[Adopted 12-2-1985 by Ord. No. 1150 (Ch. 110, Art. III, of the 1972 Code)]
Editor's Note: The title of this article was changed from "Emergency and Municipal Services Tax" to "Local Services Tax" 12-20-2007 by Ord. No. 1317.
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:
- CONCURRENT EMPLOYMENT
- Where an individual works or is engaged in more than one
occupation or when an individual has an occupation that requires the
individual to work or to be engaged in more than one occupation in
more than one political subdivision during a single payroll period.[Added 12-20-2007 by Ord. No. 1317]
- 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.
- FISCAL YEAR
- The twelve-month period beginning January 1 of every year
and ending December 31 of the same year.[Added 12-21-2006 by Ord. No. 1315]
- Any person, male or female, engaged in any occupation, trade or profession within the corporate limits of the Borough of Sharon Hill who attains or is over the age of 18 years on the first day of January of the current tax year.
- Any trade, profession, business or undertaking of any type, kind or character, including services, domestic or other, carried on or performed within the corporate limits of the Borough of Sharon Hill for which compensation is charged or received, whether by means of salary, wages, commissions or fees for services rendered.
- RESERVE COMPONENT OF THE ARMED FORCES
- 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.[Added 12-20-2007 by Ord. No. 1317]
- TAX RECEIVER
- The person designated by the Borough of Sharon Hill for the collection of occupational taxes.
Editor's Note: The former definition of "tax on occupation" or "occupational tax" which immediately followed this definition, was repealed 12-21-2006 by Ord. No. 1315.
[Amended 12-21-2006 by Ord. No. 1315; 12-20-2007 by Ord. No. 1317]
The Borough of Sharon Hill hereby levies and imposes on each individual engaged in an occupation during the fiscal year within the corporate limits of the Borough of Sharon Hill a local services tax for the current year. This tax is in addition to all other taxes of any kind or nature heretofore levied by the Borough of Sharon Hill.
[Amended 12-21-2006 by Ord. No. 1315; 12-20-2007 by Ord. No. 1317; 12-16-2010 by Ord. No. 1351]
Beginning the first day of January 2011, individuals engaged in each occupation, as hereinbefore defined, earning over $12,000 per fiscal year shall be required to pay a local services tax of $52 per annum.
[Added 12-20-2007 by Ord. No. 1317]
The following individuals shall be exempt from the local services tax, pursuant to 53 P.S. § 6924.301.1 (as amended):
Any individual whose total earned income and net profits from all sources within the Borough of Sharon Hill is less than $12,000 for the fiscal year in which the local services tax is levied.
Any individual 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 100% permanent disability.
Any individual 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.
Claim for exemption.
Any individual seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Borough and with that individual's employer affirming that the individual reasonably expects to receive earned income and net profits from all sources within the Borough of less than $12,000 in the fiscal year for which the exemption certificate is filed. The Borough shall provide a copy of that individual's exemption certificate to the Tax Collector of the Borough.
An individual's 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 Borough 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 Borough as provided below in § 332-24B, the employer shall not withhold the tax from the person during the fiscal year or the remainder of the fiscal 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.
[Amended 12-20-2007 by Ord. No. 1317]
Each employer within the Borough of Sharon Hill, as well as those employers situated outside of the Borough of Sharon Hill but who engage in business within the Borough of Sharon Hill, is hereby charged with the duty of collection from each of its employees engaged by it and performing by it within the Borough of Sharon Hill said tax of $52 per annum and making a return and payment thereof to the Tax Receiver. Further, each employer is hereby authorized to deduct this tax from each employee in its employ, whether said employee is paid by salary, wages or commission and whether or not part of all such services are performed with the Borough of Sharon Hill.
With respect to an individual who has claimed an exemption for a given fiscal year from the local services tax, upon notification to an employer by the individual or by the Borough that the individual has received earned income and net profits from all sources within the Borough equal to or in excess of $12,000 in that fiscal year, or that the individual is otherwise ineligible for the tax exemption for that calendar year, or upon an employer's payment to the individual of earned income within the Borough in an amount equal to or in excess of $12,000 in that fiscal year, an employer shall withhold the local services tax from the individual as provided for in § 332-24.
If an individual who claimed an exemption for a given fiscal year from the local services tax becomes subject to the tax for the fiscal year pursuant to Subsection B above, the employer shall withhold the tax for the remainder of that calendar year. The employer shall withhold from the individual for the first payroll period after receipt of the notification under Subsection B above a lump sum equal to the amount of tax that was not withheld from the individual due to the exemption claimed by the individual under § 332-23, 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 fiscal year shall be the same amount withheld for other employees.
If an individual who is subject to the local services tax is not employed for the entirety of the fiscal year for which the local services tax is levied, the individual shall be assessed a pro rata share of the full tax of $52 for each payroll period in which the individual is engaged in an occupation. The pro rata share of the tax assessed on the individual for a payroll period shall be determined by dividing the combined rate of the local services tax levied for the fiscal year by the number of payroll periods established by the employer for the fiscal 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 1/100 of a dollar. Collection of the local services tax levied under this section 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 Subsections D and E below.
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 other employers of a change in principal place of employment within two weeks of its occurrence.
In the case of concurrent employment, the priority of claim to collect the local services tax shall be in the following order: first, the political subdivision in which an individual maintains the individual's principal office or principal place of employment; second, the political subdivision in which the individual resides and works, if a local services tax is levied by that political subdivision; and third, the political subdivision in which the individual is employed and which imposes a local services tax nearest in miles to the individual's home.
In the event that the employment of an individual subject to withholding of the tax under this section is subsequently severed from employment in that fiscal year, the individual shall be liable for any outstanding balance of tax due, and the Borough may pursue collection from the individual.
Each employer shall prepare and file a return showing a computation of the tax on forms to be supplied to him by the Borough of Sharon Hill. Each employer in filing this return and making payment of the tax withheld from his employees shall be entitled to retain a commission calculated at the rate of 2% of the gross tax due and payable, provided that such tax is collected and paid over by the employer on or before the dates hereinafter set forth. It is further provided that, if the employer fails to file said return and pay said tax, whether or not he makes collection thereof from the salary, wages or commissions paid by him to said employee, the employer shall be responsible for the payment of the tax in full without deducting a commission and as though the tax had originally been levied against him.
Each employer shall use his employment records from the first day of January to the 31st day of March for determining the number of employees from whom said tax shall be deducted and paid over to the Tax Receiver on or before April 30 of said year. Supplemental reports shall be made by each employer on or before July 31, October 31 of said year and January 31 of the next succeeding year of new employees reflected on his employment records from April 1 to June 30, from July 1 to September 30 and from October 1 to December 31 of said year, respectively. Payments on these supplemental reports shall be made on or before July 31 and October 31 of said year and January 31 of the next succeeding year, respectively.
Each individual who shall have more than one occupation within the Borough of Sharon Hill shall be subject to the payment of this tax on his principal occupation, and his principal employer shall deduct this tax and deliver to him evidence of deductions on a form to be furnished to the employer by the Tax Receiver, which form shall be evidence of deduction having been made and, when presented to any other employer, shall be authority for such employer to not deduct this tax from the employee's wages but to include such employee on his return by setting forth his name, address and the name and account number of the employer who deducted this tax.
All self-employed individuals who perform services of any type or kind or engage in any occupation or profession within the Borough of Sharon Hill shall be required to comply with this article and pay the tax to the Tax Receiver on or before April 30 of each fiscal year or thereafter in accordance with the payment schedule specified in § 332-26 above in the event that said individual becomes subject to this article after March 31 of any fiscal year.
All employers and self-employed individuals residing or having their places of business outside of the Borough of Sharon Hill but who perform services of any type or kind or engage in any occupation or profession within the Borough of Sharon Hill 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 Borough of Sharon Hill. Further, any individual engaged in an occupation within the Borough of Sharon Hill and an employee of a nonresident employer may, for the purpose of this article, be considered a self-employed person, and in the event that this tax is not paid, the Borough shall have the option of proceeding against either the employer or employee for the collection of this tax as hereinafter provided.
It shall be the duty of the Tax Receiver to accept and receive payments of this tax and to 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.
The Tax Receiver is hereby charged with the administration and enforcement of this article and is hereby charged and empowered to prescribe, adopt, promulgate rules and regulations relating to any matter pertaining to the administration and enforcement of this article, including provisions for the examination of the payroll records of any employer subject to this article, the examination and correction of any return made in compliance with this article and any payments 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 Tax Receiver shall have the right to appeal to the Court of Common Pleas of Delaware County as in other cases provided.
The Tax Receiver 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 Tax Receiver the means, facilities and opportunity for such examination.
In the event that any tax under this article remains due or unpaid 30 days after the due date above set forth, the Tax Receiver may sue for the recovery of any such tax due or unpaid under this article, together with interest and penalty.
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 with the due date of said tax, and a penalty of 10% shall be added to the flat rate of said tax for nonpayment thereof. Where suit is brought for the recovery of this tax, the individual liable therefor shall, in addition, be responsible and liable for the costs of collection.
[Amended 7-14-1988 by Ord. No. 1180]
Whoever makes any false or untrue statement on any return required by this article or who refuses inspection of his books, records or accounts in his custody and control setting forth the number of employees subject to this tax who are in his employment or whoever fails or refuses to file any return and pay the tax as required by this article shall, upon conviction before any Magisterial District Judge, be sentenced to pay a maximum fine as provided from time to time by state statute for each offense and, in default of payment of said fine, be imprisoned in Delaware County Prison for a period not exceeding 30 days for each offense. It is further provided that the action to enforce the fine and penalty herein provided may be instituted against any person in charge of the business of any employer who has failed or refuses to file a return required by this article.
Nothing contained in this article shall be construed to empower the Borough of Sharon Hill to levy and collect the tax hereby imposed on any occupation not within the taxing power of the Borough under the Constitution of the United States and the laws of the Commonwealth of Pennsylvania.
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 nor 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.