[Adopted 12-3-2007 by Ord. No. 1554]
This article shall be known and cited as the "Local Services
Tax Ordinance."
This article is enacted under the authority of the Local Tax
Enabling Act, as amended by Act No. 7 of 2007.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
The purpose of this article is to provide revenue for police,
fire and emergency services; road construction and maintenance; the
reduction of property taxes; and for such other purposes as may be
specified for such tax from time to time by 53 P.S. § 6924.330,
as amended.
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 political subdivision to collect and administer the tax herein
imposed.
The reasonable costs incurred to provide notices of delinquency
or to implement similar procedures utilized to collect delinquent
employer taxes and delinquent taxes from delinquent employers and
delinquent taxpayers, including the initial delinquent collection
fee, the delinquent collection fee and expenses.
[Added 7-2-2012 by Ord. No. 1591]
The calendar year in which taxes are levied.
[Added 7-2-2012 by Ord. No. 1591]
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
An employer owing delinquent employer taxes and/or fines
and penalties.
[Added 7-2-2012 by Ord. No. 1591]
Any taxes not paid on or before the due date by an employer
having a duty to withhold and pay taxes pursuant to the LTEA.[2] Delinquent employer taxes shall include all applicable
penalties, interest, costs of collection and fines and penalties in
accordance with applicable law.
[Added 7-2-2012 by Ord. No. 1591]
Any taxes, other than taxes subject to withholding, not paid
on or before the due date by any taxpayer. Delinquent taxes shall
include all applicable penalties, interest, costs of collection and
fines and penalties in accordance with applicable law.
[Added 7-2-2012 by Ord. No. 1591]
A taxpayer owing delinquent taxes and/or fines and penalties.
[Added 7-2-2012 by Ord. No. 1591]
Compensation, as this term is defined in Section 501 of the
Local Tax Enabling Act, 53 P.S. § 6924.501, as amended.[3]
A person, business entity or other entity employing one or
more persons for a salary, wage, commission or other compensation
and having a duty to withhold taxes from its employees, file a return
and pay the Tax Officer pursuant to the provision of the LTEA.
[Added 7-2-2012 by Ord. No. 1591]
All actual out-of-pocket expenses paid or incurred by the
Tax Officer to collect delinquent employer taxes and delinquent taxes,
including, but not limited to, court costs, Sheriff's fees and postage
expenses.
[Added 7-2-2012 by Ord. No. 1591]
Those fines and penalties imposed by a court of competent
jurisdiction pursuant to the LTEA and any other applicable law.
[Added 7-2-2012 by Ord. No. 1591]
All taxes due, including the tax principal plus accumulated
penalties and interest and fines and penalties.
[Added 7-2-2012 by Ord. No. 1591]
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 net income from the operation of a business, profession,
or other activity, as this term is defined in Section 501 of the Local
Tax Enabling Act, 53 P.S. § 6924.501, as amended.[5]
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 Borough of Dormont.
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.
The calendar year following the current year.
[Added 7-2-2012 by Ord. No. 1591]
The local services tax levied by this article.
Its owners, shareholders, directors, employees, agents and
legal counsel, their owners, shareholders, partners, employees and
agents.
[Added 7-2-2012 by Ord. No. 1591]
Any individual, including self-employed individuals, required
under the LTEA[6] to file a return of a tax or to pay a tax.
[Added 7-2-2012 by Ord. No. 1591]
The period from January 1 until December 31 in any year;
a calendar year.
The Borough of Dormont hereby levies and imposes on every individual
engaging in an occupation within the jurisdictional limits of the
Borough of Dormont a tax in the amount of $52 per annum, beginning
the first day of January 2008 and continuing on a calendar basis annually
thereafter, until modified or repealed by subsequent ordinance.
A.
Exemption. Any person whose total earned income and net profits from
all sources within the political subdivision 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, 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.
(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.
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 the political subdivision and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the political subdivision of less than $12,000 in the calendar year for which the exemption certificate is filed. In the event the political subdivision 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 political subdivision for the year prior to the fiscal year for which the employee is requesting to be exempted from the tax. Upon receipt of the exemption certificate and until otherwise instructed by the political subdivision or except as required by Subsection B(2), 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. The exemption certificate form shall be the uniform form provided by the political subdivision.
(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 the political subdivision that the person has received earned income and net profits from all sources within the political subdivision 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 municipality 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 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 the 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 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 subsection is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due, and the political subdivision may pursue collection under this article.
C.
Refunds. The Borough of Dormont, in consultation with the Collector
and DCED, shall establish procedures for the processing of refund
claims for any tax paid by any person who is eligible for exemption,
which 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 Borough of Dormont or
the Collector shall determine eligibility for exemption and provide
refunds to exempt persons.
A.
Each employer within the political subdivision, as well as those
employers situated outside the political subdivision but who engage
in business within the political subdivision, is hereby charged with
the duty of collecting the tax from each of his employees engaged
by him or performing for him within the political subdivision 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 said employee is paid by salary, wage
or commission and whether or not all such services are performed within
the political subdivision.
B.
A person subject to the tax shall be assessed by the employer 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 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, "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 local services tax
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 and the amount of the tax withheld
and a statement from the employee that the pay statement is from the
employee's principal employer and 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 $52 on each person for each calendar
year, irrespective of the number of political subdivisions within
which a person may be employed. The political subdivision shall provide
a 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 political subdivision 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 or where the employee is principally employed. Further, an employer shall not be liable for payment of the local services tax in an amount exceeding the amount withheld by the employer if the employer complies with the provisions of § 187-27B, Procedure to claim exemption, and remits the amount so withheld in accordance with this article.
G.
Employers shall be required to remit the local services taxes 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.
Each employer shall use his employment and payroll records from
the first day of January to March 31 each year for determining the
number of employees from whom said tax shall be deducted and paid
over to the Collector on or before April 30 of the same calendar year.
Supplemental reports shall be made by each employer on July 30, October
30 and January 31 for new employees as reflected on his employment
and payroll records from April 1 to June 30, July 1 to September 30
and October 1 to December 31, and payments on these supplemental reports
shall be made on July 30, October 30 and January 31, respectively.
Each self-employed individual who has earned income or realizes
net profit, as those terms are defined herein, within the political
subdivision shall be required to comply with this article and pay
the tax due to the Collector on or before the 30th 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, 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 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.
In case of dispute, a tax receipt of 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 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, the political subdivision
shall have the option of proceeding against either the employer or
employee for the collection of this tax as hereinafter provided.
A.
It shall be the duty of the Collector to accept and receive payments
of this tax and keep a record thereof showing the amount received
by him from each employer or self-employed person, together with the
date the tax was received. It shall be the duty of the Collector to
accept and keep a record of the information submitted by employers
relating to the number of employees subject to the tax, the number
of employees exempt from the tax, the employee exemption certificates
and refunds of the tax paid to individuals and employers.
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 prescribe, 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 to appeal to the Court
of Common Pleas of Allegheny County as in other cases provided.[1]
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 opportunity for such examination.
[Added 7-2-2012 by Ord. No. 1591]
A.
Expenses. Expenses shall be recovered by the Tax Officer as part
of delinquent employer taxes and delinquent tax collected.
B.
Initial delinquent collection fee. The initial delinquent collection
fee shall be 10% of gross collections calculated on the first of the
month for the entire month, or part thereof, in which delinquent employer
taxes and delinquent taxes are paid in full.
C.
Delinquent collection fee. The delinquent collection fee shall be
20% of gross collections calculated on the first of the month for
the entire month, or part thereof, in which delinquent employer taxes
and delinquent taxes are paid in full.
D.
Fines and penalties. Fines and penalties shall be in the amounts
approved by a court of competent jurisdiction.
[Amended 7-2-2012 by Ord. No. 1591]
In the event that any tax under this article remains due and unpaid 30 days after the due date above set forth, the Collector may sue for recovery of any such tax due or unpaid under this article, together with costs of collection as provided in § 187-35.
[Amended 7-2-2012 by Ord. No. 1591[1]]
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, upon conviction in a summary proceeding under the Pennsylvania
Rules of Criminal Procedure, be guilty of a summary offense and shall
be punishable by a fine of not more than $1,000, plus court costs
and reasonable attorneys' fees incurred by the Borough in the enforcement
proceedings. Upon judgment against any person by summary conviction,
or by proceedings by summons on default of the payment of the fine
or penalty imposed and the costs, the defendant may be sentenced and
committed to the Borough correctional facility for a period not exceeding
10 days or to the county correctional facility for a period not exceeding
30 days. Each day that such violation exists shall constitute a separate
offense, and each section of this article that is violated shall also
constitute a separate offense. In addition to or in lieu of enforcement
under this section, the Borough may enforce this article in equity
in the Court of Common Pleas of Allegheny County. 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. In addition
to the above, the Tax Officer shall be permitted to charge for recovery
costs of collection from the delinquent taxpayer.
[Added 7-2-2012 by Ord. No. 1591]
A.
Required notice. The Tax Officer shall mail, by first-class mail,
a written notice to each delinquent employer and delinquent taxpayer
known to the Tax Officer advising them of the balance due for delinquent
employer taxes and delinquent taxes, including costs of collection
("required notice"). The required notice shall be deemed received
on the next date following the mailing date and shall provide the
delinquent employer and delinquent taxpayer 30 days in which to pay
the delinquent employer taxes and delinquent taxes in full.
B.
Any balance due for delinquent employer taxes and delinquent taxes
remaining following the 30th day after the required notice shall no
longer be subject to the initial delinquent collection fee, but shall
be subject to the delinquent collection fee regardless of whether
there exists an agreement to pay the delinquent employer taxes and
delinquent taxes in installments or following any forbearance.
C.
Costs of collection shall be recoverable as part of the delinquent
employer taxes and delinquent taxes, as well as in any legal proceeding
initiated by counsel for the Tax Officer, including claims filed in
federal bankruptcy court proceedings.
D.
The Tax Officer shall assess and collect costs of collection in accordance
with the LTEA[1] and as otherwise authorized by applicable law. The Tax
Officer shall retain costs of collection and 1/2 of any fines and
penalties recovered. The remaining 1/2 of any fines and penalties
recovered shall be paid to the Borough.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
A.
Nothing contained in this article shall be construed to empower the
political subdivision to levy and collect the tax hereby imposed on
any occupation not within the taxing power of the political subdivision
under the Constitution of the United States and the laws of the Commonwealth
of Pennsylvania.
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 said tax or the
validity of the tax so imposed on other persons or individuals as
herein provided.
[Added 7-2-2012 by Ord. No. 1591]
A.
This article shall take effect on the date of enactment.
B.
Costs of collection and fines and penalties shall apply to delinquent
employer taxes and delinquent taxes relating to 2011 and prior years
and relating to 2012 and subsequent tax years.
C.
Expenses shall be recovered from delinquent employer taxes and delinquent
taxes from the date on which taxes became delinquent employer taxes
and delinquent taxes.
D.
The initial delinquent collection fee shall accrue as follows:
E.
Delinquent collection fee. For both delinquent employers and delinquent taxpayers, the delinquent collection fee shall commence on the first day following the last day of the required notice described in § 187-38 of this article and shall continue until the end of the month in which the delinquent employer taxes and delinquent taxes are paid in full.
F.
Fines and penalties. Fines and penalties shall be recoverable from
the date awarded by a court of competent jurisdiction.
