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:
COLLECTOR
The person, public employee or private agency designated
by the political subdivision to collect and administer the tax herein
imposed. Berkheimer & Associates is hereby appointed Collector
for 2015 and years thereafter, unless changed by duly adopted resolution
or ordinance.
DCED
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
EARNED INCOME
Compensation as determined under 72 P.S. § 7303, Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," 72 P.S. § 7301 et seq., and regulations in 61 Pa. Code Part I, Subpart B, Article
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.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
EMPLOYER
An individual, partnership, association, limited liability
corporation, limited liability partnership, 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.
HE, HIS or HIM
Indicates the singular and plural number, as well as male,
female and neuter genders.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the political subdivision.
NET PROFITS
The net income from the operation of a business, profession, or other activity, except corporations, determined under 72 P.S. § 7303, Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," 72 P.S. § 7301 et seq., and regulations in 61 Pa. Code Part I, Subpart B, Article
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:
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
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.
OCCUPATION
Any trade, profession, business or undertaking of any type,
kind or character, including services, domestic or other, earned on
or performed within the corporate limits of the political subdivision
for which compensation is charged or received, whether by means of
salary, wages, commission or fees for services rendered.
TAX
The local services tax at the rate fixed in §
290-27 of this article.
TAX YEAR
The period from January 1 until December 31 in any year;
a calendar year.
For specific revenue purposes, an annual tax is hereby levied
and assessed, commencing January 1, 2015, upon the privilege of engaging
in an occupation with a primary place of employment within North East
Township during the tax year. Each natural person who exercises such
privilege for any length of time during any tax year shall pay the
tax for that year in the amount of $52, assessed on a pro rata basis,
in accordance with the provisions of this article. This tax may be
used solely for the following purposes, as the same may be allocated
by the Board of Supervisors from time to time: 1) emergency services,
which shall include emergency medical services, police services and/or
fire services; 2) road construction and/or maintenance; 3) reduction
of property taxes; or 4) property tax relief through implementation
of a homestead and farmstead exclusion in accordance with 53 Pa.C.S.A.
Chapter 85, Subchapter F (relating to homestead property exclusion).
The political subdivision shall use no less than 25% of the funds
derived from the tax for emergency services. This tax is in addition
to all other taxes of any kind or nature heretofore levied by the
political subdivision, excepting the occupational privilege tax. The
tax shall be no more than $52 on each person for each calendar year,
irrespective of the number of political subdivisions within which
a person may be employed.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to the employer by the Collector.
If an employer fails to file the return and pay the tax, whether or
not the employer makes collection thereof from the salary, wages or
commissions paid by him or her to an employee, except as provided
hereafter in this article, the employer shall be responsible for the
payment of the tax in full as though the tax had been originally levied
against the employer.
In each tax year, each employer shall use his or her employment
records to determine the number of employees from whom such tax shall
be deducted and paid over to the Collector on or before the 30th day
following the end of each calendar quarter of each such tax year.
Each self-employed individual who performs services of any type
or kind or engages in any occupation or profession within a primary
place of employment within the political subdivision shall be required
to comply with this article and pay the pro rata portion of the tax
due to the Collector on or before the 30th day following the end of
each quarter.
The situs of the tax shall be the place of employment on the
first day the person becomes subject to the tax during each payroll
period. In the event a person is engaged in more than one occupation,
that is, concurrent employment, or an occupation which requires the
person working in more than one political subdivision during a payroll
period, the priority of claim to collect the local services tax shall
be in the following order:
A. First, the political subdivision in which a person maintains his
or her principal office or is principally employed;
B. Second, the political subdivision in which the person resides and
works if the tax is levied by that political subdivision;
C. Third, the political subdivision in which a person is employed and
which imposes the tax nearest in miles to the person's home. In case
of dispute, a tax receipt of the taxing authority for that calendar
year declaring that the taxpayer has made prior payment constitutes
prima facie certification of payment to all other political subdivisions.
All employers and self-employed individuals residing or having
their places of business outside of the political subdivision but
who perform services of any type or kind or engage in any occupation
or profession within the political subdivision 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 political subdivision.
Further, any individual engaged in an occupation within the political
subdivision and an employee of a nonresidential employer may, for
the purpose of this article, be considered a self-employed person,
and, in the event his or her tax is not paid, the political subdivision
shall have the option of proceeding against either the employer or
employee for the collection of this tax as hereinafter provided.
[Amended at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
Whoever makes any false or untrue statement on any return required
by this article, or whoever refuses inspection of the books, records
or accounts in his or her custody and control setting forth the number
of employees subject to this tax who are in his or her employment,
or whoever fails or refuses to file any return required by this article
shall be guilty of a violation and, upon conviction thereof, shall
be sentenced to pay a fine of not more than $1,000 and costs of prosecution
and, in default of payment of such fine and costs, to imprisonment
for not more than 90 days. The action to enforce the penalty herein
prescribed may be instituted against any person in charge of the business
of any employer who shall have failed or who refuses to file a return
required by this article.
Except as set forth hereafter, all ordinances or parts of ordinances
inconsistent herewith are hereby repealed. Nothing herein shall be
construed to repeal the imposition and collection of an occupation
privilege tax, plus applicable penalties and interest, for calendar
year 2014 and all prior calendar years, as the same exist prior to
enactment of this article.
The tax imposed by this article shall be effective on January
1, 2015, and all calendar years thereafter unless repealed or modified.