This article shall be known and may be cited as the "Mount Wolf
Borough 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.
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 the laws of the Commonwealth
of Pennsylvania.
The following words and phrases when used in this article shall
have the meanings ascribed to them in this section, except where the
context clearly indicates or requires a different meaning:
COLLECTOR
The person or entity appointed or designated by the Borough
to collect and administer the provisions of this article and collect
the tax levied by this article.
[Amended 2-11-2020 by Ord. No. 2020-03]
EARNED INCOME
"Compensation" as determined under Section 303 of the Act
of March 4, 1971, P.L. 6, No. 2, known as the "Tax Reform Code of
1971," and regulations in 61 Pa. Code Part I, Subpart B, Article
V (relating to personal income tax); not including, however, wages or compensation paid to individuals on active military service. Employee business expenses are allowable deductions as determined under Article
III of the "Tax Reform Code of 1971." Any housing allowance provided to a member of the clergy
shall not be taxable as earned income.
EMPLOYER
An individual, partnership, association, corporation, governmental
body, agency or other entity employing one or more persons on a salary,
wage, commission, fee or other compensation basis, including a self-employed
person.
HE, HIS or HIM
Includes singular and plural number and male, female and
neuter gender.
INDIVIDUAL
Any person engaged in any occupation, trade or profession
within the jurisdictional limits of Mount Wolf Borough whose total
earned income and net profits within Mount Wolf Borough are $12,000
or greater per calendar year.
NET PROFITS
The net income from the operation of a business, profession,
or other activity (except from corporations), determined under Section
303 of the Act of March 4, 1971, P.L. 6, No. 2, known as the "Tax
Reform Code of 1971," and regulations in 61 Pa. Code Part I, Subpart B, Article
V (relating to personal income tax). The term does not include income which is not paid for
services provided and which is in the nature of earnings from an investment.
For taxpayers engaged in the business, profession or activity of farming,
the term shall not include:
A.
Any interest generated from monetary accounts or investment
instruments of the farming business;
B.
Any gain on the sale of farming machinery;
C.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
D.
Any gain on the sale of other capital assets of the farm.
OCCUPATION
Any trade, profession, business or undertaking of any type,
kind or character, including services, domestic or other, carried
on or performed within the jurisdictional limits of Mount Wolf Borough
for which compensation is charged and/or received, whether by salary,
wages, commissions, fees or net profits 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.
TAX
The Local Services Tax levied in this article.
[Amended 2-11-2020 by Ord. No. 2020-03]
A. Levy. Mount
Wolf Borough hereby levies and imposes on every individual engaging
in an occupation with the jurisdictional limits of Mount Wolf Borough
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. This tax is in addition
to all other taxes of any kind or nature heretofore levied by Mount
Wolf Borough.
B. Collector.
The Borough hereby designates the York Adams Tax Bureau as its Collector
for this tax. The York Adams Tax Bureau's current mailing address
is 1405 North Duke Street, P.O. Box 15627, York, PA 17405. This subsection
may be amended from time to time by resolution.
Employers are required to make and file a Local Services Tax
quarterly return 30 days after the end of each quarter of a calendar
year. The Local Services Tax quarterly return shall list the name,
address, social security number of the employee; the physical address
of the employee's place of employment; the number of payroll periods
for which the Local Services Tax was withheld and the amount of Local
Services Tax being remitted for each employee; and the name and contact
number at the employer of the person responsible for submitting the
tax. If the employee is listed as exempt, then provide a copy of the
exemption form with the return.
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.
All self-employed individuals and individuals whose employer
is not required to withhold local taxes (certain state and federal
agencies) will be billed quarterly for the Local Services Tax. The
full amount of tax must be paid by the date indicated on such billing.
If such taxpayer qualifies for a low-income exemption, the taxpayer
may complete the required exemption certificate or make application
for a refund of the tax paid.
All employers and self-employed individuals residing or having
their place of business outside Mount Wolf Borough but who engage
in any occupation within Mount Wolf Borough 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 Mount Wolf Borough. Further,
any individual engaged in an occupation within Mount Wolf Borough
and an employee of a nonresident employer may for the purpose of this
article be considered a self-employed person and in the event this
tax is not paid, the Collector shall have the option of proceeding
against either the employer or employee for collection of this tax
as hereinafter provided.
The Borough of Mount Wolf, in consultation with the Collector,
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 Mount Wolf or the Collector shall
determine eligibility for exemption and provide refunds to exempt
persons.
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 in order to determine the number of employees subject to this tax who are in his employment, or who fails or refuses to file any return required by this article, or fails or refuses to pay the tax herein levied shall, upon conviction, be punishable as set forth in Chapter
1, Article
I, General Penalty, §
1-1, of this Code. 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 refused to file a return required by this article.
This article shall become effective in accordance with applicable
law, with the repeal of the previous Occupational Privilege Tax and
Emergency and Municipal Services Tax Ordinances, effective January
1, 2008.