Township of South Fayette, PA
Allegheny County
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Table of Contents
Table of Contents
[Adopted 10-24-2012 by Ord. No. 3-2012]
This article shall be known as the LTEA Costs of Collection Ordinance.
When used here, the following terms shall have the following meanings:
COSTS OF COLLECTION
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.
CURRENT YEAR
The calendar year in which Taxes are levied.
DELINQUENT COLLECTION FEE
A cost of collection recovered by the Tax Officer from delinquent employers and delinquent taxpayers. Liability for the delinquent collection fee shall commence in accordance with § 220-86 of this article.
DELINQUENT EMPLOYER
An employer owing delinquent employer taxes and/or fines and penalties.
DELINQUENT EMPLOYER TAXES
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. Delinquent employer taxes shall include all applicable penalties, interest, costs of collection and fines and penalties in accordance with applicable law.
DELINQUENT TAXES
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.
DELINQUENT TAXPAYER
A taxpayer owing delinquent taxes and/or fines and penalties.
EMPLOYER
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 provisions of the LTEA.
EXPENSES
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.
FINES AND PENALTIES
Those fines and penalties imposed by a court of competent jurisdiction pursuant to the LTEA and any other applicable law.
GROSS COLLECTIONS
All taxes due, including the tax principal plus accumulated penalties and interest and fines and penalties.
INITIAL DELINQUENT COLLECTION FEE
A cost of collection recovered by the Tax Officer from delinquent employers and delinquent taxpayers. Liability for the initial delinquent collection fee shall commence in accordance with § 220-86 of this article.
TAX OFFICER
Shall include its owners, shareholders, directors, employees, agents and legal counsel, their owners, shareholders, partners, employees and agents.
TAXPAYER(S)
Any individual, including self-employed individuals, required under the LTEA to file a return of a tax or to pay a tax.
SUCCEEDING YEAR
The calendar year following the current year.
A. 
Expenses. Expenses shall be recovered by the Tax Officer as part of delinquent employer taxes and delinquent taxes 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.
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 taxes for the 2011 tax year and for all prior tax years still due and owing as of the effective date of this article.
C. 
Expenses shall be recovered from delinquent employers and delinquent taxpayers from the date on which taxes became delinquent employer taxes and delinquent taxes.
D. 
The initial delinquent collection fee shall accrue as follows:
(1) 
Delinquent employers.
(a) 
The initial delinquent collection fee shall commence for all taxes still due and owing for tax years 2011 and prior on the effective date of this article and shall continue through the last day of the required notice described in § 220-87A, of this article at which time the initial delinquent collection fee shall cease.
(b) 
The initial delinquent collection fee shall commence for all delinquent local services taxes due and owing for tax year 2012 and subsequent tax years on the first day of the succeeding year, and shall continue through the last day of the required notice described in § 220-87A of this article, at which time the initial delinquent collection Fee shall cease.
(c) 
Delinquent earned income tax and net profits tax collection responsibilities for tax year 2012 and for all subsequent tax years, shall cease as of December 31, 2011, as such collections shall thereafter transfer to the Southwest Allegheny County Tax Collection District. The initial delinquent collection fee shall continue for tax year 2011 and prior.
(2) 
Delinquent taxpayers.
(a) 
For tax years 2011 and prior, the initial delinquent collection fee shall commence on the effective date of this article and shall continue through the last day of the required notice described in § 220-87A of this article, at which time the initial delinquent collection fee shall cease.
(b) 
The initial delinquent collection fee shall commence for all delinquent local services taxes due and owing for tax year 2012 and subsequent tax years on the first day of the succeeding year, and shall continue through the last day of the required notice described in § 220-87A of this article, at which time the initial delinquent collection fee shall cease.
(c) 
Delinquent earned income tax collection responsibilities for tax year 2012 and for all subsequent tax years shall cease as of December 31, 2011, as such collections shall thereafter transfer to the Southwest Allegheny County Tax Collection District. The initial delinquent collection fee shall continue for tax year 2011 and prior.
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 § 220-87A 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.
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 or 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 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 Township.
Fines and penalties shall be in addition to any costs of collection due. The Tax Officer shall charge and recover costs of collection from any delinquent employer or delinquent taxpayer even after a court awards fines and penalties, unless otherwise provided by applicable law.