[Adopted 12-12-2007 by Ord. No. 884]
This article shall be known and may be cited as the "Borough
of Irwin Local Services Tax Ordinance."
The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context or language clearly indicates or requires a different
meaning:
The area within the corporate limits of the Borough of Irwin.
The person, public employee or private agency designated
by the Borough of Irwin to collect and administer the tax herein imposed.
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
December 31, 1965, P.L. 1257, Section 13, as amended, 53 P.S. § 6913,
as amended.[1]
An individual, partnership, association, limited-liability
corporation, limited-liability partnership, 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.
Indicates the singular and plural number, as well as male,
female and neuter genders.
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Borough of Irwin.
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. 1257, Section 13, as amended, 53 P.S. § 6913,
as amended.[2]
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 Irwin
for which compensation is charged or received, whether by means of
salary, wages, commission or fees for services rendered.
The local services tax at the rate fixed in § 238-42.
The period from January 1 until December 31 in any year;
a calendar year.
[1]
Editor's Note: Section 13 of the Local Tax Enabling Act (53
P.S. § 6913) was repealed 7-2-2008 by P.L. 197, No. 32,
§ 17, effective 6-30-2012. For current provisions, see 53
P.S. § 6924.501 et seq.
[2]
Editor's Note: Section 13 of the Local Tax Enabling Act (53
P.S. § 6913) was repealed 7-2-2008 by P.L. 197, No. 32,
§ 17, effective 6-30-2012. For current provisions, see 53
P.S. § 6924.501 et seq.
For specific revenue purposes, an annual tax is hereby levied
and assessed, commencing January 1, 2008, upon the privilege of engaging
in an occupation with a primary place of employment within the Borough
of Irwin during the tax year. Each natural person who exercises such
privilege for any length of time during any tax year shall pay the
tax for that year in the amount of $52, 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 Council from time to time: emergency services, which
shall include emergency medical services, police services and/or fire
services; road construction and/or maintenance; reduction of property
taxes; or property tax relief through implementation of a homestead
and farmstead exclusion in accordance with 53 Pa.C.S.A. Ch. 85, Subchapter
F (relating to the homestead property exclusion).[1] The Borough shall use no less than 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 Irwin. The tax shall be no more than $52 on each person for each
calendar year, irrespective of the number of political subdivisions
within which a person may be employed.
[1]
Editor's Note: See 53 Pa.C.S.A. § 8581 et seq.
A.
Exemption. Any person whose total earned income and net profits from
all sources within the Borough is less than $12,000 for any calendar
year in which the tax is levied is exempt from the payment of the
tax for that calendar year. In addition, the following persons are
exempt from payment of the tax:
(1)
Any person who has 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 Veterans' Administration or its successor to
be a total one-hundred-percent disability.
(2)
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 the 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.
B.
Procedure to claim exemption.
(1)
A person seeking to claim an exemption from the local services tax 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. In the event the Borough utilizes a tax collection officer, it shall provide a copy of the exemption certificate to that officer. The exemption certificate shall have attached to it a copy of all the employee's last pay stubs or W-2 forms from employment within the Borough for the year prior to the fiscal year for which the employee is requesting to be exempted from the tax. Upon receipt of the exemption certificate and until otherwise instructed by the Borough or except as required by Subsection B(2), 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 at the time of hiring. The exemption certificate form shall be the uniform form provided by the Borough.
(2)
With respect to a person who claimed an exemption for a given calendar year from the tax, upon notification to an employer by the person or by the Borough that the person has received earned income and net profits from all sources within the Borough 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 the Borough in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the local services tax from the person under Subsection B(3).
(3)
If a person who claimed an exemption for a given calendar year from the tax becomes subject to the tax for the calendar year under Subsection B(2), 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(2), 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, plus the per-payroll amount due for that first payroll period. The amount of tax withheld per payroll period 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 may pursue collection under this article.
C.
Refunds. The Borough Manager, 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 refund request or 75
days after the last day the employer is required to remit the tax
for the last quarter of the calendar year, whichever is later, shall
not be subject to interest. No refunds shall be made for amounts overpaid
in a calendar year that do not exceed $1. The Borough Manager or the
Collector shall determine eligibility for exemption and provide refunds
to exempt persons.
A.
Each employer within the Borough of Irwin, as well as those employers
situated outside the Borough of Irwin but who engage in business within
the Borough of Irwin, 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 Irwin 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 or her employ, whether said employee
is paid by salary, wage or commission and whether or not all such
services are performed within the Borough of Irwin.
B.
A person subject to the tax shall be assessed by the employer a pro rata share of the tax for each payroll period in which the person is engaging in an occupation. The pro rata share of the tax assessed on the person for a payroll period shall be determined by dividing the combined rate of the 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 one-hundredth of a dollar. Collection of the tax shall be made on a payroll-period basis for each payroll period in which the person is engaging in an occupation, except as provided in Subsection D of this section. For purposes of this subsection, "combined rate" shall mean the aggregate annual rate of the tax levied by the school district and the Borough.
C.
No person shall be subject to the payment of the local services tax
by 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 employee 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 tax withheld
and a statement from the employee that the pay statement is from the
employee's principal employer and the employee will notify other
employers of a change in principal place of employment within two
weeks of its 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 person for each calendar
year, irrespective of the number of political subdivisions within
which a person may be employed. The Borough 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 the withheld tax money to the Borough if the failure to withhold taxes arises from incorrect information submitted by the employee as to the employee's place or places of employment, the employee's principal office or where the employee is principally employed. Further, an employer shall not be liable for payment of the local services tax in an amount exceeding the amount withheld by the employer if the employer complies with the provisions of § 238-43B of this article and this section and remits the amount so withheld in accordance with this article.
G.
Employers shall be required to remit the local services taxes 30
days after the end of each quarter of a calendar year.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to the employer by the Collector.
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 or her 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 or her 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 thirtieth
day following the end of each calendar quarter of each such tax year.
Each 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 of Irwin shall be required
to comply with this article and pay the pro rata portion of the tax
due to the Collector on or before the thirtieth day following the
end of each quarter.
A.
The situs of the tax shall be the place of employment on the first
day the person becomes subject to the tax during each payroll period.
In the event a person is engaged in more than one occupation, that
is, concurrent employment, or an occupation which requires the person
working in more than one political subdivision during a payroll period,
the priority of claim to collect the local services tax shall be in
the following order:
(1)
First, the political subdivision in which a person maintains his
or her principal office or is principally employed;
(2)
Second, the political subdivision in which the person resides and
works if the tax is levied by that political subdivision;
(3)
Third, the political subdivision in which a person is employed and
which imposes the tax nearest in miles to the person's home.
B.
In case of dispute, a tax receipt of the taxing authority for that
calendar year declaring that the taxpayer has made prior payment constitutes
prima facie certification of payment to all other political subdivisions.
All employers and self-employed individuals residing or having
their places of business outside of the Borough of Irwin but who perform
services of any type or kind or engage in any occupation or profession
within the Borough of Irwin 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 Irwin. Further, any individual
engaged in an occupation within the Borough of Irwin 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 employee for the collection of this tax as
hereinafter provided.
A.
The Collector shall be appointed by resolution of the Borough Council.
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 person, 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 Borough
Council approval, 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 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 Collector shall have the right to appeal to the Court
of Common Pleas of Westmoreland County as in other cases provided.
C.
The 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 an employer or, if no return was made, to ascertain the tax
due. Each employer is hereby directed and required to give the Collector
the means, facilities and opportunity for such examination.
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 or her custody and control setting forth the number
of employees subject to this tax who are in his or her 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
Borough of Irwin to levy and collect the tax hereby imposed on any
occupation not within the taxing power of the Borough 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.
