This article shall be known and may be cited as the "Local Taxpayers
Bill of Rights Act."
The following words and phrases, when used in this article,
shall have the meanings given to them in this section unless the context
clearly indicates otherwise:
ASSESSMENT
The determination by a Borough of the amount of underpayment
by a taxpayer.
BOARD
A board of local tax appeals established under 53 Pa.C.S.A.
§ 8430 (relating to administrative appeals).
ELIGIBLE TAX
Any of the following, including interest and penalty provided
by law, when levied by a political subdivision:
A.
Any tax authorized or permitted under the Act of December 31,
1965 (P.L. 1257, No. 511), known as the "Local Tax Enabling Act."
B.
Any per capita tax levied under any act.
C.
Any occupation, occupation assessment or occupation privilege
tax levied under any act.
D.
Any tax on income levied under any act.
E.
Any tax measured by gross receipts levied under any act.
F.
Any tax on a privilege levied under any act.
G.
Any tax on amusements or admissions levied under any act.
H.
Any tax on earned income and net profits.
GOVERNING BODY
A city council, borough council, incorporated town council,
board of township commissioners, board of township supervisors, a
governing council of a home rule municipality or option plan municipality,
a governing council of any similar general purpose unit of government
which may hereafter be created by statute or a board of school directors
of a school district.
LOCAL TAXING AUTHORITY
A political subdivision levying an eligible tax. The term
shall include any officer, agent, agency, clerk, income tax officer,
collector, employee or other person to whom the governing body has
assigned responsibility for the audit, assessment, determination or
administration of an eligible tax. The term shall not include a tax
collector or collection agency who has no authority to audit a taxpayer
or determine the amount of an eligible tax or whose only responsibility
is to collect an eligible tax on behalf of the governing body.
OVERPAYMENT
Any payment of tax which is determined in the manner provided
by law not to be legally due.
TAXPAYER
An individual, partnership, association, corporation, limited
liability company, estate, trust, trustee, fiduciary or any other
entity subject to or claiming exemption from any eligible tax or under
a duty to perform an act for itself or for another under or pursuant
to the authority of an act providing for an eligible tax.
UNDERPAYMENT
The amount or portion of any tax determined to be legally
due in the manner provided by law for which payment or remittance
has not been made.
VOLUNTARY PAYMENT
A payment of an eligible tax made pursuant to the free will
of the taxpayer. The term does not include a payment made as a result
of distraint or levy or pursuant to a legal proceeding in which the
Borough is seeking to collect its delinquent taxes or file a claim
therefor.
The Borough shall notify the taxpayer, in writing, of the basis
for any underpayment that the Borough has determined to exist. The
notification shall include:
A. The tax period or periods for which the underpayment is asserted.
B. The amount of the underpayment detailed by tax period.
C. The legal basis upon which the Borough has relied to determine that
an underpayment exists.
D. An itemization of the revisions made by the Borough to a return or
report filed by the taxpayer that results in the determination that
an underpayment exists.
Unless otherwise specified by the taxpayer, all voluntary payments
of an eligible tax shall be prioritized by the Borough, as follows:
D. Any other fees or charges.
A political subdivision levying an eligible tax shall establish
an administrative process to receive and make determinations on petitions
from taxpayers relating to the assessment, determination or refund
of an eligible tax. The administrative process shall consist of any
one of the following:
A. Review and decision or hearing and decision by the Borough Tax Appeals
Board appointed by the Borough Council. The Board shall consist of
at least three but not more than seven members. Qualifications for
service on the Board and compensation, if any, of the members shall
be determined by the Borough Council. The Borough Council may enter
into agreements with other political subdivisions to establish a joint
local tax appeal board.
B. Review and decision by the Borough Council in executive session.
C. A hearing and decision by a hearing officer appointed by the Borough
Council. The Borough Council shall determine the qualifications and
compensation, if any, of the hearing officer.
D. An administrative review or appeal process existing on the effective date of this article that is substantially similar to the procedures in Subsection
A,
B or
C.
Practice and procedure under this section shall not be governed by 2 Pa.C.S.A. Chapter 5 Subchapter B (relating to practice and procedure of local agencies) and Chapter
7 Subchapter B (relating to judicial review of local agency action). The Borough Council shall adopt regulations governing
practice and procedure under this section.
Decisions on petitions submitted under this section shall be
issued within 60 days of the date a complete and accurate petition
is received. Failure to act within 60 days shall result in the petition
being deemed approved.
Any person aggrieved by a decision under this article who has
a direct interest in the decision shall have the right to appeal to
the court vested with the jurisdiction of local tax appeals by or
pursuant to 42 Pa.C.S.A. (relating to judiciary and judicial procedure).
Decisions under this article may be made according to principles
of law and equity.
Except as provided in 53 Pa.C.S.A. § 8426 (relating
to interest on overpayment) this section shall not apply to any tax
on real property.