[Ord. 507, 2/14/1967, § 1; as amended
by Ord. 748, 11/8/2005; and by Ord. 758, 12/11/2007]
This Part 4 shall be known and may be cited
as the Local Services Tax Ordinance.
[Ord. 507, 2/14/1967, § 2; as amended
by Ord. 748, 11/8/2005; and by Ord. 758, 12/11/2007]
As used in this Part 4, unless the context clearly
indicates a different meaning, the following words shall have the
meanings set forth below:
The Borough of Beaver.
The person, public employee or private agency designated
by the Borough to collect and administer this tax.
Includes salaries, wages, commissions, tips, gross receipts
or any other earnings.
Compensation as defined in Division I of Section 13 of the
Local Tax Enabling Act (Act No. 511 of 1965, as amended).
Any individual, partnership, limited partnership, unincorporated
association, institution, trust, corporation, governmental unit, body
or agency, or any other entity engaged in business or situated in
the Borough, employing one or more employees engaged in any occupation.
The net income from the operation of a business, profession
or other activity, as defined in Division I of Section 13 of the Local
Tax Enabling Act (Act No. 511 of 1965, as amended).
Any livelihood, job, trade, profession, business or enterprise
of any kind, including services, domestic or other, for which any
compensation is received. The term includes self-employment.
The tax imposed by this Part 4.
Any natural person liable for the tax levied by this Part.
[Ord. 507, 2/14/1967, § 3; as amended
by Ord. 621, 12/14/1983; by Ord. 748, 11/8/2005; and by Ord. 758,
12/11/2007]
1.
An annual tax is levied upon the privilege of engaging
in an occupation in the Borough, in order to defray the cost of emergency
and municipal services made available by the Borough. The rate of
such tax shall be $52 per year, assessed upon a pro rata basis as
provided below. Such tax shall be payable without regard to the length
of time of engaging in an occupation in the Borough.
3.
The Borough shall use no less than 25% of the funds
derived from this tax for emergency services, as described above.
[Ord. 507, 2/14/1967, § 3; as amended
by Ord. 621, 12/14/1983; and by Ord. 758, 12/11/2007]
1.
Each employer within the Borough, as well as any employer
situated elsewhere but who engages in business within the Borough,
is hereby charged with the duty of collecting the tax due from each
of his/her employees engaged by him/her or performing for him/her
within the Borough and making a return and payment thereof to the
Collector. Further, each employer is hereby authorized to deduct this
tax for each employee in his/her employ, whether said employee is
paid by salary, wage or commission and whether or not all such services
are performed within the Borough.
2.
Each person subject to this 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. Such pro rata share shall be determined by dividing the 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 one-hundredth of a dollar. Collection of the tax shall be made on a payroll period basis for each payroll period in which the person is engaging in an occupation, except as provided in Subsection 4 of this section.
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 the Department of Community and Economic Development.
5.
The employer of each person subject to the local services
tax shall prepare and file a return showing a computation of the tax
on a form provided by the Collector. A return shall be filed within
30 days after the end of each quarter of the calendar year. At the
same time the employer shall remit to the Collector all of the tax
withheld during the quarter covered by the return.
6.
If an employer fails to remit the tax due, or to file
a return, or to collect the tax from his/her employee(s), that employer
shall be liable for payment in full of all taxes due, as though the
tax had been originally levied against the employer.
7.
The failure of any employer to collect the tax from
an employee shall not excuse that employee from liability for the
tax.
8.
Every employer in the Borough shall, within 15 days
after first becoming an employer, register with the Collector the
employer's name, address and such other information as the Collector
may require.
[Ord. 507, 2/14/1967, § 5; as amended
by Ord. 621, 12/14/1983; and by Ord. 758, 12/11/2007]
Each self-employed individual who performs services
of any kind, or engages in any profession or occupation at or from
a primary office or place of business, within the Borough shall be
subject to the local services tax. Such a taxpayer shall file a return
on a form prescribed by the Collector and shall pay the pro rata share
of the tax within 30 days after the end of each quarter of the calendar
year.
[Ord. 507, 2/14/1967, § 6; as amended
by Ord. 748, 11/8/2005; and by Ord. 758, 12/11/2007]
1.
The situs of the tax shall be the place of employment
on the first day the person becomes subject to the tax during each
payroll period.
A.
In the event a person is engaged in more than one
occupation, that is, concurrent employment, or an occupation which
requires the person to work 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:
(1)
First, the political subdivision in which a
person maintains his or her principal office or is principally employed;
(2)
Second, the political subdivision in which the
person resides and works if the tax is levied by that political subdivision;
(3)
Third, the political subdivision in which a
person is employed and which imposes the tax nearest in miles to the
person's home.
B.
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.
2.
All employers and self-employed individuals residing
or having their places of business outside of the Borough but who
perform services of any type or kind or engage in any occupation or
profession within the Borough do, by virtue thereof, agree to be bound
by and subject themselves to the provisions, penalties and regulations
promulgated under this Part 4 with the same force and effect as through
they were residents of the Borough. Further, any individual engaged
in an occupation within the Borough 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 tax is not paid, the Borough shall
have the option of proceeding against either the employer or employee
for the collection of this tax.
[Ord. 507, 2/14/1967, § 7]
The Collector, on behalf of the Borough, shall collect and receive the taxes, interest, fines and penalties imposed by this Part 4 and shall maintain records showing the amounts received and the dates on which those 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 matters pertaining to the administration of this Part 4, including but not limited to requirements for evidence and records and provisions for the examination and correction of returns. The Collector and agents designated by him may examine the records of any Borough employer and/or supposed employer or of any taxpayer in order to ascertain the tax due or verify the accuracy of any return. Every employer or supposed employer and every taxpayer or supposed taxpayer shall have the Collector and any agent designated by him all means, facilities and opportunity for the examinations authorized by this section.
[Ord. 507, 2/14/1967, § 8]
The Collector shall collect, by suit or otherwise,
all taxes, interest, costs, fines and penalties due under this Part
4 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 taxes 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, the Collector shall refund the amount of the overpayment
to the person who paid under protest. All refunds shall be made in
conformity with the procedure prescribed by Council.
[Ord. 507, 2/14/1967, § 9; as amended
by Ord. 621, 12/14/1983]
Any person, firm or corporation who shall violate
any provision of this Part 4 shall, upon conviction thereof, be sentenced
to pay a fine of not more than $300; and/or to imprisonment for a
term not to exceed 90 days.
[Ord. 507, 2/14/1967, § 10; as amended
by Ord. 748, 11/8/2005; and by Ord. 758, 12/11/2007]
1.
The following persons are exempt from payment of this
tax:
A.
Any person whose total earned income and net profits
from all sources within the Borough is less than $12,000 for the calendar
year in which the tax is levied.
B.
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 Veteran's 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 subsection, "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.
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 of the tax. 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 except as required by Subsection 3 below, 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.
3.
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 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 to 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 4 below.
4.
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 3 above, 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 3 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 tax due, and the Borough may pursue collection under this Part.
[Ord. 507, 2/14/1967, § 11]
This 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 and the laws and Constitution of the commonwealth.
If a final decision of a court of competent jurisdiction holds any
provisions of this, or the application of the provisions to any circumstances,
to be illegal or unconstitutional, the other provisions of this Part
4, or the application of the provisions to the other circumstances,
shall remain in full force and effect. The intention of Council is
that the provisions of this Part 4 shall be severable and that this
would have been adopted if any such illegal or unconstitutional provisions
had not been included.
