This article shall be known and may be cited as the "West Manchester
Township Local Services Tax Ordinance."
This article is enacted under the authority of the Local Tax
Enabling Act, as amended by Act No. 7 of 2007.
The purpose of this article is to provide revenue for police,
fire and emergency services; road construction and maintenance; the
reduction of property taxes and for such other purposes as may be
specified for such tax from time to time by the laws of the Commonwealth
of Pennsylvania.
The following words and phrases when used in this article shall
have the meanings ascribed to them in this section except where the
context clearly indicates or requires a different meaning:
COLLECTOR
The person or firm, from time to time, designated by motion
of the Board of Supervisors to collect and administer the provision
of this article and collect the tax levied by this article. Until
changed by subsequent motion, the Collector shall be the same person
or firm last designated to collect the emergency and municipal services
tax for the Township of West Manchester.
COMBINED RATE
The aggregate annual rate of the local services tax levied
by a school district and West Manchester Township located in whole
or in part within the school district.
EARNED INCOME
Compensation as determined under Section 303 of the Act of
March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Pt.
1, Subpt. B, Art.
V (relating to personal income tax), not including, however, wages or compensation paid to individuals on active military service. Employee business expenses are allowable deductions as determined under Article
III of the Tax Reform Code of 1971. Any housing allowance provided to a member of the clergy shall not be taxable as earned income.
EMPLOYER
An individual, partnership, association, 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 engaged in any occupation, trade or profession
within the jurisdictional limits of the Township whose total earned
income and net profits within the Township are greater than $12,000
per calendar year ($2,000 in tax year 2008).
NET PROFITS
The net income from the operation of a business, profession
or other activity, (except from corporations) determined under Section
303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax
Reform Code of 1971," and regulations in 61 Pa. Code Pt.
1, Subpt. B, Art.
V (relating to personal income tax). The term does not include income which is not paid for services provided and which is in the nature of earnings from an investment. For taxpayers engaged in the business, profession or activity of farming, the term shall not include:
A.
Any interest generated from monetary accounts or investment
instruments of the farming business;
B.
Any gain on the sale of farming machinery;
C.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
D.
Any gain on the sale of other capital assets of the farm.
OCCUPATION
Any trade, profession, business or undertaking of any type,
kind or character including services, domestic or other, carried on
or performed within the jurisdictional limits of West Manchester Township
for which compensation is charged and/or received, whether by salary,
wages, commissions, fees or net profits for services rendered.
RESERVE COMPONENT OF THE ARMED FORCES
The United States Army Reserve, United States Navy Reserve,
United States Marine Corps Reserve, United States Coast Guard Reserve,
United States Air Force Reserve, The Pennsylvania Army National Guard
or the Pennsylvania Air National Guard.
TAX
The local services tax levied in this article.
TOWNSHIP
The area within the jurisdictional limits of West Manchester
Township.
The Township of West Manchester hereby levies and imposes on
every individual engaging in an occupation within the jurisdictional
limits of the Township a tax in the amount of $52 per annum, beginning
the first day of January 2008 and continuing on a calendar basis annually
thereafter, until modified or repealed by subsequent ordinance. This
tax is in addition to all other taxes of any kind or nature heretofore
levied by West Manchester Township.
The Township of West Manchester shall use the revenue derived
from this tax for the following purposes; provided, however, that
no less than 25% of the funds derived from this tax shall be used
for emergency services, as defined herein:
A. Emergency services, which shall include emergency medical services,
police services and/or fire services.
B. Road construction and/or maintenance.
C. Reduction of property taxes.
D. Property tax relief through implementation of a homestead and farmstead
exclusion in accordance with 53 Pa.C.S.A. Chapter 85, Subchapter F
(relating to homestead property exclusion), and in accordance with
Section 22.6 of Act No. 7 of 2007, as amended from time to time.
Employers are required to make and file a local services tax
quarterly return 30 days after the end of each quarter of a calendar
year. The local services tax quarterly return shall list the name,
address, and social security number of the employee; the physical
address of the employee's place of employment; the number of payroll
periods for which the local services tax was withheld; and the amount
of local services tax being remitted for each employee.
Each employer shall use his employment and payroll records from
the first day of January to March 31 each year for determining the
number of employees from whom said tax shall be deducted and paid
over to the Collector on or before April 30 of the same calendar year.
Supplemental reports shall be made by each employer on July 30, October
30 and January 31 for new employees as reflected on his employment
and payroll records from April 1 to June 30, July 1 to September 30
and October 1 to December 31, and payments on these supplemental reports
shall be made on July 30, October 30 and January 30, respectively.
All self-employed individuals and individuals whose employer
is not required to withhold local taxes (certain state and federal
agencies) will be billed quarterly for the local services tax. The
full amount of tax must be paid by the date indicated on such billing.
If such taxpayer qualifies for a low-income exemption, the taxpayer
may complete the required exemption certificate or make application
for a refund of the tax paid.
All employers and self-employed individuals residing or having
their place of business outside the Township but who engage in any
occupation within the Township 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 the Township. Further, any individual engaged
in an occupation within the Township 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 Collector shall
have the option of proceeding against either the employer or employee
for collection of this tax as hereinafter provided.
Whoever makes any false or untrue statement on any return required
by this article, who refuses inspection of his books, records or accounts
in his custody and control in order to determine the number of employees
subject to this tax who are in his employment, or who fails or refuses
to file any return required by this article, or fails or refuses to
pay the tax herein levied shall, upon conviction, be sentenced to
pay a fine of not more than $600 plus costs and, in default of payment
of said fine and costs, be sentenced to a term of imprisonment not
to exceed 30 days. 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
refused to file a return required by this article.
Refunds are to be paid within 75 days of a refund request or
75 days after the last day the employer is required to remit the local
services tax for the last quarter of the calendar year, under Section
9 of Act No. 7 of 2007, whichever is later, and shall not be subject
to interest if paid within the allowed time. Refunds shall only be
provided for amounts overpaid in a calendar year that exceed $1.
A. Refund due to duplication of payment. If at any time during the calendar
year a taxpayer pays more than $52 in combined local services tax,
the taxpayer may apply for a refund of the amount over $52. The proper
refund request form must be completed and signed by the taxpayer and
necessary documentation must be included. These refunds may be processed
at the time they are received, unless there is reason to believe we
will not receive the tax from the employer.
B. When an individual's earned income and net profits only for the calendar
year is less than the $12,000 exemption at the end of the calendar
year, any taxpayer who qualifies may complete a refund application
and include a copy of the necessary documentation.
The provisions of this article shall be severable. If any of
its provisions shall be held to be unconstitutional, illegal or otherwise
invalid, that decision shall not affect the remaining provisions of
this article or of the West Manchester Township Code of Ordinances.
The local services tax imposed by this article shall become
effective on January 1, 2008.