[Adopted 12-17-2007 by Ord. No. 2007-4]
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 person, public employee, or private agency designated
by the Township of Aleppo 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 political subdivision,
the Township of Aleppo.
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. 1251, 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, earned on
or performed within the corporate limits of the political subdivision,
for which compensation is charged or received, whether by means of
salary, wages, commission, or fees for services rendered.
The area within the corporate limits of the Township of Aleppo
(hereinafter sometimes referred to as the "Township" or "Aleppo").
The local services tax (hereinafter sometimes referred to as the "LST") at the rate fixed in § 361-42 of this article.
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P.S. § 6913) was repealed 7-2-2008 by P.L. 197, No. 32,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P.S. § 6913) was repealed 7-2-2008 by P.L. 197, No. 32,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.
A.
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 Township
of Aleppo 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 $39, assessed on a pro rata basis,
in accordance with the provisions of this article. Of this thirty-nine-dollar
tax, $13 is hereby dedicated to the Fire Department, in addition to
monies the Department already receives from the Township. The remaining
revenue may be used by the Township in the following manner:
B.
The LST shall be no more than $39 on each person for each calendar
year, irrespective of the number of political subdivisions within
which a person may be employed.
A.
Exemption. Any person whose total earned income and net profits from
all sources within Aleppo 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, that person is blind, paraplegic, a double or
quadruple amputee, or has a service-connected disability declared
by the United States Veterans' Administration or its successor
as a 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. However, this
tax shall be prorated for those persons serving in the armed forces
on active duty where the tax years overlap.
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 Aleppo and with the person's employer. This certificate shall affirm that the person reasonably expects to receive earned income and net profits from all sources within the Township of less than $12,000 in the calendar year for which the exemption certificate is filed. In the event Aleppo 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 Township for the year prior to the fiscal year for which the employee is requesting exemption from the tax. Upon receipt of the exemption certificate, and until otherwise instructed by Aleppo or except as required by Subsection B(2), the employer shall not withhold the tax from that 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 Township.
(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 Aleppo 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 Aleppo in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the LST 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 that 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 that 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 Township may pursue collection under this article.
C.
Refunds. The Board of Commissioners, in consultation with the Tax
Collector and the DCED, shall establish procedures for the processing
of refund claims for any tax paid by any person who is eligible for
exemption. These 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
Board of Commissioners or the Tax Collector shall determine eligibility
for exemption and provide refunds to exempt persons.
A.
Each employer within the Township of Aleppo, as well as those employers
situated outside the Township but who engage in business within Aleppo,
is hereby charged with the duty of collecting the tax from each of
his or her employees employed by the employer within the Township
and making a return and payment thereof to the Collector. Further,
each employer is hereby authorized to deduct this tax for each employee
in his or her employ, whether that employee is paid by salary, wage,
or commission and whether or not all such services are performed within
the Township.
B.
A person subject to the tax shall be assessed a pro rata share by the employer 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 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 B, the "combined rate" shall mean the aggregate annual rate of the tax levied by the school district and the municipality.
C.
No person shall be subject to the payment of the LST 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, the amount of the tax withheld,
and a statement from the employee that the pay statement is from the
employee's principal employer and that 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 $39 on each person for each calendar
year, irrespective of the number of political subdivisions within
which a person maybe employed. Aleppo shall provide the 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 Township 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, and/or where the employee is principally employed. Further, an employer shall not be liable for payment of the LST in an amount exceeding the amount withheld by the employer if the employer complies with the provisions of § 361-43B 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 LST within 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 Township of Aleppo 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 (i.e.,
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 LST 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 from 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 the Township of Aleppo but who perform
services of any type or kind or engage in any occupation or profession
within the Township 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 Aleppo. Further, any individual engaged in an occupation
within the Township and an employee of a nonresidential employer may,
for the purpose of this article, be considered a self-employed person.
In the event the LST is not paid, the Township shall have the option
of proceeding against either the employer or the employee for the
collection of this tax as hereinafter provided.
A.
The Tax Collector shall be appointed by resolution of the Township
of Aleppo. The Collector has a duty to accept and receive payments
of the LST and to keep a record thereof showing the amount received
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 municipal
approval, to proscribe, 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 of appeal consistent
with the Local Taxpayers Bill of Rights under Act 50 of 1998[1] and any other appeal process which has been or will be
established by Aleppo.
[1]
Editor's Note: See 53 Pa.C.S.A. § 8421 et seq.
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 the 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. Also, 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 another appropriate remedy undertaken,
the individual liable therefor shall, in addition to the tax owed,
which includes interest and a penalty, 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 to allow for the 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, plus costs of prosecution. If there is a default with payment
of the fine and costs, the person convicted may be imprisoned 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 Aleppo
to levy and collect the tax hereby imposed on any occupation not within
the taxing power of the Township.
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 this tax or the
validity of the tax so imposed on other persons or individuals as
herein provided.
C.
Except as set forth hereafter, all ordinances or parts of ordinances
inconsistent herewith are hereby repealed. Nothing herein shall be
construed to repeal the imposition and collection of an occupational
privilege tax, plus applicable penalties and interest for the calendar
year 2005 and all prior calendar years, or of an emergency and municipal
services tax, plus applicable penalties and interest for calendar
years 2006 and 2007, as the same existed prior to this amendment.
The tax imposed by this article shall be effective on January
1, 2008, and all calendar years thereafter, unless repealed or modified
by an ordinance enacted by the Township of Aleppo.