[Adopted 11-1-2007 by Ord. No. 1155]
This article is enacted under authority of the Local Tax Enabling
Act, P.L. 1257, No. 511, December 31, 1965, 53 P.S. § 6924.101
et seq., as hereinafter amended, supplemented, modified or reenacted
by the General Assembly of Pennsylvania, and shall take effect January
1, 2008.
As used in this article, the following terms shall have the
meanings indicated, unless a different meaning clearly appears from
the context:
Salaries, wages, commissions, tips, bonuses, fees, gross
receipts, or any other earned income.
Any person, partnership, limited partnership, unincorporated
association, institution, trust, corporation, governmental agency,
or any other body engaged in business or situated in the Borough,
employing one or more employees engaging in the occupation other than
domestic servants.
A military service-connected disability declared by the United
States Veterans' Administration or its successor to be a total
100% permanent disability.
The area within the corporate limits of the Borough of Northampton.
Any livelihood, job, trade, profession, business or enterprise
of any kind, including services, domestic or other, for which monetary
compensation is received or charged.
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.
The local services tax in the amount of $52 levied by this
article. The pro rata share of the tax assessed on a person for a
payroll period shall be determined by dividing the combined rate of
the local services tax levied for the calendar year by the number
of payroll periods established by the employer for the calendar year.
An agency or person designated by Borough Council to collect
the local services tax.
Any natural personal liable for the tax levied by this article.
A tax for general revenue purposes, in the amount of $52, is
hereby imposed upon the privilege of engaging in an occupation within
the Borough in the year after the effective date of this article,
and in each following calendar year. Each natural person who exercises
such privilege for any length of time in any calendar year beginning
with the year as of the effective date of this article, shall pay
the tax in accordance with the provisions hereof; provided, the tax
hereby levied shall not be imposed upon any natural person whose total
income during the taxable year is less than $12,000. Also exempted
from the imposition of tax hereby levied are any persons who have
been declared as having a military service-connected permanent disability,
and any person who serves as a member of an armed forces reserve unit
and is called to active duty during the taxable year. A person seeking
to claim an exemption from the tax levied herein may annually file
an exemption certificate with the Borough and with the person's
employer affirming that the person reasonably expects to receive earned
income and net profits from all sources within the Borough of less
than $12,000 in the calendar year for which the exemption certificate
is filed. The exemption certificate will be provided through the person's
employer for the fiscal year for which the employee is requesting
to be exempted from the tax hereby levied.
A.
Each employer shall register with the Tax Collector the employer's
name, address and other information the Tax Collector may require
within 15 days after the effective date of this article or within 15 days after first
becoming an employer.
B.
For each taxpayer employed for any length of time after the effective
date of this article and on or before March 31 of the current tax
year, each employer shall deduct that pro rata portion of the full
tax from compensation payable to the taxpayer on the form prescribed
by the Tax Collector and pay to the Tax Collector said amount deducted
and collected on a pro rata basis and paid to the Tax Collector on
a quarterly basis. For each taxpayer for whom no prior deduction has
been made, who is employed after the effective date of this article
and in any of the three-month periods ending June 30, September 30,
and December 31 of the current tax year, each employer shall deduct
that pro rata portion of the full tax from compensation payable to
the taxpayer, file a return on a form prescribed by the Tax Collector,
and pay said Collector that portion of the full amount of the taxes
deducted, on or before July 31, or October 31, of the current tax
year, or January 31 of the following year, respectively.
C.
Any employer who discontinues business or ceases operation before
December 31 of any year during which this tax is in effect, shall
file the return herein above required and pay the tax to the Tax Collector,
within 15 days after discontinuing business or ceasing operations.
D.
The failure of any employer to deduct the tax shall not relieve the
employee from the duty to file a return and pay the tax. Any employer
who fails to deduct the tax as required by this section, or who fails
to pay such tax to the Tax Collector, shall be liable for such tax
in full, without deduction of the commission hereinafter provided,
as though the tax had originally been levied against such employer.
E.
As to employees who present official receipts evidencing prior payment
of the tax imposed hereby either directly or by collection through
employers, the employer shall not deduct the tax but shall maintain
adequate records concerning such employees.
Every taxpayer who is self-employed or whose tax for any other reason is not collected under § 220-45 of this article shall file a return on a form prescribed by the Tax Collector and shall pay that portion of the full amount of the tax herein levied to said Collector on a quarterly basis. Each taxpayer who first becomes subject to the tax after the effective date of this article, and on or before March 31 of the current tax year, shall file a return and pay that portion of the full amount of the tax on or before April 30 of the current tax year, and shall file a return and pay the remaining portions of the full tax each following quarter of that tax year. Each such taxpayer who first becomes subject to the tax after March 31 of the current tax year, shall file a return and pay that portion of the full tax on or before July 31 of the current tax year, and on or before October 31 of the current tax year, and on or before January 31 of the following year, whichever of such payment dates first occurs at least 30 days after the taxpayer becomes subject to the tax.
Both resident and nonresident taxpayers shall, by virtue of
engaging in an occupation within the Borough, be subject to the tax
and the provisions of this article.
The Tax Collector shall collect and receive the taxes, interest,
fines and penalties imposed by this article, and shall maintain records
showing the amounts received and the dates such amounts were received.
The Tax Collector shall prescribe and issue all forms necessary for
the administration of the tax and may adopt and enforce regulations
relating to any matter pertaining to the administration of the tax
and may adopt and enforce regulations relating to any matter pertaining
to the administration of this article. The Tax Collector and/or agent
designated by him/her may examine the records of any employer and/or
supposed employer or of any taxpayer in order to ascertain the tax
due or verify the accuracy of any return. Every employer or supposed
employer and every taxpayer or supposed taxpayer shall give the Tax
Collector and any agent designated by him/her all means, facilities
and opportunity for the examinations hereby authorized.
The Tax Collector shall, by written notice and demand, and subsequently
by suit if necessary, collect and recover the taxes, interest, costs
and penalties due under this article and unpaid. If for any reason
any tax is not paid when due, interest at the rate of 6% per year
on the amount of the unpaid taxes, and an additional penalty of 5%
on the amount due. Upon presentation of a written notice and demand
for payment from the Tax Collector, the taxpayer or employer must
pay or deduct and pay over to the Tax Collector within 60 days from
the notice. Whenever suit is brought for the recovery of unpaid tax,
the taxpayer shall, in addition, be liable for the costs of collection
as well as for interest and penalties. The Tax Collector may accept
payment under protest of the tax claim by the Borough in any case
where any person disputes the claim for the tax. If a court of competent
jurisdiction thereafter decides that there has been an overpayment
to the taxpayer, the taxpayer shall refund the amount of the overpayment
to the person who paid under protest. Any action instituted for such
judicial determination shall be filed within two years of the last
day of the period for which the tax is disputed or claim made. All
refunds shall be made in conformity with the procedure prescribed
by the Borough Council.
Any employer or taxpayer who makes a false or untrue statement
on any return required by this article, who refuses inspection of
his records in his custody or control setting forth his employee subject
to this tax, who fails or refuses to file a return required by this
article, or who violates any other provisions of this article, shall,
upon conviction thereof, be sentenced to pay a fine no more than $600,
and/or to imprisonment for a term not to exceed 30 days.
