[Ord. 1-1999, 6/14/1999, Art. I]
1.
This Part 7 shall apply to all Borough of Hughesville taxes except
real property taxes and 1% earned income and net profit taxes.
2.
The rules and regulations attached hereto as Schedule 1 and incorporated
herein are hereby approved and adopted.[1]
[1]
Editor's Note: Schedule 1 is included at the end of this chapter.
3.
The disclosure statement, substantially in the form set forth in
Schedule 2, attached hereto and incorporated herein, is hereby approved
and adopted.[2]
[2]
Editor's Note: Schedule 2 is included at the end of this chapter.
4.
The form of petition for appeal and refund, substantially in the
form set forth in Schedule 1, Exhibit 2, attached hereto and incorporated
herein, is hereby approved and adopted.[3]
[3]
Editor's Note: Schedule 1 is included at the end of this chapter.
5.
The governing body hereby determines that administrative appeal procedures
relating to petitions for appeal and refund submitted by taxpayers
in connection with the assessment, determination or refund of an eligible
tax under the LTBR, as above stated, shall be undertaken as follows:
A.
Administrative review by Hughesville Borough tax administration (Hughesville
Borough Manager), telephone number (570) 584-2041.
B.
Appeals from the administrative review may be made to the Hughesville
Borough Council in executive session, 147 South Fifth Street, Hughesville,
PA 17737, telephone number (570) 584-2041.
6.
The administrative appeals procedures set forth in the rules and
regulations and substantially in the form set forth in Schedule 3,
attached hereto and incorporated herein, are hereby approved and adopted.[4]
[4]
Editor's Note: Schedule 3 is included at the end of this chapter.
[Ord. 1-1999, 6/14/1999, Art. II]
1.
With respect to the Borough of Hughesville 1% earned income tax and
net profits tax, the rules and regulations of the Municipal and School
Income Tax Office, 203 West Third Street, Williamsport, PA 17701,
as amended September 15, 1998, together with the Municipal and School
District Earned Income Taxpayers' Bill of Rights disclosure statement,
and related documents, including Taxpayers' Bill of Rights notice,
requests for extension of time to provide information and the administrative
appeal procedures applicable to petitions for appeal and refund, form
of petition for appeal and refund, incorporated herein, are hereby
approved and adopted.
2.
The governing body hereby determines that administrative appeal procedures
relating to petitions for appeal and refund submitted by taxpayers
in connection with the assessment determination or refund of the 1%
earned income tax and net profits tax shall be undertaken as follows:
A.
Administrative review by the Tax Officer, Earned Income Tax Office,
203 West Third Street, Williamsport, PA 17701, telephone number (570)
327-5500.
B.
Appeals from the administrative review may be made to the Municipal
and School Earned Income Tax Board of Appeals, 203 West Third Street,
Williamsport, PA 17701, telephone number (570) 327-5500.
[Ord. 1-1999, 6/14/1999]
The Local Taxpayers Bill of Rights, enacted as part of Act 50
of 1998 (hereinafter the "LTBR"), requires that every political subdivision
levying an eligible tax adopt regulation governing the administration
and collection of the tax and setting forth a process for handling
appeals from decisions on assessments and refunds. This document provides
the regulations required by the LTBR. The disclosure statement also
required by the LTBR is provided in a separate document, which is
available upon request of the Tax Administrator.
[Ord. 1-1999, 6/14/1999]
The determination by the Tax Administrator of the amount
of underpayment by a taxpayer.
Any of the following taxes specified within the term "eligible
tax" under the LTBR, including interest and penalties provided by
law, when levied by the governing body of the local government, but
specifically not including any real estate tax:
Any tax authorized or permitted under the Act of December 31,
1965 (P.L. 1257, No. 511), known as the "Local Tax Enabling Act" or
"Act 511."
Any per capita tax.
Any occupation, occupation assessment or occupation privilege
tax.
Any tax levied on income.
Any tax measured by gross receipts.
Any tax on a privilege.
Any tax on amusements or admissions.
Any tax on earned income and net profits.
The Hughesville Borough Council.
Hughesville Borough.
Subchapter C of Act 50 of 1998 of the Pennsylvania General
Assembly, 53 Pa.C.S.A. §§ 8421—8428.
Any payment of tax which is determined in the manner provided
by law not to be legally due.
The petition for appeal and refund described in § 115.
The employee, agent, appointed tax collector, elected tax
collector, tax collection agency or other person to whom the governing
body of the local government has assigned or delegated responsibility
for the audits, assessment, determination or administration of an
eligible tax. Under the LTBR, this Tax Administrator is also referred
to and defined as the local taxing authority. In the case of the local
government, the Tax Administrator is the Hughesville Borough Manager,
147 South Fifth Street, Hughesville, PA 17737.
An individual, partnership, association, corporation, limited
liability company, estate, trust, trustee, fiduciary or any other
entity subject to or claiming exemption from any eligible tax or under
a duty to perform an act for itself or for another under or pursuant
to the authority of an eligible tax levied by the local government.
The amount or portion of any eligible tax determined to be
legally due in the manner provided by law for which payment or remittance
has not been made.
A payment of an eligible tax made pursuant to the free will
of the taxpayer. The term does not include a payment made as a result
of distraint or levy or pursuant to a legal proceeding in which the
Tax Administrator is seeking to collect its delinquent eligible taxes
or file a claim therefor.
[Ord. 1-1999, 6/14/1999]
1.
Minimum time periods for taxpayer response.
A.
The taxpayer shall have at least 30 calendar days from the mailing
date to respond to requests for information by the Tax Administrator.
The Tax Administrator shall grant a reasonable extension upon written
application explaining the reason(s) necessitating the extension,
which must amount to good cause. If the Tax Administrator denies a
request for extension, the Tax Administrator must inform the taxpayer
in writing of the basis for the denial and that the taxpayer must
immediately provide the requested information. If the Tax Administrator
grants an extension request, he must notify the taxpayer in writing
of the amount of extension granted. Generally, an extension will not
exceed 30 calendar days in length, and may be less, depending on the
circumstances.
B.
The Tax Administrator shall notify the taxpayer of the procedures
to obtain an extension in its initial request for information. Please
refer to notice explaining the request for extension of time to provide
information attached as Exhibit 1 to these rules.[1]
[1]
Editor's Note: Schedule 1 is included at the end of this chapter.
C.
The Tax Administrator shall take no lawful action against a taxpayer
for the tax year in question until the expiration of the applicable
response period for submission of the information requested, including
extensions. For example, the Tax Administrator may not engage in any
collection efforts until the expiration of the response period. After
expiration of the response period, the Tax Administrator may engage
in collection efforts permitted by the LTBR and discussed in § 125
below.
2.
Request for prior year tax returns.
A.
Except as provided in Subsection 2B, an initial inquiry by the Tax Administrator regarding a taxpayer's compliance with any eligible tax may include taxes required to be paid or tax returns required to be filed no more than three years prior to the mailing date of the notice.
B.
The Tax Administrator may make an additional subsequent request for
a tax return or supporting information if, after the initial request,
the Tax Administrator determines that the taxpayer failed to file
a tax return, underreported income or failed to pay a tax for one
or more of the tax periods covered by the initial request. Generally,
however, the Tax Administrator should not make routine requests for
additional prior year returns.
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Notwithstanding the foregoing, the limitations in Subsection 2B above on subsequent request for prior year returns shall not apply if the Tax Administrator has sufficient information to indicate that the taxpayer failed to file a required return or to pay an eligible tax which was due more than three years prior to the date of the notice. Thus, in situation involving failure to file a required return or to pay a required eligible tax, the Tax Administrator shall, in his discretion, have the ability to request prior year returns due more than three years prior and supporting information.
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3.
Use of Federal or State Tax Information. The Tax Administrator may
require a taxpayer to provide copies of the taxpayer's federal
individual income tax return if the Tax Administrator can demonstrate
that the federal tax information is reasonably necessary for the enforcement
or collection of tax and the information is not available from other
available sources or the Pennsylvania Department of Revenue. The Tax
Administrator may also require a taxpayer to provide copies of the
taxpayer's state individual income tax return.
[Ord. 1-1999, 6/14/1999]
The Tax Administrator must notify the taxpayer in writing of
the basis for any underpayment that the Tax Administrator has determined
to exist with respect to any eligible tax. The purpose of this notification
is for the taxpayer to understand the exact reason why the Tax Administrator
believes an underpayment exists. This notification from the Tax Administrator
shall be written in a manner calculated to be understood by an average
person. The notification must include:
A.
The tax period or periods (usually measured in calendar years) for
which the underpayment is asserted.
B.
The amount of the alleged underpayment of the eligible tax detailed
by tax period.
C.
The legal basis (including any statutory or case law citations) upon
which the Tax Administrator has relied to determine that an underpayment
of an eligible tax exists.
D.
An itemization of the changes made by the Tax Administrator to a
return or report filed by the taxpayer that results in the determination
that an underpayment exists. A copy of any revised return or report
in the Tax Administrator's file must be provided to the taxpayer.
[Ord. 1-1999, 6/14/1999]
1.
Filing of Petitions. A taxpayer has the legal right to challenge
an assessment or denial of a refund claim under the LTBR. However,
a taxpayer has a right to one appeal only. If a taxpayer loses an
assessment appeal, the taxpayer is not entitled to a second refund
appeal after paying the tax. In addition, no administrative appeals
are provided for other decisions, including but not limited to the
denial of an extension of time to provide information or the modification
or termination of an installment agreement. The LTBR requires political
subdivisions to establish appeals procedures. In order to begin the
appeals process, the taxpayer must file a complete and timely petition
(the "petition"). A petition is timely filed if the letter transmitting
the petition is postmarked by the United States Postal Service or
actually received on or before the final day on which the petition
is due. Receipts from carriers other than the United States Postal
Service are not accepted as proof of timely filing. Deadlines for
filing a petition are as follows:
A.
Petitions challenging the denial of a refund shall be filed within
three years after the due date for filing the report or return as
extended or one year after actual payment of the tax, whichever is
later. If no report or return is required, the petition shall be filed
within three years after the due date for payment of the eligible
tax or within one year after actual payment, whichever is later.
B.
Petitions for reassessment of tax shall be filed within 90 days of
the date of the assessment notice which has been sent to the taxpayer
by the Tax Administrator.
2.
The Tax Administrator shall make available a form of petition for
appeal and refund. The same is attached hereto as Exhibit 2.[1]
[1]
Editor's Note: Exhibit 2 is included at the end of this chapter.
3.
Contents.
A.
Any petition filed under § 115, Subsection 1A, shall:
(1)
State the legal basis for claiming the refund or disagreeing
with the Tax Administrator's assessment;
(2)
State the tax period or periods (i.e., years) to which it pertains;
(3)
State the amount of the claim and the types of eligible tax
detailed by tax period;
(4)
Include all supporting documentation and calculations;
(5)
Provide the name, address and telephone number of the taxpayer's
representative, if any;
(6)
Include a statement certifying that the facts in the petition
are true and correct, under penalty or perjury, and that the petition
is not filed for purposes of delay; and
(7)
Include such other information (essentially identification)
as is reasonably requested by the Tax Administrator on the petition
for appeal and refund provided to taxpayer.
B.
The taxpayer shall have his or her petition decided by the governing
body acting in executive session based solely on the petition and
record (including information on file and information submitted by
the taxpayer). No hearing, oral testimony or oral argument is required,
but can be requested by the taxpayer. The governing body may choose
to grant a hearing in its sole discretion.
[Ord. 1-1999, 6/14/1999]
1.
The decision by the governing body acting in executive session shall
be based solely on the petition and record. Decisions on petitions
shall be issued within 60 days of the date a complete and accurate
petition is received. (Failure to act within 60 days shall result
in the petition being deemed approved.)
2.
Any person aggrieved by a decision under this § 116 who
has a direct interest in the decision shall have the right to appeal
to the Court of Common Pleas of the County of Lycoming vested with
the jurisdiction of local tax appeals by or pursuant to 42 Pa.C.S.A.
§ 5571(b).
3.
Decisions by the governing body shall be made according to principals
of law and equity.
[Ord. 1-1999, 6/14/1999]
1.
A taxpayer may or may not choose to be represented by a taxpayer
representative. The taxpayer representative may be a lawyer, certified
public accountant, accountant or other tax advisor possessing appropriate
tax training to represent taxpayers in tax appeals. The taxpayer must
submit a written authorization to use a taxpayer representative. However,
a simple letter signed by a taxpayer-authorized representative will
be accepted as authorization. Such authorization shall include the
representative's name, address and telephone number.
2.
Copies of notices or communications may be sent by the Tax Administrator
or other representative of the political subdivision to the taxpayer's
representative. However, the original notice or communications will
always be sent directly to the taxpayer. Action taken by the taxpayer's
authorized representative (for example, requesting an extension of
time or submitting factual information) shall have the same force
or effect as if taken directly by the taxpayer.
3.
The Appeals Board final decision shall be in writing and signed by
the President or Vice President of the Borough Council.
[Ord. 1-1999, 6/14/1999]
1.
A taxpayer who has paid an eligible tax may file a written request
for refund or credit. A request for refund shall be made within three
years of the due date, as extended for filing the report or tax return,
or one year after actual payment of the tax, whichever is later. If
no report is required, the request shall be made within three years
after the due date for payment of the tax or within one year after
actual payment of the tax, whichever is later.
2.
A tax return filed by the taxpayer showing an overpayment shall be
deemed to be a written request for a cash refund unless otherwise
indicated on the tax return.
3.
A request for refund under this § 118 shall not be considered
a petition under § 115 and shall not preclude a taxpayer
from submitting a petition under § 115.
4.
For amounts paid as a result of a notice asserting or informing a
taxpayer of an underpayment, a written request for refund shall be
filed within one year of the date of payment.
[Ord. 1-1999, 6/14/1999]
Any taxpayer contacted by the Tax Administrator regarding the
assessment, audit, determination, review or collection of an eligible
tax will receive a taxpayer notice. The notice shall be incorporated
into any other correspondence sent to a taxpayer by the Tax Administrator
regarding the assessment, audit, determination, review or collection
of tax. The notice shall be substantially in the following form:
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You are entitled to receive a disclosure statement that sets
forth a written explanation of your rights with regard to the assessment,
audit, determination, review, appeal, enforcement, refund and collection
of local taxes by calling Hughesville Borough at (570) 584-2041 during
the hours of 8:00 a.m. to 4:00 p.m. on any weekday other than a holiday.
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You may request a copy in person, by telephone or by mailing
a request to the following address: 147 South Fifth Street, Hughesville,
PA 17737.
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The disclosure statement will be made available to taxpayers
upon request at no charge to the taxpayer, including mailing costs.
In general, the Tax Administrator will make reasonable efforts to
supply all taxpayers with a copy of the disclosure statement interest
on overpayment.
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A copy of the taxpayer notice is attached hereto as Exhibit
3.[1]
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[1]
Editor's Note: Exhibit 3 is included at the end of this chapter.
[Ord. 1-1999, 6/14/1999]
1.
General Rule. All overpayments of an eligible tax made to the local
government shall bear simple interest from the date of overpayment
of such eligible tax until the date of resolution.
2.
Interest Rate. Interest on overpayments shall be paid at the same
rate as the Commonwealth of Pennsylvania is required to pay pursuant
to § 806.1 of the Act of April 9, 1929 (P.L. 343, No. 176),
known as the "Fiscal Code" (72 P.S. § 1 et seq.). As of
December 1998, this interest rate is currently 9% annually (0.00247%
daily).
A.
The date of the Tax Administrator's notice to the taxpayer of
the determination of the credit.
B.
The due date for payment of the eligible tax against which the credit
is applied, whichever first occurs. For a cash refund of a previously
determined credit, interest shall be paid on the amount of the credit
from a date 90 days after the filing of a request to convert the credit
to a cash refund to a date preceding the date of the refund check
by not more than 30 days, whether or not the refund check is accepted
by the taxpayer after tender.
[Ord. 1-1999, 6/14/1999]
1.
Errors and delays. The purpose of this provision is to provide, in
the discretion of the Tax Administrator, a mechanism to abate (i.e.,
reduce) interest and/or penalties where an underpayment is the result
of an error or delay in performance by a representative of the Tax
Administrator. Accordingly, in the case of any underpayment, the Tax
Administrator, in its discretion, may offer to abate all or any part
of the interest relating to an eligible tax for any period for any
one or all of the following reasons:
A.
Any underpayment of an eligible tax finally determined to be due,
which is attributable in whole or in part to any error or delay by
the Tax Administrator in the performance of a ministerial act. For
purposes of this paragraph, an error or delay shall be taken into
account only if no significant aspect of the error or delay can be
attributed to the taxpayer and after the Tax Administrator has contacted
the taxpayer in writing with respect to the underpayment of tax finally
determined to be due or payable.
B.
Any payment of an eligible tax to the extent that any error delay in the payment is attributable to an officer, employee or agent of the Tax Administrator being erroneous or dilatory in performance of a ministerial act. The Tax Administrator shall determine what constitutes timely performance of ministerial acts performed under this Subsection 1.
2.
Abatement of any penalty or excess interest due to erroneous written
advice by the Tax Administrator. The Tax Administrator shall abate
any portion of any penalty or excess interest attributable to erroneous
advice furnished to the taxpayer in writing by an officer, employee
or agent of the Tax Administrator acting in the officer's, employee's
or agent's official capacity if:
A.
The written advice was reasonably relied upon by the taxpayer and
was in response to a specific written request of the taxpayer.
B.
The portion of the penalty or addition to tax or excess interest
did not result from a failure by the taxpayer to provide adequate
or accurate information to the Tax Administrator. Notwithstanding
the foregoing, it shall be in the sole discretion of the Tax Administrator
whether or not to provide written tax advice to the taxpayer. Taxpayers
shall not have any right to compel the Tax Administrator to provide
written tax advice.
[Ord. 1-1999, 6/14/1999]
Unless otherwise specified by the taxpayer, all voluntary payments
of an eligible tax shall be prioritized by the Tax Administrator in
the following order:
[Ord. 1-1999, 6/14/1999]
The Tax Administrator has the discretion to enter into written
agreements with any taxpayer under which the taxpayer is allowed to
satisfy liability for tax installment payments if the Tax Administrator
determines that the installment agreement will facilitate collection.
A.
Extent to which installment agreements remain in effect.
(1)
Except as otherwise provided in this Subsection A, any installment
agreement entered into by the Tax Administrator under this section
shall remain in effect for the term of the agreement.
(2)
The Tax Administrator may terminate any prior installment agreement
entered into under this section if:
(a)
Information which the taxpayer provided to the Tax Administrator
prior to the date of the installment agreement was inaccurate, false,
erroneous or incomplete in any manner, determined in the reasonable
discretion of the Tax Administrator.
(b)
The Tax Administrator reasonably and has determined that collection
of the eligible tax under the installment agreement is in jeopardy.
(3)
If the Tax Administrator finds that the financial condition
of the taxpayer has significantly changed, the Tax Administrator may
unilaterally alter, modify or terminate the installment agreement,
but only if the following conditions are satisfied:
(a)
The Tax Administrator provides a notice of its findings to the
taxpayer no later than 30 days prior to the date of change of the
installment agreement.
(b)
The notice given by the Tax Administrator to the taxpayer provides
the reasons why the Tax Administrator believes that a significant
change, justifying a change to the installment agreement, has occurred.
(4)
The Tax Administrator may unilaterally and without notification
alter, modify or terminate an installment agreement entered into by
the Tax Administrator under this section if the taxpayer fails to
do any of the following:
(5)
Prepayment Permitted. Nothing in this section shall prevent
a taxpayer from prepaying in whole or in part any eligible tax under
any installment agreement with the Tax Administrator.
[Ord. 1-1999, 6/14/1999]
1.
Any information obtained by the Tax Administrator as a result of
any audit, assessment, return, report, investigation, hearing, appeal
or verification of a taxpayer shall be confidential tax information.
It shall be unlawful, except of official purposes or as provided by
law, for such persons to:
A.
Divulge or make known in any manner any confidential information
obtained through any audit, return, assessment, investigation, report,
appeal, hearing or verification of a taxpayer to any person other
than the taxpayer or the taxpayer's authorized representative.
B.
Permit confidential tax information or any book containing any abstract
or particulars thereof to be seen or examined by any person other
than the taxpayer or the taxpayer's authorized representative.
C.
Print, publish or make known in any manner any confidential tax information
of a taxpayer.
2.
An offense under this section is a misdemeanor of the third degree;
and, upon conviction thereof, a fine of not more than $2,500 and costs,
or a term of imprisonment for not more than one year, or both, may
be imposed on the offender. If the offender is an officer or employee
of the Tax Administrator, the office or employee shall be dismissed
from office or discharged from employment.
[Ord. 1-1999, 6/14/1999]
After the decision of an appeal, or if no appeal is requested
by a taxpayer, the Tax Administrator may engage in efforts to collect
any eligible tax determined to be legally due. Such efforts may include
but shall not be limited to obtaining additional information, auditing
taxpayer records, compromising the amount of tax, interest or penalty
owed, obtaining liens on the taxpayer's property or obtaining
wage attachments, levies and seizures of the taxpayer's property.
As provided in § 125 of these regulations, the Tax Administrator
may enter into a written installment agreement with the taxpayer if
the Tax Administrator determines that an installment agreement will
facilitate collection. The Tax Administrator also reserves the right
to see criminal prosecution of a tax-payer in appropriate circumstances.
