[Ord. 1022, 11/14/2007, § 1]
This Part shall be known and cited as the "Local Services Tax
Ordinance."
[Ord. 1022, 11/14/2007, § 1]
As used in this Part, the following words and terms shall have
the meanings set forth below, except where the context or language
clearly indicates or requires a different meaning.
The Borough of Aspinwall.
The Council of the Borough of Aspinwall.
The twelve-month period beginning the first day of January.
The person, persons, public or private agency, association
and/or corporate entity designated by the Borough Council to collect
the tax and to carry out and administer the provisions of this Part.
Salaries, wages, commissions, tips, bonuses, fees, gross
receipts or any other income.
The Pennsylvania Department of Community and Economic Development
or any agency successor thereto.
Any person, partnership, limited partnership, unincorporated
association, institution, trust, corporation, governmental agency,
or any other body engaged in business or situated in the Borough employing
one or more employees engaged in any occupation, other than domestic
servants.
Any livelihood, job, trade, profession, business or enterprise
of any kind, including services, domestic or other, for which monetary
compensation is received or charged.
The tax imposed by this Part.
Any natural person liable for the tax levied by this Part.
[Ord. 1022, 11/14/2007, § 1; as amended by Ord. 1023, 12/19/2007, § 1]
1.
Tax Levy. For specific revenue purposes, a tax in the amount of $52
is hereby levied upon the privilege of engaging in an occupation within
the Borough in the calendar year 2008 and in each succeeding calendar
year. Each natural person who exercises such privilege for any length
of time shall pay the tax in accordance with the provisions of this
Part.
2.
Exemptions. The tax hereby levied shall not be levied upon:
A.
Any natural person whose total income during the subject calendar
year is less than $12,000.
B.
Any person who served in any war or aimed 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% permanent disability.
C.
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 purposes of this section, "reserve component of the armed
forces" shall mean the United States Army Reserve, United States Navy
Reserve, Unites 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.
[Ord. 1022, 11/14/2007, § 1; as amended by Ord. 1023, 12/19/2007, § 2]
1.
Every employer shall, within 15 days after the effective date of
this Part or within 15 days after first becoming an employer, register
with the Collector by providing the employer's name, address and such
other information deemed necessary or required by the Collector.
2.
For each taxpayer employed for any length of time during a calendar
year, each employer shall deduct a pro rata share of the tax from
compensation payable to the taxpayer for each payroll period in which
the taxpayer is engaging in the occupation. The pro rata share of
the tax assessed on the taxpayer for a payroll period shall be determined
by dividing total amount of the tax for the calendar year, $52, 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 levied
under this Part shall be made on a payroll period basis for each payroll
period in which the taxpayer is engaging in the occupation.
3.
For each taxpayer employed for any length of time on or before March
31st of a calendar year, each employer shall file a return on a form
prescribed by the Collector and pay the Collector the full amount
of taxes deducted for such three-month period on or before April 30th
of the calendar year. Thereafter, as to each taxpayer for whom pro
rata deductions have been made and who is employed for any length
of time in any of the three-month periods ending June 30th, September
30th, and December 31st of the calendar year, each employer shall
deduct the tax from compensation payable to the taxpayer, file a return
on a form prescribed by the Collector and pay to the Collector the
full amount of all taxes deducted for each such three-month period
on or before July 31st and October 31st of the calendar year, or January
31st of the following calendar year, respectively.
4.
Any employer who discontinues business or ceases operation before
December 31st of the calendar year shall, within 15 days after discontinuing
business or ceasing operation, file the return hereinabove required
and pay the tax to the Collector.
5.
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 Collector, shall be liable for such tax in
full, without deduction of any fees provided for in this section,
as though the tax had originally been levied against the employer.
6.
As to employees who present official receipts evidencing prior payment
of the tax either directly or by collection through other employers,
the employer shall not deduct the tax but shall maintain adequate
records concerning such employees.
[Ord. 1022, 11/14/2007, § 1]
Every taxpayer who is self-employed or whose tax for any other reason is not collected under § 24-204 of this Part shall file a return on a form prescribed by the Collector and shall pay the tax directly to the Collector. Taxpayers subject to the tax shall file the return and pay the tax on a quarterly basis on or before April 31st, July 31st, October 31st of the calendar year, and January 31st of the following calendar year.
[Ord. 1022, 11/14/2007, § 1]
1.
A person seeking to claim an exemption from the tax may annually file an exemption certificate with the Borough and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the Borough of less than $12,000 in the calendar year for which the exemption certificate is filed. The Borough shall provide a copy of the exemption certificate to the Collector. 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 the Borough for the year prior to the fiscal year for which the employee is requesting to be exempted from the tax. Upon receipt of the exemption certificate and until otherwise instructed by the Borough or as required by Subsection 2 herein, the employer shall not withhold the tax from the person during the calendar year or the remainder of the calendar year for which this 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. As per Act 7 of 2007, the DCED shall develop uniform exemption certificates and make the certificates available to the Borough and employers.
2.
With respect to a person who claimed an exemption for a given calendar year from the tax, upon notification to an employer by the person or by the Borough that the person has received earned income and net profits from all sources within the Borough 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 the Borough in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the tax from the person in accordance with Subsection 3 herein.
3.
If a person who claimed an exemption for a given calendar year from the tax becomes subject to the tax for the calendar year under Subsection 2 herein, 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 2 herein, 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 tax under this clause is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of the tax due and the Borough may pursue collection.
4.
Except as provided in Subsection 2 herein, it is the intent of this section that employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from the tax.
5.
The Borough Manager, 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 Borough Manager or the Collector shall determine
eligibility for refunds to exempt persons and provide refunds.
[Ord. 1022, 11/14/2007, § 1]
Both resident and nonresident taxpayers shall, by virtue of
engaging in an occupation within the Borough, be subject to the tax
and the provisions of this Part.
[Ord. 1022, 11/14/2007, § 1]
1.
No person shall be subject to the payment of the tax by more than
one political subdivision during each payroll period.
2.
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 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.
3.
The situs of the tax shall be the place of employment on the first
day of 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 the claim to collect the tax shall be in the following
order:
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 the 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.
[Ord. 1022, 11/14/2007, § 1]
No employer shall be held liable for failure to withhold the tax or for the payment of the withheld tax money to the Borough 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 whether the employee is principally employed. Further, an employer shall not be liable for payment of the tax in an amount exceeding the amount withheld by the employer if the employer complies with the provisions of § 24-206, Subsection 1, of this Part and remits the amount so withheld in accordance with this Part.
[Ord. 1022, 11/14/2007, § 1]
The Collector, on behalf of the Borough, shall collect and receive
the taxes, interests, fines and penalties imposed by this Part and
shall maintain records showing the amounts received and the dates
such amounts were received. The Collector shall prescribe and issue
all forms necessary for the administration of the tax and may adopt
and enforce regulations relating to any matter pertaining to the administration
of this Part including, but not limited to, requirements for collection
through employers, requirements for evidence and records and provisions
for the examination and correction of returns. The Collector and agents
designated by the Collector may examine the records of any employer
or supposed employer or of any taxpayer or supposed taxpayer in order
to ascertain the tax due and verify the accuracy of any return. Every
employer or supposed employer and every taxpayer or supposed taxpayer
shall give the Collector and any agent designated by the Collector
all means, facilities and opportunity for the examinations hereby
authorized.
[Ord. 1022, 11/14/2007, § 1]
The Collector shall collect, by suit or otherwise, all taxes,
interest, costs, fines and penalties due under this Part 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 Collector may accept payment under
protest of the tax claimed by the Borough in any case where any person
disputes the Borough's claim for the tax. If a court of competent
jurisdiction thereafter decides that there has been overpayment to
the Collector, then the Collector shall refund the amount of the overpayment
to the person who paid under protest.
[Ord. 1022, 11/14/2007, § 1]
1.
Any person, firm or corporation or entity who violates a provision
of this Part, or who fails to comply therewith, or with any of the
requirements thereof, shall, upon being found liable therefor in a
civil enforcement proceeding commenced by the Borough, pay a civil
penalty of not less than $100 nor more than $600 for each violation,
plus costs and reasonable attorney fees incurred by the Borough in
the enforcement proceedings. The civil enforcement proceeding shall
be initiated by complaint or by such other means as may be provided
by the Pennsylvania Rules of Civil Procedure.
2.
A separate offense shall arise for each day or portion thereof in
which a violation is found to exist or for each section of this Part
found to have been violated. All fines and penalties collected for
violation of this Part shall be paid to the Borough Treasurer.
3.
The Borough may also commence appropriate actions in equity, at law
or other to prevent, restrain, correct, enjoin, or abate violations
of this Part.
4.
The initial determination of a violation of this Part and the service
of notice of violation are hereby delegated to the Borough Manager,
the Collector and their designees and to any other officer or agent
that the Borough Manager or Borough Council shall deem appropriate.
[Ord. 1022, 11/14/2007, § 1]
The tax shall not apply to any subject of tax or person not
within the taxing power of the Borough under the Constitution of the
United States of America and the laws and Constitution of the Commonwealth
of Pennsylvania. If a final decision of a court of competent jurisdiction
holds any provision of this Part or the application of any provision
to any circumstances, to be illegal or unconstitutional, then the
other provisions of this Part, or the application of such provision
to other circumstances, shall remain in full force and effect. This
Part shall continue in effect on a calendar year basis without annual
reenactment.
[Ord. 1022, 11/14/2007, § 1]
This Part and the tax hereby imposed are adopted and levied
pursuant to the authority conferred by the Local Tax Enabling Act,
53 P.S. § 6901 et seq., as amended.
