[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
1.
EMPLOYER
INDIVIDUAL
LOCAL SERVICES TAX RECEIVER
OCCUPATION
TAX
The following words and phrases, when used in this Part 10, shall have the meanings ascribed to them in this section, except where the context or language clearly indicates or requires a different meaning:
An individual, partnership, association, corporation, governmental
body, agency or other entity employing one or more persons on a salary,
commission or other compensation basis, including a self-employed
person.
Any person, male or female, who, after the first day of January
2008, engages in any occupation, trade or profession of any nature,
type or kind whatsoever within the corporate limits of the Borough
of Conshohocken, whether in the employ of another or self-employed.
The person designated by the Borough Council for the collection
of this tax.
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 Conshohocken
for which compensation is charged or received, whether by means of
salary, wages, commissions or fees for services rendered.
The local services tax in the amount of $52 levied by this
Part on each individual engaged in any occupation, as hereinbefore
defined, within the corporate limits of the Borough of Conshohocken.
2.
"He," "his," or "him" shall mean and indicate the singular and plural
number as well as female and neuter gender.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
From the effective date of this Part 10 and annually thereafter,
the Borough of Conshohocken hereby levies and imposes on each person
engaged in an occupation, as herein defined, within its corporate
limits a local services tax. This tax is in addition to all other
taxes of any kind or nature heretofore levied by the Borough of Conshohocken.
It shall be the obligation of each such person so engaged in an occupation
to pay or cause to be paid the tax herein imposed. The adoption of
this Part 10 shall constitute notice and demand for payment of the
tax.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
The amount of the local services tax shall be $52, to be paid
by each individual so engaged in an occupation as herein defined.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
Any person, who derives less than $12,000 per year from such
occupation shall be exempt from the payment of the tax.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
Employers are required to stop withholding the local services
tax if an employee files an upfront exemption certification. In order
to receive an upfront exemption, employees must file an annual upfront
exemption form (developed by the DCED) with the Borough and the employee's
employer. The exemption certificate would verify that the employee
receives earned income and net profits of less than $12,000 for the
year. A copy of the employee's last pay stubs or W-2 forms must
be attached to the exemption certificate.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
Employers must restart withholding the local services tax from
an employee who files an exemption certificate in the following circumstances:
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
Every employer within the Borough of Conshohocken, as well as
those employers situated outside the Borough of Conshohocken but who
engage in business within the said Borough, is hereby charged with
the duty of collecting from each of his employees engaged by him and
performing for him within the Borough the said tax of $52 per annum
and making a return and payment thereof to the local services tax
receiver. Further, each employer is hereby authorized to deduct this
tax for each employee in his employ, whether said employee is paid
by salary, wages or commission and whether or not part or all such
services are performed within the Borough. The tax must be assessed
and collected on a pro-rata basis determined by the number of payroll
periods established by an employer for the calendar year. The pro-rata
share of the tax assessed on each taxpayer for a payroll period is
calculated by dividing the combined rate of the local services tax
by the number of payroll periods established by the employer. When
calculating the pro-rata share, employers are required to round down
to the nearest one-hundredth of a dollar. Employers must remit withheld
taxes to the designated tax collector 30 days after the end of each
calendar quarter.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to him/her by the local services
tax receiver. 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.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
Each employer shall use his employment records as of the first
day of May in determining the number of employees from whom the said
local services tax shall be deducted and paid over to the local services
tax receiver, said payment to be made on or before July 31. Each employer
who engages the services of any individual in an occupation to be
performed in the Borough of Conshohocken on or after the first day
of May shall require said employee to furnish to him any certificate
of payment from the local services tax receiver showing that the local
services tax has theretofore been paid. In the event that such employee
has not previously paid his local services tax, the employer shall
deduct same within 30 days after the employee is hired and remit it
to the local services tax receiver.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
Each individual who shall have more than one occupation within
the Borough of Conshohocken 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 to the employer by the local services tax receiver,
which form shall be evidence of deduction 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 and the account
number of the employer who deducted this tax.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
If a taxpayer has two or more jobs in different political subdivisions
during a payroll period, the priority of claim to collect the local
services tax is as follows:
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
All self-employed individuals who perform services of any type
or kind or engage in any occupation or profession within the Borough
of Conshohocken shall be required to comply with this Part 10 and
pay the tax to the local services tax receiver on July 31 or as soon
thereafter as he engages in an occupation. The tax for self-employed
individuals should be pro rated on a quarterly basis. Self-employed
taxpayers shall pay the tax 30 days after each quarter ends.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
All employers and self-employed individuals residing or having
their place of business outside of the Borough of Conshohocken but
who perform services of any type or kind or engage in any occupation
or profession within the Borough of Conshohocken do, by virtue thereof,
agree to be bound by and subject themselves to the provisions, penalties
and regulations promulgated under this Part 10 with the same force
and effect as though they were residents of the Borough of Conshohocken.
Further, any individual engaged in an occupation within the Borough
and an employee of a nonresident employer may, for the purpose of
this Part, be considered a self-employed person; and in the event
that this tax is not paid, the local services tax receiver shall have
the option of proceeding against either the employer or employee for
the collection of this tax as hereinafter provided.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
1.
It shall be the duty of the local services tax receiver 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.
2.
The local services tax receiver is hereby charged with the administration
and enforcement of this Part 10 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 Part 10, including provisions for the examination of the payroll
records of any employer subject to this Part 10, the examination and
correction of any return made in compliance with this Part 10, 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 local services tax receiver shall have the right to
appeal to the Court of Common Pleas of Montgomery County as in other
cases provided.
3.
The local services 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 local services tax receiver the means, facilities and opportunity
for such examination.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
1.
In the event that any tax under this Part 10 remains due or unpaid
30 days after the due date above set forth, the local services tax
receiver may sue for the recovery of any such tax due or unpaid under
this Part 10, together with interest and penalty.
2.
If for any reason the tax is not paid when due, interest at the rate
of 6% on the amount of said tax, 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.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
Whoever makes any false or untrue statement on any return required
by this Part 10, 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 required by this Part 10, or who shall
fail to pay the tax due, shall, upon conviction before any court of
competent jurisdiction, be sentenced to pay a fine of not less than
$300 and not more than $1,000 for each offense and, in default of
payment of said fine and costs, be imprisoned in Montgomery 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 Part 10.
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
1.
Nothing contained in this Part 10 shall be construed to empower the
Borough of Conshohocken to levy and collect the tax hereby imposed
on any occupation not within the taxing power of the said Borough
under the Constitution of the United States and the Constitution and
laws of the Commonwealth of Pennsylvania.
2.
If the tax hereby imposed under the provisions of this Part 10 shall
be held by any court of competent jurisdiction to be in violation
of the Constitution or 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
[Ord. 2-2005, 4/1/2005; as amended by Ord. 13-2007, 11/21/2007]
This Part 10 shall be effective on January 1, 2008.
