This article shall be known as the "Local Services Tax Ordinance
of Middletown Township."
As used in this article, the following terms, words and/or phrases
shall have the meanings indicated, except where the context or language
clearly indicates or requires a different meaning:
ACT
The Local Tax Enabling Act, the Act of Dec. 31, 1965, P.L.
1257, 53 P.S. § 6924.101 et seq., as amended.
COLLECTOR
The person, public employee or private agency designated
by Middletown Township to collect and administer the tax herein imposed.
DCED
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
EARNED INCOME
Compensation as this term is defined in Section 501 of the
Act, 53 P.S. § 6924.501, as amended.
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 political subdivision.
NET PROFITS
The net income from the operation of a business, profession,
or other activity, as this term is defined in Section 501 of the Act,
53 P.S. § 6924.501, as amended.
OCCUPATION
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.
POLITICAL SUBDIVISION
The area within the corporate limits of the Township of Middletown,
County of Delaware, Pennsylvania.
TAX
The local services tax levied by this article.
TAX YEAR
The period from January 1 until December 31 in any year;
a calendar year.
For specific revenue purposes, an annual tax is hereby levied
and assessed, commencing January 1, 2014, upon the privilege of engaging
in an occupation with a primary place of employment within Middletown
Township during the tax year. Each natural person who exercises such
privilege for any length of time during any tax year shall pay the
tax of that year in the amount of $52, assessed on a pro rata basis,
in accordance with the provisions of the Act and this article. This
tax may be used solely for the following purposes as the same may
be allocated by the Township Council from time to time: 1) emergency
services, which shall include emergency medical services and/or fire
services; 2) road construction and/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.
Ch. 85, Subchapter F (relating to homestead property exclusion). If
required, Middletown Township shall remit to the School District the
School District's share of any tax, if any, in accordance with provisions
of the Act. Middletown Township 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 Middletown Township. The tax shall be no more than $52 on each
person for each calendar year, irrespective of the number of political
subdivisions within which a person may be employed.
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
commission 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 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 within a primary
place of employment within the political subdivision 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.
All employers and self-employed individuals residing or having
their places of business outside of the political subdivision but
who perform services of any type or kind or engage in any occupation
or profession within the political subdivision 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 political subdivision.
Further, any individual engaged in an occupation within the political
subdivision and an employee of a nonresidential employer may, for
the purpose of this article, be considered a self-employed person,
and in the event his or her tax is not paid, Middletown Township shall
have the option of proceeding against either the employer or employee
for the collection of this tax as hereinafter provided.
Whoever makes any false or untrue statement on any return required
by this article, 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 article
shall be guilty of a violation and, upon conviction thereof, shall
be sentenced to pay a fine of not more than $600 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 article.