[Adopted 11-9-1990 by Ord. No. 715 (part of Ch. 2 of the revised 1958 Code)]
Editor's Note: Ordinance No. 1263, adopted 12-10-2007, retitled this article from "Occupational Privilege Tax" to "Local Services Tax."
Pursuant to the authority granted by The Local Tax Enabling Act (53 P.S. § 6924.101 et seq.), the Borough Council of the Borough of Tyrone hereby imposes a local services tax for general revenue purposes to be levied and assessed as hereinafter provided.
As used in this article, the following terms shall have the meanings indicated:
- BOROUGH OF TYRONE
- The area within the corporate limits of the Borough of Tyrone.
- An individual, partnership, association, corporation, governmental body, agency or other entity employing one or more persons on a salary, wage, commission or other compensation basis, including a self-employed person.
- FISCAL YEAR
- The twelve-month period beginning January 1 and ending December
31 of any year.[Amended 12-11-2006 by Ord. No. 1250]
- HE, HIS or HIM
- Indicates the singular and plural number as well as male, female and neuter gender.
- Any person, male or female, engaged in any occupation, trade or profession within the corporate limits of the Borough of Tyrone.
- 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 Tyrone for which compensation is charged or received, whether by means of salary, wages, commissions or fees for services rendered.
- RECEIVER OF TAXES
- Such person as the Council of the Borough of Tyrone, by resolution, may appoint to collect and receive the taxes imposed by this article.
- The individual under whose direction this tax shall be enforced.
- The local services tax in the amount of $52 levied by this
article.[Amended 12-11-2006 by Ord. No. 1250; 12-10-2007 by Ord. No. 1263]
[Amended 12-11-2006 by Ord. No. 1250; 12-10-2007 by Ord. No. 1263]
The Borough of Tyrone hereby levies and imposes on each occupation engaged in by individuals within its corporate limits during the fiscal year a local services tax. This tax is in addition to all other taxes of any kind or nature heretofore levied by the Borough of Tyrone. The purpose and exemptions from said tax are as follows:
Purpose of tax. Subject to Subsection B, a tax for funding emergency services which shall include emergency medical services, police services and/or fire services; road construction and/or maintenance; reduction of property taxes; and 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) (as may be determined in the discretion of the Borough of Tyrone), in the amount of $52 is hereby imposed on total earned income and/or net profits from all sources made by all persons within the Borough of Tyrone in the year 2007 after the effective date of this section, and in each following calendar year. The amount of the said tax imposed hereby shall take into consideration any such similar tax amount imposed by a school district. Each natural person who exercises such privilege for any length of time in any calendar year beginning with the year 2008, after the effective date of this section, shall pay the tax in accordance with the provisions hereof. The Borough of Tyrone shall use no less than 25% of the funds derived from the local services tax for emergency services.
Exemptions from payment of tax.
The following persons shall be exempt from the payment of a local services tax:
Any person whose total earned income and/or net profits from all sources within the Borough of Tyrone is less than $12,000 for the calendar year in which the local services tax is levied.
Any person who served in any war or armed conflict in which the United States was engaged and is honorably discharged or released under honorable circumstances from active service if, as a result of military service, the person is blind, paraplegic or a double or quadruple amputee or has a service-connected disability declared by the United States Veteran's Administration or its successor to be a total one-hundred-percent permanent disability.
Any person who serves as a member of a reserve component of the armed forces and is called to active duty at any time during the taxable year. For purposes of this subsection, "reserve component of the armed forces" shall mean 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.
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Borough of Tyrone 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 Tyrone of less than $12,000 in the calendar year for which the exemption certificate is filed. The exemption certificate shall have attached to it a copy of all of the employee's last pay stubs or W-2 forms from employment within the Borough of Tyrone for the year prior to the fiscal year for which the employee is requesting to be exempted from the local services tax. Upon receipt of the exemption certificate and until otherwise instructed by the Borough of Tyrone or except as required by Subsection B(5) hereof, the employer shall not withhold the tax from the person during the calendar year or the remainder of the calendar year for which the exemption certificate applies. Employers shall ensure that the exemption certificate forms are readily available to employees at all times and shall furnish each new employee with a form, as prepared and provided by the Pennsylvania Department of Community and Economic Development, at the time of hiring.
With respect to a person who claimed an exemption for a given calendar year from the local services tax, upon notification to an employer by the person or by the Borough of Tyrone that the person has received earned income and net profits from all sources within the Borough of Tyrone equal to or in excess of $12,000 in that calendar year or that the person is otherwise ineligible for the tax exemption for that calendar year, or upon an employer's payment to the person of earned income within that political subdivision in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the local service tax from the person pursuant to Subsection B(4).
If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the tax for the calendar year under Subsection B(3), the employer shall withhold the tax for the remainder of that calendar year. The employer shall withhold from the person, for the first payroll period after receipt of the notification under Subsection B(3), a lump sum equal to the amount of tax that was not withheld from the person due to the exemption claimed by the person under this Subsection B, plus the per payroll amount due for that first payroll period. The amount of tax withheld per payroll for the remaining payroll periods in that calendar year shall be the same amount withheld for other employees. In the event the employment of a person subject to withholding of the tax under this subsection is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due and the Borough of Tyrone may pursue collection pursuant to applicable law.
[Amended 12-11-2006 by Ord. No. 1250]
Beginning with the first day of January 2007, and each occupation, as hereinbefore defined, engaged in within the corporate limits of the Borough of Tyrone shall be subject to an local services tax in the amount of $52 per annum, said tax to be paid by the individual so engaged.
[Amended 12-11-2006 by Ord. No. 1250]
Each employer within the Borough of Tyrone as well as those employers situated outside the Borough of Tyrone, but who engage in business within the Borough of Tyrone, is hereby charged with the duty of collecting from each of his employees engaged by him and performing for him within the Borough of Tyrone the said tax of $52 per annum and making a return payment thereof to the Receiver of Taxes. Further, each employer is hereby authorized to deduct this tax from each employee in said employer's 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 Tyrone.
[Amended 12-10-2007 by Ord. No. 1263]
Each employer shall pro rate and deduct the tax from each payroll period in which the taxpayer is engaging in an occupation in the manner hereinafter set forth. The pro rata share of the tax assessed on the taxpayer 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. For 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 local services tax levied hereunder shall be made on a payroll-period basis for each payroll period in which the person is engaging in an occupation, except a provided in Subsection C. For each taxpayer for whom no prior deduction has been made, who is employed after the effective date of this subsection, but for less than a calendar year, each employer shall deduct the full amount of the local services tax on a pro rata basis from the payroll periods remaining in the calendar year as required herein, from compensation payable to the taxpayer, file a return on a form prescribed by the Receiver of Tax, and pay said Collector the full amount of all taxes deducted, within 30 days after the end of each quarter of the calendar year during which the taxpayer is employed.
[Amended 12-10-2007 by Ord. No. 1263]
In the case of concurrent employment, an employer shall refrain from withholding the local services tax, if the taxpayer provides a recent pay statement from a principal employer that includes the name of the employer, the length of the payroll period and the amount of the local services tax withheld and a statement from the taxpayer that the pay statement is from the employee's principal employer and the taxpayer will notify other employers of a change in principal place of employment within two weeks of its occurrence.
Each employer required to withhold the local services tax from a taxpayer shall file a return or a form prescribed by the Receiver of Tax, and pay to said Receiver of Tax the full said pro rated taxes deducted within 30 days after the end of each quarter of a calendar year.
[Amended 12-11-2006 by Ord. No. 1250]
Each employer shall prepare and file a return within 30 days after the end of each quarter of a calendar year, showing a computation of the tax on forms to be supplied to him by the Receiver of Tax. It is further provided that if the employer fails to file said return and pay said tax, whether or not he makes collection thereof from the salary, wages or commissions paid by him to said employee, the employer shall be responsible for the payment of the tax in full as though the tax had originally been levied against him.
Editor's Note: Original Sec. 6 of Ord. No. 715, Dates for determining taxes, was repealed 12-11-2006 by Ord. No. 1250.
Each individual who shall have more than one occupation within the Borough of Tyrone shall be subject to the payment of this tax on his principal occupation, and his principal employer shall deduct this tax and deliver to him evidence of deductions on a form to be furnished to the employer by the Borough of Tyrone, which form shall be evidence of deduction having been made and, when presented to any other employer, shall be authority for such employer to not deduct this tax from the employees wages, but to include such employee on his return by setting forth his name, address and the name and account number of the employer who deducted this tax.
All self-employed individuals who perform services of any type or kind or engage in any occupation or profession within the Borough of Tyrone shall be required to comply with this article and to pay the tax to the Receiver of Taxes on June 15 or as soon thereafter as they engage in an occupation.
All employers and self-employed individuals residing or having their places of business outside of the Borough of Tyrone but who perform services of any type or kind or engage in any occupation or profession within the Borough of Tyrone 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 Tyrone. Further, any individual engaged in an occupation within the Borough of Tyrone and an employee of a nonresident employer may, for the purpose of this article, be considered a self-employed person and in the event that this 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.
It shall be the duty of the Receiver of Taxes 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 person, together with the date the tax was received.
The Secretary is hereby charged with the administration and enforcement of this article and is hereby charged and empowered to prescribe, 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 the 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 person aggrieved by any decision of the Secretary shall have the right to appeal to the Court of Common Pleas of Blair County, as in other cases provided.
The Secretary is hereby authorized to examine the books and payroll records of any employer in order to verify the accuracy of any return made by an employer or, if no return was made, to ascertain the tax due. Each employer is hereby directed and required to give the Secretary the means, facilities and opportunity for such examination.
The Borough of Tyrone is hereby authorized to, and the Tax Receiver shall, adopt regulations for the processing of refund claims for the local services tax paid by any person who is eligible for the exemption, consistent with 53 Pa.C.S.A. § 8425 (relating to refunds of overpayments) and § 8426 (relating to interest on overpayment). Refunds made 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 pursuant to this article, which ever is later, shall not be subject to interest imposed under 53 Pa.C.S.A. § 8426. Refunds shall only be made for amounts overpaid in a calendar year that exceed $1.
[Added 12-11-2006 by Ord. No. 1250; amended 12-10-2007 by Ord. No. 1263]
In the event that any tax under this article remains due or unpaid 30 days after the due dates above set forth, the Receiver of Taxes may sue for the recovery of any such tax due or unpaid under this article, together with interest and penalty.
If for any reason the tax is not paid when due, interest at the rate of 6% on the amount of said tax shall be calculated beginning with the due date of said tax, and a penalty of 5% shall be added to the flat rate of said tax for nonpayment thereof. Where suit is brought for the recovery of this tax, the individual liable therefore shall, in addition, be responsible and liable for the costs of collection.
[Amended 12-11-2006 by Ord. No. 1250]
Whoever makes any false or untrue statement on any return required by this article, or who refuses inspection of his 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, upon conviction before the Magisterial District Judge, be sentenced to pay a fine of not more than $600 for each offense and, in default of payment of said fine and costs, be imprisoned in Blair County Prison for a period not exceeding 30 days for each offense. 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 refuses to file a return required by this article.
[Added 12-10-2012 by Ord. No. 1338]
The local services tax imposed by this article and all the provisions of this article shall continue in full force and effect without annual reenactment.