Township of Upper Providence, PA
Delaware County
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Table of Contents
Table of Contents
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
This chapter shall be known and may be cited as the "Local Services Tax Ordinance."
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
The following words and phrases, when used in this chapter, shall have the meaning ascribed to them in this section, unless the context clearly indicates a different meaning:
(a) 
EMPLOYER — An individual, partnership, association, 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.
(b) 
HE, HIS, OR HIM — Means and indicates the singular and plural number as well as male, female and neuter gender.
(c) 
INDIVIDUAL — Any person, male or female, engaged in any occupation, trade or profession within the corporate limits of the Township of Upper Providence.
(d) 
OCCUPATION — Any trade, profession, business or undertaking of any type, kind or character, including services, carried on or performed within the corporate limits of the Township of Upper Providence, for which compensation is charged or received, whether by means of salary, wages, commissions or fees, for services rendered.
(e) 
PRIVILEGE — The exercising or carrying on by any means or manner any occupation whatsoever as hereinabove defined.
(f) 
TAX — A Local Services Tax in the amount of $52 per year levied on each engagement in any occupation as heretofore defined, within the corporate limits of the Township of Upper Providence.
(g) 
TOWNSHIP OF UPPER PROVIDENCE — The area within the corporate limits of the Township of Upper Providence.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005]
Effective January 1, 2005, and continuing thereafter annually on a calendar year basis, the Township of Upper Providence hereby imposes on each individual engaged in an occupation within the corporate limits of the Township of Upper Providence, for the privilege of engaging in such occupation, an annual Emergency Municipal Services tax in a manner and at a rate hereinafter set forth.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
(a) 
Beginning in the calendar year 2008 and thereafter in each following calendar year, each engagement in an occupation subject to this tax, as set forth in Section 886.02, shall be subject to the payment of a Local Services Tax in the amount of $52, to be paid by each individual exercising the privilege of engaging in any such occupation as hereinbefore defined, within the corporate limits of the Township of Upper Providence, whose total earned income or net profits is $12,000 or more for the calendar year in which the tax is levied.
(b) 
Any taxpayer who reasonably expects to receive income and/or net profits from all sources within the Township in an amount less then $12,000 in a calendar year may file an exemption certificate with the employer and the Township. The exemption certificate shall have attached to it a copy of all of the employees 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 to be exempted from the local services tax. Upon receipt of the exemption certificate and until otherwise instructed by the Township levying the tax or except as required by this Section, 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. Employer 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/or 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 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, and employer shall withhold the local services tax from the person.
(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, the employer shall withhold the tax for the remainder of that calendar year. The employer shall withhold from the person, from the first payroll period after receipt of the notification, a lump sum equal to the amount of the tax that was not withheld from the person due to the exemption claimed by the person under this subsection, plus the 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 the person subject to withholding of the tax under this section is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of the tax due and the Township may pursue collection.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
(a) 
The Local Services Tax shall be paid to the Collector and shall be due and payable as follows:
(1) 
For individuals employed as of January 1 of each year, the tax shall be deducted by their employer and forwarded to the Collector within 30 days following a receipt of notice from the Collector.
(2) 
For individuals whose employment begins later than January 1 of each year, the employer shall deduct the tax and forward it to the Collector within 30 days from the date of employment.
(b) 
If said tax is not paid within 30 days after the due dates specified in subsection (a) hereof, a penalty of 5% shall be added thereto.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
Each employer within the Township of Upper Providence is hereby charged with the duty of collecting and paying over to the Collector from each employee engaged in his or her services said tax of $52 per year upon each individual employed by said employer who performs services on behalf of said employer within the geographical limits of the Township of Upper Providence, or who is engaged in an occupation as hereinbefore defined for the benefit of said employer or in the service of said employer within the geographical limits of the Township of Upper Providence. Each employee subject to the local services tax shall be assessed a pro rata share of the tax for each payroll period 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, employer shall round down the amount of the tax collected each payroll period to the nearest one-hundredth of a dollar. Collection of local services tax shall be made on a payroll period basis for each payroll period in which the person is engaging in an occupation.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
Each individual who shall have more than one occupation within the Township of Upper Providence shall be subject to the payment of the annual Local Services Tax solely upon the privilege of engaging in his or her principal occupation, and his or her principal occupation employer shall deliver to him or her a certificate of payment in a form to be furnished to the employer by the Collector, certifying to any other employer of such individual that said Local Services Tax has been paid by the employee to the employer and, in turn, remitted by said employer to the Collector. Any employer receiving said certificate of payment of the Local Services Tax by another employer by deduction from said individual shall not deduct or collect the Local Services Tax imposed by this chapter.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
Each employer in the Township of Upper Providence shall use his or her employment records as of July 1, 1997, and January 1 of each calendar year thereafter, in determining the number of employees from whom said Local Services Tax shall be deducted and paid over to the Collector. Each employer who engages the services of an individual in an occupation to be performed in the Township of Upper Providence on or after July 1, 1997, and January 1 of each calendar year thereafter, shall require said employee to furnish to him or her a certificate of payment from the Collector showing that the Local Services Tax has theretofore been paid. In the event that such employee has not previously paid his or her Local Services Tax, the employer shall deduct the same within 30 days after the employee is hired and remit said tax to the Collector on or before the due dates listed in Section 886.05.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
Each self-employed individual in the Township of Upper Providence who performs any services of any kind or any type within the corporate limits of the Township of Upper Providence, whether the same be regarded either as a profession or as a business, shall be required to pay an Local Services Tax $52 for himself or herself and shall be further required to deduct and pay over in the manner hereinbefore set forth in Section 886.06 an Local Services Tax of $52 for every individual in his or her employ who is engaged in the performance of any occupation or profession for him or her within the Township of Upper Providence. Any individual engaged in any occupation within the Township of Upper Providence who is the employee of another and who is subject to this tax, as hereinbefore defined, shall be liable for the payment of the Local Services Tax of $52 for himself or herself and shall be treated and regarded as a self-employed individual if the location of the business of his or her employer is located beyond the corporate limits of the Township of Upper Providence. Each employer whose business is located beyond the corporate limits of the Township of Upper Providence shall be required to furnish to the Collector a list of all individuals employed by him or her who exercise the privilege of engaging in any occupation of any type or character within the corporate limits of the Township of Upper Providence during the fiscal year.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
The Local Services Tax imposed by this chapter shall be in addition to all other taxes of any kind or nature heretofore or hereafter levied by the Township of Upper Providence.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
(a) 
It shall be the duty of such person as may be designated by Township Council to collect and receive the taxes, fines or penalties imposed by this chapter and immediately transfer the same to the Township of Upper Providence. It shall also be the duty of such person as may be designated by Township Council to keep a record showing the amount received by him or her from each self-employed person paying the tax and the date of such receipt. It further shall be the duty of such person as may be designated by Township Council to keep a record showing the amount received by him or her from any employer paying the tax on behalf of his or her employees by the deduction made by such employer from the salaries, wages, commissions or other forms of compensation of such employees.
(b) 
Such person as may be designated by Township Council is hereby charged with the administration and enforcement of the provisions of this chapter and is hereby empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of this chapter, including a provision for the examination of the payroll records of any employer within the Township of Upper Providence, and, further, for the re-examination and correction of any returns made in compliance with this chapter 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 such person as may be designated by Township Council shall have the right to appeal as in other cases provided.
(c) 
Such person as may be designated by Township Council is hereby authorized to examine the books and payrolls of any employer in order to verify the accuracy of any return made by any employer on behalf of his or her employees or, if no return was made, to ascertain the Local Services Tax due. Each employer in the Township of Upper Providence is hereby directed and required to give to such person as may be designated by Township Council the means, facilities and opportunity for such examinations and investigations as are hereby authorized.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
In the event any person subject to the payment of the Local Services Tax is employed in more than one political subdivision during the year, which subdivisions levy an Local Services Tax, the priority of claim to collect such Local Services Tax shall, in accordance with Act 511, 72 P.S. §§ 5511.1 et seq., be in the following order:
(a) 
First, the political subdivision in which the person maintains his or her principal office or is principally employed.
(b) 
Second, the political subdivision in which the person resides and works, if such tax is levied by that political subdivision.
(c) 
Third, the political subdivision in which a person is employed and which imposes the tax nearest in miles to the person's home. The place of employment shall be determined as of the date the taxpayer first becomes subject to the tax during the calendar year.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
(a) 
In the event that any tax under this chapter remains due and unpaid for 60 days after the due dates set forth in Section 886.05(a), the Collector may sue for the recovery of any such tax due and unpaid under this chapter, together with any interest and penalties imposed.
(b) 
If, for any reason, the tax is not paid when due, interest at the rate of 6% on the amount of said tax shall be calculated, beginning 30 days after the due dates above set forth, together with the penalty set forth in Section 886.05(b). Where suit is brought for recovery of any Local Services Tax, the individual liable therefor shall, in addition, be responsible and liable for the cost of collection and the interest and penalties therein imposed.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
The Collector shall have the power, in case of the neglect or refusal of any person, co-partnership, association or corporation to make payment of the amount of the tax due, after 60 days from the date of the tax notice, to levy the amount of said tax, any penalty due thereon and costs, not exceeding costs and charges allowed to constables for similar services by distress and sale of the goods and chattels of such delinquency, wherever situate or found, upon giving at least 10 days' public notice and one advertisement in a newspaper of general circulation published in the County. The Collector shall have all powers regarding the collection of delinquent Local Services Taxes as are set forth in the Local Tax Enabling Act.
[Ord. No. 306, passed 3-13-1997]
Nothing contained in this chapter shall be construed to empower the Township of Upper Providence to levy and collect the tax herein imposed on any occupation not within the tax power of the Township of Upper Providence under the Constitution of the United States and the laws of the Commonwealth of Pennsylvania.
[Ord. No. 306, passed 3-13-1997; Ord. No. 392, passed 2-10-2005; Ord. No. 428, passed 11-8-2007]
Whoever makes any false or untrue statement on any return required by this chapter, or who refuses inspection of his or her books, records or accounts in his or her custody or control, in order to determine the number of employees subject to the Local Services Tax who are in his or her employment, or whoever fails and refuses to file any return required by this chapter, shall, upon conviction in a summary proceeding, be sentenced to pay a fine of not more than $1,000 for each offense and, in default of payment of said fine, be imprisoned for a period not exceeding 30 days for each offense.