This article shall be known and may be cited as the "Dallastown
Local Services Tax Ordinance."
This article is enacted under the authority of the Local Tax
Enabling Act, as amended by Act No. 7 of 2007.
The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates or requires a different meaning:
COLLECTOR
The person or firm from time to time designated by motion
of the Borough Council of the Borough of Dallastown to collect and
administer the provisions of this article and collect the tax levied
by this article. Until changed by subsequent motion, the collector
shall be the York Area Tax Bureau.
COMBINED RATE
The aggregate annual rate of the local services tax levied
by the Dallastown Area School District and by the Borough of Dallastown.
EARNED INCOME
Compensation, as determined under Section 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 Part I, Subpart B, Article
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.
EMPLOYER
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.
HE, HIS or HIM
Includes the singular and plural number and male, female
and neuter genders.
NET PROFITS
The net income from the operation of a business, profession or other activity (except from corporations), determined under Section 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 Part I, Subpart B, Article
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
instruments 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; and
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, carried
on or performed within the jurisdictional limits of the Borough of
Dallastown for which compensation is charged or received, whether
by salary, wages, commissions, fees or net profits for services rendered.
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 levied by and pursuant to this article.
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 and 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.
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.
All self-employed individuals and individuals whose employer
is not required to withhold local taxes (e.g., 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 an applicable exemption, the taxpayer
may complete the required exemption certificate or make application
for a refund of the tax paid.
All employers and self-employed individuals residing or having
their place of business outside the Borough of Dallastown but who
engage in any occupation within the Borough of Dallastown do, by virtue
thereof, agree to be bound by and subject themselves to the provisions,
penalties and regulations promulgated under this article with the
same force and effect as though they were residents of the Borough
of Dallastown. Further, any individual engaged in an occupation within
the Borough of Dallastown who is an employee of a nonresident employer
may, for the purpose of this article, be considered a self-employed
person and, in the event that the tax is not paid, the collector shall
have the option of proceeding against either the employer or employee
for collection of the tax as hereinafter provided.
Whoever makes any false or untrue statement on any return required
by this article 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 article 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 article.