[Adopted 11-9-1990 by Ord. No. 715 (part of Ch. 2 of the
revised 1958 Code)]
[1]
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:
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.
The twelve-month period beginning January 1 and ending December
31 of any year.
[Amended 12-11-2006 by Ord. No. 1250]
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.
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:
A.
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,[1] 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,[2] 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.
B.
Exemptions from payment of tax.
(1)
The
following persons shall be exempt from the payment of a local services
tax:
(a)
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.
(b)
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.
(c)
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.
(2)
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.
(3)
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).
(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]
A.
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]
B.
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,[1] 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]
[1]
Editor's Note: Ordinance No. 1263 provided for an effective
date of 1-1-2008.
C.
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.
D.
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.
[1]
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.
A.
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.
B.
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.
C.
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.
D.
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]
A.
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.
B.
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.
