[Ord. 156-2009, 1/1/2010, § 1]
This Part shall be known and may be cited as the "Charlestown
Township Local Services Tax."
[Ord. 156-2009, 1/1/2010, § 2]
1.
Every individual who engages in an occupation within the Township
of Charlestown shall pay a local services tax to the Township in the
amount of $52 per individual per calendar year.
2.
In the event that an individual is engaged in more than one occupation,
or in an occupation which requires his working in more than one political
subdivision during the calendar year, then the provisions of the Local
Tax Enabling Act, Act of December 31, 1965, P.L. 1257, § 2,
as amended, 53 P.S. § 6902, shall determine the priority
of Charlestown Township's claim to collect such local services
tax.
3.
All taxes imposed by this ordinance, together with all interest,
penalties and costs, shall be recoverable by the Solicitor of Charlestown
Township as debts of like amounts are recoverable by law.
4.
The tax imposed under this Part shall be used for police, fire or
emergency services, road maintenance or real estate tax reduction
purposes, as provided for under the provisions of the Local Tax Enabling
Act, Act of December 31, 1965, P.L. 1257, § 22.6, as amended,
53 P.S. § 6922.6.
5.
This Part is enacted under the authority of the Local Tax Enabling
Act, as amended (53 P.S. § 6901 et seq.).
[Ord. 156-2009, 1/1/2010, § 3]
As used in this Part, the following terms shall have the meanings
indicated except where the context or language clearly indicates or
requires a different meaning. Use of the masculine gender shall include
the feminine and neuter, and reference to the masculine singular shall
include the plural.
Shall have the same meaning as provided for in the Local
Tax Enabling Act, Act of December 31, 1965, P.L. 1257, § 13,
Division I, as amended, 53 P.S. § 6913.
An individual whose compensation is subject to the withholding
of federal income tax and who performs services for an employer.
An individual, partnership, association, corporation, governmental
body, agency or other entity employing one or more individuals on
a salary, commission or other compensation basis, including a self-employed
individual.
Any person, male or female, engaged in any occupation, trade
or profession of any nature within the corporate limits of Charlestown
Township, whether in the employ of another or self-employed.
The Treasurer of Charlestown Township, his designated representative
or a person or corporation engaged for this purpose by contract with
Charlestown Township.
Shall have the same meaning as provided for in the Local
Tax Enabling Act, Act of December 31, 1965, P.L. 1257, § 13,
Division I, as amended, 53 P.S. § 6913.
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 Charlestown Township
for which compensation is charged or received, whether by means of
salary, wages, commission, fees or otherwise, for services rendered.
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.
The local services tax in the amount of $52 levied by this
Part on each individual engaged in any occupation, as hereinbefore
defined, within the corporate limits of Charlestown Township.
The calendar year.
[Ord. 156-2009, 1/1/2010, § 4]
1.
Duty of Employer to Collect and Make Payment. Each employer within
Charlestown Township, as well as each employer situated outside of
Charlestown Township but who engages in business within Charlestown
Township, is hereby charged with the duty of collecting from each
employee engaged by the employer and performing for the employer within
Charlestown Township, the tax of $52 per annum and making a return
and payment thereof to the Local Services Tax Collector. Subject to
the withholding requirements of this section, each employer is hereby
authorized to deduct the tax from the compensation of each employee
in its employ, whether said employee is paid by salary, wages or commissions
and whether or not part or all of such services are performed within
Charlestown Township. Each employer shall pay the tax to the Local
Services Tax Collector as provided herein, whether or not the tax
was deducted from the compensation of each employee in its employ.
A.
An employer required hereunder to collect the tax shall withhold
a pro-rata share of the total tax per annum for each payroll period
in which the person is engaged 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 local services 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 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 for in Subsection
1C.
B.
Upon notification to an employer by the person or by Charlestown
Township that a person has received earned income and net profits
from all sources within Charlestown 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 Charlestown 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
for the remainder of that calendar year. The employer shall withhold
from the person, for the first payroll period after receipt of the
notification hereunder, 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 section, 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 that the employment
of a person subject to withholding of the tax under this paragraph
is subsequently severed in that calendar year, the person shall be
liable for any outstanding balance of tax due, and Charlestown Township
may pursue collection of the tax.
C.
In the case of an employee who has concurrent employment, an employer
shall refrain from withholding the local services tax if the employee
provides a recent pay stub 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 employer's principal
employer and the employee will notify other employers of a change
in principal place of employment within two weeks of its occurrence.
2.
Returns; Responsibility for Payment. Each employer shall prepare
and file a return showing a computation of the tax on forms to be
supplied to him by the Local Services Tax Collector. 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 as though the tax had
originally been levied against the employer.
3.
Dates for Determining Liability and Payment.
A.
Each employer shall use his employment record as of each payroll
period in the calendar year to determine from whom the tax shall be
deducted. An employer shall be required to remit quarterly payments
of the tax to the Local Services Tax Collector on or before the thirtieth
day after the end of each quarter of a calendar year on forms prescribed
by the Local Services Tax Collector.
B.
Each employer who engages the services of any employee in any occupation
to be performed in Charlestown Township after January 1 of each year
shall require said employee to furnish to him proof of payment of
the tax, showing that the tax has theretofore been paid. In the event
that such employee has not previously paid the tax, the employer shall
deduct the same and make supplemental reports and payments of such
deductions for each quarter of the year on or before April 30, July
31, October 31 and January 31 of each year. If the employer does not
engage any new employees during any quarter of the year, he shall
file the required report so stating.
4.
Self-Employed Individuals. Every taxpayer who is self-employed and
has not filed an exemption certificate with the tax collector, or
whose tax for any other reason is not collected under this section,
shall file a return on a form prescribed by the Local Services Tax
Collector and shall pay a pro-rata share of the tax directly to the
Local Services Tax Collector within 30 days after the end of each
calendar quarter. The pro-rata share of the tax assessed on a taxpayer
for a calendar quarter shall be determined by dividing the rate of
the tax levied under this ordinance for the year by four.
5.
Persons Residing Outside the Township. All self-employed individuals
and employers residing or having their place of business outside the
corporate limits of Charlestown Township and engaging in an occupation
within the Township do by virtue thereof agree to be bound by and
subject themselves to the provisions of this Part and the regulations
promulgated hereunder with the same force and effect as though they
had their place of business in or were residents of Charlestown Township.
Further, any individual engaged in an occupation within Charlestown
Township and as an employee of a nonresident employer may, for the
purpose of this Part, be considered a self-employed person, but in
the event the tax is not paid, the Local Services Tax Collector shall
have the option of proceeding against either the employer or employee
for the collection as hereinafter provided.
6.
Individuals Engaged in More than One Occupation.
A.
Each employee who shall have more than one occupation within Charlestown
Township shall be subject to the payment of this tax on his principal
occupation, and his principal employer shall deduct this tax. The
principal employer shall deliver to such employee evidence of deduction.
This evidence of deduction showing that payment 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,
social security number and the name of the employer who deducted this
tax.
B.
In the event that an individual is engaged in more than one occupation
or an occupation which requires his working in more than one political
subdivision during the calendar year, the priority of claim to collect
such local services tax shall be in the following order: first, the
political subdivision in which an individual maintains his principal
office or is principally employed; second, the political subdivision
in which the individual resides and works if such a tax is levied
by that political subdivision; third, the political subdivision in
which an individual is employed and which imposes the tax nearest
in miles to the individual's home. The place of employment shall
be determined as of the day the taxpayer first becomes subject to
the tax during the calendar year.
C.
It is the intent of this provision that no individual shall pay more
than $52 in any calendar year as a local services tax, irrespective
of the number of political subdivisions within which such individual
may be employed within any given calendar year. In case of dispute,
a proof of payment that tax has been paid for that calendar year shall
constitute prima facie certification of payment to all other political
subdivisions.
7.
Each employer shall ensure that exemption certificate forms are readily
available to employees at all times and shall furnish each new employee
with an exemption certificate form at the time of hiring and prior
to the first payroll period of each year.
[Ord. 156-2009, 1/1/2010, § 5; as amended by Ord.
160-2010, 10/4/2010]
1.
Powers and Duties of Tax Collector.
A.
It shall be the duty of the Local Services Tax Collector to accept
and receive payments of the tax and to keep a record thereof showing
the amount received by him from each employer or self-employed individual,
together with the date the tax was received.
B.
The Local Services Tax Collector is hereby charged with the administration
and enforcement of this Part and is hereby charged and empowered 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 the books, accounts
and 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 and found to have occurred.
C.
The Local Services Tax Collector is hereby authorized to examine
the books, accounts 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 occupational privilege tax collector the
means, facilities and opportunity for such examination.
2.
Late Payment; Recovery. If for any reason the tax is not paid when
due; a penalty of 10% shall be added to the tax, and interest at the
rate of 1% per month or fraction thereof shall also be added. Where
legal action is brought for the recovery of the tax, the individual
or employer thereafter shall, in addition, be responsible and liable
for collection costs including attorney fees.
3.
Violations and Penalties. Any person who makes any false or untrue
statement on any return or record required by this Part, refuses inspection
of his books, records or accounts in his custody and control, fails
or refuses to file any return required by this Part or fails to pay
the tax due shall be subject to a fine in the amount of at least $25,
but not to exceed $600, for each offense, plus all court costs, including
reasonable attorney fees incurred by the Township. Upon a finding
of liability for committing said violation, or permitting said violation,
in a civil enforcement proceeding commenced by the Township, the defendant
shall pay the fine plus costs and attorney fees. No judgment shall
be imposed until the date of determination of a violation by a magisterial
district judge. If the defendant neither pays nor timely appeals the
judgment, the Township may enforce the judgment pursuant to the applicable
Rules of Civil Procedure. 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 Part.
[Ord. 156-2009, 1/1/2010, § 6]
1.
Any person whose total earned income and net profits from all sources
within Charlestown Township is less than $12,000 per calendar year
in which the tax is levied shall be exempt from this tax upon the
filing of an exemption certificate with the Local Services Tax Collector.
2.
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 services 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 shall be exempt from this tax upon the
filing of an exemption certificate with the Local Services Tax Collector.
3.
Any person who serves as a member of a Reserve Component of the Armed
Forces and is called to active duty at anytime during the taxable
year shall be exempt from this tax upon the filing of an exemption
certificate with the Local Services Tax Collector.
4.
The Local Services Tax Collector is hereby charged and empowered
to adopt regulations for the processing of claims for exemptions under
this section.
5.
A person seeking exemption from the tax under this section must annually file an exemption certificate with the employer and the Local Services Tax Collector. If a person claims an exemption from the tax under Subsection 1, the exemption certificate shall have attached to it a copy of all of the employee's last pay stubs or W-2 forms from employment within Charlestown Township for the calendar year prior to the calendar year for which the employee is requesting to be exempt from the tax. The exemption certificate for any exemption under this section must be in a form substantially similar to the uniform exemption certificate prescribed by the Pennsylvania Department of Community and Economic Development.
[Ord. 156-2009, 1/1/2010, § 7]
1.
A person who overpaid local services tax for a calendar year shall
be entitled to a refund of the tax by filing a refund request with
the Local Services Tax Collector. A person shall only be entitled
to a refund of tax for amounts overpaid in a calendar year that exceed
$1.
2.
The Local Services Tax Collector is hereby charged and empowered
to adopt regulations for the processing of refund claims for overpaid
local services tax consistent with 53 Pa.C.S.A. § 8425,
as amended (relating to refunds of overpayments) and 53 Pa.C.S.A.
§ 8426, as amended (relating to interest on overpayments.
3.
A person shall not be entitled to interest on the amount of refunded tax if the Township pays the refund within 75 days of the refund request or 75 days after the last day the employer is required to remit the local services tax for the last quarter of the calendar year under § 24-204, Subsection 3, whichever is later.
