[Ord. 522, 11/3/2010, § 1]
COLLECTOR or TAX COLLECTOR
The person, public employee or private agency designated
by the Borough of Manor 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 defined in § 13 of the Local Tax Enabling Act, the Act of December 31, 1965, P.L. 1257, § 13, as amended and supplemented, and as determined under § 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and the regulations in 61 Pa. Code, Pt.
1, Subpart B, Art. 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." The term does not include offsets for businesses losses. Any housing allowance provided to a member of the clergy shall not be taxable as earned income.
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.
FISCAL YEAR
The twelve-month period beginning January 1st and ending
December 31st, in any tax year.
HE, HIS or HIM
Indicates the singular and plural number, as well as male,
female and neuter genders.
INDIVIDUAL or PERSON
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Borough of Manor.
MANOR BOROUGH
The Borough of Manor or where the context indicates, the
area within the corporate limits of the Borough of Manor.
NET PROFITS
The net income from the operation of a business, profession,
or other activity, (except from corporations), as this term is defined
in § 13 of the Local Tax Enabling Act, the Act of December
31, 1965, P.L. 1257, § 13, as amended and supplemented,
and as determined under § 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, Pt. I, Subpart B, Art. 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
instrument 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.
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, earned on
or performed within the corporate limits of Manor for which compensation
is charged or received; whether by means of salary, wages, commission
or fees for services rendered.
PLACE OF EMPLOYMENT
The political subdivision in which a person maintains his
principal office or is principally employed; or, the political subdivision
in which a person resides and works; or, a political subdivision in
which a person is employed, as of the first day the taxpayer first
becomes subject to the tax during the calendar year.
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, at the rate fixed in this part.
TAX YEAR
The period from January 1 until December 31, in any year;
a calendar year.
TAXPAYER
A person required to pay the tax imposed by this part.
[Ord. 522, 11/3/2010, § 1]
1. For specific revenue purposes as hereafter identified, an annual
tax is hereby levied, assessed and imposed, being a local services
tax, in the amount of $52, upon privilege of each individual engaging
in an occupation within the jurisdictional limits of the Borough of
Manor during each fiscal year, beginning the first day of January,
2011, and continuing on a calendar year basis thereafter unless and
until modified, amended or repealed. The tax shall be no more than
$52 on each person for each tax year, irrespective of the number of
political subdivisions within which a person may be employed.
2. The Borough shall use no less than 25% of the funds derived from
the local services tax for emergency services, which shall include
emergency medical services, police services and/or fire services.
3. The purposes of tax are for any or all of the following: (A) road
construction and/or maintenance; (B) emergency services, which shall
include police, fire and/or emergency medical services; and/or (C)
reduction of property taxes, or (D) property tax relief through implementation
of a homestead and farmstead exclusion as provided by law.
[Ord. 522, 11/3/2010, § 1]
This local services tax shall be and is in addition to all other
taxes levied, assessed and imposed by the Borough.
[Ord. 522, 11/3/2010, § 1]
1. Exemption. Any person whose total earned income and net profits from
all sources within the Borough is less than $12,000 for any calendar
year in which the 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 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. In the event the Borough 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 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
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 the Borough.
B. 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 municipality 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 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 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.
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.
3. Refunds. The Borough of Manor, 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 of Manor or
the Collector shall determine eligibility for exemption and provide
refunds to exempt persons.
[Ord. 522, 11/3/2010, § 1]
1. Each employer within the Borough, as well as those employers situated
outside the Borough but who engage in business within the Borough,
is hereby charged with the duty of collecting the tax from each of
his employees engaged by him or performing for him 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 or 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. A 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 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 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. For purposes of this subsection, combined rate shall mean the aggregate annual rate of the tax levied by the School District and the Borough.
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 Borough shall provide a taxpayer
a receipt of payment upon request by the taxpayer.
6. 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 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 employer complies with the provisions of §
24-411, Subsection
2, 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. 522, 11/3/2010, § 1]
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to the employer by the Collector.
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. 522, 11/3/2010, § 1]
Each employer shall use his employment and payroll records from
the 1st day of January to March 31, each year for determining the
number of employees from whom said tax shall be deducted and paid
over to the collector on or before April 30, of the same calendar
year. Supplemental reports shall be made by each employer on July
30, October 30 and January 31, for new employees as reflected on his
employment and payroll records from April 1 to June 30, July 1 to
September 30, and October 1 to December 31, and payments on these
supplemental reports shall be made on July 30, October 30 and January
31, respectively.
[Ord. 522, 11/3/2010, § 1]
Each self-employed individual who has earned income or realizes
net profit, as those terms are defined herein, within the Borough
shall be required to comply with this part and pay the tax due to
the Collector on or before the 30th day following the end of each
quarter.
[Ord. 522, 11/3/2010, § 1]
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.
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:
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. 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.
[Ord. 522, 11/3/2010, § 1]
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 with the same force and effect as though 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 as hereinafter provided.
[Ord. 522, 11/3/2010, § 1]
1. The Collector duly appointed by the Borough Council, is hereby designated
collector, receiver and administrator of the taxes levied and imposed
by this part. 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 him 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 subject to the tax,
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 proscribe, 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 to the Court
of Common Pleas of Westmoreland County after exhausting any administrative
remedies, as in other cases provided.
3. The Collector is 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
the means, facilities and opportunity for such examination.
[Ord. 522, 11/3/2010, § 1]
1. In the event that any tax under this part remains due or unpaid 30
days after the due dates above set forth, the Collector 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 5% 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 therefore shall, in addition, be responsible
and liable for the costs of collection.
[Ord. 522, 11/3/2010, § 1]
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 required by this part
shall be guilty of a violation and, upon conviction thereof, shall
be sentenced to pay a fine of not 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.
[Ord. 522, 11/3/2010, § 1]
1. Nothing contained in this part shall be construed to empower the
Borough to levy and collect the tax hereby imposed on any occupation
not within the taxing power of the Borough 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.