This article shall be known and may be cited as the "Local Services
Tax Ordinance."
The provisions of the local Tax Enabling Act (Act No. 511 of
1965), as amended, are incorporated by reference, as required by law.
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 or firm from
time to time designated by Council of the Borough of Paxtang to collect
or receive the tax levied by this article and administer the provisions
of this article.
DCED
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
EARNED INCOME
Compensation as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
Dec. 31, 1965, P.L. 1257, § 13, as amended, 53 P.S. § 6913,
as amended.
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, fee or other compensation basis, including a self-employed
person.
HE, HIS OR HIM
Includes singular and plural number, and male, female and
neuter gender.
INDIVIDUAL
Any person, male or female, engaged in any occupation within
the limits of the Borough of Paxtang.
NET PROFITS
The net income from the operation of a business, profession,
or other activity, as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
Dec. 31, 1965, P.L. 1251, § 13, as amended, 53 P.S. § 6913,
as amended.
OCCUPATION
Any trade, profession, business, enterprise, activity or
undertaking of any type, kind or character, including services, domestic
or other, carried on or performed within the limits of the Borough
of Paxtang for which compensation is charged or received, whether
by means of any salary, wages, commissions or fees for services rendered.
TAX
The local services tax authorized by Act of December 1, 2004,
No. 222, as amended, levied by this article.
TAX YEAR
The period from January 1 until December 31 in any year;
a calendar year.
For specific revenue purposes, an annual tax is hereby levied
and assessed, commencing January 1, 2008, upon the privilege of engaging
in an occupation with a primary place of employment within the Borough
of Paxtang during the tax year. Each natural person who exercises
such privilege for any length of time during any tax year shall pay
the tax provisions of this article. This tax may be used solely for
the following purposes, as the same may be allocated by the Borough
of Paxtang from time to time: (1) emergency services, which shall
include emergency medical services, police services and/or fire services;
(2) road construction and/or maintenance; (3) reduction of property
taxes; or (4) property tax relief through implementation of a homestead
and farmstead exclusion in accordance with 53 Pa.C.S.A. Ch. 85, Subch.
F (relating to homestead property exclusion). No less than 25% of
the funds derived from the tax shall be used for emergency services.
This tax is in addition to all other taxes of any kind or nature heretofore
levied by the Borough of Paxtang. The tax shall be no more than $52
on each person for each calendar year, irrespective of the number
of political subdivisions within which a person may be employed.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to him by the Collector. If the
employer fails to file said return and pay said tax, whether or not
the employer makes collection thereof from the salary, wages, commissions
or fees paid by him to each employee, except as provided in this article,
the employer shall be responsible for the payment of the tax in full
as though the tax had originally been levied against the employer.
In each tax year, each employer shall use his or her employment
records to determine the number of employees from whom such tax shall
be deducted and paid over to the Collector on or before the 30th day
following the end of each calendar quarter of each such tax year.
All self-employed individuals engaged in any occupation within the Borough of Paxtang shall be required to comply with this article and pay the pro rata portion of the tax due to the Collector on or before the 30th day following the end of each calendar quarter. In the event a self-employed person is engaged in more than one occupation within or without the Borough or an occupation which requires his working in more than one political subdivision during the year, reporting priority of claims and prima facie certification payment shall be in accordance with §
381-44.
All employers and self-employed individuals residing or having
their place of business outside Paxtang Borough but who engage in
any occupation within Paxtang Borough 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 Paxtang Borough. Further,
any individual engaged in an occupation within Paxtang Borough and
an employee of a nonresident employer may, for the purpose of this
article, be considered a self-employed person, and in the event this
tax is not paid, the Borough shall have the option of proceeding against
either the employer or employee for the collection of this tax as
hereinafter provided.
The Collector shall attach the wages, commissions and earnings
of any person owing delinquent local services tax or of any person
whose spouse owes delinquent local services tax in accordance with
the Local Tax Enabling Act, 53 P.S. § 6924.101 et seq.
Any person who makes any false or untrue statement on any return
required by this article, or who refuses to allow inspection of any
of the books, records or accounts in his custody or control, setting
forth the number of employees subject to this tax who are in his employment,
whoever fails or refuses to file any return required by this article,
shall be guilty of a violation and shall, upon conviction, be sentenced
to pay a fine of not more than $600 and the costs of prosecution and,
in the default of payment of fine and costs, to undergo imprisonment
for not more than 30 days for each offense or violation, provided
the action to enforce the fine or penalty provided by this article
may be instituted against any person in charge of the business or
any employer who fails or refuses to file a return required by this
article.