[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
The following words and phrases when used in this Part shall
have the meaning ascribed to them in this section unless the context
clearly indicates a different meaning:
An individual, partnership, limited partnership, association
or corporation that engages the services of any individual and makes
payment to said individual whether by salary, wages or commission.
An employer shall include a self-employed person who engages in his
employ the services of one or more individuals besides himself.
Any person, male or female, who attains or is over the age
of 18 years in any fiscal year; (1) in which the emergency and municipal
services tax shall be levied; and (2) during or in which such person
shall be engaged in any occupation of any nature, type or kind whatsoever
within the corporate limits of the Township, whether in the employ
of another, or self-employed.
A local services tax of $52 per year is levied on each engagement
in any occupation, as heretofore defined, within the corporate limits
of the Township during the fiscal year.
The exercising or carrying on by any manner or means any
occupation whatsoever, whether it be trade, profession, business or
undertaking of any type or kind carried on or performed within the
corporate limits of the Township for which recompense is received,
whether by means of salary, wages or commission or whether the individual
be self-employed by payment for services rendered.
The Township of Lower Heidelberg, Berks County, Pennsylvania.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
For the fiscal year 2006 (and annually thereafter), the Township
hereby imposes on each engagement in an occupation, to be paid by
each individual exercising the privilege of engaging in any occupation
within the corporate limits of the Township, an annual local services
tax in the manner and at the rates set forth in this Part. Any individual
whose total income from all sources in any taxable year is less than
$12,000 shall be exempt from the provisions of this Part.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
Beginning on January 1, 2006, each engagement in an occupation,
as an occupation, as defined above, shall be subject to the payment
of a local services tax of $52, to be paid by each individual exercising
the privilege of engaging in any occupation, as hereinbefore defined,
within the corporate limits of the Township.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 2]
A.
The Local Services Tax ("LST") shall be assessed and collected on
a pro rata basis determined by the number of payroll periods established
by an employer for a calendar year. The pro rata share of the LST
assessed on each taxpayer for a payroll period shall be calculated
by dividing the combined rate of the LST by the number of payroll
periods established by the employer for the calendar year. Therefore,
the LST of $52 shall be collected at $1 per week for tax payers paid
weekly, or at $4.33 per month for taxpayers paid monthly. The LST
shall be applicable to employment beginning January 1 of the current
year, and ending December 31 of the current year. The employer shall
be required to remit the LST to the Township's Tax Collector
30 days after the end of each quarter of a calendar year. The Tax
Collector shall upon written notice to employer collect from all tax
payers owing delinquent LST. Upon the presentation of such written,
notice, it shall be the duty of the employer to deduct from the wages,
commissions or earning of such employee, then owing or that shall
within 60 days thereafter become due, a sum sufficient to pay the
respective amount of the delinquent LST to the Tax Collector within
60 days after such written notice shall have been given. No more than
10% of the wages, commissions or earnings of the delinquent taxpayer
may be deducted at any one time for delinquent local services taxes.
The employer shall be entitled to deduct from the moneys collected
from such employee the costs incurred from the extra bookkeeping necessary
to record such transactions, not exceeding 2% of the amount of money
so collected and paid over to the Tax Collector. Upon the failure
of any employer to deduct the amount of delinquent taxes or to pay
the same over to the Tax Collector, less the permitted allowance for
the cost of bookkeeping involved in such transaction, within the time
period required, such employer shall pay the amount of the delinquent
taxes for each taxpayer whose taxes are not withheld and paid over
or that are withheld and not paid over together with a penalty of
10% added thereto. Upon failure of the employer to deduct the amount
of delinquent taxes as set forth above, the Tax Collector shall recover
the taxes and penalty and the costs to the Township of such collection
by filing an action of assumpsit in a suit to be instituted by the
Tax Collector.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 3]
All employers with work sites within the Township are required
to deduct the LST from their employees at the site of employment.
The situs for payment is the place of employment on the first day
the taxpayer becomes subject to the LST during each payroll period.
All employers are hereby charged with the duty of paying over to the
Tax Collector from each employee engaged in his or her service the
LST of $52 per year upon each individual employed by said employer
who performs services on behalf of said employer within the geographical
limits of the Township who is engaged in an occupation, as defined
in Section 801, for the benefit of said employer or in the service
of said employer within the geographical limits of the Township. Each
employer shall make a return in payment of said tax and is authorized
to deduct said LST at the pro rata basis described in Section 804
of this chapter. Employers are only required to withhold the LST on
a payroll period basis for those payroll periods in which taxpayer
is employed. Each employer within the Township shall prepare and file
a return showing a computation of the tax on a form to be obtained
from the Tax Collector.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 4]
Each individual who shall have more than one occupation within
the Township shall be subject to the payment of the local services
tax solely upon his principal occupation, and an employer is not required
to withhold the LST if the taxpayer provides a pay stub from his or
her principal employer accompanied by a form developed by the Department
of Community and Economic Development ("DCED") entitled "employee
statement of principal employment" indicating that the pay stub is
from the taxpayer's principal employer and that the taxpayer
will notify the employer of any change in employment. An employer
is relieved of liability for the LST if the employer fails to withhold
the tax due to incorrect information provided by the taxpayer regarding
the taxpayer's principal employer or if the employer complies
with the provisions in this Article establishing the collection of
the tax on a payroll period basis. If a taxpayer has two or more jobs
in different political subdivisions during a payroll period, the priority
of claim to collect the LST shall be in the following order: (1) where
the taxpayer maintains his or her principal office or is principally
employed; (2) where the taxpayer resides and works; and (3) where
the taxpayer is employed that is nearest in miles to the taxpayer's
home.
[1]
Editor's Note: Former Section 807, Employer's Date of Determination
of Liability for Tax, adopted 1/3/2006 by Ord. 256, § 1,
was repealed 12/17/2007 by Ord. 272, § 5.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 6]
Each self-employed individual in the Township who performs services
of any type or kind within the geographical limits of the Township,
whether the same is regarded as a profession or a business, shall
be required to pay the LST on a quarterly basis. The LST shall be
prorated and paid to the Tax Collector 30 days after the end of each
calendar quarter.
[1]
Editor's Note: Former Section 809, Domestics, adopted 1/3/2006
by Ord. 256, § 1, was repealed 12/17/2007 by Ord. 272, § 7.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
The local services tax imposed by this Part shall be in addition
to all other taxes of any kind or nature heretofore or hereafter levied
by the Township.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
(a)
It shall be the duty of the agent appointed by the Township for the
collection of the local services tax to collect and receive the taxes,
fines or penalties imposed by this Part. It shall also be his duty
to keep a record showing the amount received by him from each self-employed
person paying the local services tax and the date of such receipt;
and, further, it shall be his duty to keep a record showing the amount
received by him from every employer paying said tax on behalf of his
employees by deduction made by such employer from the salary, wages,
commissions or other forms of recompense.
(b)
The agent appointed by the Township for the collection of the local
services tax is hereby charged with the administration of this Part,
and is hereby empowered to prescribe, adopt, promulgate and enforce
rules and regulations relating to any matter pertaining to the administration
and enforcement of this Part, including a provision for the examination
of the payroll records of any employer within the Township; and, further,
for the reexamination and correction of any returns made in compliance
with this Part 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 agent appointed by the Township
for the collection of said tax shall have the right to appeal to the
Court of Common Pleas of Berks County as in other cases provided.
(c)
The agent appointed by the Township for the collection of the local
services tax is hereby authorized to examine the books and payroll
records of any employer in order to verify the accuracy of any return
made by any employer on behalf of his employees, or if no return was
made, to ascertain the local services tax due. Each employer in the
Township is hereby directed and required to give to the agent appointed
by the Township for the collection of said tax the means, facilities
and opportunity for such examinations and investigations as are hereby
authorized.
(d)
The records, books and accounts of the agent appointed by the Township
for the collection of the local services tax shall be audited by whoever
is charged with the auditing of the accounts of the Township.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
(a)
In the event that any local services tax under this Part remains
due and unpaid at the end of the fiscal year, the agent appointed
by the Township for the collection of said tax may sue for the recovery
of any such tax due or unpaid under this Part, together with penalty.
(b)
If for any reason the local services tax is not paid when due in
any fiscal year, interest at the rate of 6% on the amount of said
tax shall be calculated beginning with the first day of January of
the following year. Where suit is brought for the recovery of any
local services tax, the individual liable therefor shall, in addition,
be responsible and liable for the costs of collection and the interest
and penalties herein imposed.
[Ord. 256, 1/3/2006, § 1; as amended by Ordinance
272, 12/17/2007, § 1]
Whoever makes any false or untrue statement on any return required
by this Part, or who refuses inspection of his books, records or accounts
in his custody or control, in order to determine the number of employees
subject to the local services tax who are in his employment, or whoever
fails or refuses to file any return required by this Part, shall be
guilty of a violation of this Part, and, upon conviction thereof before
the District Justice, for every such offense, 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. It is further provided that action to enforce the
penalty herein provided may be begun and instituted against any person
in charge of the business premises of any employer who has failed
or who refuses to file a return required by this Part.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
The provisions of this Part are severable, and if any of its
provisions or exceptions shall be held illegal, invalid or unconstitutional,
such decision of the court shall not affect or impair any of the remaining
provisions of this Part. It is hereby declared to be the legislative
intent that this Part would have been adopted if such illegal, invalid
or unconstitutional provisions or exceptions had not been included
herein.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
(a)
Nothing contained in this Part shall be construed to empower the
Township to levy and collect the local services tax imposed on any
occupation not within the taxing power of the Township under the Constitution
of the United States and the laws and Constitution of the Commonwealth
of Pennsylvania.
(b)
If the local services tax hereby imposed under the provisions of
this Part shall be held by any court of competent jurisdiction to
be in violation of the Constitution of the United States or 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 local services tax, or the validity of said tax so imposed upon
other persons or individuals as herein provided.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
If any individual is engaged in any occupation of any type or
kind licensed by the Commonwealth of Pennsylvania, the local services
tax imposed by this Part, nevertheless, shall be payable and due by
said individual for the privilege of maintaining a location within
the corporate limits of the Township or for the carrying on of such
occupation or business so licensed within the corporate limits of
the Township.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
This Part is enacted under the authority of the Act of December
31, 1965, P.L. 1257, as amended, known as the "Local Tax Enabling
Act," and the local services tax imposed hereby shall be for general
revenue purposes.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 1]
The revenue to be derived from said local services tax is necessary
to help to defray the expenses of the Township in accordance with
the provisions of the Local Tax Enabling Act.
[Ord. 256, 1/3/2006, § 1; as amended by Ord. 272,
12/17/2007, § 8]
Any claim for refund of any LST paid during any fiscal year
shall be filed in writing with the Township's Tax Collector in
compliance with the Local Taxpayer Bill of Rights, as amended, which
sets forth the procedures for filing refund claims for taxpayers who
overpaid the LST. Refunds are not subject to interest if made within
75 days of either a refund request or January 30 of the year after
the tax is paid, whichever is later. The Township is prohibited from
providing refunds that are $1 or less.
[Ord. 272, 12/17/2007, § 9]
Any individual engaged in an occupation, as defined in this
Part, whose total earned income and net profits from all sources within
the political subdivision is less than $12,000 for the calendar year
in which the LST is levied, shall be exempt from payment of the LST
for each such year. In order to receive an upfront exemption, employees
must file an annual upfront exemption form developed by DCED with
the Township and the employee's employer. The exemption certificate
shall verify that the employee reasonably expects to receive earned
income and net profits of less than $12,000 from all source within
the Township for the calendar year for which the exemption certificate
is filed. Employers shall make upfront exemption forms readily available
to employees at all times and provide new employees with the forms
at the time of hiring. In addition, the following individuals are
exempt from the LST: (1) members of a reserve component of the armed
forces called to duty during the year or years in which such deployment
occurs and (2) honorably discharged veterans who served in any war
or armed conflict who are blind, paraplegic, or a double or quadruple
amputee as a result of military service or who are 100% disabled from
a service connected disability.
