[Ord. 1999-02, 4/1/1999]
The Local Taxpayers' Bill of Rights, enacted as part of
Act 50 of 1998 (hereinafter the "LTBR"), requires that every political
subdivision levying an eligible tax adopt regulations governing the
administration and collection of the tax and setting forth a process
for handling appeals from decisions on assessments and refunds. This
document provides the regulations required by the LTBR. The disclosure
statement also required by the LTBR is provided in a separate document,
which is available upon request of the Tax Administrator.
[Ord. 1999-02, 4/1/1999]
ASSESSMENT — The determination by the Tax Administrator
of the amount of underpayment by a taxpayer.
Any of the following taxes specified within the term "eligible
tax" under the LTBR, including interest and penalties provided by
law, when levied by the governing body of the local government, but
specifically not including any real estate tax:
Any tax authorized or permitted under the Act of December 31,
1965 (P.L. 1257, No. 511), known as the “Local Tax Enabling
Act” or “Act 511.”
Any per capita tax.
Any occupation, occupation assessment or occupation privilege
tax.
Any tax levied on income.
Any tax measured by gross receipts.
Any tax on a privilege.
Any tax on amusements or admissions.
Any tax on earned income and net profits.
The hearing officer appointed by local government to hear
administrative appeals regarding an eligible tax.
Manheim Township.
Subchapter C of Act 50 of 1998 of the Pennsylvania General
Assembly, 53 Pa.C.S.A. §§ 8421-8428.
Any payment of tax which is determined in the manner provided
by law not to be legally due.
The petition for appeal and refund described in § 105.
The employee, agent, appointed tax collector, elected tax
collector, tax collection agency or other person to whom the governing
body of the local government has assigned or delegated responsibility
for the audits, assessment, determination or administration of an
eligible tax. Under the LTBR, this tax administrator is also referred
to and defined as the local taxing authority. In the case of the local
government, the tax administrator is Loren D. Riebling, Township Manager.
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 eligible tax levied by the local government.
The amount or portion of any eligible tax determined to be
legally due in the manner provided by law for which payment or remittance
has not been made.
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
Tax Administrator is seeking to collect its delinquent eligible taxes
or file a claim therefor.
[Ord. 1999-02, 4/1/1999, § 101]
1.
Minimum Time Periods for Taxpayer Response.
A.
The taxpayer shall have at least 30 calendar days from the mailing
date to respond to requests for information by the tax administrator.
The tax administrator shall grant a reasonable extension upon written
application explaining the reason(s) necessitating the extension,
which must amount to good cause. If the tax administrator denies a
request for extension, the tax administrator must inform the taxpayer
in writing of the basis for the denial and that the taxpayer must
immediately provide the requested information. If the tax administrator
grants an extension request, he must notify the taxpayer in writing
of the amount of extension granted. Generally, an extension will not
exceed 30 calendar days in length, and may be less, depending on the
circumstances.
B.
The tax administrator shall notify the taxpayer of the procedures
to obtain an extension in its initial request for information. Please
refer to the notice explaining the request for extension of time to
provide information attached as Schedule 1.[1]
[1]
Editor's Note: Schedule 1 (Exhibit A) is included at the end of this chapter.
C.
The tax administrator shall take no lawful action against a taxpayer
for the tax year in question until the expiration of the applicable
response period for submission of the information requested, including
extensions. For example, the tax administrator may not engage in any
collection efforts until after expiration of the response period.
After expiration of the response period, the tax administrator may
engage in collection efforts permitted by the LTBR and discussed in
§ 115 below.
2.
Requests for Prior Year Tax Returns.
A.
Except as provided in Subsection 2B, an initial inquiry by the tax administrator regarding a taxpayer's compliance with any eligible tax may include taxes required to be paid or tax returns required to be filed no more than three years prior to the mailing date of the notice.
B.
The tax administrator may make an additional subsequent request for a tax return or supporting information if, after the initial request, the tax administrator determines that the taxpayer failed to file a tax return, underreported income or failed to pay a tax fro one or more of the tax periods covered by the initial request. Generally, however, the tax administrator should not make routine requests for additional prior year returns. Notwithstanding the foregoing, the limitations in Subsection 2B above on subsequent requests for prior year returns shall not apply if the tax administrator has sufficient information to indicate that the taxpayer failed to file a required return or to pay an eligible tax which was due more than three years prior to the date of the notice. Thus, in situations involving failure to file a required return or to pay a required eligible tax, the tax administrator shall, in his discretion, have the ability to request prior year returns due more than three years prior and supporting information.
3.
Use of Federal or State Tax Information. The tax administrator may
require a taxpayer to provide copies of the taxpayer's federal
individual income tax return if the tax administrator can demonstrate
that the federal tax information is reasonably necessary for the enforcement
or collection of tax and the information is not available from other
available sources or the Pennsylvania Department of Revenue. The tax
administrator may also require a taxpayer to provide copies of the
taxpayer's state individual income tax return.
[Ord. 1999-02, 4/1/1999, § 102]
The tax administrator must notify the taxpayer in writing of
the basis for any underpayment that the Tax Administrator has determined
to exist with respect to any eligible tax. The purpose of this notification
is for the taxpayer to understand the exact reason why the tax administrator
believes an underpayment exists. This notification from the tax administrator
shall be written in a manner calculated to be understood by an average
person. The notification must include:
A.
The tax period or periods (usually measured in calendar years) for
which the underpayment is asserted.
B.
The amount of the alleged underpayment of the eligible tax detailed
by tax period.
C.
The legal basis (including any statutory or case law citations) upon
which the tax administrator has relied to determine that an underpayment
of an eligible tax exists.
D.
An itemization of the changes made by the tax administrator to a
return or report filed by the taxpayer that results in the determination
that an underpayment exists. A copy of any revised return or report
in the tax administrator's file must be provided to the taxpayer.
[Ord. 1999-02, 4/1/1999, § 103]
1.
Filing of Petitions.
A.
A taxpayer has the legal right to challenge an assessment or denial
of a refund claim under the LTBR. However, a taxpayer has a right
to one appeal only. If a taxpayer loses an assessment appeal, the
taxpayer is not entitled to a second refund appeal after paying the
tax. In addition, no administrative appeals are provided for other
decisions, including but not limited to the denial of an extension
of time to provide information or the modification or termination
of an installment agreement.
B.
The LTBR requires all political subdivisions to establish appeals
procedures. In order to begin the appeals process, the taxpayer must
file a complete and timely petition (the "petition"). A petition is
timely filed if the letter transmitting the petition is postmarked
by the United States Postal Service or actually received on or before
the final day on which the petition is due. Receipts from carriers
other than the United States Postal Service are not accepted as proof
of timely filing. Deadlines for filing a petition are as follows:
(1)
Petitions challenging the denial of a refund shall be filed
within three years after the due date for filing the report or return
as extended or one year after actual payment of the tax, whichever
is later. If no report or return is required, the petition shall be
filed within three years after the due date for payment of the eligible
tax or within one year after actual payment, whichever is later.
(2)
Petitions for reassessment of tax shall be filed within 90 days
of the date of the assessment notice which has been sent to the taxpayer
by the tax administrator.
2.
The tax administrator shall make available a form of petition for
appeal and refund attached as Schedule 2.[1]
[1]
Editor's Note: Schedule 2 (Exhibit B) is included at the end of this chapter.
3.
Contents. Any petition filed under § 605, Subsection 1A, shall:
A.
State the legal basis for claiming the refund or disagreeing with
the tax administrator's assessment.
B.
State the tax period or periods (i.e., years) to which it pertains.
C.
State the amount of the claim and the type of eligible tax detailed
by tax period.
D.
Include all supporting documentation and calculations.
E.
Provide the name, address and telephone number of the taxpayer's
representative, if any.
F.
Include a statement certifying that the facts in the petition are
true and correct, under penalty of perjury, and that the petition
is not filed for purposes of delay.
G.
Include such other information (essentially identification) as is
reasonable requested by the tax administrator on the petition for
appeal and refund provided to taxpayer.
4.
The taxpayer shall have his or her petition decided by the governing
body acting in executive session based solely on the petition and
record (including information on file and information submitted by
the taxpayer). No hearing, oral testimony or oral argument is required,
but it can be requested by the taxpayer. The governing body may choose
to grant a hearing in its sole discretion.
[Ord. 1999-02, 4/1/1999, § 104]
An appeals board appointed by a governing body shall consist
of at least three but not more than seven members. The appeals board
shall be appointed by the governing body of this municipality levying
the eligible tax. Alternatively, the appeals board shall consist of
the governing body acting in executive session, without any maximum
or minimum limitation on the number of persons acting as the governing
body, provided that a quorum exists. In this situation, the local
government has chosen the Manheim Township Board of Supervisors as
the appeals board required by the LTBR.
A.
The decision by the governing body acting in executive session shall
be based solely on the petition and record. Decisions on petitions
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.
B.
Any person aggrieved by a decision under this § 606 who
has a direct interest in the decision shall have the right to appeal
to the Court of Common Pleas of the County of York vested with the
jurisdiction of local tax appeals by or pursuant to 42 Pa.C.S. § 5571(b).
C.
Decisions by the appeals board shall be made according to principles
of law and equity.
[Ord. 1999-02, 4/1/1999, § 105]
1.
A taxpayer may or may not choose to be represented by a taxpayer
representative. The taxpayer representative may be a lawyer, certified
public accountant, accountant or other tax advisor possessing appropriate
tax training to represent taxpayers in tax appeals. The taxpayer must
submit a written authorization to use a taxpayer representative. However,
a simple letter signed by a taxpayer authorizing representation will
be accepted as authorization. Such authorization shall include the
representative's name, address and telephone number.
2.
Copies of notices or communications may be sent by the tax administrator
or other representative of the political subdivision to the taxpayer's
representative. However, the original notice or communications will
always be sent directly to the taxpayer. Action taken by the taxpayer's
authorized representation (for example, requesting an extension of
tie or submitting factual information) shall have the same force or
effect as if taken directly by the taxpayer.
3.
Reasonable notice of the hearing date will be provided to the taxpayer
by the tax administrator. The notice shall provide the date, time
and place of a hearing.
4.
The appeals board may grant a taxpayer's written request for
a continuance of a hearing. A request for continuance shall be granted
only if supported by written reasons and for good cause. A request
for continuance must be received at least five days before the scheduled
hearing date.
5.
The Chairman of the Board of Supervisors shall preside and keep order
over any scheduled hearing. Hearings need not adhere to any technical
rules of evidence, but oral testimony shall be taken under oath or
affirmation. At the discretion of the appeals board, depositions or
affidavits may be used in lieu of oral testimony.
6.
The Chairman of the Board of Supervisors shall have the authority
to take the following actions:
A.
Delegate the hearing schedule to an employee, agent or other designee.
B.
Regulate the conduct of hearings, including but not limited to scheduling,
timing, recesses, reconvening, adjournment and any other acts necessary
for the efficient conduct of a hearing.
C.
Administer oaths and affirmations.
D.
Receive evidence.
E.
Permit reasonable examination and cross-examination of witnesses.
F.
Require the production of written evidence such as books, records,
documents and any other pertinent information.
7.
The appeals board's final decision shall be in writing and signed
by the representative thereof. The final decision shall be mailed
to the taxpayer, with a copy also mailed to the taxpayer's authorized
representative (if any).
[Ord. 1999-02, 4/1/1999, § 106]
1.
A taxpayer who has paid an eligible tax may file a written request
for refund or credit. A request for refund shall be made within three
years of the due date, as extended, for filing the report or tax return,
or one year after actual payment of the tax, whichever is later. If
not report is required, the request shall be made within three years
after the due date for payment of the tax or within one year after
actual payment of the tax, whichever is later.
2.
A tax return filed by the taxpayer showing an overpayment shall be
deemed to be a written request for a cash refund unless otherwise
indicated on the tax return.
3.
A request for refund under this § 608 shall not be considered
a petition under § 605 and shall not preclude a taxpayer
from submitting a petition under § 605.
4.
For amounts paid as a result of a notice asserting or informing a
taxpayer of an underpayment, a written request for refund shall be
filed within one year of the date of payment.
[Ord. 1999-02, 4/1/1999, § 107]
Any taxpayer contacted by the tax administrator regarding the
assessment, audit, determination, review or collection of an eligible
tax will receive a taxpayer notice. The notice shall be incorporated
into any other correspondence sent to a taxpayer by the tax administrator
regarding the assessment, audit, determination, review or collection
of tax. The notice shall be substantially in the following form:
You are entitled to receive a disclosure statement that sets
forth a written explanation of your rights with regard to the assessment,
audit, determination, review, appeal, enforcement, refund and collection
of all local taxes by calling Loren D. Riebling, Township Manager,
at (717) 229-2862, during the hours of 8:00 a.m. and 4:30 p.m. on
any weekday other than a holiday.
You may request a copy in person, by telephone or by mailing
a request to the following address: R.D. #2, Box 2650, Brodbecks,
PA 17329.
This disclosure statement will be made available to taxpayers
upon request at no charge to the taxpayer, including mailing costs.
In general, the tax administrator will make reasonable efforts to
supply all taxpayers with a copy of the disclosure statement.
[Ord. 1999-02, 4/1/1999, § 108]
1.
General Rule. All overpayments of an eligible tax made to the local
government shall bear simple interest from the date of overpayment
of such eligible tax until the date of resolution.
2.
Interest Rate. Interest on overpayments shall be paid at the same
rate as the Commonwealth of Pennsylvania is required to pay pursuant
to § 806.1 of the Act of April 9, 1929 (P.L. 343, No. 176),
known as the “Fiscal Code” (72 P.S. § 1 et seq.).
As of December, 1998, this interest rate is currently 9% annually
(0.00247% daily).
3.
Exceptions to Payments of Interest.
A.
No interest shall be paid if an overpayment is refunded or applied
against any other eligible tax, interest or penalty due to the local
government within 75 days after the last date prescribed for filing
the report or tax return of the tax liability or within 75 days after
the date the return or report of the liability due is filed, whichever
is later.
B.
Interest is not required to be paid on taxpayer overpayments of interest
or on penalty(ies).
4.
Acceptance of Refund Check. The taxpayer's acceptance of a refund
check from the tax administrator or political subdivision shall not
prejudice any right of the taxpayer to claim any additional overpayment
and interest thereon. Tender of a refund check by the local government
shall be deemed to be acceptance of the check by the taxpayer for
purposes of this subsection.
5.
Definitions. As used in this section, the following words and phrases
shall have the meanings given in this subsection:
A.
"Date of overpayment" shall mean the later of the date paid or the
date the tax is deemed to have been overpaid as follows:
(1)
Any tax actually deducted and withheld at the source shall be
deemed to have been overpaid on the last day for filing the report
for the tax period, determined without regard to any extension of
time for filing.
(2)
Any amount overpaid as estimated tax for the tax period shall
be deemed to have been overpaid on the last day for filing the report
for the tax period, determined without regard to any extension of
time for filing.
(3)
An overpayment made before the last day prescribed for payment
shall be deemed to have been paid on the last day.
(4)
Any amount claimed to be overpaid with respect to which a lawful
administrative review or appellate procedure is initiated shall be
deemed to have been overpaid 60 days following the date of initiation
of the review or procedure.
(5)
Any amount shown not to be due on an amended income or earned
income and net profits tax return shall be deemed to have been overpaid
60 days following the date of filing of the amended income tax return.
B.
"Date of resolution" shall mean the date the overpayment is refunded
or credited as follows:
(1)
For a cash refund, a date preceding the date of the refund check
by not more than 30 days.
(2)
For a credit for an overpayment:
(a)
The date of the tax administrator's notice to the taxpayer
of the determination of the credit.
(b)
The due date for payment of the eligible tax against which the
credit is applied, whichever first occurs. For a cash refund of a
previously determined credit, interest shall be paid on the amount
of the credit from a date 90 days after the filing of a request to
convert the credit to a cash refund to a date preceding the date of
the refund check by not more than 30 days, whether or not the refund
check is accepted by the taxpayer after tender.
[Ord. 1999-02, 4/1/1999, § 109]
1.
Errors and Delays. The purpose of this provision is to provide, in
the discretion of the tax administrator, a mechanism to abate (i.e.,
reduce) interest and/or penalties where an underpayment is the result
of an error or delay in performance by a representative or the tax
administrator. Accordingly, in the case of any underpayment, the tax
administrator, in its discretion, may offer to abate all or any part
of the interest relating to an eligible tax for any period for any
one or all of the following reasons:
A.
Any underpayment of an eligible tax finally determined to be due,
which is attributable in whole or in part to any error or delay by
the tax administrator in the performance of a ministerial act. For
purposes of this subsection, an error or delay shall be taken into
account only if no significant aspect of the error or delay can be
attributed to the taxpayer and after the tax administrator has contacted
the taxpayer in writing with respect to the underpayment of tax finally
determined to be due or payable.
B.
Any payment of an eligible tax to the extent that any error delay
in the payment is attributable to an officer, employee or agent of
the tax administrator being erroneous or dilatory in performance of
a ministerial act.
C.
The tax
administrator shall determine what constitutes timely performance
of ministerial acts performed under this subsection.
2.
Abatement of any penalty or excess interest due to erroneous written
advice by the tax administrator shall abate any portion of any penalty
or excess interest attributable to erroneous advice furnished to the
taxpayer in writing by an officer, employee or agent of the tax administrator
acting in the officer's, employee's or agent's official
capacity if:
A.
The written advice was reasonably relied upon by the taxpayer and
was in response to a specific written request of the taxpayer.
B.
The portion of the penalty or addition to tax or excess interest
did not result from a failure by the taxpayer to provide adequate
or accurate information to the tax administrator.
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Notwithstanding the foregoing, it shall be the sole discretion
of the tax administrator whether or not to provide written tax advice
to a taxpayer. Taxpayers shall not have any right to compel the tax
administrator to provide written tax advice.
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[Ord. 199-02, 4/1/1999, § 110]
Unless otherwise specified by the taxpayer, all voluntary payments
of an eligible tax shall be prioritized by the tax administrator in
the following order:
[Ord. 1999-02, 4/1/1999, § 111]
The tax administrator has the discretion to enter into written
agreements with any taxpayer under which the taxpayer is allowed to
satisfy liability for tax in installment payments if the tax administrator
determines that the installment agreement will facilitate collection.
A.
Extent to Which Installment Agreements Remain in Effect.
(1)
Except as otherwise provided in this Subsection 1A, any installment
agreement entered into by the tax administrator under this § 613
shall remain in effect for the term of the agreement.
(2)
The tax administrator may terminate any prior installment agreement
entered into under this § 613 if:
(a)
Information which the taxpayer provided to the tax administrator
prior to the date of the installment agreement was inaccurate, false,
erroneous or incomplete in any manner, determined in the reasonable
discretion of the tax administrator.
(b)
The tax administrator reasonably believes and has determined
that collection of the eligible tax under the installment agreement
is in jeopardy.
(3)
If the tax administrator finds that the financial condition
of the taxpayer has significantly changed, the tax administrator may
unilaterally alter, modify or terminate the installment agreement,
but only if the following conditions are satisfied:
(a)
The tax administrator provides a notice of its findings to the
taxpayer no later than 30 days prior to the date of change of the
installment agreement.
(b)
The notice given by the tax administrator to the taxpayer provides
the reasons why the tax administrator believes that a significant
change, justifying a change to the installment agreement, has occurred.
(4)
The tax administrator may unilaterally and without notification
alter, modify or terminate an installment agreement entered into by
the tax administrator under this § 613 if the taxpayer fails
to do any of the following:
(5)
No administrative appeal is permitted in the event of an alteration,
modification or termination of an installment agreement. However,
an appeal may be made to the Court of Common Pleas of this county.
B.
Prepayment Permitted. Nothing in this § 613 shall prevent
a taxpayer from prepaying in whole or in part any eligible tax under
any installment agreement with the tax administrator.
[Ord. 199-02, 4/1/1999, § 112]
Any information obtained by the tax administrator or appeals
board, or any of their respective officers, agents, legal counsel,
financial accountants or employees as a result of any audit, assessment,
return, report, investigation, hearing, appeal or verification of
a taxpayer shall be confidential tax information. It shall be unlawful,
except for official purposes or as provided by law, for such persons
to:
A.
Divulge
or make known in any manner any confidential information obtained
through any audit, return, assessment, investigation, report, investigation,
appeal, hearing or verification of a taxpayer to any person other
than the taxpayer or the taxpayer's authorized representative.
B.
Permit
confidential tax information or any book containing any abstract or
particulars thereof to be seen or examined by any person other than
the taxpayer or the taxpayer's authorized representative.
C.
Print,
publish or make known in any manner any confidential tax information
of a taxpayer.
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An offense under this § 614 is a misdemeanor of the
third degree; and, upon conviction thereof, a fine of not more than
$2,500 and costs, or a term of imprisonment for not more than one
year, or both, may be imposed on the offender. If the offender is
an officer or employee of the tax administrator or the appeals board,
the officer or employee shall be dismissed from office or discharged
from employment.
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[Ord. 1999-02, 4/1/1999, § 113]
After the decision of an appeal, or if no appeal is requested
by the taxpayer, the tax administrator may engage in efforts to collect
any eligible tax determined to be legally due. Such efforts may include,
but shall not be limited to, obtaining additional information, auditing
taxpayer records, compromising the amount of tax, interest or penalty
owed, obtaining liens on the taxpayer's property or obtaining
wage attachments, levies and seizures of the taxpayer's property.
As provided in § 613 of these regulations, the tax administrator
may enter into a written installment agreement with the taxpayer if
the tax administrator determines that an installment agreement will
facilitate collection. The tax administrator also reserves the right
to seek criminal prosecution of a taxpayer in appropriate circumstances.
