[Ord. 552, 11/26/2007, § 1]
This Part shall be known and may be cited as the "Local Services
Tax."
[Ord. 552, 11/26/2007, § 2]
This Part is enacted under the authority of the Local Tax Enabling
Act, 53 P.S. § 6924.101 et seq., and Pennsylvania House
Bill 197 of 2004, and amended by Act 7 of 2007 and the Borough of
Edinboro Home Rule Charter as said laws and charters are hereinafter
amended, supplemented, modified or reenacted by the General Assembly
of Pennsylvania.
[Ord. 552, 11/26/2007, § 3]
The following words and phrases, when used in this Part, shall
have the meaning ascribed to them in this section, except where the
context or language clearly indicates or requires a different meaning:
The area within the corporate limits of the Borough of Edinboro.
Any individual, partnership, association, 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.
The period beginning January 1 and ending December 31. The
first fiscal year for this Part shall be the period beginning January
1, 2008, and ending December 31, 2008.
Indicate the singular and plural number, as well as male,
female and/or neuter gender.
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Borough of Edinboro.
Includes any trade, profession, business, or undertaking
of any type, kind or character, including services, domestic or otherwise,
carried on or performed within the corporate limits of the Borough
of Edinboro for which compensation is charged and/or received, whether
by means of salary, wages, commissions or fees for services rendered.
The local services tax in the amount of $52 per annum levied
by this Part.
The Borough Manager of the Home Rule Borough of Edinboro
and/or his/her designated assigns and/or agents.
Any individual liable for the tax levied by this Part.
[Ord. 552, 11/26/2007, § 4]
1.
A tax to be utilized for emergency services, which shall include
emergency medical services, police services and/or fire services,
road construction and/or maintenance, reduction of property taxes,
property tax relief through implementation of homestead and farmstead
exclusion in accordance with 53 Pa.C.S.A. Chapter 85, Subchapter F.
Said local service tax is hereby levied upon the privilege of engaging
in an occupation within the corporate limits of the Borough of Edinboro.
Each individual who exercises such privilege for any length of time
during any year wherein he has earned income and/or net profits of
$12,000 or more shall pay a tax in the amount of $52 in accordance
with the provisions of this Part. This tax is in addition to all other
taxes of any kind or nature levied by the Borough. It shall be the
obligation of each such person so engaged in an occupation to pay
or cause to be paid the tax herein imposed by the due date for the
quarter in which he earns the annual required minimum of $12,000.
The adoption of this Part shall constitute notice and demand for payment
of this tax.
A.
Each employer shall register with the Tax Collector the employer's
name, address and other information the Tax Collector may require
within 15 days after the effective date of this Part or within 15
days after first becoming an employer.
B.
Each employer within the Borough, as well as those employers situated outside the Borough but who engaged in business within the Borough, is hereby charged with the duty of collecting from each of his employees engaged by him and performing for him within the Home Rule Borough of Edinboro said tax of $52 per year and making a return and payment thereof to the Tax Collector. Each employee subject to the tax shall be assessed a pro rata share of the tax for each payroll period in which the employee is engaged in the Home Rule Borough of Edinboro. The pro rata share of the tax assessed on an employee for a payroll period shall be determined by dividing the $52 rate of the tax 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 a local services tax levied under this paragraph 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 1J. Each employer is hereby authorized to deduct this tax from each employee who has not otherwise claimed an exemption from paying the tax, whether said employee is paid by salary, wages, or commission. Each employer shall be required to remit the tax within 30 days after the end of each quarter of a calendar year. Remitting starting on or before March 31 of the current tax year, file a return on a form prescribed by the Tax Collector, and pay to said Tax Collector the full amount of taxes deducted on or before April 30 of the current tax year. For each taxpayer for whom no prior deduction has been made, who is employed after the effective date of this Part, and in any of the three-month periods ending June 30, September 30 and December 31 of the current tax year, each employer shall deduct the tax from compensation payable to the taxpayer, file a return on a form prescribed by the Tax Collector, and pay said collector the full amount of all tax deducted on or before July 31 or October 31 of the current tax year, or January 31 of the following year, respectively. The employer will provide the employee with evidence of deduction on a form to be furnished to the employer by the Tax Collector.
C.
Any employer who discontinues business or ceases operation before
December 31 of any year during which this tax is in effect shall file
the return hereinabove required and pay the tax to the Tax Collector,
within 15 days after discontinuing business or ceasing operations.
The failure of an employer to deduct the tax shall not relieve the
employee from the duty to file a return and pay the tax. Any employer
who fails to deduct the tax as required by this section, or who fails
to pay such tax to the Tax Collector, shall be liable for such tax
in full, as though the tax had originally been levied against such
employer.
D.
All self-employed individuals who perform services of any type or
kind or engage in any occupation or profession within the Borough
shall be required to comply with this Part and pay the tax to the
Tax Collector by April 20 of each year, unless he or she has otherwise
claimed an exemption from the tax.
E.
As to employees who present official receipts evidencing prior full
payment of the tax imposed hereby, either directly or by collection
through employers, the employer shall not deduct the tax but shall
maintain adequate records concerning such employees.
F.
If a local services tax is levied at a combined rate exceeding $10 in a calendar year, a person subject to the local services tax shall be assessed 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 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. Collection of a local services tax levied under this paragraph 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 1J.
G.
If a school district levied an emergency and municipal services tax on the effective date of this paragraph, the school district may continue to levy the local services tax in the same amount the school district collected on the effective date of this paragraph. However, if a municipality located in whole or in part within the school district subsequently levies the local services tax, the school district may only collect $5 on persons employed within the municipality each calendar year. A school district that did not levy an emergency and municipal services tax on the effective date of this paragraph shall be prohibited from levying the local services tax. If a school district and a municipality located in whole or in part within the school district both levy a local services tax at a combined rate exceeding $10, the school district's pro rata share of the aggregate local services taxes levied on persons employed within the municipality shall be collected by the municipality or its tax officer based on payroll periods as provided under Subsection 1F and shall be paid to the school district on a quarterly basis within 60 days of receipt by the municipality or its tax officer.
I.
With respect to a person subject to the local services tax at a combined
rate exceeding $10, 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. With respect to a person subject to the local services
tax at a combined rate of not more than $10, the situs of the tax
shall be the place of employment determined as of the day the person
first becomes subject to the tax during the calendar year. 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: first, the political subdivision in which a person maintains
the person's principal office or is principally employed; second,
the political subdivision in which the person resides and works, if
the tax is levied by that political subdivision; and third, the political
subdivision in which a person is employed and which imposes the tax
nearest in miles to the person's home.
J.
In the case of concurrent employment, an employer shall refrain from
withholding the local services 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
local services 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 Department
of Community and Economic Development shall develop a uniform employee
statement form.
K.
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 political subdivision shall
provide a taxpayer a receipt of payment upon request by the taxpayer.
L.
The Home Rule Borough of Edinboro shall adopt regulations for the
processing of refund claims for overpaid local services taxes for
any calendar year. The regulations to be adopted by the Home Rule
Borough of Edinboro shall be consistent with 53 Pa.C.S.A. §§ 8425
and 8426. Refunds made within 75 days of a refund request or 75 days
after the last day the employer is required to remit the local services
tax for the last quarter of the calendar year, whichever is later,
shall not be subject to interest imposed under 53 Pa.C.S.A. § 8426.
The Home Rule Borough of Edinboro shall only provide refunds for amounts
overpaid in a calendar year that exceed $1.
M.
For purposes of this section, the phrase "combined rate" shall mean
the aggregate annual rate of the local services tax levied by a school
district and a municipality located in whole or in part within the
school district.
[Ord. 552, 11/26/2007, § 5]
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 nonresident employer may,
for the purpose of this Part, be considered a self-employed person,
and in the event that this tax is not paid, the administrator shall
have the option of proceeding against either the employer or employee
for the collection of this tax as hereinafter provided. Provided,
however, no person shall be subject to the payment of the local services
tax to more than one political subdivision during each payroll period.
Each such taxpayer who first becomes subject to the tax after the
effective date of this Part and on or before March 31 of the current
tax year, shall file the return and pay the tax on or before April
30 of the current tax year, and each such taxpayer who first becomes
subject to the tax after March 31 of the current tax year, shall file
the return and pay the tax on or before July 31 or October 31 of the
current tax year, or January 31 of the following year, whichever of
such payment dates first occurs at least 30 days after the taxpayer
becomes subject to the tax.
[Ord. 552, 11/26/2007, § 6]
Both resident and nonresident taxpayers by virtue of engaging
in an occupation within the Borough of Edinboro, shall be subject
to the tax and the provisions of this Part.
[Ord. 552, 11/26/2007, § 7]
1.
The following persons shall be exempt from 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% permanent 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 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.
C.
Any person whose total earned income and/or net profits from all
sources within the Home Rule Borough of Edinboro is less than $12,000.
Any person claiming an exemption on this ground must annually file
an exemption certificate with the Home Rule Borough of Edinboro, the
Borough's designated agent, and with his or her employer. If
a person who claimed an exemption for a given calendar year becomes
subject to the tax, his employer shall withhold the tax for the remainder
of the calendar year, including a lump sum payment equal to the amount
of tax that was not collected. The exemption certificate shall be
prescribed by the Pennsylvania Department of Community and Economic
Development and will be made available to all taxpayers and employers.
Employers shall ensure that the exemption certificates are readily
available to employees at all items and shall furnish each new employee
with a form certificate at the time of hire.
(1)
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Home Rule Borough of Edinboro and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the Home Rule Borough of Edinboro 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 political subdivision for the year prior to the fiscal year for which the employee is requesting to be exempt from the local services tax. Upon receipt of the exemption certificate and until otherwise instructed by the Home Rule Borough of Edinboro the tax or except as required by Subsection 1C(2), 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.
(2)
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 Home Rule Borough of Edinboro that the person has received earned income and net profits from all sources within the Home Rule Borough of Edinboro 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 a person of earned income within the Home Rule Borough of Edinboro in an amount equal to or in excess of $12,000 in that calendar year, that employer shall withhold the local services tax from the person under Subsection 1C(3).
(3)
If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the tax for the remainder of that calendar year under Subsection 1C(2), 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 1C(2), 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 subparagraph is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due, and the Home Rule Borough of Edinboro may pursue collection under this Act.
[Ord. 552, 11/26/2007, § 8]
The Tax Collector shall collect and receive the taxes, interest,
fines and penalties imposed by this Part, and shall maintain records
showing the amounts received and the dates such amounts were received.
The Tax Collector shall prescribe and issue all forms necessary for
the administration of the tax and may adopt and enforce regulations
relating to any matter pertaining to the administration of this Part.
The Tax Collector and agents designated by him may examine the records
of any employer and/or supposed employer or of any taxpayer in order
to ascertain a tax due or verify the accuracy of any return. Every
employer or supposed employer and every taxpayer or supposed taxpayer
shall give the Tax Collector and any agent designated by him all means,
facilities, and opportunity for the examinations hereby authorized.
[Ord. 552, 11/26/2007, § 9]
The Tax Collector shall collect, by suit or otherwise, all taxes,
interest, costs, fines and penalties due under this Part 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 the unpaid taxes and an additional
penalty of 1/2% of the amount of the 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 Tax Collector may accept
payment under protest of the tax claimed by the Borough of Edinboro
in any case where any person disputes the Borough of Edinboro's
claim for the tax. If a court of competent jurisdiction thereafter
decides that there has been overpayment to the Tax Collector, the
Tax Collector shall refund the amount of the overpayment to the person
who paid under protest. Any action instituted for such judicial determination
shall be instituted within two years of the last day of the period
for which the tax is disputed or claim made. All refunds shall be
made in conformity with the procedures prescribed by the Borough of
Edinboro.
[Ord. 552, 11/26/2007, § 10; as amended by Ord.
585, 9/12/2011]
An employer or taxpayer who makes a false or untrue statement
on any return required by this Part, who refuses inspection of his
records in his custody and control, setting forth his employees subject
to this tax, who fails or refuses to file a return required by this
Part, or who violates any other provision of this Part, shall, upon
conviction thereof, be sentenced to pay a fine of not more than $600
plus cost per occurrence and, in default of payment of said fine and
costs, to a term of imprisonment not to exceed 30 days.
[Ord. 552, 11/26/2007, § 11]
1.
It shall be the duty of the Tax Collector to accept and receive payment
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.
2.
The Tax Collector is hereby charged with the administration and enforcement
of this Part. The collection of delinquent local services taxes may
be made and enforced in the manner provided by law for the collection
and enforcement of other taxes, as well as from the employer of the
taxpayer, as provided in §§ 18, 19, 20, 21 and 22.1
of the Local Tax Enabling Act, as amended, which sections are incorporated
by reference.
[Ord. 552, 11/26/2007, § 12]
At least 25% of the funds collected from the tax shall be used
to fund emergency services within the Home Rule Borough of Edinboro.
[Ord. 552, 11/26/2007, § 13]
The provisions of this Part are severable and if any of its
provisions shall be held invalid or unconstitutional, the decision
of the Court shall not affect or invalidate any of the remaining provisions.
It is hereby declared to be the legislative intent that this Part
would have been adopted if such illegal, invalid or unconstitutional
provision had not been included herein.
[Ord. 552, 11/26/2007, § 15]
The Council of the Home Rule Borough of Edinboro does hereby
reserve the right, form time to time, to adopt modifications of, supplements
to, or amendments of its ordinance, including this provision.
[Ord. 552, 11/26/2007, § 17]
The tax imposed by this Part shall continue in force on a calendar
year basis without annual reenactment.
[Ord. 552, 11/26/2007, § 19]
The failure of the Home Rule Borough of Edinboro to enforce
any provision of this Part shall not constitute a waiver by the Home
Rule Borough of Edinboro of its rights of future enforcement hereunder.
