[Ord. 4-2007, 12/17/2007, § 1]
The title and text of this Part is the "Local Services Tax of North Lebanon Township, Lebanon County, Pennsylvania," and provides as follows:
[Ord. 4-2007, 12/17/2007, § 2]
The following words and phrases, when used in this Part, shall have the meanings ascribed to them in this section, except where the context or language clearly indicates or requires a different meaning:
COLLECTOR
The person, public employee or private agency designated by the political subdivision to collect and administer the tax herein imposed.
DCED
The Department of Community and Economic Development of the Commonwealth of Pennsylvania.
EARNED INCOME
Compensation as this term is defined in Section 13 (relating to earned income taxes) of the Local Tax Enabling Act, the Act of Dec. 31, 1965, P.L. 1257, § 13, as amended, 53 P.S. § 6913, as amended.
EMPLOYER
An individual, partnership, association, limited liability corporation, limited liability partnership, 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.
HE, HIS or HIM
Indicates the singular and plural number, as well as male, female and neuter genders.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade or profession within the corporate limits of North Lebanon Township.
NET PROFITS
The net income from the operation of a business, profession; or other activity, as this term is defined in Section 13 (relating to earned income taxes) of the Local Tax Enabling Act, the Act of Dec. 31, 1965, P.L. 1257, § 13, as amended, 53 P.S. § 6913, as amended.
OCCUPATION
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 North Lebanon Township for which compensation is charged or received; whether by means of salary, wages, commissions, fees or net profits for services rendered.
POLITICAL SUBDIVISION
The area within the corporate limits of North Lebanon Township, Lebanon County, Pennsylvania.
TAX
The local services tax at the rate levied in this Part.
TAX YEAR
The period from January 1 until December 31 in any year.
[Ord. 4-2007, 12/17/2007, § 3]
For specific revenue purposes, an annual tax is hereby levied and assessed, commencing January 1, 2008; upon the privilege of engaging in an occupation within the North Lebanon Township during the tax year. Each individual who exercises such privilege for any length of time during any tax year shall pay the tax for that year in the amount of $52, assessed on a pro rata basis, in accordance with the provisions of this Part. This tax may be used solely for the following purposes as the same may be allocated by the Board of Supervisors of North Lebanon Township from time to time: (A) emergency services, which shall include emergency medical services, police services and/or fire services; (B) road construction and/or maintenance; (C) reduction of property taxes; or (D) property tax relief through implementation of a homestead and farmstead exclusion in accordance with 53 Pa.C.S.A., Chapter 85, Subchapter F (relating to homestead property exclusion). North Lebanon Township shall use no less than 25% of the funds derived from the tax for emergency services. This tax is in addition to all other taxes of any kind or nature heretofore levied by North Lebanon Township. The tax shall be no more than $52 on each person for each calendar year, irrespective of the number of political subdivisions within which an individual may be employed.
[Ord. 4-2007, 12/17/2007, § 4]
1. 
Exemption. Any person whose total earned income and net profits from all sources within North Lebanon Township is less than $12,000 for any calendar year in which the local services 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:
A. 
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 100% disability.
B. 
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. For the purposes of this paragraph, "reserve component of the armed forces" shall mean 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.
2. 
Procedure to Claim Exemption.
A. 
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with North Lebanon Township and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within North Lebanon Township of less than $12,000 in the calendar year for which the exemption certificate is filed. In the event North Lebanon Township 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 North Lebanon Township 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 collector of the local services tax for North Lebanon Township or except as required by Subsection 2B, 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 North Lebanon Township.
B. 
With respect to a person who claimed an exemption for a given calendar year from the local services tax, upon notification to an employer by the person or by North Lebanon Township that the person has received earned income and net profits from all sources within North Lebanon Township 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 North Lebanon Township 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 2C.
C. 
If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the tax for the calendar year under Subsection 2B, 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 2B, 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 local services tax under this paragraph is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due, and North Lebanon Township may pursue collection under this Part.
D. 
Except as provided in Subsection 2B, it is the intent of this subsection that employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from the local services tax.
E. 
Employers shall be responsible for retaining a copy of all exemption certificates filed by employees within a given calendar year for a minimum of three years.
F. 
Employers who have failed to withhold the local services tax from an employee or employees, and do not have copies of the employee exemption certificate or certificates, will be held responsible for the payment of the local services tax as if the tax had been originally levied against the employer.
3. 
Refunds. The Township of North Lebanon, 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 Township of North Lebanon or the collector shall determine eligibility for exemption and provide refunds to exempt persons.
[Ord. 4-2007, 12/17/2007, § 5]
1. 
Each employer within North Lebanon Township, as well as those employers situated outside North Lebanon Township but who engage in business within North Lebanon Township, is hereby charged with the duty of collecting the tax from each of the employees engaged by the employer or performing work for the employer within North Lebanon Township and making a return and payment thereof to the collector. Further, each employer is hereby authorized to deduct this tax for each employee who is employed by the employer, whether said employee is paid by salary, wage or commission and whether or not all such services are performed within North Lebanon Township.
2. 
Each 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 "combined 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 1/100 of a dollar. Collection of the tax for an employee shall be made on a payroll period basis for each payroll period in which the person is engaging in an occupation, beginning with the first payroll period in which the person is engaging in the occupation, except as provided in Subsection 4 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.
3. 
No person shall be subject to the payment of the local services tax by more than one political subdivision during each payroll period.
4. 
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.
5. 
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 with a receipt of payment upon request by the taxpayer.
6. 
No employer shall be held liable for failure to withhold the local services tax or for the payment of the withheld tax money to North Lebanon Township 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 employee complies with the provisions of Subsection 2 of § 24-204 of this Part and this section and remits the amount so withheld in accordance with this Part.
7. 
Employers shall be required to remit the local services taxes 30 days after the end of each quarter of a calendar year.
[Ord. 4-2007, 12/17/2007, § 6]
1. 
Employers and self-employed individuals 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.
2. 
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 Part, the employer shall be responsible for the payment of the tax in full as though the tax had been originally levied against the employer.
[Ord. 4-2007, 12/17/2007, § 7]
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 thirtieth day following the end of each calendar quarter of each such tax year.
[Ord. 4-2007, 12/17/2007, § 8]
All self-employed individuals and individuals whose employer is not required to withhold the local services tax (certain state and federal agencies) who performs services of any type or kind or engages in any occupation or profession with a primary place of employment within the political subdivision shall be required to comply with this Part and pay the pro rata portion of the tax due to the collector on or before the thirtieth day following the end of each quarter.
[Ord. 4-2007, 12/17/2007, § 9]
1. 
The situs of the local services 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 when each of the municipalities imposes a "local services tax":
A. 
First, the political subdivision in which a person maintains his or her principal office or is principally employed.
B. 
Second, the political subdivision in which the person resides and works if the tax is levied by that political subdivision.
C. 
Third, the political subdivision in which a person is employed and which imposes the tax nearest in miles to the person's home.
2. 
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. The final determination of priority payment shall be made under the provisions of this Part and the provisions of the law.
3. 
In the event that a person is engaged in an occupation which requires the person working in more than one political subdivision during the payroll period, in a case where only one of the political subdivisions imposes the "local services tax," the priority of the claim to collect the tax shall be in the following order:
A. 
If the political subdivisions have entered into an agreement that provides for payment to a specific political subdivision, that political subdivision shall receive payment of the tax.
B. 
If only one of the political subdivisions impose the "local services tax," the payment shall be made to that municipality.
[Ord. 4-2007, 12/17/2007, § 10]
All employers and self-employed individuals residing or having their places of business outside of North Lebanon Township but who perform services of any type or kind or engage in any occupation or profession within North Lebanon Township do, by virtue thereof, agree to be bound by and subject themselves to the provisions, penalties and regulations promulgated under this Part with the same force and effect as though they were residents of North Lebanon Township. Further, any individual engaged in an occupation within North Lebanon Township and an employee of a nonresidential employer may, for the purpose of this Part, be considered a self-employed person, and in the event his or her local services tax is not paid, North Lebanon Township shall have the option of proceeding against either the employer or employee for the collection of this tax as hereinafter provided.
[Ord. 4-2007, 12/17/2007, § 11]
1. 
Any subsequent collector shall be appointed by resolution of the Board of Supervisors of North Lebanon Township. 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 the collector 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 exempt from the tax, the employee exemption certificates and refunds of the tax paid to individuals and employers.
2. 
The collector is hereby charged with the administration and enforcement of this Part 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 Part, including provisions for the examination of payroll records of any employer subject to this Part, the examination and correction of any return made in compliance with this Part 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 consistent with the Local Taxpayers Bill of Rights under Act 50 of 1998.
3. 
The collector and North Lebanon Township are 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 and North Lebanon Township the means, facilities and opportunity for such examination.
[Ord. 4-2007, 12/17/2007, § 12]
1. 
In the event that any tax under this Part remains due or unpaid 30 days after the due dates as provided herein, the collector or North Lebanon Township may sue for the recovery of any such tax due or unpaid under this Part, together with interest and penalty.
2. 
If for any reason the tax is not paid when due, interest at the rate of 6% on the amount of such tax shall be calculated beginning with the due date of the tax and a penalty of 10% shall be added to the flat rate of such tax for nonpayment thereof. Where suit is brought for the recovery of this tax or other appropriate remedy undertaken, the individual liable therefor shall, in addition, be responsible and liable for the costs of collection including, but not limited to, administrative expenses and attorneys fees.
[Ord. 4-2007, 12/17/2007, § 13]
Whoever makes any false or untrue statement on any return required by this Part, 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 or to pay the tax required by this Part shall be guilty of a violation and, upon conviction thereof, shall be sentenced to pay a fine of not less than $100 nor more than $600 and costs of prosecution, and, in default of payment of such fine and costs, to imprisonment for not more than 30 days. 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 Part. Each day or portion thereof that such violation continues, or is permitted to continue, shall constitute a separate offense. Each section of this Part that is violated shall constitute a separate offense. North Lebanon Township may file a suit in equity in the Court of Common Pleas of Lebanon County, Pennsylvania, to require compliance with this Part.
[Ord. 4-2007, 12/17/2007, § 14]
1. 
Nothing contained in this Part shall be construed to empower North Lebanon Township to levy and collect the tax hereby imposed on any occupation not within the taxing power of North Lebanon Township under the Constitution of the United States and the laws of the Commonwealth of Pennsylvania.
2. 
If the tax hereby imposed under the provisions of this Part 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.
[Ord. 4-2007, 12/17/2007, § 15]
Except as set forth hereafter, all ordinances or parts of ordinances inconsistent herewith are hereby repealed. Nothing herein shall be construed to repeal the imposition and collection of an occupation privilege tax, plus applicable penalties and interest, for calendar years 2005 and 2006 and all prior calendar years, or of an emergency and municipal services tax, plus applicable penalties and interest, for calendar years 2007, as the same exist prior to this amendment.
[Ord. 4-2007, 12/17/2007, § 16]
The tax imposed by this Part shall be effective on January 1, 2008, and all calendar years thereafter unless repealed or modified by ordinance of the Township of North Lebanon.