[Ord. 1099, 9/18/2007]
This Part 5 shall be known and may be cited as the "Borough
of Mechanicsburg Local Services Tax Ordinance."
[Added by Ord. 1170, 3/16/2021]
The local services tax is authorized by the Local Tax Enabling
Act, 53 P.S. § 6924.101 et seq.
[Ord. 1099, 9/18/2007]
The following words and phrases, when used in this Part, shall
have the meanings ascribed to them in this section, except where the
context or language clearly indicates or requires a different meaning:
COLLECTOR
The person, public employee or private agency designated
by the Borough of Mechanicsburg to collect and administer the tax
herein imposed.
DCED
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
EARNED INCOME
The compensation as required to be reported to or as determined
by the Department of Revenue under Section 303 of the Act of March
4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and rules and
regulations promulgated under that section subject to the following:
[Amended by Ord. 1170, 3/16/2021]
1.
Employee business expenses as reported to or determined by the
Department of Revenue under Article III of the Tax Reform Code of
1971 shall constitute allowable deductions in determining earned income.
2.
The term does not include:
A.
Wages or compensation paid to individuals on active military
service, regardless of whether it is earned for active military service
inside or outside this Commonwealth.
B.
Offsets for business losses.
C.
The amount of any housing allowance provided to a member of
the clergy.
EMPLOYER
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.
HE, HIS or HIM
Indicates the singular and plural number, as well as male,
female and neuter genders.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Borough of Mechanicsburg.
NET PROFITS
The net income from the operation of a business, other than
a corporation, as required to be reported to or as determined by the
Department of Revenue under Section 303 of the Act of March 4, 1971
(P.L. 6, No. 2), 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 subsections:
[Amended by Ord. 1170, 3/16/2021]
1.
Income which:
A.
Is not paid for services provided; and
B.
Is in the nature of earnings from an investment.
2.
Income which represents:
A.
Any gain on the sale of farm machinery;
B.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; or
C.
Any gain on the sale of other capital assets of a farm.
OCCUPATION
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 Mechanicsburg
for which compensation is charged or received, whether by means of
salary, wages, commission or fees for services rendered.
TAX
The local services tax at the rate fixed in §
24-503 of this Part.
TAX YEAR
The period from January 1 until December 31 in any year;
a calendar year.
[Ord. 1099, 9/18/2007]
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 Part, the employer shall be responsible for the
payment of the tax in full as though the tax had been originally levied
against the employer.
[Ord. 1099, 9/18/2007]
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 30th day
following the end of each calendar quarter of each such tax year.
[Ord. 1099, 9/18/2007]
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 Mechanicsburg shall be required
to comply with this Part 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.
[Ord. 1099, 9/18/2007]
All employers and self-employed individuals residing or having
their places of business outside of the Borough of Mechanicsburg but
who perform services of any type or kind or engage in any occupation
or profession within the Borough of Mechanicsburg do, by virtue thereof,
agree to be bound by and subject themselves to the provisions, penalties
and regulations promulgated under this Part with the same force and
effect as though they were residents of the Borough of Mechanicsburg.
Further, any individual engaged in an occupation within the Borough
of Mechanicsburg and an employee of a nonresidential employer may,
for the purpose of this Part, 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.
[Ord. 1099, 9/18/2007; as amended by Ord. 1170, 3/16/2021]
Whoever makes any false or untrue statement on any return required
by this Part, 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 Part
shall be guilty of a violation and, upon conviction thereof, shall
be sentenced to pay a fine of not less than $500 nor more than $1,500
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 Part.