and acceptable to the officer, which form
shall be evidence of deduction having been made and, when presented
to any other employer, shall be authority for such other employer
to not deduct this tax from the employee's wages. However, the
name of such employee shall be included in a quarterly return of the
employer to the local services tax officer by setting forth the name
and address of such employee and the name, address and account number
of the employer who actually deducted this tax.
All self-employed individuals who perform services of any kind or type, engaged in any occupation or profession within the Borough of Freedom, shall be required to comply with this article and pay the tax to the officer, on or before the designated due dates as set forth in § 184-34 herein. The failure to receive notice shall not relieve any person subject to this article from the payment of any taxes imposed by the Borough of Freedom, and such taxpayer shall be charged with the taxes as though he had received notice.
All employers and self-employed individuals residing and having
their place of business outside the Borough of Freedom but who perform
services of any type or kind or engage in any occupation or profession
within the Borough of Freedom are by virtue thereof bound by and subject
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 Freedom. Further, any individual engaged in an occupation
within the Borough of Freedom 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 of Freedom
shall have the option of proceeding against either the employer or
employee for the collection of this tax as hereinafter provided. Each
such employer and individual, as the case may be, shall be subject
to the provisions of this article as it applies to payment, reporting
and any other applicable provision of this article.
A.
It shall be the duty of the local services 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 local services tax officer 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 to which overpayment
is claimed or found to have occurred. Any person aggrieved by any
decision of the local tax officer shall have the right to appeal in
accordance with the provisions of the Local Taxpayers Bill of Rights
or to the court of competent jurisdiction, as in other cases provided.
C.
The local tax officer is hereby authorized to examine the books and
payroll 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
tax officer the means, facilities and opportunity to examine such
books and payroll of the employer, and to ascertain the tax due, if
any.
D.
Taxpayers anticipating an annual income of less than $12,000 may
file a certificate with the Borough and employer with supporting documentation,
and upon filing said certificate, the employer shall not withhold
the tax. If an employee ultimately earns more than $12,000 the balance
due shall be withheld and paid in one lump sum. The Borough shall
adopt regulations for back-end refunds.
A.
In the event that any tax under this article remains due or unpaid
for 30 days after the due date above set forth, the local services
tax officer may sue for the recovery of any such tax due or unpaid
under this article, together with interest and penalty.
B.
If said tax is not paid when due, interest at the rate of 6% per
annum shall be calculated, beginning with the due date of said tax,
and a penalty of 10% shall be added to the flat rate of said tax for
the 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 and reasonable attorneys'
fees.
Whoever makes false and untrue statements on any return required
by this article, or whoever refuses inspection of the books, records
and accounts in his custody and control setting forth the number of
employees in his employment subject to this tax, or whoever fails
or refuses to file any return required by this article shall, upon
conviction before any District Magistrate of the Borough of Freedom,
be sentenced to pay a fine of not more than $500 and costs for each
offense and, in default of the payment of said fine and costs, be
imprisoned in the Beaver County jail 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
refused to file a return required by this article.
A.
Nothing contained in this article shall be construed to empower the
Borough of Freedom to levy and collect the tax hereby imposed on any
occupation not within the taxing power of the Borough of Freedom 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 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 the right to impose or collect said tax or affect the validity
of the tax so imposed on other persons or individuals as herein provided.
C.
The tax herein imposed and the article herein enacted is in pursuance
of authority granted by the provisions of the Local Tax Enabling Act
approved by the General Assembly of the Commonwealth of Pennsylvania
December 31, 1965, as amended.
