[Ord. 2007-06, 12/3/2007]
This Part shall be known and may be cited as the "Watsontown
Borough Local Services Tax Ordinance." This Part is enacted under
the authority of the Local Tax Enabling Act, 53 P.S. § 6901
et seq., and continues and redesignates the emergency and municipal
services tax as the local services tax pursuant to Act No. 7 of 2007.
[Ord. 2007-06, 12/3/2007]
The following words and phrases, when used in this Part, shall
have the meanings ascribed to them in this section, except where the
context or language clearly indicates or requires a different meaning.
COLLECTOR
The person or agency appointed from time to time by Watsontown
Borough Council to assess and collect the tax imposed under, and to
administer the provisions of, this Part.
EMPLOYER
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.
FISCAL YEAR
The twelve-month period beginning January 1 and ending December
31.
HE, HIS, or HIM
Indicate the singular and plural number as well as male,
female and neuter gender.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Borough of Watsontown.
OCCUPATION
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 Watsontown
for which compensation is charged or received whether by means of
salary, wages, commissions or fees for services rendered.
TAX
The local services tax which was previously referred to in
this Part as the "emergency and municipal services tax."
[Ord. 2007-06, 12/3/2007]
1. Beginning January 1, 2008, the Borough of Watsontown hereby levies
and imposes on each occupation engaged in by individuals within its
corporate limits during the fiscal year of 2008 and each fiscal year
thereafter a local services tax. For the fiscal year 2008, said tax
shall be in the amount of $25 per annum and shall remain at said amount
unless altered by resolution of Borough Council for a subsequent fiscal
year or years. This tax does not include any occupational privilege
tax or emergency and municipal services tax levied and collected separately
by the Warrior Run School District and shall be collected for the
sole benefit of the Borough of Watsontown.
2. Provided, however, that for the fiscal year 2008 any individual deriving
less than $12,000 per year from all sources is hereby exempt from
such tax and may secure a refund at the end of the year by filing
a claim therefor on forms to be supplied by the Borough or file an
exemption form at the start of the fiscal year of employment. Said
exemption shall remain at this amount unless altered by resolution
of Borough Council for a subsequent fiscal year or years.
3. Further, Provided that any individual who qualifies under the following
subsections shall be exempt from such tax:
4. This tax is in addition to all other taxes of any kind or nature
heretofore levied by the Borough, and this tax shall continue in force,
without annual reenactment, unless the rate of the tax is subsequently
changed or this Part is repealed.
[Ord. 2007-06, 12/3/2007]
Each employer who engages in business within the Borough of
Watsontown is hereby charged with the duty of collecting from each
of his employees engaged by him and performing for him within the
Borough of Watsontown this tax and making a return and payment thereof
to the Collector.
[Ord. 2007-06, 12/3/2007]
1. Each employer is hereby authorized to deduct this tax from each employee
in his employ, whether said employee is salary, wages or commission
and whether or not part or all of such services are performed within
the Borough. The employer shall prorate the amount of the tax based
upon the number of pay periods remaining in the fiscal year and deduct
equal amounts from each pay period. If an employee shall leave employment
before the end of the fiscal year, the employee is obligated to pay
the remaining unpaid amount of the tax to the Borough within 30 days
of the end of the employee's employment.
2. Taxes deducted from wages by an employer shall at all times be and
remain the property of this Borough and shall constitute a trust fund
in the employer's hands until remitted to the Collector. Deduction
of taxes from wages shall, as between the employee and the Borough,
constitute payment of the tax by the employee, regardless of any insolvency
or failure to remit on the employer's part.
[Ord. 2007-06, 12/3/2007]
1. Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied by the Collector.
2. 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.
[Ord. 2007-06, 12/3/2007]
Each employer shall remit, within 30 days of each calendar quarter,
all amounts withheld from employees for said tax to the Collector.
[Ord. 2007-06, 12/3/2007]
Each individual who shall have more than one occupation within
the Borough 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 Borough which form shall be evidence of deductions 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 address of the employer who deducted this
tax.
[Ord. 2007-06, 12/3/2007]
All self-employed individuals who perform services of any type
or kind or engage in any occupation or professional within the Borough
shall be required to comply with this Part on July 30 of the fiscal
year or as soon thereafter as he engages in an occupation.
[Ord. 2007-06, 12/3/2007]
All employers and self-employed individuals residing or having
their place of business outside 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 same force and effect as though they were residents
of the Borough. 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
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.
[Ord. 2007-06, 12/3/2007]
1. It shall be the duty of the Collector to accept and receive payments
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 Collector is hereby charged with the administration and enforcement
of this Part 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 Part, including provisions
for the examination of the payroll records of any employer subject
to this Part, the examination and correction of any return made in
compliance with this Part 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 Collector shall have the right
to appeal to the Court of Common Pleas of Northumberland County as
in other cases provided.
[Ord. 2007-06, 12/3/2007]
1. In the event that any tax under this Part remains due or unpaid 30
days after the due dates above set forth, the Borough may sue for
the recover of any such tax due or unpaid under this Part together
with interest and penalty.
2. If for any reason the tax is not paid when due, interest at the rate
of 6% per annum on the amount of said tax shall be calculated beginning
with the due date of said tax, and an additional penalty of 5% of
the amount of the unpaid tax shall be added and collected for each
month or fraction thereof during which the tax remains unpaid. 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, including attorney's fees.
3. The Collector or his duly authorized representative or agent 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 Collector or his duly
authorized representative or agent the means, facilities and opportunity
for such examinations.
[Ord. 2007-06, 12/3/2007]
Any person who makes any false or untrue statement on any return
required by this Part, 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 Part commits
a violation of this Part. If the Borough Council or the Collector
determines that a person has committed or permitted the commission
of a violation of this Part, the Borough may institute summary criminal
proceedings and/or may seek equitable relief. In the event summary
criminal proceedings are instituted, the fine for the first offense
shall be no less that $100 and not more than $600. The fine for a
second offense shall not be less than $300 and not more than $600.
The fine for a third or greater offense shall not be less than $500
and not more than $600. Each day or portion thereof in which a violation
exists shall be considered a separate violation of this Part. Each
section of this Part which is violated shall be considered a separate
violation. The amount of any fine imposed by a Magisterial District
Judge or a court shall be in addition to any other fine which may
be imposed under any other provisions of the Code of the Borough or
under any statute. In default of payment of any fine, such person
shall be liable to imprisonment for not more than 30 days. The action
to enforce the Part may be instituted against any person in charge
of the business of any employer who shall have failed or refused to
file a return required by this Part.
[Ord. 2007-06, 12/3/2007]
1. Nothing contained in this Part shall be construed to empower the
Borough 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.
2. If the tax hereby imposed under the provisions of this Part shall
be held in violation of the Constitution of the United States or of
the laws of the Commonwealth of Pennsylvania as to any individual,
such decision shall not affect or impair the right to impose or collect
said tax, or the validity of the tax so imposed, on the other persons
or individuals as herein provided.
[Ord. 2007-06, 12/3/2007]
The Borough shall use at least 25% of all funds collected pursuant
to the local services tax for emergency services.