This article shall be known as and may be cited as the "Derry
Township Local Services Tax Ordinance." It is enacted under the authority
of the Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257,
No. 511, Section 1 et seq., as amended and renumbered Section 101
et seq. (53 P.S. § 6924.101 et seq., as amended).
When used in this article, the following words and terms shall
have the meanings ascribed to them in this section, except where the
context clearly indicates or requires a different meaning:
EARNED INCOME
The compensation as required to be reported to or as determined by the Department of Revenue under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and rules and regulations promulgated under that section. Employee business expenses as reported to or determined by the Department of Revenue under Article
III of the Tax Reform Code of 1971 shall constitute allowable deductions in determining earned income. The term does not include offsets for business losses. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
EMPLOYER
A person, business entity or other entity, employing one
or more persons for a salary, wage, commission or other compensation.
The term includes the commonwealth, a political subdivision and an
instrumentality or public authority of either. For purposes of penalties
under this chapter and part, the term includes a corporate officer
and includes a self-employed person.
FISCAL YEAR
The twelve-month period beginning January 1 of any year and
ending December 31 of the same year.
HE, HIS or HIM
The singular and plural number, as well as male, female and
neuter gender.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade,
business or profession within the boundaries and limits of the Township
of Derry.
JOINT TAX COLLECTION COMMITTEE
An entity formed by two or more tax collection committees
for the purpose of income tax collection in more than one tax collection
district.
LOCAL SERVICES TAX
A tax on individuals for the privilege of engaging in an
occupation that is levied, assessed and collected only by the political
subdivision of the taxpayer's place of employment under the authority
of the Local Tax Enabling Act, Section 101 et seq., as amended (53
P.S. § 6924.101 et seq., as amended) or any other act.
LOCAL SERVICES TAX COLLECTOR
That person or agency appointed or employed by the Mifflin
County Tax Collection Committee as the Tax Officer to collect local
services taxes in the Mifflin County tax collection district, all
per the Local Tax Enabling Act, Section 507, as amended (53 P.S. § 6924.507,
as amended), and/or otherwise so appointed or employed by joint agreement
of the Mifflin County Tax Collection Committee with the Township of
Derry to collect the local services tax imposed by the Township.
NET PROFITS
The net income from the operation of a business, other than
a corporation, as required to be reported to or as determined by the
Department of Revenue under Section 303 of the Act of March 4, 1971
(P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and rules
and regulations promulgated under that section. The term does not
include income under any of the following paragraphs:
A.
Income which:
(1)
Is not paid for services provided; and
(2)
Is in the nature of earnings from an investment.
B.
Income which represents:
(1)
Any gain on the sale of farm machinery;
(2)
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; or
(3)
Any gain on the sale of other capital assets of a farm.
OCCUPATION
Any trade, profession, business or undertaking of any type,
kind or character, including personal services carried on or performed
within the boundaries and limits of the Township of Derry for which
compensation is charged or received, whether by means of salary, wages,
commissions, profits, or fees for services rendered.
TAX
The local services tax levied by this article.
TAX BUREAU
A public nonprofit entity established for the administration
and collection of taxes.
TAX COLLECTION COMMITTEE
The committee established to govern each tax collection district
for the purpose of income tax collection. The term shall include a
joint tax collection committee.
TAX COLLECTION DISTRICT
A tax collection district established under Section 504 of
the Local Tax Enabling Act, as amended (53 P.S. § 6924.504,
as amended).
TAX OFFICER
A political subdivision, public employee, tax bureau, county,
except a county of the first class, or private agency which administers
and collects income taxes, and other taxes, as agreed, for one or
more tax collection districts. Unless otherwise specifically provided,
for purposes of the obligations of an employer, the term shall mean
the Tax Officer for the tax collection district within which the employer
is located, or, if an employer maintains workplaces in more than one
district, the Tax Officer for each such district with respect to employees
principally employed therein.
TAX RECORDS
Tax returns, supporting schedules, correspondence with auditors
or taxpayers, account books and other documents, including electronic
records, obtained or created by the Tax Officer to administer or collect
a tax under this act. The term includes documents required by Section
509(e) of the Local Tax Enabling Act, as amended [53 P.S. § 6924.509(e),
as amended]. The term "electronic records" includes data and information
inscribed on a tangible medium or stored in an electronic or other
medium and which is retrievable in perceivable form.
TAX REGISTER
A database of all county, municipal and school tax rates
available on the Internet as provided in Section 511(a)(1) of the
Local Tax Enabling Act, as amended [53 P.S. § 6924.511(a)(1),
as amended].
TAXPAYER
A person or business required under the Local Tax Enabling
Act and this article to file a return of a local services tax and/or
to pay a local services tax.
TOWNSHIP OF DERRY
The area within the boundaries and limits of the Township
of Derry, a Second Class Township, a political subdivision, located
within Mifflin County and the Commonwealth of Pennsylvania.
WITHHOLDING TAX
A local services tax levied by a political subdivision under
the authority of the Local Tax Enabling Act, Section 101 et seq.,
as amended (53 P.S. § 6924.101 et seq., as amended) for
which employer withholding may be required under the Local Tax Enabling
Act, as amended, by any other act or by this article.
An annual local services tax in the amount of $52 per year is
hereby levied, imposed and assessed upon each individual who exercises
the privilege of engaging in an occupation during the fiscal year
within the corporate limits of the Township of Derry. The funds derived
therefrom may only be used for emergency services, which shall include
emergency medical services, police services and fire services; road
construction and maintenance; reduction of property taxes; and/or,
if applicable, and if the Township hereafter adopts an ordinance providing
for the same, property tax relief through implementation of a homestead
and farmstead exclusion in accordance with 53 Pa.C.S.A. Chapter 85,
Subchapter F (relating to homestead property exclusion). This tax is
in addition to all other taxes of any kind or nature levied by the
Township of Derry. No less than 25% of the funds derived from the
local services tax shall be used for emergency services.
Each employer is required to remit the local services tax within
30 days after the end of each quarter of the fiscal year (which for
purposes of this article is the calendar year). In accord therewith,
each employer shall file, together with the employer's remittance,
a return with the Local Services Tax Collector within 30 days after
the end of each quarter of the fiscal year (which for purposes of
this article is the calendar year) showing the number, names, social
security numbers and addresses of employees in his employ subject
to this tax and the number of payroll periods in the applicable quarter
of the fiscal year (for purposes of this article is the calendar year),
and shall show a computation of the tax on the forms to be supplied
to him by the Tax Collector. If the employer fails to file the return
and pay the tax, whether or not he makes collection thereof from the
salary, wages, commissions or fees paid by him to the employee, the
employer shall be responsible for the payment of the tax in full as
though the tax had originally been levied against him.
It is the responsibility of each employee subject to the tax
imposed by this article to ascertain that his employer has withheld
the tax and made a timely return thereof to the Local Services Tax
Collector, and if this has not been done, the employee shall prepare
and file a return and pay the tax in the same manner as a self-employed
person, notwithstanding any other provisions of this article requiring
employers to withhold the tax and to file a return thereof with the
Local Services Tax Collector.
The employer shall file his return with and remit the tax to the Local Services Tax Collector as set forth in §
193-55 of this article on a quarterly basis. The four quarters of the year are, respectively, those beginning January 1 and ending March 31, beginning April 1 and ending June 30, beginning July 1 and ending September 30 and beginning October 1 and ending December 31 of each year. The employer's return shall be due and shall be filed and the tax due shall be remitted and paid no later than April 30, July 30, October 30, and January 30 of each year, for the respective, immediately preceding quarter, showing the number of employees subject to such tax that were employed by him during the applicable quarter of the year and the number of payroll periods applicable.
All self-employed individuals who perform services of any type or kind or engage in any occupation or profession within the Township of Derry, shall be required to comply with this article and pay the tax due to the Local Services Tax Collector in four payments on a quarterly basis, the quarters being as set forth in §
193-57 of this article, as if their payroll period is a calendar quarter. A return and payment of the tax shall be due not later than April 30, July 30, October 30, and January 30 of each year for the immediately preceding calendar quarter.
All employers and self-employed individuals residing or having
their place of business outside of the Township of Derry but who perform
services of any type or kind or engage in any occupation or profession
within Derry Township, agree to be bound 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
Township of Derry. Further, any individual engaged in an occupation
within the Township and being at the time an employee of a nonresident
employer may, for the purpose of this article, be considered a self-employed
person, and in the event this tax is not paid, the Township shall
have the option of proceeding against either the employer or employee
for the collection of this tax.
Unless the power is restricted from time to time (or limited
to particular collection cases) by the Township Supervisors, the Township
Manager or the Township Secretary, the Township Local Services Tax
Collector (and any Delinquent Tax Collector specifically appointed
by the Township Supervisors to collect delinquent local services taxes)
shall have the power to collect a delinquent local services tax by
wage attachment in the manner authorized, and pursuant to the authority
granted, by the Local Tax Enabling Act, Act 511, as amended, Section
101 et seq., as amended (53 P.S. § 6924.101 et seq., as
amended).
Unless the power is restricted from time to time (or limited
to particular collection cases) by the Township Supervisors, the Township
Manager or the Township Secretary, or is otherwise prohibited by law,
the Township Local Services Tax Collector (and any Delinquent Tax
Collector specifically appointed by the Township Supervisors to collect
a delinquent local services taxes) shall have the power to collect
a delinquent local services tax by distress and sale of the goods
and chattels of the delinquent taxpayer in the manner authorized,
and pursuant to the authority granted, by the Local Tax Enabling Act,
Act 511, as amended, Section 101 et seq., as amended (53 P.S. § 6924.101
et seq., as amended).
Whoever makes any false or untrue statements on any return required
by this article, or who refuses inspection of his books or the records
or accounts in his custody and control setting forth the number of
employees subject to this tax who are in his employment, or whoever
fails or refuses to file any return required by this article shall,
upon conviction, be sentenced to pay a fine of not more than $600
for each offense and the costs of prosecution; and upon failure to
pay such fine and costs, to imprisonment for a period not exceeding
30 days for each offense. Further, the action to enforce the penalty
may be instituted against any person in charge of the business of
an employer who has failed or refused to file a return required by
this article.
This article, as reenacted, on the privilege of engaging in
an occupation within the Township of Derry and the provisions and
revisions including, but not limited to, administration, tax rate,
collection, utilization of tax funds realized, exemptions, withholding,
and otherwise as amended and revised herein, shall be applicable to
employment (and to the privilege of engaging in an occupation within
the Township of Derry) in the fiscal year period (which is by definition
in this article the calendar year) beginning January 1, 2012, and
ending as of the end of the day of December 31, 2012, and each calendar
year thereafter.
The provisions of this article shall not affect any such suit
or prosecution pending or to be instituted to enforce any right or
penalty or to punish any offense under the authority of any ordinance
repealed by this article, including, but not limited to, all emergency
and municipal service taxes, plus applicable penalties and interest,
and local services taxes, plus applicable penalties and interest,
heretofore levied for calendar years prior to the effective date of
this article.
This article shall become effective for the fiscal year (which
is by definition in this article the calendar year) beginning January
1, 2012, to and including December 31, 2012, and each calendar year
thereafter and the tax herein levied shall continue in full force
and effect unless and until said tax is repealed or amended, revised
or modified.