[Adopted 1-7-2008 by Ord. No. 604]
The following words and phrases, when used in this article,
shall have the meaning subscribed to them in this section, except
where the context or language clearly indicates or requires a different
meaning:
These terms are interchangeable terms and, when used herein,
shall be understood to represent the area within the corporate limits
of the Borough of Manheim.
The period of time beginning on the first day of January
and ending on the 31st day of December of each year.
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
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.
An individual, partnership, limited liability partnership,
limited liability corporation, association, corporation, governmental
body, agency or other entity that engages the services of one or more
individuals and makes payment to said individual whether by salary,
wages, commission or other compensation basis, including a self- employed
person.
When used in the singular, shall also apply to the plural
number as well as male, female and neuter genders.
Any person, male or female, engaged in any occupation, trade,
profession or other activity of any nature, type or kind whatsoever
within the corporate limits of the Borough of Manheim, whether in
the employ of another or self-employed, during the calendar year 2005
or any calendar year thereafter.
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
December 31, 1965, P.L. 1251, § 13, as amended, 53 P.S.
§ 6913, as amended.
The exercising or carrying on by any manner or means of any
trade, profession, business or undertaking of any type, kind or character,
including services, domestic or other, carried on or performed within
the corporate limits of the Borough of Manheim for which compensation
is charged or received, whether by means of salary, wages, commission
or otherwise, or wherein the individual is self-employed, payment
or fees are provided for services rendered.
A form designated, prepared and supplied by the Tax Collector
for reporting the amount of any tax deducted from an employee or otherwise
owed to the Borough of Manheim under this enactment.
According to the enabling legislation, any amount between
$10 and $52 which may be adopted by a local municipality as a local
services tax in place of the emergency and municipal services tax
and/or the preceding occupational privilege tax.
The person, public employee or private agency designated
by the Borough Council of the Borough of Manheim by resolution to
administer and enforce or to assist in the administration or enforcement
of the tax herein imposed in the place of the Borough Manager.
The period January 1 through December 31 in any year in which
the tax is payable; a calendar year.
For specific revenue purposes, an annual tax known as the "local
services tax" is hereby levied and assessed, replacing taxes previously
known as the "emergency municipal services tax" and/or "occupational
privilege tax." The local services tax shall be collected commencing
January 1, 2008, upon the privilege of engaging in an occupation with
a primary place of employment within the Borough of Manheim during
the tax year. Each individual who exercises such privilege for any
length of time during any tax year shall pay the tax for that year
in the amount not to exceed $52, as it may be adopted and modified
from time to time by resolution of the Borough Council of the Borough
of Manheim, which shall be assessed on a pro rata basis in accordance
with the provisions of this article. This tax may be used solely for
the following purposes as the same may be allocated by the Borough
of Manheim 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. Chapter 85,
Subchapter F (relating to homestead property exclusion). The Borough
of Manheim shall use no less that 25% of the funds derived from the
tax for emergency services. This tax is in addition to all other taxes
of any kind or nature heretofore levied by the Borough of Manheim.
The tax shall be no more than $52 on each individual for each tax
year, irrespective of the number of political subdivision within an
individual may be employed.
Beginning on January 1, 2008, each individual engaged in an
occupation within the Borough of Manheim shall be subject to the annual
payment of the tax of $52, said tax to be paid by each individual
exercising the privilege of engaging in any occupation.
For the purpose of this tax the following shall be exempt from
payment during the tax year.
A.
Salary/wage exemption. Any individual whose total earned income and
net profits from all sources within the political subdivision is less
that $12,000 for any calendar year in which the tax is levied is exempt
from the payment of the tax for the calendar year. In addition, the
following individuals are also exempt of the tax.
(1)
Any individual who has served in any war or armed conflict in which
the United States was engaged and is honorably discharged or release
under honorable circumstances from active service, if as a result
of military service the individual is blind, paraplegic or a double
or quadruple amputee or has a service-connected disability declared
by the United States Veterans' Administration or its successor
to be a total one-hundred-percent disability.
(2)
Any individual who serves as a member of a reserve component of the
armed forces and is called to active duty at any time during the tax
year shall be exempt for that tax year. For the purposes of this subparagraph,
"reserve component of the armed forces" shall mean the United States'
Army Reserve, Navy Reserve, Marine Corps Reserve, Coast Guard Reserve,
Air Force Reserve, the Pennsylvania Army National Guard or the Pennsylvania
Air National Guard.
B.
Procedures to claim exemption:
(1)
An individual seeking to claim an exemption from the tax shall annually
file an exemption certificate with the Borough and with his employer,
affirming that he reasonably expects to receive earned income and
net profits from all sources within the political subdivision of less
than $12,000 in the calendar year for which the exemption certificate
is being filed. The Borough will forward a copy of the exemption certificate
to the Collector. The individual seeking exemption shall attach a
copy of his last pay stub(s) or W-2 forms from the year prior to the
fiscal year for which he is requesting to be exempted from the tax.
Upon receipt of the exemption certificate and until otherwise instructed
by the Borough or its Collector, the employer shall not withhold the
tax from the individual during the calendar year or the remainder
of the calendar year for which the exemption certificate applies.
Exemption certificates will be available from the Borough or its Collector
and will be provided annually to each employer. Employers shall furnish
each new employee with information regarding the tax, including the
exemption provisions, at the time of hiring.
(2)
An individual who claimed an exemption from the tax for a given calendar
year and later becomes aware that his earnings will equal or exceed
the $12,000 threshold is at that time responsible for payment of the
full value of the tax for that calendar year. Beginning at that time
the employer shall withhold the tax from the individual in accordance
with the following;
(3)
The employer shall withhold the tax beginning with the first payroll
period following notification/realization that the individual has
lost exempt status as noted previously. A lump sum equal to the amount
of tax that was not withheld from the employee due to the prior claimed
exemption shall be withheld in addition to the amount due for the
current payroll period. From that time on, the deductions shall be
withheld in accordance with the standard pro rata previously established.
In the event the employment of the individual subject to the withholding
of the tax is subsequently severed in that calendar year the individual
shall be liable for any outstanding balance of tax due and the Borough
may pursue collection under this article.
C.
Refunds. The Borough, in consultation with the Collector and DCED,
shall establish procedures for the processing of refund claims for
any tax paid by any person who is eligible for exemption, which procedures
shall be in accord with provisions of the general municipal law relating
to refunds of overpayments and interest on overpayments. Refunds made
within 75 days of a properly submitted and documented refund request
or 75 days after the last day the employer is required to remit the
tax for the last quarter of the calendar/tax year, whichever is later,
shall not be subject to interest. No refunds shall be made for amounts
overpaid in a calendar/tax year that do not exceed $1. The Borough
or the Collector shall determine eligibility for exemption and provide
refunds to exempt persons.
A.
Each employer within the Borough of Manheim, including those employers
situated outside the Borough of Manheim but who engage in business
within the Borough of Manheim, is hereby charged with the duty of
collecting the tax from each of his employees engaged by him or performing
for him within the Borough of Manheim and making a return and payment
thereof to the Collector. Further, each employer is hereby authorized
to deduct this tax from each employee in his employ, whether said
employee is paid by salary, wages or commission and whether or not
part or all such services are performed within the Borough of Manheim.
B.
An individual subject to the tax shall be assessed by the employer a pro rata share of the tax for each payroll period in which the individual is engaging in an occupation. The pro rata share of the tax assessed on the individual for a payroll period shall be determined by dividing the rate of the tax levied for the tax year by the number of payroll periods established by the employer for the tax year. For the purposes of determining the pro rata share, an employer shall round down the amount of the tax collected each payroll period to the nearest 1/100 of a dollar. Collection of the tax shall be made on a payroll-period basis for each payroll period in which the individual is engaged in an occupation, except as provided in Subsection D of this section.
C.
No individual shall be subject to the payment of the LST to more
than one political subdivision during each payroll period.
D.
In the case of concurrent employment, an employer shall refrain from
withholding the tax if the individual provides a recent pay statement
from a his principal employer that includes the name of the employer,
the length of the payroll period and the amount of tax withheld and
a written statement from the employee that the pay statement is from
the employee's principal employer. The individual employee shall
notify his employers of a change of status related to his principal
place of employment within two weeks of such occurrence. The employee's
statement shall be provided on the form approved by DCED.
E.
The tax shall be no more than $52 on each individual for each tax/calendar
year, irrespective of the number of political subdivisions within
which an individual may be employed. All such political subdivisions
shall provide a taxpayer a receipt of payment upon request by the
taxpayer.
F.
No employer shall be held liable for failure to withhold the tax or for the payment of money to the political subdivision if the failure to withhold taxes arise from incorrect information submitted by the employee as to the employee's place or places of employment, the employee's principal employer. Further, an employer shall not be liable for payment of the tax in an amount exceeding the amount withheld by the employer if the employer complies with the provisions of § 195-21B of this article and this section and remits the amount so withheld in accordance with the provisions of this article.
G.
Employers shall be required to remit the tax within 30 days after
the end of each quarter of the tax/calendar year.
All employers shall prepare and file a return on forms supplied
by the Borough or Collector showing a computation of the tax being
collected and remitted. If an employer fails to file the return and
pay the tax, whether or not the employer makes collection thereof
from the salary, wages or commissions paid by him to an employee,
except as provided hereafter in this article, the employer shall be
responsible for the payment of the tax in full as though the tax had
been originally levied against the employer.
In each tax year each employer shall use his 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 tax year.
Every self-employed individual who performs services of any
type or kind or engages in any occupation or profession within a primary
place of employment within the Borough shall be required to comply
with this article and pay the prorate portion of the tax due to the
Collector on or before the 30th day following the end of each calendar
quarter of each tax year.
A.
Each individual who has more than one Occupation within the Borough
of Manheim shall be subject to the payment of this tax on his principal
occupation and his principal employer shall deduct this tax and deliver
to the individual evidence of deductions on a form to be furnished
to the employer by the Borough of Manheim or the tax collector, which
form shall be evidence of deductions having been made and when presented
to any other employer shall be authority for such employer to not
deduct this tax from the individual's wages, but to include such
individual on his return by setting forth his name, address and the
name and account number of the employer who deducted this tax.
B.
An individual who works multiple jobs which are located in more than
one political subdivision that levies the tax shall be subject to
the payment of the local services tax solely upon the privilege of
engaging in his principal occupation. As such, his principal employer
shall deliver to the individual a certificate of payment, as described
above, certifying to any other employer of such individual that said
local services tax has been paid by the employee at this principal
place of occupation and, in turn, remitted by said employer to the
Tax Collector of said political subdivision. Any employer receiving
such original certificate of payment of the tax by another employer
shall not deduct or collect the tax imposed by this article. The priority
of claim to collect and remit the local services tax shall be in the
following order:
(1)
First, the political subdivision in which the individual maintains
his principal offices or is principally employed;
(2)
Second, the political subdivision in which the individual resides
and works if the local services tax is levied by that political subdivision;
or
(3)
Third, the political subdivision in which the individual is employed
and which imposes the tax nearest to the individual's home.
C.
In case of a dispute, a tax receipt of the taxing authority fir that
calendar year declaring that the taxpayer has made prior payment shall
constitute certification of payment to all other political subdivisions.
All employers and self-employed individuals residing or having
their places of business outside of the political subdivision but
who perform services of any type or kind or engage in any occupation
or profession within the Borough of Manheim 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 Borough of Manheim.
Further, any individual engaged in an occupation within the Borough
of Manheim and an employee of a nonresidential employer may, for the
purpose of this article, be considered a self-employed person, and
in the event his or her tax is not paid, the Borough shall have the
option of proceeding against either the employer or the employee for
the collection of this tax as hereinafter provided.
A.
The Collector shall be appointed by resolution of the political subdivision.
It shall be the duty of the Collector to accept and receive payments
of this tax and to keep a record thereof showing the amount received
by him from each employer or self-employed individual, together with
the date the tax was received.
B.
The Collector is hereby charged with the administration and enforcement
of this article and is hereby charged and empowered, subject to municipal
approval, to proscribe, adopt and promulgate rules and regulations
relating to any matter pertaining to the administration and enforcement
of this article, including provisions for the examination of payroll
records of any employer subject to this article, the examination and
correction of any return made in compliance with this article and
any payment alleged or found to be incorrect or as to which overpayment
is claimed or found to have occurred. Any individual aggrieved by
any decision of the Collector shall have the right to appeal to the
Court of Common Pleas of Lancaster County as in other cases provided.
C.
The Tax Collector is hereby authorized to examine the books and payroll
records of any employer in order to verify the accuracy of any return
made by any employer on behalf of his employees or, if no return was
made, to ascertain the tax due. Each employer in the Borough of Manheim
is hereby directed and required to give to the Tax Collector the means,
facilities and opportunity for such examinations and investigations.
D.
The records, books and accounts of the Tax Collector shall be audited
from time to time by the Borough of Manheim or its appointed auditors.
A.
In the event that any tax under this article remains due or unpaid
30 days after the due dates above set forth, the Collector may sue
for the recovery of any such tax due or unpaid under this article,
together with interest and penalty.
B.
If for any reason the tax is not paid when due, interest at the rate
of 6% on the amount of such tax shall be calculated beginning with
the due date of the tax, and a penalty of 5% shall be added to the
flat rate of such tax for nonpayment thereof. Where suit is brought
for the recovery of this tax or other appropriate remedy undertaken,
the individual liable therefor shall, in addition, be responsible
and liable for the costs of collection.
Whoever makes any false or untrue statement on any return required
by this article, or whoever refuses inspection of the books, records
or accounts in his custody and control setting forth the number of
employees subject to this tax who are in his employment, or whoever
fails or refuses to file any return required by this article shall
be guilty of a violation and, upon conviction thereof, shall be sentenced
to pay a fine of not more than $600 and costs of prosecution and,
in default of payment of such fine and costs, to imprisonment for
not more than 30 days. The action to enforce the penalty herein prescribed
may be instituted against any person in charge of the business of
any employer who shall have failed or who refuses to file a return
required by this article.
A.
Nothing contained in this article shall be construed to empower the
political subdivision to levy and collect the tax hereby imposed on
any occupation not within the taxing power of the political subdivision
under the Constitution of the United States and the laws of the Commonwealth
of Pennsylvania.
B.
If the tax hereby imposed under the provisions of this article shall
be held by any court of competent jurisdiction to be in violation
of the Constitution of the United States or of the laws of the Commonwealth
of Pennsylvania as to any individual, the decision of the court shall
not affect or impair the right to impose or collect said tax or the
validity of the tax so imposed on other persons or individuals as
herein provided.
