[Ord. No. 324, 10/8/2007]
This Part shall be known and may be cited as the "Local Services
Tax Ordinance."
[Ord. No. 324, 10/8/2007]
This Part is enacted under the authority of the Local Tax Enabling
Act, (P.L. 1257, No. 511), as amended.
[Ord. No. 324, 10/8/2007]
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:
An individual, partnership, association, corporation, institution,
governmental body or unit or agency or any other entity employing
one or more persons on a salary, wage, commission or other compensation
basis, including a self-employed person.
Any person, male or female, engaged in any occupation, trade
or profession within the Borough.
Any trade, profession, business or undertaking of any type,
kind or character, including services, domestic or other, carried
on or performed within the Borough for which compensation is charge
or received, whether by means of salary, wages, commissions or fees,
for services rendered.
The Local Services Tax levied by this Part.
The person, public employee, or firm designated from time
to time by the Borough Council of the Borough of Elizabethville to
collect and administer the tax imposed by this Part.
[Ord. No. 324, 10/8/2007]
The Borough of Elizabethville hereby levies and imposes a tax
in the amount of $52 for the calendar year of 2008 and each year thereafter
for the privilege of engaging in an occupation within the limits of
the Borough of Elizabethville. This tax is in addition to all other
taxes of any kind or nature heretofore levied by the Borough of Elizabethville
and shall continue in force on a calendar-year basis, without annual
reenactment unless the rate is subsequently changed.
[Ord. No. 324, 10/8/2007]
1.
The following individuals shall be exempt from payment of the Local
Services Tax, as set forth herein:
A.
Individuals earning less than $12,000 in earned income and net profits
from sources within the Borough. Individuals who believe they will
qualify for such an exemption may be excluded from having such tax
withheld during the year by completing a form, which shall be available
from the employer, and by providing such supporting documentation
as required by the Local Tax Enabling Act. Any such individual who
has been exempt from such tax withholding and who then receives in
excess of $12,000 for any calendar year shall pay the tax for that
year by (1) having an amount withheld from their next paycheck equal
to the pro rata payments not withheld up to that point in the calendar
year; and (2) by having the pro rata amount withheld from each payroll
period for the remainder of the calendar year.
B.
Any person who served in any war or armed conflict in which the United
States was engaged and who 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.
C.
Any person who serves as a member of a reserve component of the armed
forces and who is called to active duty at any time during the taxable
year. Such reserve components shall mean, for the purposes of this
subsection: 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
of the Pennsylvania Air National Guard.
[Ord. No. 324, 10/8/2007]
Each employer within the Borough, as well as each employer situated
outside the Borough who engages in business within the Borough is
hereby charged with the duty of collecting from each of their employees
within the Borough the tax of $52 per annum, a pro rata share of which
shall be withheld from each employee during each payroll period and
making a return and payment thereof to the Tax Collector. Further,
each employer is hereby authorized to deduct this tax from each employee
in their employ, whether the employee is paid by salary, wages or
commission and whether or not part of all of such services are performed
within the Borough.
[Ord. No. 324, 10/8/2007]
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied by the Tax Collector. Each employer,
in filing this return and making payment of the tax withheld from
their employees, shall be entitled to retain a commission to cover
the cost incurred from the extra bookkeeping necessary to record such
transaction, 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. If the employer fails
to file the return and pay the tax, whether or not the employer makes
a collection thereof from the salary, wages or commissions paid to
the 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 the employer. Each employer must
remit withheld taxes to the Tax Collector within 30 days after the
end of each calendar quarter.
[Ord. No. 324, 10/8/2007]
1.
Each individual who has more than one occupation within the Borough
shall be subject to the payment of this tax on their principal occupation.
The principal employer shall deduct this tax and deliver evidence
of deductions on a form to be furnished to the employer by the Tax
Collector. Such 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 their return by setting forth the
employee's name, address, and the name and account number of
the employer who deducted this tax.
2.
Priority of Claim.
A.
In the event that a person is engaged in more than one occupation
or an occupation which requires their working in more than one political
subdivision during the calendar year, the priority of claim to collect
such tax shall be in the following order:
(1)
The political subdivision in which a person maintains their
principal office or is principally employed.
(2)
The political subdivision in which the person resides and works,
if such a tax is levied by that political subdivision.
(3)
The political subdivision in which a person is employed, and
which imposes the tax, nearest in miles to the person's home.
B.
The place of employment shall be determined as of the day the taxpayer
first becomes subject to the tax during the calendar year. It is the
intent of this provision that no person shall pay more than $52 in
any calendar year as a Local Services Tax, irrespective of the number
of political subdivisions within which such person may be employed
within any given calendar year. In case of a dispute, a tax recipient
of the taxing authority for that calendar year, declaring that the
taxpayer has made prior payments, shall constitute prima facie certification
of payment to all other political subdivisions.
3.
Deduction or non-deduction and reporting by employers shall be in accordance with Subsection 1 hereof.
4.
In the event that the tax is levied by any local school district,
the tax revenue is to be collected and distributed in accordance with
the provisions of the Local Tax Enabling Act.
[Ord. No. 324, 10/8/2007]
1.
All self-employed individuals who perform services of any type or
kind engaged in any occupation or profession within the Borough shall
be required to comply with this Part and pay the tax to the Tax Collector,
a pro rata portion of the tax to be remitted quarterly, within one
month from the end of each calendar quarter.
2.
In the event that a self-employed person is engaged in more than one occupation within or without the Borough or an occupation that requires working in more than one political subdivision during the year, reporting priority of claims and prima facie certification of payment shall be in accordance with § 24-208.
[Ord. No. 324, 10/8/2007]
All employers and self-employed individuals residing or having
their place of business outside of the Borough but who perform services
of any type or kind or engage in any occupation or profession with
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 the same force and effect as though they were
residents of the Borough. Any individual engaged in an occupation
with 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 that 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. No. 324, 10/8/2007]
1.
The Tax Collector shall accept and receive payments of this tax and
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 Tax 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 the
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 or any payment made by a taxpayer who is exempt under
the provisions of this Part. Any person aggrieved by any decision
of the Tax Collector shall have the right to appeal to the Court of
Common Pleas of Dauphin County as in other cases provided.
3.
The Tax Collector 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 Tax
Collector the means, facilities and opportunity for such examination.
[Ord. No. 324, 10/8/2007]
1.
In the event that any tax under this Part remains due or unpaid 30
days after the due dates set forth above, the Tax Collector may sue
for the recovery 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% on the amount of the tax shall be calculated beginning with
the due date of the tax, and a penalty of 10% 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 therefore shall,
in addition, be responsible and liable for the costs of collection.
[Ord. No. 324, 10/8/2007]
1.
The Borough may use funds derived from the Tax only as indicated
herein. No less than 25% of funds received from this tax shall be
used to fund police, fire and/or emergency services; the remaining
funds may be used for the following purposes:
[Ord. No. 324, 10/8/2007]
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 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 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 the tax or the
validity of the tax so imposed on other persons or individuals as
herein provided.
[Ord. No. 324, 10/8/2007]
Whoever makes any false or untrue statement on any return required
by this Part or whoever 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 shall be fined, upon
conviction thereof, not more than $600 plus costs of prosecution for
each offense and, in default of payment of the fine and costs, shall
be imprisoned not more than 30 days for each offense. 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 refused to file a return required by this Part.
