[Ord. 1883, 11/19/2007]
This Ordinance shall be known and may be cited as the "Local
Services Tax Ordinance."
[Ord. 1883, 11/19/2007]
This Ordinance is enacted under the authority of Act 511 of
1965, as amended, known as "The Local Tax Enabling Act."
[Ord. 1883, 11/19/2007]
As used in this Ordinance, unless the context clearly indicates
a different meaning, the following words shall have the meanings set
forth below:
CALENDAR YEAR
The twelve-month period beginning January 1st and ending
December 31st.
COLLECTOR
Person, public employee, public agency, or private agency
designated by governing body of the Borough of State College to collect
and administer the tax.
EARNED INCOME
"Compensation" as determined under Section 303 of the Act
of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of
1971," and regulations in 61 Pa. Code Pt.
I, Subpt. B, Art.
V (relating to personal income tax) not including, however, wages or compensation paid to individuals on active military service. Employee business expenses are allowable deductions as determined under Article
III of the "Tax Reform Code of 1971." The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
EMPLOYER
A person, partnership, association, corporation, institution,
governmental body or unit or agency, or any other entity employing
one or more persons for a salary, wage, commission or other compensation,
including self-employed individuals.
EXEMPTION CERTIFICATE
An exemption certificate substantially in the form of the
uniform certificate prescribed by the Pennsylvania Department of Community
and Economic Development affirming that the person reasonably expects
to receive Earned Income and/or Net Profits from all sources within
the municipality of less than $12,000 in the calendar year for which
the Exemption Certificate is filed, which Exemption Certificate has
attached to it a copy of all of the employee's last pay stubs or W-2
forms from employment within the municipality for the year prior to
the calendar year for which the employee is requesting to be exempted
from the Tax. In addition to the income exemptions, provision has
been made for certain military exemptions.
LOCAL SERVICES
Emergency Services; road construction and/or maintenance;
reduction of property taxes; and property tax relief through implementation
of a homestead and farmstead exclusion in accordance with 53 Pa.C.S.
Subch. F.
NET PROFITS
The net income from the operation of a business, profession,
or other activity, except corporations, determined under Section 303
of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform
Code of 1971", and regulations in 61 Pa. Code Pt.
I, Subpt. B, Art.
V (relating to personal income tax). The term does not include income which is not paid for services provided and which is in the nature of earnings from an investment. For taxpayers engaged in the business, profession or activity of farming, the term shall not include:
a.
Any interest earnings generated from any monetary accounts or
investment instruments of the farming business;
b.
Any gain on the sale of farm machinery;
c.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
d.
Any gain on the sale of other capital assets of the farm. (Def.
amended Dec. 9, 2002, P.L. 1364, No. 166)
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the municipality.
OCCUPATION
Any livelihood, job, trade, profession, business or enterprise
of any kind, including services, domestic or otherwise, for which
any Earned Income and/or Net Profits are charged and received from
sources within the municipality.
POLITICAL SUBDIVISION
Any county, city, borough, incorporated town, township, school
district, vocational school district and county institutional district.
TAX
The tax imposed by §
17-204 of this ordinance.
TAXPAYER
Any natural person liable for the tax levied by §
17-204 of this ordinance.
[Ord. 1883, 11/19/2007]
The municipality hereby levies and imposes on every individual
engaging in an occupation within the jurisdictional limits of the
municipality a tax in the amount of $52 per annum, beginning the first
day of January 2008 and continuing on a calendar basis annually thereafter,
until modified or repealed by a subsequent ordinance. This tax is
in addition to all other taxes of any kind or nature heretofore levied
by the municipality.
[Ord. 1883, 11/19/2007]
The tax levied by §
17-204 shall not be imposed upon the following persons:
a. Any person who 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 calendar
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 municipality is less than $12,000 for the calendar
year in which the Local Services Tax is levied.
[Ord. 1883, 11/19/2007]
Every Taxpayer who is self-employed and has not filed an exemption certification with the Collector, or whose Tax for any other reason is not collected under §
17-206 of this ordinance, shall file a return on a form prescribed by the Collector and shall pay a pro rata share of the Tax directly to the Collector within 30 days after the end of each calendar quarter. The pro rata share of the Tax assessed on a Taxpayer for a calendar quarter shall be determined by dividing the rate of the Tax levied ($52) for the calendar year by four.
[Ord. 1883, 11/19/2007]
Both resident and nonresident taxpayers shall, by virtue of
engaging in an occupation within the municipality, be subject to the
tax and the provisions of this ordinance.
[Ord. 1883, 11/19/2007]
The Collector, on behalf of the municipality, shall collect
and receive the Taxes, interest, fines and penalties imposed by this
Ordinance, and shall maintain records showing interest, fines and
penalties imposed by this Ordinance, and shall maintain records showing
the amounts received and the dates such amounts were received. The
Collector shall prescribe and issue all forms necessary for the administration
of the Tax and shall enforce regulations adopted by the governing
body relating to any matter pertaining to the administration of this
Ordinance, including, but not limited to, requirements for collection
through Employers, requirements for evidence and records, and provisions
for the examination and correction of returns. The Collector and any
designated agents may examine the records of any Employer or supposed
Employer or of any Taxpayer or supposed Taxpayer in order to ascertain
the Tax due or verify the accuracy of any return. Every Employer or
supposed Employer and every Taxpayer or supposed Taxpayer shall give
the Collector and any designated agent all means, facilities and opportunity
for the examinations hereby authorized. Any such examination shall
be conducted within this municipality or at the office where the tax
return is processed.
[Ord. 1883, 11/19/2007]
The municipality or its collector of the tax may collect unpaid
taxes from the taxpayer or employer owing such taxes by suit as provided
for by Act 511 of 1965, as amended, known as "The Local Enabling Tax
Act".
[Ord. 1883, 11/19/2007]
The tax levied pursuant to this Ordinance shall be due and payable
on the date on which the taxpayer is required to file a return, as
set forth hereinbefore, and, if the same is not paid on that date,
a penalty of 10% shall be added there, plus interest at the rate of
0.5% per month of the unpaid tax for each month or fraction thereof
during which the tax remains unpaid.
The failure of a taxpayer to receive a tax return does not relieve
their filing or payment responsibility.
The penalties imposed under this section shall be in addition
to any other penalty imposed by any other section in this Ordinance.
[Ord. 1883, 11/19/2007]
Any taxpayer or employer who fails, neglects, or refuses to
make a return required, any employer who fails, neglects or refuses
to register or to pay the tax deducted from employees, or fails, neglects,
or refuses to deduct or withhold the tax from employees, taxpayer
or employer who refuses to permit the collector to examine the books,
records, and papers, and taxpayer or employer who knowingly makes
any incomplete, false or fraudulent return or attempts to do anything
whatsoever to avoid the full disclosure of the amount of tax due in
order to avoid the payment of the whole or any part of the tax imposed
shall, upon conviction thereof before the district magistrate be sentenced
to pay a fine of not more than $500 for each offense, and costs, and,
in default of said fines and costs be imprisoned for a period not
exceeding 30 days.
The failure of taxpayer or employer to receive or procure forms
required for filing the required return does not excuse the taxpayer
or employer from the filing requirement.
[Ord. 1883, 11/19/2007]
Any person who has overpaid the Tax may obtain a refund by making
a written application for a refund to the Collector no later than
one calendar year after payment of the Tax or three years after the
due date for payment of the Tax, whichever is later, and satisfactorily
proves to the Collector that the taxpayer is entitled to the refund.
Refunds made within 75 days of a refund request or 75 days after the
last day the Employer is required to remit the Tax to the Collector
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.
A refund shall be provided only for an amount overpaid in a calendar
year that exceeds $1.
Refund requests must be submitted on the form approved by the
Collector. It should be noted that incomplete refund requests will
be deferred until the missing or incomplete information is provided.
Refunds in the deferred status are not subject to the payment of interest
requirement.
[Ord. 1883, 11/19/2007]
The Collector shall provide a Taxpayer a receipt of payment
of the Tax upon request by the Taxpayer. A stamped self-addressed
envelope shall be furnished by the taxpayer if a receipt via return
mail is desired.
[Ord. 1883, 11/19/2007]
The Tax shall not apply to any subject of Tax or person not
within the taxing power of the municipality under the Constitution
of the United States and the laws of the Commonwealth of Pennsylvania.
[Ord. 1883, 11/19/2007]
This ordinance shall continue in force from one calendar year
to another without annual reenactment.