[Adopted 12-10-2007 by Ord. No. 2007-24 (Part 3, Ch. 2, Art.
D, of the 1976 Code of Ordinances)]
A.
COLLECTOR
COMPENSATION
EARNED INCOME AND NET PROFITS
EFFECTIVE DATE
EMPLOYEE
EMPLOYER
ENABLING ACT
ENACTMENT
GOVERNING BODY
OCCUPATION
REGULATIONS
TAX
TAXING AUTHORITY
TAXPAYER
TAX RETURN
TAX YEAR
The following words and phrases, when used in this article, shall
have the meanings ascribed to them in this section, unless the context
clearly indicates a different meaning:
The person or persons appointed by this article or by subsequent
enactment of the governing body to collect the tax imposed by this
article.
Salary, wages, commissions, tips, bonuses, fees, or any other
payment or income.
The meanings as set forth in the Enabling Act, 53 P.S. § 6913.[1]
January 1, 2008.
An individual paid compensation by an employer to perform
an occupation of any kind.
Any individual, partnership, limited partnership, unincorporated
association, institution, trust, corporation, government agency, or
other entity engaged in business or operating within the taxing authority,
employing one or more individuals engaged in an occupation.
The Local Tax Enabling Act, 53 P.S. § 6901 et seq.,
and as amended in the future.
This article.
The Board of Commissioners of Manheim Township.
Any work, job, activity, livelihood, trade, profession, business
or enterprise of any kind, including services, domestic or other,
for which any compensation is received. A person may have more than
one occupation.
Regulations duly adopted by the Collector for administration
of the tax. To the extent allowed by law, including, but not limited
to, 1 Pa.C.S.A. § 1937, the governing body intends to incorporate
future amendments to the regulations. If a court prohibits such construction,
the governing body intends to incorporate the regulations as they
exist on the date of adoption of this article. A copy of the regulations
currently in force shall be available for public inspection.
The tax imposed by this article.
Manheim Township.
Any individual on whom the tax is imposed.
A form prescribed by the Collector for reporting the amount
of any tax deducted from an employee or otherwise owed under this
article.
The period from January 1 to December 31.
[1]
Editor's Note: 53 P.S. § 6913 was repealed 7-2-2008
by P.L. 197, No. 32, § 17, effective 6-30-2012. For current
provisions, see 53 P.S. § 6924.501 et seq.
B.
The singular shall include the plural, and the masculine shall include
the feminine and the neuter.
A.
The taxing authority hereby imposes a tax of $52 on each individual
who engages in an occupation within the boundaries of the taxing authority.
Pursuant to the terms of the Enabling Act, although the tax is imposed
at the rate of $52 per annum, $10 per annum will be paid to the Manheim
Township School District for so long as the Manheim Township School
District imposes a tax upon the privilege of engaging in an occupation
within Manheim Township, and $42 per annum will be paid to the Township.
The tax is imposed for the tax year starting on the effective date
and ending on the next December 31. The tax is imposed for each tax
year thereafter without annual reenactment, until this article is
repealed or amended.
B.
The tax is based on an individual engaging in an occupation within
the taxing authority at any time during the tax year and shall be
known as the "local services tax" or the "occupation privilege tax."
The Enabling Act, as amended by Act 7 of 2007, has denominated any
occupation privilege tax as a local services tax.
C.
All provisions of the Enabling Act imposing requirements applicable
to a local services tax and all provisions of the regulations are
incorporated into this article. If there is any discrepancy between
the regulations and the Enabling Act, or this article and the Enabling
Act, the provisions of the Enabling Act shall control.
D.
The tax is imposed and proceeds of the tax shall be used in accordance
with all applicable requirements of the Enabling Act.
A.
An individual whose total earned income and net profits from all
sources within the taxing authority in any tax year is less than $12,000
is exempt from the tax for the tax year.
B.
Individuals may also be exempt for other reasons, including disability
resulting from serving in the armed forces, active duty as a member
of a reserve component of the armed forces, and other reasons as set
forth in the regulations.
C.
An individual may obtain an exemption prospectively by filing a local
services tax exemption certificate on a form provided by the Collector
in accordance with the regulations. The exemption certificate shall
be filed with the Collector and, if the individual is an employee,
also with the individual's employer.
D.
If an individual pays the tax and at the end of any tax year has
total income during the tax year that is less than the income exemption
amount, or otherwise qualifies for an exemption, the taxing authority
will, on request, after the end of the tax year, refund to the taxpayer
the tax paid for the tax year.
Rules applicable to individuals who engage in an occupation
in multiple jurisdictions or have multiple employers are as set forth
in the regulations.
A.
Every employer not registered under the provisions of an enactment
of the taxing authority imposing a tax on earned income and net profits
shall, within 30 days after the effective date, or within 30 days
after first becoming an employer, register with the Collector the
employer's name, address and any other information required by the
Collector on an employer registration form prescribed by the Collector.
B.
Every employer is required to deduct the tax as set forth in the
regulations from any compensation payable to any employee on whom
the tax is imposed, unless the employee has filed a local services
tax withholding exemption certificate in accordance with the regulations.
As set forth in the regulations, the full amount of the tax shall
be deducted in lump sum if the combined municipal and school district
tax rate is $10 or less. As set forth in the regulations, the tax
shall be deducted pro rata on a per-payroll basis if the combined
municipal and school district tax rate exceeds $10.
C.
As set forth in the regulations, no employee is required to pay tax
through more than one employer during any payroll period.
D.
An employer is excused from withholding to the extent provided in
the regulations if the employee has filed a local services tax withholding
exemption certificate in accordance with the regulations. The exemption
certificate may provide exemption from withholding based on:
(1)
Low income or other exemption from tax as stated in the regulations;
(2)
Withholding by another principal employer;
(3)
Prior payment to the taxing authority of the full amount of the tax
imposed by the taxing authority; or
(4)
Prior payment during the same tax year of $52 as a tax imposed under
the Enabling Act on an individual based on engaging in an occupation
in Pennsylvania.
E.
If an employee has filed a local services tax withholding exemption
certificate and it is determined as set forth in the regulations that
the employee is not eligible for exemption or no longer eligible for
exemption, the employer shall start or restart withholding as set
forth in the regulations.
F.
As to each taxpayer employed at any time after the effective date
and on or before March 31, every employer shall deduct the tax from
compensation payable to the taxpayer as set forth in the regulations
and shall file a tax return and pay to the Collector, on or before
April 30, the amount of tax deducted on or before March 31. As to
each taxpayer for whom the full amount of the tax has not previously
been deducted or paid directly by the taxpayer to the Collector, who
is employed at any time in any of the three-month periods ending June
30, September 30, and December 31, every employer shall deduct the
tax from compensation payable to the taxpayer as set forth in the
regulations and shall file a tax return and pay to the Collector on
or before the following July 30, October 30, and January 30 the amount
of tax deducted on or before June 30, September 30, and December 31,
respectively. Every employer shall follow this same procedure in every
tax year.
G.
Tax amounts deducted from compensation by an employer shall at all
times be the property of the taxing authority and shall constitute
a trust fund held by the employer until remitted to the Collector,
and deduction of tax from wages shall, as between the employee and
the taxing authority, constitute payment of the tax by the employee,
regardless of any insolvency or failure to remit by the employer.
H.
Any employer who fails to deduct the tax or who fails to pay the
tax to the Collector shall be liable for the tax and applicable penalties
in full as though the tax had originally been imposed against such
employer. If the employer is a partnership, the partners thereof,
and if the employer is a corporation, limited liability company, or
other organization or entity, all officers thereof, and any other
person responsible for payment of taxes shall have the same liability
as the employer.
Every individual who is self-employed, or whose tax for any other reason is not deducted by an employer under § 455-36 of this article, shall file a tax return and pay the tax directly to the Collector. Except as otherwise stated in the regulations, every such individual engaged in an occupation within the taxing authority at any time after the effective date and on or before March 31 shall file a tax return and pay the full amount of the tax to the Collector on or before April 30. Except as otherwise stated in the regulations, every such individual who has not previously paid the full amount of the tax who engages in an occupation within the taxing authority at any time in any of the three-month periods ending June 30, September 30, and December 31 shall file a tax return and pay the full amount of the tax to the Collector on or before the following July 30, October 30, and January 30, respectively. Every individual who is self-employed, or whose tax for any other reason is not deducted by an employer under § 455-36 of this article, shall follow this same procedure in every tax year.
By virtue of engaging in an occupation within the taxing authority,
both resident and nonresident individuals are subject to the tax.
A.
The Collector shall collect the tax, fines and penalties imposed
by this article and shall keep records of collection.
B.
The Collector may examine the books, papers, and records of any individual
or employer in order to verify compliance with this article. Every
individual the Collector believes might be subject to the tax and
every employer or person the Collector believes might be an employer
shall, on request, meet with and show to the Collector all books,
papers, and records requested by the Collector. Every employer or
person the Collector believes might be an employer shall also provide
access to the employer's books, papers, and records at the employer's
place of business and provide a place for the Collector's review of
such books, papers, and records. For purposes of this article, "records"
shall include records in any form, including computer and other electronic
records.
C.
The Collector may file suit in its name or in the name of the taxing
authority for recovery of any amount owed to the taxing authority.
D.
Except as limited by any applicable law, the Collector shall have
all of the powers that the taxing authority has or that the law prescribes
for tax collectors relating to administration and enforcement of this
article.
E.
The Collector may promulgate and enforce regulations relating to
administration and enforcement of this article.
A.
If any tax is not paid when due, the following penalty shall apply:
a penalty of 5% of the amount unpaid for each month or a fraction
of a month during which the amount remains unpaid.
B.
Any individual or entity who or which fails or refuses to pay tax
or other amounts owed or to pay tax deducted from employees shall,
in addition to paying the amount owed, pay reasonable costs incurred,
as set forth in the regulations, by the taxing authority, Collector,
or any other person or entity appointed to collect the amount, to
provide notices of delinquency or to implement similar procedures
to collect delinquent taxes.
C.
If legal proceedings are commenced for failure to pay any amount
owed, the person or entity liable therefor shall, in addition to the
amount owed, pay to the taxing authority, Collector, or any other
person or entity appointed to collect the tax the costs of collection,
including reasonable attorney fees.
D.
Any individual or entity who or which fails or refuses to file any
employer registration form or tax return required by this article
or the regulations, who or which fails or refuses to pay tax or other
amounts owed or to pay tax deducted from employees, who or which refuses
to permit the Tax Collector to examine books, papers, and records,
or who or which makes any incomplete, false or fraudulent filing or
return shall, upon conviction thereof before any Magisterial District
Judge, be sentenced to pay a fine of not more than $500 for each offense,
and costs, and, in default of payment of said fine and costs, be subject
to imprisonment for a period not exceeding 30 days. If an employer
is a partnership, the partners thereof, and if an employer is a corporation,
limited liability company, or other organization or entity, all officers
thereof, and any other person responsible for payment of taxes, shall
be subject to prosecution under this section as the employer.
E.
The failure of any individual or entity to receive or procure forms
required for making a required filing or return shall not excuse making
such a filing or return.
The Lancaster County Tax Collection Bureau, also doing business
as the Middletown Area Tax Collection Bureau, is appointed Collector
according to the terms of a tax collection agreement as presented
this date or previously executed. The officers of this taxing authority
are authorized to take any actions necessary or appropriate to carry
out the terms of this article and the tax collection agreement.