This article shall be known and may be cited as the "Township
of Schuylkill Local Services Tax Ordinance."
This article is enacted under the authority of the Local Tax
Enabling Act, as amended by Act No. 7 of 2007.
The purpose of this article is to provide revenue for police,
fire and emergency services; road construction and maintenance; the
reduction of property taxes; and for such other purposes as may be
specified for such tax from time to time by the laws of the Commonwealth
of Pennsylvania.
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:
COLLECTOR
The person, public employee or private agency designated
by Schuylkill Township to collect and administer the tax herein imposed.
DCED
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
EARNED INCOME
Compensation as determined under Section 303 of the Act of
March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971,"
and regulations in 61 Pa. Code Part I, Subpart B, Article V (relating
to personal income tax), not including, however, wages or compensation paid to individuals on active military service. Employee business expenses are allowable deductions as determined under Article
III of the Tax Reform Code of 1971. Any housing allowance provided to a member of the clergy
shall not be taxable as earned income.
EMPLOYER
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.
HE, HIS or HIM
Indicates the singular and plural number, as well as male,
female and neuter genders.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of Schuylkill Township.
NET PROFITS
The net income from the operation of a business, profession,
or other activity (except from corporations), determined under Section
303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax
Reform Code of 1971," and regulations in 61 Pa. Code Part I, Subpart
B, Article V (relating to personal income tax). The term does not include income which is not paid for
services provided and which is in the nature of earnings from an investment.
For taxpayers engaged in the business, profession or activity of farming,
the term shall not include:
A.
Any interest generated from monetary accounts or investment
instrument of the farming business;
B.
Any gain on the sale of farming machinery;
C.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
D.
Any gain on the sale of other capital assets of the farm.
OCCUPATION
Any trade, profession, business or undertaking of any type,
kind or character, including services, domestic or other, earned on
or performed within the corporate limits of Schuylkill Township for
which compensation is charged or received, whether by means of salary,
wages, commission or fees for services rendered.
RESERVE COMPONENT OF THE ARMED FORCES
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.
TAX
The local services tax at the rate fixed in §
328-19 of this article.
TAX YEAR
The period from January 1 until December 31 in any year;
a calendar year.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to the employer by the Collector.
If an employer fails to file the return and pay the tax, whether or
not the employer makes collection thereof from the salary, wages or
commissions paid by him or her 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.
Each employer shall use his employment and payroll records from
the first day of January to March 31 each year for determining the
number of employees from whom said tax shall be deducted and paid
over to the Collector on or before April 30 of the same calendar year.
Supplemental reports shall be made by each employer on July 30, October
30 and January 31 for new employees as reflected on his employment
and payroll records from April 1 to June 30, July 1 to September 30
and October 1 to December 31, and payments on these supplemental reports
shall be made on July 30, October 30 and January 31, respectively.
Each self-employed individual who has earned income or realizes
net profit, as those terms are defined herein, within the political
subdivision shall be required to comply with this article and pay
the tax due to the Collector on or before the 30th day following the
end of each quarter.
All employers and self-employed individuals residing or having
their places of business outside of Schuylkill Township but who perform
services of any type or kind or engage in any occupation or profession
within Schuylkill Township 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 Schuylkill Township. Further, any individual
engaged in an occupation within Schuylkill Township 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 or her
tax is not paid, Schuylkill Township shall have the option of proceeding
against either the employer or employee for the collection of this
tax as hereinafter provided.
Whoever makes any false or untrue statement on any return required
by this article, or whoever refuses inspection of the books, records
or accounts in his or her custody and control setting forth the number
of employees subject to this tax who are in his or her employment,
or whoever fails or refuses to file any return required by this article
shall be guilty of a violation and, upon conviction thereof, shall
be sentenced to pay a fine of not more than $600 and costs of prosecution
and, in default of payment of such fine and costs, to imprisonment
for not more than 30 days. 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.
Except as set forth hereafter, all ordinances or parts of ordinances
inconsistent herewith are hereby repealed. Nothing herein shall be
construed to repeal the imposition and collection of an occupation
privilege tax, plus applicable penalties and interest, for calendar
year 2005 and all prior calendar years, or of an emergency and municipal
services tax, plus applicable penalties and interest, for calendar
years 2006 and 2007, as the same exist prior to this amendment.
This article shall become effective in accordance with applicable
law, with the repeal of previous occupational privilege and emergency
and municipal services tax ordinances, effective January 1, 2008.