[Ord. 329, 11/14/2007, § 1]
This Part shall be known and may be cited as the "Plainfield
Township Local Services Tax Ordinance."
[Ord. 329, 11/14/2007, § 2]
This Part is enacted under the authority of the Local Tax Enabling
Act, 53 P.S. § 6924.101 et seq., as amended by Act No. 7
of 2007.
[Ord. 329, 11/14/2007, § 3]
The purpose of this Part is to provide revenue for police, fire
and emergency services; road construction and maintenance; the reduction
of property taxes and for such other purposes as may be specified
for such tax from time to time by the laws of the Commonwealth of
Pennsylvania.
[Ord. 329, 11/14/2007, § 4]
The following words and phrases when used in this Part shall
have the meaning ascribed to them in this Part except where the context
clearly indicates or requires a different meaning:
The governing body of Plainfield Township.
The person or firm, from time to time, designated by motion
of the Board of Supervisors of Plainfield Township to collect and
administer the provisions of this Part and collect the tax levied
by this Part. Until changed by subsequent motion, the collector shall
be the same person or firm last designated to collect the Emergency
and Municipal Services Tax for Plainfield Township.
"Compensation" 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, Subpt. 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. Any housing allowance provided
to a member of the clergy shall not be taxable as earned income.
An individual, partnership, association, corporation, governmental
body, agency or other entity employing one or more persons on a salary,
wage, commission, fee or other compensation basis, including a self-employed
person.
Includes singular and plural number and male, female and
neuter gender.
Any person engaged in any occupation, trade or profession
within the jurisdictional limits of Plainfield Township whose total
earned income and net profits within Plainfield Township are $12,000
or greater per calendar year.
The net income from the operation of a business, profession, or other activity, (except from corporations), 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. 1, Subpt. 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:
Any interest generated from monetary accounts or investment
instruments of the farming business.
Any gain on the sale of farming machinery.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes.
Any gain on the sale of other capital assets of the farm.
Any trade, profession, business or undertaking of any type,
kind or character including services, domestic or other, carried on
or preformed within the jurisdictional limits of Plainfield Township
for which compensation is charged and/or received, whether by salary,
wages, commissions, fees or net profits 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 levied in this Part.
A calendar year.
[Ord. 329, 11/14/2007, § 5]
Plainfield Township hereby levies and imposes on every individual
engaging in an occupation within the jurisdictional limits of Plainfield
Township a tax in the amount of $52 per annum, beginning the first
day of January 2008, and continuing on a calendar basis annually thereafter,
until modified or repealed by subsequent ordinance. This tax is in
addition to all other taxes of any kind or nature heretofore levied
by Plainfield Township.
[Ord. 329, 11/14/2007, § 6]
1.
Plainfield Township shall use the revenue derived from this tax for
the following purposes:
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.
D.
Property tax relief through implementation of a homestead and farmstead
exclusion in accordance with 53 Pa.C.S.A., Ch. 85, Subch. F (relating
to homestead property exclusion).
2.
Plainfield Township shall use no less than 25% of the fluids derived
from the local services tax for emergency services.
[Ord. 329, 11/14/2007, § 7]
1.
Each employer within Plainfield Township and each employer situate
outside Plainfield Township who engages in business within Plainfield
Township is hereby charged with the duty of collecting the tax from
each of the employees engaged by the employer and performing work
for the employer within Plainfield Township. Each person subject to
the tax shall be assessed a pro rata share of the tax for each payroll
period in which the person is engaging in an occupation.
2.
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.
3.
Employer collection of the local services tax shall be made on a
payroll period basis for each payroll period, beginning with the first
payroll period in which the person is engaging in an occupation.
4.
No employer shall be held liable for failure to withhold the local
services tax or for the payment of the withheld tax money to a political
subdivision 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.
[Ord. 329, 11/14/2007, § 8]
Employers 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.
[Ord. 329, 11/14/2007, § 9]
Each employer shall use his employment and payroll records from
the first 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 30, respectively.
[Ord. 329, 11/14/2007, § 10]
1.
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 the payroll
period, the priority of claim to collect the local services tax shall
be in the following order:
A.
The political subdivision in which a person maintains his or her
principal office or is principally employed.
B.
The political subdivision in which the person resides and works,
if the tax is levied by that political subdivision.
C.
The political subdivision in which a person is employed and which
imposes the tax nearest in miles to the person's home.
2.
In the case of concurrent employment, an employer shall refrain from
withholding the local services tax, if the employee provides:
A.
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 local services tax withheld.
B.
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.
3.
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.
It is the intent of this Part that no person shall be subject to the
payment of the local services tax by more than one political subdivision
during each payroll period.
[Ord. 329, 11/14/2007, § 11]
1.
The local services 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.
A.
Exemption. Any person whose total earned income and net profits from
all sources within the political subdivision 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.
B.
In addition, the following persons shall also be exempt from the
local services tax:
(1)
Any person who 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% permanent disability.
(2)
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. A "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.
C.
A person seeking to claim an exemption from the local services tax
may annually file an exemption certificate with the collector of the
tax for the political subdivision levying the tax and file a copy
of the certificate with the person's employer affirming that
the person reasonably expects to receive earned income and net profits
from all sources within the political subdivision of less than $12,000
in the calendar year for which the exemption certificate is filed.
D.
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 the political subdivision for the year prior to the fiscal
year for which the employee is requesting to be exempted from the
local services tax.
E.
Upon receipt of the exemption certificate and until otherwise instructed
by the collector of the tax for the political subdivision levying
the tax the employer shall not withhold the tax from the person during
the calendar year or remainder of the calendar year for which the
exemption certificate applies. With respect to a person who claimed
an exemption from the local services tax, upon notification to an
employer by the person or by the collector of the tax for the political
subdivision, that the person has received earned income and net profits
from all sources within that political subdivision 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 that
political subdivision 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 as follows:
(1)
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 the employer shall withhold the tax for the remainder of that
calendar year.
(2)
The employer shall withhold from the person, for the first payroll
period after receipt of the notification under the above subparagraph,
a lump sum equal to the amount of the tax that was not withheld from
the person due to the exemption certificate filed by the person, plus
the per payroll amount due for that first payroll period.
(3)
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.
(4)
In the event the employment of a person subject to withholding
of the local services tax under this exception is severed in that
calendar year, the person shall be liable for any outstanding balance
of tax due and the political subdivision levying the tax may pursue
collection under this Part.
F.
Employers shall not be responsible for investigating exemption certificates,
monitoring tax exemption eligibility or exempting any employee from
a local services tax.
G.
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. 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.
[Ord. 329, 11/14/2007, § 12]
All self-employed individuals and individuals whose employer
is not required to withhold local taxes (certain State and Federal
agencies) will be billed quarterly for the local services tax. The
full amount of tax must be paid by the date indicated on such billing.
If such taxpayer qualifies for a low-income exemption, the taxpayer
may complete the required exemption certificate or make application
for a refund of the tax paid.
[Ord. 329, 11/14/2007, § 13]
All employers and self-employed individuals residing or having
their place of business outside Plainfield Township but who engage
in any occupation within Plainfield 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 Plainfield Township. Further,
any individual engaged in an occupation within Plainfield Township
and an employee of a nonresident employer may for the purpose of this
Part be considered a self-employed person and in the event this tax
is not paid, the collector shall have the option of proceeding against
either the employer or employee for collection of this tax as hereinafter
provided.
[Ord. 329, 11/14/2007, § 14]
1.
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 empowered to prescribe, adopt, promulgate
and enforce rules and regulations relating to any matter pertaining
to the administration and enforcement of this Part, including provisions
for the examination of the 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 Northampton County
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. 329, 11/14/2007, § 15]
1.
In the event any of the tax under this Part remains due or unpaid
30 days after the due date set forth above, the collector may sue
for the recovery of such tax due or unpaid together with interest
and penalty.
2.
If for any reason the tax is not paid when due, interest at the rate
of 6% per annum on the amount of said tax, and an additional penalty
of 10% shall be added to the flat rate of said tax for non-payment
thereof. Where suit is brought for the recovery of this tax, the individual
liable therefore shall, in addition, be responsible and liable for
the costs of collection, including, but not limited to, attorney's
fees.
[Ord. 329, 11/14/2007, § 16]
Whoever makes any false or untrue statement on any return required
by this Part, or who refuses inspection of his books, records or accounts
in his custody and control in order to determine the number of employees
subject to this tax who are in his employment, or who fails or refuses
to file any return required by this Part, or fails or refuses to pay
the tax herein levied shall, upon conviction, be sentenced to pay
a fine of not more than $600 plus costs and, in default of payment
of said fine and costs, be sentenced to a term of imprisonment not
to exceed 30 days. 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
refused to file a return required by this Part.
