[Adopted 12-4-2007 by Ord. No. 07-17]
This article is enacted under the authority of the Local Tax
Enabling Act, Act No. 511 of December 31, 1965 (P.L. 1257), as amended
(53 P.S. § 6901 et seq.).
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.
The Local Tax Enabling Act, Act No. 511 of December 31, 1965
(P.L. 1257), as amended (53 P.S. § 6901 et seq.).
The entity under whose direction the tax shall be collected,
administered and enforced.
Shall have the same meaning as earned income under Section
13, Division I, of the Act. (53 P.S. § 6913(I)).
An individual, partnership, association, corporation, governmental
body, agency or other entity employing one or more persons on salary,
wage, commission or other compensation basis, including a self-employed
person.
The twelve-month period beginning January 1, and ending December
31.
Indicates the singular and plural number as well as male,
female and neuter gender.
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Township.
Shall have the same meaning as net profits under Section
13, Division I, of the Act. (53 P.S. § 6913(I)).
An employer in a concurrent employment situation who does
not pay the largest amount of salary, wage, commission or other compensation
to an employee.
The occupation of a self-employed person in a concurrent
occupation situation from which he does not derives the largest net
profit.
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 Township for which
compensation is charged or received whether by means of salary, wages,
commissions or fees for services rendered.
An employer in a concurrent employment situation who pays
the largest amount of salary, wage, commission or other compensation
to an employee.
The occupation of a self-employed person in a concurrent
occupation situation from which he derives the largest net profit.
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.
The local service tax in the amount of $52 levied by this
article pursuant to the Act.
The Township of Lower Paxton and the area within the corporate
limits of the Township of Lower Paxton.
The Treasurer of the Township.
The Township hereby levies and imposes on each occupation engaged
in by individuals within the Township during the fiscal year of 2008
and each fiscal year thereafter a local service tax. This tax is in
addition to all other taxes of any kind or nature heretofore levied
by the Township. Such a tax shall continue in force on a fiscal year
basis without annual reenactment unless the rate of the tax is subsequently
changed.
A.
Each occupation as hereinbefore defined, engaged in within the Township,
shall be subject to a tax in the amount of $52 per annum, such tax
to be paid by the individual so engaged.
B.
An employee shall pay a pro-rata share of the tax for each payroll period in which the person is engaging in his occupation. The pro-rata share shall be determined by dividing the tax levied pursuant to Subsection A of this section by the number of payroll periods established by his employer for the fiscal year as provided in § 185-37.
A.
Each employer within the Township as well as those employers situated outside the Township, but who engage in business within the Township, is hereby charged with the duty of withholding from each of his employees engaged by him and performing for him within the Township the pro-rata share of the tax, described in Subsection B of § 185-36, and making a return and payment of the withheld tax to the collector within 30 days of the end of each quarter of a fiscal year as described in § 185-38. Further, each employer is hereby authorized to withhold the pro-rata share of the tax from each employee in his employ, whether such employee is paid by salary, wages or commission and whether or not part or all such services are performed within the Township unless the employee is engaging in concurrent employment with a principal employer or other nonprincipal employers located in higher priority political subdivisions as described in Subsection E of this section or has an exemption certificate on file with the employer and the collector as describe in Subsections B or C of § 185-42.
B.
Withholding of the tax shall be made on a payroll period basis for
each payroll period during the fiscal year in which an employee is
engaging in an occupation unless the employee is engaging in concurrent
employment. For purposes of determining the pro-rata share, the employer
shall round down the amount of the tax collected each payroll period
to the nearest one-hundredth of a dollar. If employment of an employee
subject to withholding is subsequently terminated, the terminated
employee shall be liable for the outstanding balance of the tax due.
C.
If a person who claimed an exemption for a fiscal year and filed an exemption certificate pursuant to Subsection B of § 185-42 becomes subject to the tax for that year, the employer shall withhold the tax for the first payroll period after receipt of notification that the employee is subject to the tax in a lump sum equal to the amount of the tax which was not withheld due to the exemption plus the per payroll amount due for that first period. The amount of the tax withheld for the remaining payroll periods in the fiscal year shall be as calculated in accordance with Subsection B of this section.
E.
If a principal or other nonprincipal employer is a higher priority employer because it is located in higher priority political subdivisions, as described in § 185-39, withholds the tax for the fiscal year in any amount and if the employee provides a recent pay statement from the withholding higher priority employer that includes the name of the employer, the length of the payroll period and the amount of the tax collected, an employer shall refrain from withholding the tax if the employee provides a pay statement. If the employee is also self employed and engaging in a concurrent principal occupation or nonprincipal occupation which is a higher priority occupation because it is located in a higher priority political subdivisions, as described in § 185-39, and pays the tax for the fiscal year in any amount, an employer shall refrain from withholding the tax if the employee provides proof of payment of the tax to the political subdivision where the employee's higher priority occupation is taxed. In order for the employer to refrain from withholding, it shall also be necessary for the employee to affirm in writing to the employer that the pay statement provided is from the higher priority employer or that the proof of payment of the tax was on account of a higher priority occupation, and that the employee will notify other employers of a change in higher priority employer or occupation within two weeks of the occurrence.
F.
No employer shall be held liable for failure to withhold the tax or for payment of the withheld tax money to the collector if the failure to withhold the tax arises from incorrect information submitted by the employee as to the employee's place or places of employment, the employee's principal office or where the employee is principally employed. No employer shall be responsible for investigating exemption certificates or monitoring eligibility or exempting an employee from withholding except where a person with an exemption certificate issued under Subsection B of § 185-42 becomes subject to the tax as described in Subsection C of this section.
A.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to him by the collector. It is
further provided that if the employer fails to file such return and
pay the tax within the time required, whether or not he makes collection
thereof from the salary, wages or commissions paid by him to such
employee, the employer shall be responsible for the payment of the
tax in full as though the tax had originally been levied against him.
B.
Each employer shall use his employment records from January 1 to
March 31 for determining the number of employees from whom the tax
shall be deducted and paid over to the Treasurer on or before April
30. Supplemental reports shall be made by each employer on July 30,
October 30 and January 30 of new employees and additional tax withholdings
and any new exemptions on continued employees as reflected on his
employment records from April 1 to June 30, July 1 to September 30,
and October 1 to December 31. Payments on these supplemental reports
shall be made on July 30, October 30 and January 30, respectively.
C.
If an employer has employees for whom he is not withholding the tax pursuant to Subsection A of § 185-37, the employer shall include such employee on his return by setting forth his name, address, social security number, and the name and account number of the employer(s) who withheld the tax(es) and/or the name of the taxing jurisdiction(s) to whom an employee paid a tax on a self-employed occupation.
A.
Each individual who shall have more than one occupation within the Township shall be subject to the payment of the tax on his principal occupation by the individual if he is self-employed or to withholding of the tax by his principal employer if he is employed. If one of his occupations is a self-employed one, he shall pay the tax in its entirety to the collector and receive a receipt of payment as described in Subsection E of § 185-40. When the receipt of payment is presented to an employer that employer will not withhold the tax or part of the tax by authority of Subsections A and E of § 185-37. If an individual is employed in all of his occupations within the Township, his principal employer shall withhold the tax and deliver to him evidence of withholding on a form meeting the requirements of Subsection E of § 185-37 to be furnished to the employer by the collector, which form shall be evidence of withholding having been made. When the completed form is presented to a nonprincipal employer, that employer will not withhold the tax or part of the tax by authority of Subsections A and E of § 185-37.
B.
In the event a person is engaged in occupations which require his
working in more than one political subdivision, the first priority
political subdivision to collect the tax shall be the political subdivision
in which his principal employer is located or, if self-employed, the
political subdivision in which his principal occupation is located.
If the political subdivision where the principal employer or principal
occupation is located does not collect the tax, the second priority
political subdivision to collect the tax shall be the political subdivision
in which the person resides and works to the extent a tax is not levied
by the first priority political subdivision. The third priority political
subdivision to collect the tax shall be the political subdivision
in which a person is working and which imposes the tax nearest in
miles to the person's home to the extent a tax is not levied
by the first and second priority political subdivisions. The place
where a person works and the priority of collection shall be determined
as of the day the taxpayer first becomes subject to the tax during
the fiscal year.
C.
It is the intent of this provision that no person shall pay more
than $52 in any fiscal year as a tax, irrespective of the number of
political subdivisions within which such person may be employed within
any given fiscal year. In case of dispute, the sum of tax receipts
which are not duplications from taxing jurisdictions, any other appropriate
evidence of payment, and/or the most recent pay statements from an
employer indicating accumulated and prospective withholding of tax
actually due to higher priority taxing political subdivisions for
that fiscal year, equaling at least $52 shall constitute prima-facie
certification of payment to all other political subdivisions. Any
tax paid, withheld, or prospectively to be withheld, that is not to
a higher priority taxing jurisdiction should not be included in determining
this $52 amount. An employee should apply for refund for such amounts
paid to taxing jurisdictions of lesser priority.
A.
All self-employed individuals, who perform services of any type or
kind, engaged in any occupation or profession within the Township
shall be required to comply with this article and pay the tax to the
collector on April 30, or as soon thereafter as he engages in an occupation.
The Collector, as the agent of Township, shall provide a taxpayer
a receipt of payment upon request by the taxpayer.
B.
In the event a self-employed person is engaged in more than one occupation within or without the Township or an occupation which requires his 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 Subsection B of § 185-39.
A.
All employers and self-employed individuals residing or having their
place of business outside of the Township, but who perform services
of any type or kind, or engage in any occupation or profession within
the Township, 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 Township.
B.
Any individual engaged in an occupation within the Township and an
employee of a nonresident employer may, for the purpose of this article
be considered a self-employed person, and in the event the tax is
not paid, the Township shall have the option of proceeding against
either the employer or employee for the collection of the tax as hereinafter
provided.
A.
Whenever it occurs that an individual is engaged in a business or occupation or businesses or occupations within the corporate limits of the Township from which he derives in the aggregate less than $12,000 per year earned income and net profits from all sources within the corporate limits of the Township and a tax was withheld, such individual may file a "claim for refund," as described in Subsection D of § 185-43.
B.
Whenever it occurs that an individual is engaged in a business or
occupation or businesses or occupations within the corporate limits
of the Township from which he reasonably expects to derive in the
aggregate less than $12,000 per fiscal year earned income and net
profits from all sources within the corporate limits of the Township,
such individual may file a certificate with the collector, as the
agent of the Township and his employer in the Township, directing
that employer not to withhold the tax. The certificate shall be in
a form approved by the collector and have attached to it a copy of
all the individual's last pay stubs or W-2 forms from employment
and any net profits from businesses within the Township for the fiscal
year prior to the fiscal year for which the individual is requesting
an exemption.
C.
Whenever it occurs that an individual 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 triple amputee or has a service-connected disability declared by the United States Veterans' Administration or its successor to be a total 100% permanent disability, such individual may, on proof of such disability filed with the collector, file an exemption certificate with the collector, as the agent of the Township and his employer in the Township directing that employer not to withhold the tax or file a "claim for refund," as described in Subsection D of § 185-43.
A.
It shall be the duty of the collector to accept and receive payment
of this tax, penalties, interest thereon and costs of collection 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, penalties,
interest thereon and costs of collection were received.
B.
The Collector is hereby charged with the administration and enforcement
of this article and is hereby, as the agent of the Township, charged
and empowered to, prescribe, adopt and promulgate rules and regulations
relating to any matter pertaining to the administration and enforcement
of this article; examine and correct any return made in compliance
with this article 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 engaged in a business or occupation
or businesses or occupations within the corporate limits of the Township.
Any person aggrieved by any decision of the collector shall have the
right to appeal to the Court of Common Pleas of Dauphin County as
in other cases provided.
C.
The 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 collector
the means, facilities and opportunity for such examination.
D.
The Collector, as the agent of the Township, is hereby authorized to make refunds for overpayments of the tax or payments or withholding of the tax from exempt persons within three years of the due date for filing a return as extended or one-year after payment of the tax, whichever is later, consistent with 53 Pa.C.S.A. §§ 8425 and 8426. Refunds made within 75 days of a refund request or 75 days after the last day an employer is required to remit the tax for the last quarter of the fiscal year pursuant to § 185-39 shall not be subject to interest imposed under 53 Pa.C.S.A. § 8426. The collector shall only provide refunds for amounts overpaid in a fiscal year that exceed $1.
A.
In the event that the tax imposed under this article remains due
or unpaid 30 days after the due dates above set forth, the collector
may sue for the recovery of the tax due or unpaid under this article
together with interest and penalty.
B.
If for any reason the tax is not paid when due, interest at the rate
of 6% on the amount of such tax shall be calculated beginning with
the due date of the tax and a penalty of 6% shall be added to the
flat rate of the tax for nonpayment thereof.
C.
The collector may impose on and collect from delinquent taxpayers
and retain all reasonable costs of collection incurred by the collector
in its enforcement and collection of delinquent tax payments provided
such collection and enforcement action occurs within five years after
the last day of the year in which the tax was first due and provided
Collector reports the total of such cost collections to the Township
at least annually.
E.
Any individual or employer who or which shall fail, neglect or refuse
to pay the tax after it becomes due and payable, or otherwise violates
any part of this article shall face conviction before any Magisterial
District Judge and be subject to a fine or not more than $600 for
each offense and costs of court proceedings.
Funds derived from the tax may only be used for the following
purposes: Not less than 25% of the funds derived from the tax shall
be used for emergency services, which shall include emergency medical
services, police services and/or fire 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.A. Ch. 85, Subch. F.
The provisions of this article are severable and if any of its
provisions shall be held invalid or unconstitutional, the decision
of the court shall not affect or invalidate any of the remaining provisions.
It is hereby declared to be the legislative intent that this article
would have been adopted if such illegal, invalid or unconstitutional
provision had not been included herein.
A.
Nothing contained in this article shall be construed to empower the
Township to levy and collect the tax hereby imposed on any occupation
not within the taxing power of the Township under the Constitution
of the United States and the laws of the Commonwealth of Pennsylvania.
B.
If the tax hereby imposed under the provisions of this article 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 such tax, or the
validity of the tax so imposed on other persons or individuals as
herein provided.
Any ordinances or parts of ordinances inconsistent herewith
are hereby repealed.
This article shall become effective January 1, 2008.
