[Adopted 11-10-2014 by Ord. No. 698[1]]
[1]
Editor’s Note: This ordinance also repealed former Art.
II, Occupational Privilege Tax, adopted 12-18-1967 by Ord. No. 371,
as amended.
This article shall be known and may be cited as the "Borough
of Sellersville 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 Sellersville,
Bucks County, Pennsylvania.
The person, public employee or private agency designated
by the Borough of Sellersville to collect and administer the tax imposed
by this article.
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
The compensation as required to be reported to or as determined by the Pennsylvania Department of Revenue under Section 303 of the act of March 4, 1971 (P.L. 6, No. 2), 72 P.S. § 7303, known as the Tax Reform Code of 1971, and rules and regulations promulgated under that section. Employee business expenses as reported to or determined by the Pennsylvania Department of Revenue under Article III of the Tax Reform Code of 1971 shall constitute allowable deductions in determining earned income. The term does not include offsets for business losses. The amount of any housing allowance provided to a member of the clergy shall not constitute earned income.
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 engaged in any occupation, trade or profession
within the corporate limits of the Borough of Sellersville.
The net income from the operation of a business, other than
a corporation, as required to be reported to or as determined by the
Pennsylvania Department of Revenue under Section 303 of the act of
March 4, 1971 (P.L. 6, No. 2), 72 P.S. § 7303, known as
the Tax Reform Code of 1971, and rules and regulations promulgated
under that section. The term does not include income under any of
the following paragraphs:
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 Sellersville
for which compensation is charged or received, whether by means of
salary, wages, commission, barter, or fees for services rendered.
The local services tax imposed by this article.
The period from January 1 until December 31 in any calendar
year.
The Borough of Sellersville hereby levies and imposes on every individual engaging in an occupation within the Borough of Sellersville a tax, known as the "local services tax," in the amount of $52 per tax year, beginning on January 1, 2015, and continuing every year thereafter, in accordance with the provisions of this article. This tax may be used solely for the following purposes as may be allocated by the Borough of Sellersville from time to time: 1) emergency services, which shall include emergency medical services, police services and fire services; 2) road construction 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 Sellersville 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 Sellersville. The tax shall be no more than $52 on each individual for each tax year, irrespective of the number of political subdivisions within which an individual may be employed.
A.
Exemptions. Any individual whose total earned income and net profits
from all sources within the Borough of Sellersville is less than $12,000
for any tax year in which the tax is levied is exempt from the payment
of the tax for that tax year. In addition, the following individuals
are exempt from payment 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 released
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. 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)
An individual seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Borough of Sellersville and with the individual's employer affirming that the individual reasonably expects to receive earned income and net profits from all sources within the Borough of Sellersville of less than $12,000 in the tax year for which the exemption certificate is filed. In the event the Borough of Sellersville 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 of the individual's last pay stubs or Form W-2s from employment within the Borough of Sellersville for the tax year prior to the tax year for which the individual is requesting to be exempted from the tax. Upon receipt of the exemption certificate, and until otherwise instructed by the Borough of Sellersville or except as required by Subsection B(2), the employer shall not withhold the tax from the individual during the tax year or the remainder of the tax 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 of Sellersville.
(2)
With respect to an individual who claimed an exemption for a given tax year from the tax, upon notification to an employer by the individual or by the Borough of Sellersville that the individual has received earned income and net profits from all sources within the Borough of Sellersville equal to or in excess of $12,000 in that tax year, or that the individual is otherwise ineligible for the tax exemption for that tax year, or upon an employer's payment to the individual of earned income and net profits within the Borough of Sellersville in an amount equal to or in excess of $12,000 in that tax year, an employer shall withhold the local services tax from the individual under Subsection B(3).
(3)
If an individual who claimed an exemption from the tax for a given tax year becomes subject to the tax for the tax year under Subsection B(2), the employer shall withhold the tax for the remainder of that tax year. The employer shall withhold from the individual, 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 individual due to the exemption claimed by the individual 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 tax year shall be the same amount withheld for other employees. In the event the employment of an individual subject to withholding of the tax under this subsection is subsequently severed in that tax year, the individual shall be liable for any outstanding balance of tax due, and the Borough of Sellersville may pursue collection under this article.
C.
Refunds. The Borough of Sellersville, in consultation with the Collector
and DCED, shall establish procedures for the processing of refund
claims for any tax paid by any individual who is eligible for exemption,
which procedures shall be in accord with the 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 tax year, whichever is later, shall not
be subject to interest. No refunds shall be made for amounts overpaid
in a tax year that do not exceed $1. The Borough of Sellersville or
the Collector shall determine eligibility for exemption and provide
refunds to exempt individuals.
A.
Each employer within the Borough of Sellersville, as well as those
employers situated outside the Borough of Sellersville but who engage
in business within the Borough of Sellersville, 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 Sellersville and
making a return and payment thereof to the Collector. Each employer
is hereby authorized to deduct this tax for each employee in his or
her employ, whether the employee is paid by salary, wage, or commission
and whether or not all such services are performed within the Borough
of Sellersville.
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 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 individual is engaging in an occupation, except as provided in Subsection D below. For purposes of this section, "combined rate" shall mean the aggregate annual rate of the tax levied by the school district and the Borough of Sellersville.
C.
No individual 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 individual for each tax
year, irrespective of the number of political subdivisions within
which an individual may be employed. The Borough of Sellersville 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 of Sellersville 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. 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 Subsection B of § 143-17 of this article 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 in each tax 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 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 such tax year.
Each self-employed individual who performs services of any type
or kind or engages in any occupation or profession with a primary
place of employment within the Borough of Sellersville 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 30th day following the end of
each quarter.
A.
The situs of the tax shall be the place of employment on the first
day the individual becomes subject to the tax during each payroll
period. In the event an individual is engaged in more than one occupation,
that is, concurrent employment, or an occupation which requires the
individual 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 the individual maintains
his principal office or is principally employed.
(2)
Second, the political subdivision in which the individual resides
and works if the tax is levied by that political subdivision.
(3)
Third, the political subdivision in which the individual is employed
and which imposes the tax nearest in miles to the individual's home.
B.
In the event of a dispute, a tax receipt of the taxing authority
for that tax 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 Sellersville but
who perform services of any type or kind or engage in any occupation
or profession within the Borough of Sellersville 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 Sellersville.
Any individual engaged in an occupation within the Borough of Sellersville
and an employee of a nonresident employer may, for the purpose of
this article, be considered a self-employed individual, and in the
event his or her tax is not paid, the Borough of Sellersville shall
have the option of proceeding against either the employer or employee
for the collection of the tax as hereinafter provided.
A.
The Collector shall be appointed by resolution of the Borough of
Sellersville. It shall be the duty of the Collector to accept and
receive payments of the 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 approval
by the Borough of Sellersville, 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 individual aggrieved by
any decision of the Collector shall have the right to appeal to the
Court of Common Pleas of Bucks County.
C.
The Collector is 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 shall provide the Collector with 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 penalties.
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 the tax or other appropriate remedy undertaken,
the individual liable therefor shall, in addition, be responsible
and liable for the costs of collection.
[Amended 10-12-2015 by Ord. No. 703]
Any person who makes any false 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 who fails
or refuses to file any return required by this article or pay the
tax when it is due shall be prosecuted in the same manner provided
for the enforcement of summary offenses under the Pennsylvania Rules
of Criminal Procedure and upon conviction shall be sentenced to pay
a fine not to exceed $1,000 per violation, plus court costs and reasonable
attorneys' fees incurred by the Borough of Sellersville, or to imprisonment
for not more than 90 days, or both. Violations of more than one provision
of this section shall constitute separate violations. Each day that
a violation of any provision of this section continues or occurs shall
constitute a separate violation.
A.
Nothing contained in this article shall be construed to empower the
Borough of Sellersville to levy and collect the tax hereby imposed
on any occupation not within the taxing power of the Borough of Sellersville
under the Constitution of the United States of America and the laws
of the Commonwealth of Pennsylvania.
B.
If the tax 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 of America 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
the tax, or the validity of the tax so imposed, on other persons or
individuals as herein provided.
The tax imposed by this article shall be effective on January 1, 2015, and all tax years thereafter unless repealed or modified by subsequent ordinance by the Borough of Sellersville. Nothing herein shall be construed to affect the assessment and collection of the Borough of Sellersville's occupational privilege tax set forth in Article II of Chapter 143 of the Code of the Borough of Sellersville for the 2014 tax year or any prior tax years.
