[Adopted 11-7-2011 by Ord. No. 2011-7]
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:
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.
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.
The twelve-month period beginning January 1 of any year and
ending December 31 of the same year.
The singular and plural number, as well as male, female and
neuter gender.
Any person, male or female, engaged in any occupation, trade,
business or profession within the boundaries and limits of the Township
of Derry.
An entity formed by two or more tax collection committees
for the purpose of income tax collection in more than one tax collection
district.
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.
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.
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:
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.
The Township of Derry, Mifflin County, Pennsylvania.
The local services tax levied by this article.
A public nonprofit entity established for the administration
and collection of taxes.
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.
A tax collection district established under Section 504 of
the Local Tax Enabling Act, as amended (53 P.S. § 6924.504,
as amended).
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 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.
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].
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.
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.
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[1] (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.
[1]
Editor's Note: See 53 Pa.C.S.A. § 8581 et seq.
A.
Every employer within the Township of Derry, as well as an employer
situated outside of the Township of Derry but who engages in business
within the Township, is hereby charged with the duty of collecting
from each of his employees who perform work or services for him within
the Township of Derry, a tax of $52 per year and making a return and
payment thereof to the Local Services Tax Collector. Each employer
is hereby authorized to deduct this tax from each employee in his
employ (whether the employee is paid by salary, wages, commissions
or fees) where part or all of the employee's work or services
are performed within the Township of Derry.
B.
Pro rata assessment; collection.
(1)
Persons 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.
(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 fiscal year (which is the calendar year
for purposes of this article) by the number of payroll periods established
by the employer for the calendar year.
(3)
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.
(4)
Collection of the local services tax levied shall be made on a payroll
period basis for each payroll period in which the person is engaging
in an occupation, except that, 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 employee's statement shall be provided on a form
developed and approved by the Pennsylvania Department of Community
and Economic Development.
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.
A.
Each individual who shall have more than one occupation within the
Township of Derry shall be subject to the payment of this tax on his
principal occupation, and his principal employer shall deduct this
tax and deliver to him evidence of the deduction on a form to be furnished
to the employer by the Local Services Tax Collector, which form shall
be evidence of deduction having been made.
B.
In the case where an individual has concurrent employment, an employer
shall refrain from withholding the local services tax if the employee
provides a recent pay statement from his principal employer that includes
the name of the employer, the length of the payroll period, the amount
of local services tax withheld, 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 of principal
place of employment within two weeks of its occurrence. The employee's
statement shall be provided on a form developed and approved by the
Pennsylvania Department of Community and Economic Development.
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.
A.
It shall be the duty of the Local Services Tax Collector to accept
and receive payments of this tax and to keep a record thereof showing
the amount received from each employer or self-employed person, together
with the date the tax was received.
B.
Regulations; administration and enforcement.
(1)
The Local Services Tax Collector is hereby charged with the administration
and enforcement of this article and is hereby charged and empowered
to prepare and propose to the Township Supervisors or such other authorized
entity, rules and regulations relating to any matter pertaining to
the administration and enforcement of this article, including provisions
for the examination of the payroll records of any employer subject
to this article, the examination and correction of any return made
in compliance with this article and any payment alleged or found to
be incorrect, or as to which overpayment is claimed or found to have
occurred and a refund is payable.
(2)
Regulations relating to refunds of overpayments shall be consistent
with the refunds of overpayments section of the Local Taxpayers Bill
of Rights Act, specifically, 53 Pa.C.S.A. § 8425, as it
may be amended from time to time, and the interest on overpayment
section of the Local Taxpayers Bill of Rights Act, specifically, 53
Pa.C.S.A. § 8426, as it may be amended from time to time.
Refunds made within 75 days of a refund request or within 75 days
after the last day the employer is required to remit the local services
tax for the last quarter of the fiscal year (which, for purposes of
this article, is the calendar year) under Section 312 of the Local
Tax Enabling Act, as amended from time to time (53 P.S. § 6924.312,
as amended from time to time), whichever is later, shall not be subject
to interest imposed under 53 Pa.C.S.A § 8426. Further, refunds
shall only be provided for amounts overpaid in a fiscal year (which,
for purposes of this article, is the calendar year) that exceed $1.
(3)
Such rules and regulations shall not become effective until adopted
by resolution of the Derry Township Supervisors or by such other authorized
entity.
(4)
As of January 1, 2012, the date of the beginning of the collection
of the local services tax by that Tax Officer appointed by the Mifflin
County Tax Collection Committee 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, specifically, per the Local Tax Enabling Act, Section
509(k), as amended [53 P.S. § 6924.509(k), as amended],
whereby when designated by the Tax Collection Committee, a tax officer
may collect other taxes levied pursuant to the Local Tax Enabling
Act, as amended, in addition to income taxes levied pursuant to the
Local Tax Enabling Act, any person aggrieved by any decision of the
Local Services Tax Collector shall have the right to appeal to the
appeals board established by the Mifflin County Tax Collection Committee
and the appeal shall be governed by rules and regulations adopted
by the Mifflin County Tax Collection Committee in relation to said
appeals board, and after final decision of the Local Tax Collection
Committee, the aggrieved party shall have the further right of appeal
to the Court of Common Pleas of Mifflin County as in other cases made
and provided.
A.
If for any reason the tax is not paid when due, interest at the rate
of 6% per annum shall be calculated beginning with the due date of
the tax and a penalty of 5% shall be added to the flat rate of the
tax for nonpayment thereof. Where suit is brought for the recovery
of this tax, the individual liable therefor shall, in addition, be
responsible and liable for the costs of collection.
B.
In the event that any tax under this article remains unpaid for a
period of 30 days after the due dates set forth herein, the Local
Services Tax Collector may sue in the name of the Township in a civil
action (formerly assumpsit) or other appropriate remedy for the recovery
of such tax due and unpaid, together with interest and penalty. Upon
any such judgment, execution may be issued without any stay or benefit
of any exemption law, to the extent allowable by law.
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.
A.
The following persons shall be exempt from the payment of the local
services tax:
(1)
Any person whose total earned income and net profits from all sources
within the political subdivision is less than $12,000 per year shall
be exempt from the payment of the tax levied under this article.
(2)
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 Department of Veterans' Affairs or its successor
to be a total 100% permanent disability.
(3)
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 Forces Reserve, United States
Coast Guard Reserve, United States Air Force Reserve, the Pennsylvania
Army National Guard or the Pennsylvania Air National Guard.
B.
Claiming an exemption.
(1)
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the political subdivision levying the local services tax and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the said political subdivision of less than $12,000 in the fiscal year (which is the calendar year for purposes of this article) for which the exemption certificate is filed. The said political subdivision shall provide a copy of the exemption certificate to the Local Services Tax Collector. The exemption certificate shall have attached to it a copy of all the employee's last pay stubs or W-2 forms from employment within the political subdivision levying the tax for the year prior to the fiscal year for which the employee is requesting to be exempted from the local services tax. Upon receipt of the exemption certificate and until otherwise instructed by the political subdivision levying the tax or except as required by Subsection B(2) hereinafter, 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. The Pennsylvania Department of Community and Economic Development shall develop and make available to political subdivisions and employers uniform exemption certificates required by this provision.
(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 political subdivision levying the tax that the person has received earned income and net profits from all sources within the said 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 said 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 under Subsection B(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 calendar year under Subsection B(2), aforesaid, 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 B(2), aforesaid, 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 section, 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 fiscal year (which is the calendar year for purposes of this article) 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 subsection is subsequently 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 thereof as provided by law.
(4)
Except as provided in Subsection B(2), aforesaid, it is the intent of this section that employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from a local services tax.
(5)
The procedures applicable to the exemption claimed, the procedures
in relation to the claiming of an exemption, suspension of withholding
and restoration of withholding shall otherwise be as set forth in
Section 2 of the Local Tax Enabling Act, Act 511, as amended, renumbered
Section 101 et seq., as amended from time to time (53 P.S. § 6924.101
et seq., as amended from time to time) and specifically Section 301.1,
as amended from time to time (53 P.S. § 6924.301.1, as amended
from time to time), which provisions are incorporated herein by reference.
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.
A.
If the tax hereby imposed under the provisions of this article shall
be held by any court of competent jurisdiction to be in violation
of the Constitution of the United States or of the laws of the Commonwealth
of Pennsylvania as to any individual, the decision of the court shall
not affect or impair the right to impose or collect said tax, or the
validity of the tax so imposed on other persons or individuals as
herein provided.
B.
This article is enacted under the authority of the Local Tax Enabling
Act, Act of December 31, 1965, P.L. 1257, Act 511, Section 1 et seq.,
and renumbered as Section 101 et seq., as amended (53 P.S. § 6924.101
et seq., as amended), and it is the intention of the Derry Township
Supervisors, Mifflin County, Pennsylvania, that in the event of any
conflict between this article and the applicable provisions of the
Local Tax Enabling Act, as amended, whereby any provision of this
article shall be rendered inoperative or amended, then the provisions
of the Local Tax Enabling Act, as amended, shall be controlling. It
is the intent of this article that a local services tax be levied,
imposed and assessed in accordance with the applicable provisions
of the Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257,
No. 511, Section 1 et seq., and renumbered as Section 101 et seq.,
as amended (53 P.S. § 6924.101 et seq., as amended), which
provisions are incorporated herein by reference.
C.
It is the intent that this article be administered in accordance
with the Local Taxpayers Bill of Rights Act, as amended, 53 Pa.C.S.A.
§ 8421 et seq., as amended from time to time.
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.
