[Adopted 12-7-1964 by Ord. No. 70 (Ch. V, Part 1B, of the 1996 Code of
Ordinances)]
[Amended 12-7-1970 by Ord. No. 1970-5; 12-12-1995 by Ord. No. 1995-6]
The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section except where
the context or language clearly indicates or requires a different
meaning.
The Borough Manager of the Borough of Montgomery, or other
person designated by the Borough of Montgomery for collection and
enforcement of this tax.
The area within the corporate limits of the Borough of Montgomery.
An 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 twelve-month period beginning January 1 of any year,
and ending December 31 of the same year.
Indicates the singular and plural number as well as male,
female and neuter gender.
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Borough of Montgomery.
Any trade, profession, business, or undertaking of any type,
kind or character, including services, domestic or other, carried
on or performed within the corporate limits of the Borough of Montgomery
for which compensation is charged or received whether by means of
salary, wages, commissions or fees for services rendered.
The occupation privilege tax in the amount of $5 levied by
this article.
[Amended 12-12-1995 by Ord. No. 1995-6]
The Borough of Montgomery hereby levies and imposes on each
occupation engaged in by individuals within its corporate limits during
each fiscal year an annual occupation privilege tax. This tax is in
addition to all other taxes of any kind or nature heretofore levied
by the Borough of Montgomery.
[Amended 12-7-1970 by Ord. No. 1970-5; 3-9-2021 by Ord. No. 2021-1]
Beginning with the first day of January 1965 through the 31st
day of December 2021, each occupation, as hereinbefore defined, engaged
in within the corporate limits of the Borough of Montgomery shall
be subject to an occupation privilege tax in the amount of $5 per
annum, said tax to be paid by the individual so engaged. Beginning
with the first day of January 2022 and thereafter, each such defined
occupation shall be subject to an occupation privilege tax in the
amount of $10 per annum, said tax to be paid by the individual so
engaged.
[Amended 12-7-1970 by Ord. No. 1970-5]
Each employer within the Borough of Montgomery as well as those
employers situated outside the Borough of Montgomery, but who engage
in business within the Borough of Montgomery, is hereby charged with
the duty of collecting from each of his employees engaged by him and
performing services for him within the Borough of Montgomery, the
said tax of $5 per annum and making a return and payment thereof to
the administrator. Further, each employer is hereby authorized to
deduct this tax from each employee in his employ, whether said employee
is paid by salary, wages or commission and whether or not part or
all such services are performed within the Borough of Montgomery.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to him by the administrator. Each
employer in filing this return and making payment of the tax withheld
from his employees shall be entitled to retain a commission calculated
at the rate of 2% of the gross tax due and payable, provided that
such tax is collected and paid over by the employer on or before the
dates hereinafter set forth. It is further provided that if the employer
fails to file said return and pay said tax, whether or not he makes
collection thereof from the salary, wages or commissions paid by him
to said employee, the employer shall be responsible for the payment
of the tax in full without deducting a commission and as though the
tax had originally been levied against him.
[Amended 12-7-1970 by Ord. No. 1970-5; 12-12-1995 by Ord. No. 1995-6]
Each employer shall use his employment records from January
1 to May 15 of each year for determining the number of employees from
whom such tax shall be deducted and paid over to the Borough on or
before June 15 of that year. Supplemental reports shall be made by
each employer on August 15 and October 15 of each year of new employees
as reflected on his employment records from May 15 to August 15 of
that year and from August 15 to October 15 of that year, respectively.
Payments on those supplemental reports shall be made on September
15 and November 15 of that year, respectively.
Each individual who shall have more than one occupation within
the Borough of Montgomery 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 deductions on a form to be
furnished to the employer by the administrator, which form shall be
evidence of deduction having been made and, when presented to any
other employer, shall be authority for such employer to not deduct
this tax from the employee's wages, but to include such employee on
his return by setting forth his name, address, and the name and account
number of the employer who deducted this tax.
[Amended 12-12-1995 by Ord. No. 1995-6]
All self-employed individuals who perform services of any type
or kind, or engage in any occupation or profession within the Borough
of Montgomery shall be required to comply with this article and pay
the tax to the administrator on July 31 of every year, or on January
1 of any year, if he commences an occupation after June 30 of the
preceding year.
All employers and self-employed individuals residing or having
their place of business outside of the Borough of Montgomery, but
who perform services of any type or kind, or engage in any occupation
or profession within the Borough of Montgomery 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 Montgomery.
Further, any individual engaged in an occupation within the Borough
of Montgomery and 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 Borough shall have the option
of proceeding against either the employer or employee for the collection
of this tax as hereinafter provided.
A.
It shall be the duty of the administrator to accept and receive payments
of this tax and to keep a record thereof showing the amount received
by him from each employer and self-employed person together with the
date the tax was received.
B.
The administrator is hereby charged with the administration and enforcement
of this article and is hereby charged and empowered to prescribe,
adopt and promulgate 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. Any person aggrieved by any decision of the administrator
shall have the right to appeal to the Court of Common Pleas of Lycoming
County as in other cases provided.
C.
The administrator 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 administrator
the means, facilities and opportunity for such examination.
A.
In the event that any tax under this article remains due or unpaid
30 days after the due dates above set forth, the administrator may
sue for the recovery of any such tax due or unpaid under this article
together with interest and penalty.
B.
If, for any reason, the tax is not paid when due, interest at the
rate of 6% on the amount of said tax shall be calculated beginning
with the due date of said tax and a penalty of 5% shall be added to
the flat rate of said 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.
[Amended 12-12-1995 by Ord. No. 1995-6]
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 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 be guilty
of a violation of this article and an offense, and for every such
offense, upon conviction, shall be sentenced to pay a fine of not
less than $25 nor more than $600 and costs of prosecution and, in
default of payment of fine and costs, to undergo imprisonment for
not more than 30 days. Provided: 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 refuses to file
a return required by this article.
A.
Nothing contained in this article shall be construed to empower the
Borough of Montgomery to levy and collect the tax hereby imposed on
any occupation not within the taxing power of the Borough under the
Constitution of the United States and the laws of the Commonwealth
of Pennsylvania.
B.
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 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.
