[Adopted 4-15-1986 by Ord. No. 1169]
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
This article shall be known and may be cited as the "Local Services
Tax Ordinance."
As used in this article, the following words shall have the
following meanings:
Compensation, as this term is defined in Section 501 of the
Local Tax Enabling Act, 53 P.S. § 6924.501, as amended.
[Added 12-20-2005 by Ord.
No. 1290; 10-16-2007 by Ord. No. 1317; amended at time of adoption of Code
(see Ch. 1, General Provisions, Art. I)]
Any person, partnership, limited partnership, unincorporated
association, institution, trust, corporation, governmental agency,
or any other body engaged in business or situated in the Borough of
Avalon, employing one or more employees in any occupation.
Salaries, wages, commissions, tips, bonuses, fees, gross
receipts, or any other earned income.
The person or persons or public employee, or firm or agency
appointed by the Council of the Borough of Avalon to collect and administer
the Local Services Tax levied by this article.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
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.
[Added at time of adoption of Code (see Ch. 1, General Provisions,
Art. I)]
Includes any livelihood, job, trade, profession, business
or enterprise of any kind, including services, domestic or other,
for which any compensation or income is received.
The tax levied by this article.
Any natural person liable for the tax levied by this article.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
A.
A tax for general revenue purposes in the amount of $52 is hereby
levied upon the privilege of engaging in an occupation within the
Borough of Avalon.
B.
At least 25% of all funds derived by the Borough of Avalon from the
local services tax may only be used by the Borough for police, fire,
and emergency medical services. The remaining revenue may be used
by the Borough in the following manner:
C.
Exemptions from local services tax. Any person whose total earned
income from all sources is less than $12,000 per annum is exempt from
paying the local services tax in the Borough of Avalon. In addition
to this exemption, disabled veterans and members of the armed forces
reserves on active duty are hereby exempt from paying the tax during
the tax year they serve on active duty. However, this tax shall be
prorated for those persons serving in the armed forces on active duty,
where the tax years overlap. The Borough will provide uniform exemption
forms, as prepared by the Department of Community and Economic Development
(hereinafter, the "DCED"), that will be available for filing with
the Borough.
A.
Every employer not registered under the provisions of Chapter 367, Article I, Earned Income and Net Profits Tax, of the Code of the Borough of Avalon shall, within 15 days after the effective date of this article, or within 15 days after first becoming an employer, register with the Local Services Tax Collector, the employer's name, address and such other information as the Local Services Tax Collector shall require.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
B.
Deduction of local services tax.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
(1)
Each employer within the Borough of Avalon is hereby prohibited from
withholding a lump sum of the total, annual local services tax due
from an employee's paycheck. From herein, beginning on January 1,
2008, each employer within the Borough is hereby directed to withhold
a prorated amount of the total tax divided by the number of payroll
periods. For example, $2 is to be withheld from each paycheck for
bimonthly pay periods, whereas $1 is to be withheld from each paycheck
for weekly pay periods.
(2)
Employers shall not be required to deduct the local services tax
from any employees if the employee's earnings do not exceed $12,000
per annum. Those persons anticipating an annual income of less than
$12,000 may file a certificate, as prepared by the DCED, with the
Borough and the employer, along with supporting documentation such
as a W-2 Form from the previous year. Once a certificate is filed,
the employer shall not withhold the local services tax.
(3)
If an employee ultimately earns more than $12,000 during the tax
year, the employer shall withhold the balance due in one lump sum.
(4)
After withholding, the employer is to remit to the Borough of Avalon
the amount of local services tax withheld within 30 days after the
end of each quarter (i.e., within 30 days after April 30, June 30,
September 30, and December 31).
(5)
The Borough of Avalon shall adopt regulations for backend refunds.
Those who do not apply for a certificate may still apply for a refund
at year's end.
(6)
The Borough of Avalon will provide a receipt to any tax payer upon
request.
C.
Any employer who discontinues business or ceases operation before
December 31 of any year during which the tax is in effect shall, within
15 days of discontinuing business or ceasing operation, file a return
hereinabove required and pay the tax to the Local Services Tax Collector.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
D.
The failure of any employer to deduct the tax shall not relieve the
employee from the duty to file a return and pay the tax. Any employer
who fails to deduct the tax as required by this section, or who fails
to pay such tax to the Local Services Tax Collector, shall be liable
for such tax in full, without deduction of the fee hereinafter provided,
as though the tax had originally been levied against such employer.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
E.
Each employer may deduct and retain a fee equal to 2% of the total
amount of tax collected through the employer pursuant to this section.
A.
Every taxpayer who is self-employed, or whose tax for any other reason is not collected under § 367-15 of this article, shall file a return on a form prescribed by the Local Services Tax Collector and shall pay the tax directly to the Local Services Tax Collector. Each such taxpayer who first becomes subject to the tax during the period from the effective date of this article, to and including September 30, 1986, shall file the return and pay the tax on or before October 31, 1986, and each such taxpayer who first becomes subject to the tax during the period beginning October 1, 1986, and ending December 31, 1986, shall file the return and pay the tax on or before January 31, 1987.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
B.
For the calendar year 1987 and for succeeding years as long as this
tax is in existence, each such taxpayer who first becomes subject
to the tax on or before March 31, shall file the return and pay the
tax on or before April 30, and each such taxpayer who first becomes
subject to the tax on or before June 30, shall file the return and
pay the tax on or before July 31, and each such taxpayer who first
becomes subject to the tax on or before September 30, shall file the
return and pay the tax on or before October 31, and each such taxpayer
who first becomes subject to the tax on or before December 31, shall
file the return and pay the tax on or before January 31, of the ensuing
year.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
Every individual shall be subject to the payment of the tax
on his principal occupation and his principal employer shall deduct
the tax. Evidence of the deduction must be furnished to the secondary
employer who shall not make any additional deduction, but must notify
the Local Services Tax Collector of the employee's name, address,
account number and original deduction.
Both resident and nonresident taxpayers shall by virtue of engaging
in an occupation within the Borough of Avalon, be subject to the tax
of this article.
A.
It shall be the duty of the Local Services Tax Collector to accept
and receive payment of this tax and to keep a record thereof showing
the amount received from each employer and self-employed individual,
together with the date received. The Local Services Tax Collector
shall make reports and accountings to the Borough of Avalon monthly;
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
B.
The Local Services Tax Collector shall prescribe and issue all forms
necessary for the administration of the tax;
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
C.
The Council of the Borough of Avalon may adopt, promulgate and enforce
rules and regulations relating to any matter pertaining to the administration
of this article, including, but not limited to, refunds, examinations,
corrections and investigations of returns, production of evidence
and records;
D.
The Local Services Tax Collector and agents designated by him are
hereby authorized to examine the books and payroll records of any
employer in order to verify the accuracy of any return or to ascertain
the tax due if no return is made.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
The Local Services Tax Collector shall collect, by suit or otherwise,
all taxes, interest, costs, fines and penalties due under this article
and unpaid. If, for any reason, any tax is not paid when due, interest
at the rate of 6% per year on the amount of unpaid tax and an additional
penalty of 1/2 of 1% of the amount of unpaid tax for each month or
fraction of month during which the tax remains unpaid, shall be added
and collected. Whenever suit is brought for the recovery of unpaid
tax, the taxpayer shall, in addition, be liable for the costs of collection
as well as for interest and penalties. The Local Services Tax Collector
may accept payment under protest of the tax claimed by the Borough
of Avalon in any case where any person disputes the Borough of Avalon's
claim for tax. If a court of competent jurisdiction thereafter decides
that there has been overpayment to the Local Services Tax Collector,
the Local Services Tax Collector shall refund the amount of the overpayment
to the person who paid under protest.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
The Local Services Tax Collector before entering upon his official
duties shall give and acknowledge a bond to the Borough of Avalon
in such an amount which the Council of the Borough of Avalon may deem
sufficient.
[Amended 12-20-2005 by Ord. No. 1290; 10-16-2007 by Ord. No. 1317]
The Local Services Tax Collector shall receive such compensation
for his services and expenses as shall be determined by the Council
of the Borough of Avalon from time to time.
Any person who violates any provision of this article or any
regulation adopted pursuant to it shall, upon conviction thereof before
a Magisterial District Judge, be subject to a fine of not more than
$300, or in default of payment of such fine, shall be subject to imprisonment
in the Allegheny County Jail for a period not to exceed 30 days.
This tax shall not apply to any subject of tax or person not
within the taxing power of the Borough of Avalon, under the Constitution
of the United States and the laws and Constitution of Pennsylvania.
If a final decision of a court of competent jurisdiction holds any
provision of this article to be illegal or unconstitutional, the other
provisions of this article shall remain in full force and effect.
The intention of the Council of the Borough of Avalon is that the
provisions of this article shall be severable and that this article
would have been adopted if any such illegal or unconstitutional provisions
had not been included.
This article shall become effective as per provisions of the
Local Tax Enabling Act of 1965, Dec. 31, P.L. 1257, as amended, July
1, 1986, and continue until December 31, 1986, and thence continuing
on a calendar year basis beginning January 1, 1987, and ending December
31, 1987, which tax shall continue in force on a calendar year basis
without reenactment until such time as the Council of the Borough
of Avalon shall change the rate of the tax or by appropriate ordinance
repeal said tax.
[Added 12-20-2005 by Ord.
No. 1290; 10-16-2007 by Ord. No. 1317]
The Borough Manager shall file an exact copy of this article
with the Department of Community and Economic Development, together
with the name, position, and phone number of the Local Services Tax
Collector or officer responsible for compliance with this article.
