[1]
Editor's Note: This ordinance also repealed former Art.
III, Occupational Privilege Tax, as amended.
This article shall be known and may be cited as the "Local Services
Tax" (Ordinance 247, March 12, 1964, § 1; as reenacted and
amended by Ordinance 348, January 4, 1982; as amended by Ordinance
704, December 29, 2004, § 1; as amended by Act 7 of 2007).
As used in this article, unless the context clearly indicates
a different meaning, the following words shall have the meaning set
forth below:
Salaries, wages, commission, tips, bonuses, fees, gross receipts,
or any other earned income.
As this term is defined in Section 13 of the Local Tax Enabling
Act of Dec. 31, 1965, P.L. 1257, § 13, as amended, 53 P.S.
§ 6913, as amended.
Any person, partnership, limited liability partnership, unincorporated
association, institution, trust, corporation, governmental agency,
or any other body engaged in business or situated in Bear Creek Township,
employing one or more employees engaged in any occupation, other than
domestic servants.
The person, public employee, private agency, or other entity
designated by the Council to collect and administer the tax imposed
herein.
Bear Creek Township.
The net income from the operation of a business, profession,
or other activity, as this term as this term is defined in Section
13 of the Local Tax Enabling Act of Dec. 31, 1965, P.L. 1257, § 13,
as amended, 53 P.S. § 6913, as amended.
Includes any livelihood, job, trade, profession, business
or enterprise of any kind, including services, domestic or other,
for which any compensation is received.
The local service tax imposed by this article.
The period from January 1 until December 31 in any year;
a calendar year.
Any natural person liable for the tax levied by this article.
A tax for general revenue purposes, in the amount of $52, is
hereby imposed and levied upon the privilege of engaging in an occupation
within the Township from the effective date of this article, and in
each following calendar year. Each natural person who exercises such
privilege for any length in any calendar year, beginning January 1,
2008, shall pay the tax in accordance with the provisions of this
article. The Township Supervisors may adopt regulations for the processing
of claims for exemptions.
A.
The following persons are exempt from payment of the tax:
(1)
Any person whose total earned income and net profits from all sources
within the municipality is less than $12,000 per annum.
(2)
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 Veterans'
Administration or its successor to be a total one-hundred-percent
disability.
(3)
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 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.
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate on a form developed by the Department of Community and Economic Development with the Township, and copy to the Tax Collector, and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within Township 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 form from employment within the Township 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 Township or Tax Collector except as required by § 114-18B, 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.
C.
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 Township that the person has received earned income and net profits from all sources within the Township 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 Township 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 D below.
D.
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 § 114-18B, 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 § 114-18B, 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 clause is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due and the Township may pursue collection under this article.
E.
Except as provided in § 114-18B above, employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from a local services tax.
F.
The municipality and/or Tax Collector shall determine eligibility
for exemption under this section.
Any municipality deriving funds from the local services tax
may only use the funds for:
A.
If a local services tax is levied at a combined rate exceeding $10 in a calendar year, a person subject to the local services tax shall be assessed 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 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 one-hundredth dollar. Collection of the local services tax levied under this subsection shall be made on a payroll-period basis for each payroll period in which the person is engaging in an occupation, except as provided below in Subsection C. No person shall be subject to the payment of the tax by more than one political subdivision during each payroll period as established by Subsection B. The Township and/or Tax Collector shall provide a taxpayer a receipt of payment of the tax upon request by the taxpayer.
B.
With respect to a person subject to the local services tax at combined
rate exceeding $10, 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 being the following order: first, the political
subdivision in which a person maintains the person's principal
office or is principally employed; second, the political subdivision
in which the person resides and works, if the tax is levied by the
political subdivision; and third, the political subdivision in which
a person is employed and which imposed the tax nearest in miles to
the person's home.
C.
In the case of concurrent employment, an employer shall refrain from
withholding the local services 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
local services tax withheld and a statement from the employee that
the pay statement is from the employee's principal employer and
the employee will notify the other employers of a change in principal
place of employment within two weeks of its occurrence.
Bear Creek Township, in consultation with the Tax Collector
and the Department of Community and Economic Development, shall establish
procedures by resolution for the processing of refund claims for any
tax paid by any person who is eligible for exemption, which procedures
shall be consistent with 53 Pa.C.S.A. §§ 8425 and 8426
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
municipality or Tax Collector shall determine eligibility provide
refunds to exempt persons under this article.
A.
Every employer shall, within 15 days after the effective date of
this article or within 15 days after first becoming an employer, register
with the Tax Collector the employer's name, address, and such
other information as the Tax Collector may require.
B.
As to each taxpayer who is employed for any length of time after
the effective date of this article and on or before March 31 of any
year in which the tax is imposed, each employer shall deduct the tax
from compensation payable to the taxpayer, file a return on a form
prescribed by the Tax Collector, and pay to said Tax Collector the
full amount of all such taxes on or before April 30 of the current
tax year. Thereafter, as to each taxpayer for whom no prior deduction
has been made, who is employed for any length of time in any of the
three-month periods ending June 30, September 20, and December 31,
of the current tax year, each employer shall deduct the tax from compensation
payable to the taxpayer, file a return on a form prescribed by the
Tax Collector, and pay to the Tax Collector the full amount of all
taxes deducted for each such three-month period on or before July
31 or October 31 of the current tax year, and January 31 of the following
year, respectively.
C.
Any employer who discontinues business or ceases operation before
December 31 of any year during which this tax is in effect shall,
within 15 days after discontinuing business or ceasing operations,
file the return hereinabove required and pay the tax to the Tax Collector.
D.
The failure of any employer to deduct the tax shall not relieve the
employee from the duty to file a return and pay the tax. Any employer
who fails to deduct the tax as required by this section, or who fails
to pay such tax to the Tax Collector, shall be liable for such tax
in full, without deduction of the commission hereinafter provided,
as though the tax had originally been levied against such employer.
E.
As to employees who present official receipts evidencing prior payment
of the tax either directly or by collection through other employers,
the employer shall not deduct the tax but shall maintain adequate
records concerning such employees.
The Tax Collector shall demand, receive and collect from all
employers, employing persons owing delinquent tax, upon the presentation
of a written notice and demand certifying that the information contained
therein is true and correct, and contains the name of the taxable
individual or spouse, and the amount of tax due. Upon the presentation
of such written notice and demand, it is the duty of employer to deduct
from the wages, commissions or earnings as such individual employees
then-owning or that shall within 60 days thereafter become due, or
from any unpaid commissions or earnings of any such taxable earnings
in its or his possession or that shall within 60 days thereafter come
into its or his possession, a sum sufficient to pay the respective
amount of the delinquent tax and to pay the same to the Tax Collector
within 60 days after such notice has been given. No more than 10%
of the wages, commission or earnings of the delinquent taxpayer may
be deducted at any one time for the delinquent tax. The employer shall
be entitled to deduct from the monies collected from each employee
the cost incurred from the extra bookkeeping necessary to record such
transaction, but not exceeding 2% of the amount of monies so collected
and paid over the Tax Collector. Upon the failure of the employer
to deduct the amount of taxes or to pay the same over to the Tax Collector,
less the cost of the bookkeeping involved in such transaction, the
employer shall forfeit and pay the amount of such tax for each taxpayer
whose taxes are not withheld and paid over, or that are withheld and
not paid over together the penalty of 10% added thereto, to be recovered
by an action of assumpit and a suit to be instituted by the Tax Collector,
or by the proper authorities of the taxing district, as debts of like
amount a now by law recoverable, except that such person shall not
have the benefit of any stay of execution or exemption law. The Tax
Collector shall not proceed against a spouse or his employer until
he has pursued collection remedies against the delinquent taxpayer
and his employer under this article.
Every taxpayer who is self-employed or whose tax for any other
reason is not collected under
this article, shall file a return on a form prescribed by the Tax
Collector and shall pay the tax directly to said Collector. Each such
taxpayer who first becomes subject to the tax after the effective
date of this article, and on or before March 31 of the current tax
year, shall file the return and pay the tax on or before April 30
of the current tax year, and each such taxpayer who first becomes
subject to the tax after March 31 of the current tax year shall file
the return and pay the tax on or before July 31, October 31 of the
then current year, or January 31 of the following year, whichever
of such payment dates first occurs at least 30 days after the taxpayer
becomes subject to the tax.
Both residents and nonresident taxpayers shall, by virtue of
engaging in an occupation within Bear Creek Township, be subject to
the tax and the provisions of this article.
The Tax Collector, on behalf of the Township, shall collect
and receive the taxes, interest, fines and penalties imposed by this
article, and shall maintain records showing the amounts received,
from whom received, and the date such amounts were received. The Tax
Collector shall prescribe and issue all forms necessary for the administration
of the tax and may adopt and enforce regulations relating to any matter
pertaining to the administration of this article, including but not
limited to requirements for collection through employers, requirements
for deductions, requirements for evidence and records, and provisions
for the examination and correction of returns. The Tax Collector and
agents designated by him may examine the records of any employer or
supposed employer or of any taxpayer or supposed taxpayer in order
to ascertain the tax due or verify the accuracy of any return. Every
employer or supposed employer and every taxpayer or supposed taxpayer
shall give the Tax Collector and any person designated by him all
means, facilities and opportunity for the examinations hereby authorized.
The Tax Collector shall collect, by suit or otherwise, all taxes,
interest, costs, fines and penalties due under this article and unpaid.
If, for any reason, any tax is not paid when due, interest at the
rate of 6% per year on the amount of unpaid tax and an additional
penalty of 1/2 of 1% of the amount of unpaid tax, for each month or
fraction of month during which the tax remains unpaid, shall be added
and collected. Whenever suit is brought for the recovery of unpaid
tax, the taxpayer shall, in addition, be liable for the costs of collection
as well as for interest and penalties. The Tax Collector may accept
payment under protest of the tax claimed by the Township in any case
where any person disputes the Township's claim for the tax. If
a court of competent jurisdiction thereafter decides that there has
been overpayment to the Tax Collector, the Tax Collector shall refund
the amount of the overpayment to the person who paid under protest.
A.
The Tax Collector, before entering upon his official duties, shall
give and acknowledge a bond to the Township. If the Township shall
designate any bond previously given by the Tax Collector as adequate,
such bond shall be sufficient to satisfy the requirements of this
section.
B.
The Tax Collector shall receive such compensation for his services
and expenses as shall be determined by the Council from time to time.
The tax levied and imposed shall continue in force on a calendar-year
basis following January 1, 2008 without annual reenactment, until
such time as the Township Supervisors shall change the rate of tax
or by appropriate ordinance repeal such tax.
Any person who violates any provision of this article or any
regulation adopted pursuant hereto shall, upon conviction thereof,
be sentenced to pay a fine of not more than $500 and costs of prosecution,
or to undergo imprisonment for not more than 30 days.
