[Ord. 2007-11-10, 11/12/2007]
This Part shall be known and may be cited as the "Red Lion Borough
Local Services Tax Ordinance."
[Ord. 2007-11-10, 11/12/2007]
1.
ACT
BOROUGH
COLLECTOR
DCED
EMPLOYER
INCOME FROM ALL SOURCES
INDIVIDUAL
OCCUPATION
PLACE OF EMPLOYMENT
TAX
The following words and phrases, when used in this Part, shall have
the meanings ascribed to them in this section except where the context
or language clearly indicates or requires a different meaning:
The Local Tax Enabling Act, 53 P.S. § 6901 et seq.
The Borough of Red Lion, York County, Pennsylvania.
The person or firm from time to time designated by action
of the Council of Red Lion Borough to collect and administer the provisions
of this Part and collect the tax levied by this Part.
The Pennsylvania Department of Community and Economic Development.
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.
Earned income and net profits, as defined by the Local Tax
Enabling Act, 53 P.S. § 6901 et seq.
Any person, male or female, 18 years of age or over engaged
in any occupation within the limits of the Borough of Red Lion.
Any trade, profession, business, or undertaking of any type,
kind or character, including services domestic or other, carried on
or performed within the limits of the Borough of Red Lion for which
compensation is charged or received, whether by means of salary, wages,
commission, or fees for services rendered.
The place in which the person maintains his or her principal
office or is principally employed, as determined pursuant to the Act.
The local services tax adopted and levied by this Part.
2.
"He," "his," or "him" shall include singular and plural number and
male, female or neuter gender.
[Ord. 2007-11-10, 11/12/2007]
The Borough of Red Lion hereby levies and imposes a tax in the
amount of $52 for the calendar year of 2008 and every calendar year
thereafter on every individual whose place of employment is within
the limits of the Borough of Red Lion. This tax is in addition to
all other taxes of any kind or nature heretofore levied by the Borough
of Red Lion.
[Ord. 2007-11-10, 11/12/2007]
1.
In the event that an individual is engaged in more than one occupation
or an occupation which requires working in more than one political
subdivision during the calendar year, the priority of claim to collect
the tax shall be in the following order:
A.
First, the political subdivision in which the individual maintains
his principal office or is principally employed.
B.
Second, the political subdivision in which the individual resides
and works, if a like tax is levied by that political subdivision.
C.
Third, the political subdivision in which the individual is employed
and which imposes the tax nearest in miles to the individual's
home.
2.
The place of employment shall be determined as of the day the individual
first becomes subject to a like tax during the calendar year. Any
employer to whom an employee shows a receipt for a like tax for the
calendar year from some other political subdivision or employer shall
not be required to deduct this tax from the employee's wages,
but shall include such employee on his return by setting forth his
name, address, and the identification of the other political subdivision
to whom the tax was paid or the employer who deducted the tax.
[Ord. 2007-11-10, 11/12/2007]
All self-employed individuals engaged in any occupation within
the Borough shall be required to comply with this Part and to pay
the tax to the collector on April 15 or as soon thereafter as he engages
in an occupation.
[Ord. 2007-11-10, 11/12/2007]
All employers and self-employed individuals residing or having
their place of business outside the Borough, but who engage in any
occupation 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 nonresident
employer may for the purpose of this Part be considered as a self-employed
person, and in the event that this tax is not paid, the Borough shall
have the option of proceeding against either the employee or employer
for the collection of this tax as hereinafter provided in this Part.
[Ord. 2007-11-10, 11/12/2007]
1.
It is the intent of this Part that no person shall pay more than
$52 on this tax in any calendar year. In the event that, prior to
his or her employment in the Borough in any calendar year, an employee
has previously paid a local services tax in any other political subdivision,
then the employer shall refrain from withholding the tax, so long
as the employee provides a recent pay statement from a principal employer
whether within or outside of the commonwealth 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 employee's principal employer
and that the employee will notify other employers of a change in the
principal place of employment within two weeks of its occurrence.
Forms for such notification shall be the same as those prepared by
DCED, as required by the Act. It shall be the responsibility of the
employer and the employee to provide such form properly completed
to the Borough or its collector.
2.
In the event that a person's employer within the Borough withholds
this tax, and the person has previously paid a local services tax
in another political subdivision pursuant to this section, then, upon
written request of the taxpayer, pursuant to regulations adopted by
the Borough pursuant to § 2(f)(9)(vii) of the Act, 53 P.S.
§ 6902(f)(9)(vii), the Borough or its collection agent shall
refund such overpayment, except that the Borough shall only be required
to provide refunds for overpaid amounts that exceed $1. Refunds made
within 75 days of the refund request or within 75 days after the last
day the employer is required to remit the tax for the last quarter
of the calendar year, whichever is last, shall not be subject to interest.
The amount of the refund shall be limited to the amount of any local
services tax paid by the taxpayer in another political subdivision,
but in no event shall exceed the amount of this tax as fixed by the
Borough for the calendar year in which the refund was sought.
3.
In the event that a person has in any calendar year previously paid
a local services tax in another political subdivision, but such tax
was less than $52, then the taxpayer shall be liable for the difference
between the tax actually paid in the other political subdivision and
the amount due for this tax to the Borough.
4.
The provisions of this section shall not apply to any local services
tax paid to the Red Lion Area School District.
[Ord. 2007-11-10, 11/12/2007]
1.
The following persons shall be exempt from the tax:
A.
Any person whose total earned income and net profits from all sources
within the Borough is less than $12,000 in the calendar year in which
the tax is levied.
B.
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 triple amputee,
or has a service-connected disability declared by the United States
Veterans' Administration or its successor to be a 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.
2.
A person seeking exemption from the tax pursuant to this section
may annually file an exemption certificate with the Borough and with
his or her employer affirming that he or she 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 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 Borough for the year prior to the year
for which the exemption is requested. Upon receipt of the exemption
certificate and until notified otherwise by the Borough, the employer
shall not withhold the tax from the person for the calendar year,
or the remainder of the calendar year, for which the exemption certificate
applies. The exemption certificate shall be on a form prepared by
DCED, pursuant to § 2(e)(1) of the Act, 53 P.S. § 6902(e)(1).
3.
For any person who claims an exemption pursuant to this section,
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 exemption
for that calendar year, or upon an employer's payment to the
person of earned income within the Borough of $12,000 or more in that
calendar year, the employer shall withhold the tax from the person
for the remainder of the calendar year, and shall withhold from the
person, for the first payroll period after receipt of the notification
or after the person equals or exceed $12,000 in earned income, a lump
sum equal to the amount of the tax not previously withheld in the
current calendar year due to the exemption, 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 the calendar year
shall be the same amount withheld for other employees.
[Ord. 2007-11-10, 11/12/2007]
It shall be the duty of every employer within the Borough, or
every employer of a person whose place of employment as defined in
this Part is the Borough, to collect this tax from and on behalf of
each such person whose place of employment is the Borough from the
employee in the manner set forth in § 2(f)(9)(i) of the
Act, 53 P.S. § 6902(f)(9)(i), which is by a pro rata share
of the tax for each payroll period in which the employee is engaging
in an occupation. The pro rata share of the tax assessed on a person
shall be determined by dividing the combined rate of the tax levied
for the calendar year by the number of payroll periods established
by the employer for the calendar year, or, in the case of a person
who becomes employed after the beginning of the calendar year, by
the number of payroll periods remaining in the calendar year. In the
event that the employment of a person is subsequently severed, the
person shall be liable for any outstanding balance of the tax due
to the Borough for that calendar year, which the Borough may collect
as permitted by law.
[Ord. 2007-11-10, 11/12/2007]
The Borough hereby designates the York Area Tax Bureau (YATB)
as its collector for this tax. YATB's current mailing address
is: 1415 North Duke Street, P.O. Box 15627, York, PA 17405-0156. The
designated collector may be changed from time to time by resolution
adopted by the Borough.
[Ord. 2007-11-10, 11/12/2007]
The designated collector, as set forth in § 24-410, may be amended by the Borough from time to time by resolution.
[Ord. 2007-11-10, 11/12/2007]
1.
It shall be the responsibility of every employer of every taxpayer
whose place of employment is in the Borough to collect and remit said
taxes to the Borough's collection agent by no later than 30 days
after the end of each quarter of a calendar year. Nothing in this
section or this Part is intended, or shall be construed, to relieve
any taxpayer whose place of employment is the Borough from the responsibility
and liability for the payment of this tax. In the event that any such
taxpayer's employer fails to collect or remit such tax to the
Borough or its collection agent, then it shall be the responsibility
of the taxpayer to do so.
2.
Notwithstanding the provisions of this Part, 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 the
tax 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. An
employer shall also 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 §§ 2, 2(e), and 2(f)(9) of the
Act, 53 P.S. §§ 6902, 6902(e) and 6902(f)(9).
[Ord. 2007-11-10, 11/12/2007; as amended by Ord. 2009-09-02,
9/14/2009]
1.
The Borough Council shall, in their sole discretion, determine the
use of the revenues generated by this tax, except that the use shall
be limited to one or more of the following purposes and amounts:
A.
Emergency services, which shall include emergency medical, police
and/or fire services; provided that at least 25% of the funds derived
from the tax shall be used for this purpose.
B.
Road construction and/or maintenance.
C.
Reduction of property taxes.
D.
Property tax relief in the event that the Borough implements a homestead
and farmstead exclusion in accordance with 53 Pa.C.S.A., Chapter 85,
Subchapter P, (relating to homestead property exclusion), and § 22.6
of the Act.
E.
Any other uses permitted by law.
[Ord. 2007-11-10, 11/12/2007; as amended by Ord. 2009-09-02,
9/14/2009]
1.
If for any reason the tax is not paid when due, interest at the rate
of 6% per annum on the amount of the said tax, and an additional penalty
of 10% shall be added to the flat rate of said tax for nonpayment
thereof.
2.
Subject to the limitations of § 24-412, and of the Act, any person, employee, employer, partnership, corporation, or any other entity, which violates any of the provisions of this Part, upon conviction thereof, shall be sentenced to a fine of not more than $600 plus costs and, in default of payment of said fine and costs, together with the tax and all costs of collection, to a term of imprisonment not to exceed 30 days. Each day that a violation of this Part continues or each section of this Part which shall be found to have been violated shall constitute a separate offense.
3.
In addition to the penalties in Subsection 1, the Borough and its collection agent shall be entitled to any and all civil remedies available by law for the collection of such tax, and shall be entitled to all costs of collection and attorney's fees, The Borough and its collection agent are further authorized to collect this tax by any other lawful means available to them, whether in law or equity.
4.
The Borough specifically authorizes its collection agent to act on its behalf and as its agent to collect all such taxes pursuant to this section and this Part, and to initiate and prosecute on its behalf any summary criminal actions pursuant to Subsection 1, and any other legal actions or remedies as authorized in Subsections 2 and 3.
[Ord. 2007-11-10, 11/12/2007]
1.
It shall be the duty of the collector to accept and receive payments
of this tax and to 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, and to turn payments received over to the
Borough.
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 York 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.
