[Ord. No. 11/9/2006; as amended 12/13/2007]
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:
The person, public employee or private agency designated
by the political subdivision to collect and administer the tax herein
imposed.
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
Compensation as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
Dec. 31, 1965, P.L. 1257, § 13, as amended, 53 P.S. § 6913.[1]
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.
Indicates the singular and plural number, as well as male,
female and neuter genders.
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the political subdivision.
The net income from the operation of a business, profession,
or other activity, as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
Dec. 31, 1965, P.L. 1251 § 13, as amended, 53 P.S. § 6913.[2]
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.
The area within the corporate limits of the Township of Montour.
The local services tax at the rate fixed in § 4-402
of this Part.
The period from January 1 until December 31 in any year;
a calendar year.
[1]
Editor's Note: Former 53 P.S. § 6913 was repealed by
Act 32 of 2008, effective 6-30-2012. See now 53 P.S. § 6924.101
et seq. The definition of "earned income" is now found in 53 P.S.
§ 6924.501.
[2]
Editor's Note: Former 53 P.S. § 6913 was repealed by
Act 32 of 2008, effective 6-30-2012. See now 53 P.S. § 6924.101
et seq. The definition of "net profits" is now found in 53 P.S. §
6924.501.
[Ord. No. 11/9/2006; as amended 12/13/2007]
For specific revenue purposes, an annual tax is hereby levied
and assessed, commencing January 1, 2008; upon the privilege of engaging
in an occupation with a primary place of employment within the political
subdivision 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 $47, assessed on a pro rata
basis, in accordance with the provisions of this Part. This tax may
be used solely for the following purposes as the same may be allocated
by the political subdivision 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.
Ch. 85, Subch. 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.
The tax shall be no more than $47 on each person for each calendar
year, irrespective of the number of political subdivisions within
which a person may be employed. The local service tax in the amount
as herein levied is due in its entirety to the political subdivision
and is not subject to sharing with the Bloomsburg Area School District.
[Ord. No. 11/9/2006; as amended 12/13/2007]
1.
Exemption. Any person whose total earned income and net profits from
all sources within the political subdivision is less than $12,000
for any calendar year in which the tax is levied is exempt from the
payment of the tax for that calendar year. In addition, the following
persons are exempt from payment of the tax:
A.
Any person who has serviced 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% 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 taxable
year. For the purposes of this subparagraph, "reserve component of
the armed forces" shall mean the United State 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.
2.
Procedure to Claim Exemption.
A.
A person seeking to claim an exemption from the local services tax
may annually file an exemption certificate with the political subdivision
and with the person's employer affirming that the person reasonably
expects to receive earned income and net profits from all sources
within the political subdivision of less than $12,000 in the calendar
year for which the exemption certificate is filed. In the event the
political subdivision utilizes a tax collection officer, it shall
provide a copy of the exemption certificate to that officer. The exemption
certificate shall have attached to it a copy of all the employee's
last pay stubs or W-2 forms from employment within the political subdivision
for the year prior to the fiscal year for which the employee is requesting
to be exempted from the tax. Upon receipt of the exemption certificate
and until otherwise instructed by the political subdivision or except
as required by Subsection (2)(B), the employer shall not withhold
the tax from the person during the calendar year or the remainder
of the calendar year for which the exemption certificate applies.
Employers shall ensure that the exemption certificate forms are readily
available to employees at all times and shall furnish each new employee
with a form at the time of hiring. The exemption certificate form
shall be the uniform form provided by the political subdivision.
B.
With respect to a person who claimed an exemption for a given calendar
year from the tax, upon notification to an employer by the person
or by the political subdivision that the person has received earned
income and net profits from all sources within the political subdivision
equal to or in excess of $12,000 in that calendar year or that the
person is otherwise ineligible for the tax exemption for that calendar
year, or upon an employer's payment to the person of earned income
within the municipality in an amount equal to or in excess of $12,000
in that calendar year, an employer shall withhold the local services
tax from the person under Subsection (2)(C).
C.
If a person who has claimed an exemption for a given calendar year
from the tax becomes subject to the tax for the calendar year under Subsection
(2)(B), the employer shall withhold the tax for the remainder of that
calendar year. The employer shall withhold from the person, for the
first payroll period after receipt of the notification under Subsection
(2)(B), a lump sum equal to the amount of tax that was not withheld
from the person due to the exemption claimed by the person under this
subsection, plus the per payroll amount due for that first payroll
period. The amount of tax withheld per payroll period for the remaining
payroll periods in that calendar year shall be the same amount withheld
for other employees. In the event the employment of a person subject
to withholding of the tax under this clause is subsequently severed
in that calendar year, the person shall be liable for any outstanding
balance of tax due, and the political subdivision may pursue collection
under this Part.
D.
Except as provided in Subsection (2)(B), it is the intent of this
subsection that employers shall not be responsible for investigating
exemption certificates, monitoring tax exemption eligibility or exempting
any employee from the local services tax.
3.
Refunds. The political subdivision in consultation with the Collector
and DCED, shall establish procedures for the processing of refund
claims for any tax paid by any person who is eligible for exemption,
which procedures shall be in accord with provisions of the general
municipal law relating to refunds of overpayments and interest on
overpayments. Refunds made within 75 days of a refund request or 75
days after the last day the employer is required to remit the tax
for the last quarter of the calendar year, whichever is later, shall
not be subject to interest. No refunds shall be made for amounts overpaid
in a calendar year that do not exceed $1. The political subdivision
or the Collector shall determine eligibility for exemption and provide
refunds to exempt persons.
[Ord. No. 11/9/2006; as amended 12/13/2007]
1.
Each employer within the political subdivision, as well as those
employers situated outside the political subdivision but who engage
in business within the political subdivision, is hereby charged with
the duty of collecting the tax from each of his employees engaged
by him or performing for him within the political subdivision and
making a return and payment thereof to the Collector. Further, each
employer is hereby authorized to deduct this tax for each employee
in his or her employ, whether said employee is paid by salary, wage
or commission and whether or not all such services are performed within
the political subdivision.
2.
A person subject to the tax shall be assessed by the employer a pro rata share of the tax for each payroll period in which the person is engaging in an occupation. The pro rata share of the tax assessed on the person for a payroll period shall be determined by dividing the rate of the tax levied for the calendar year by the number of payroll periods established by the employer for the calendar year. For purposes of determining the pro rata share, an employer shall round down the amount of the tax collected each payroll period to the nearest one-hundredths of a dollar. Collection of the tax shall be made on a payroll period basis for each payroll period in which the person is engaging in an occupation, except as provided in Subsection (4) of this section. For purposes of this subsection, combined rate shall mean the aggregate annual rate of the tax levied by the Bloomsburg Area School District and the political subdivision.
3.
No person shall be subject to the payment of the local services tax
by more than one political subdivision during each payroll period.
4.
In the case of concurrent employment, an employer shall refrain from
withholding the tax if the employee provides a recent pay statement
from a principal employer that includes the name of the employer,
the length of the payroll period and the amount of the tax withheld
and a statement from the employee that the pay statement is from the
employee's principal employer and the employee will notify other
employers of a change in principal place of employment within two
weeks of its occurrence. The employee's statement shall be provided
on the form approved by DCED.
5.
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. The political subdivision shall provide
a taxpayer a receipt of payment upon request by the taxpayer.
6.
No employer shall be held liable for failure to withhold the tax
or for the payment of the withheld tax money to the political subdivision
if the failure to withhold taxes arises from incorrect information
submitted by the employee as to the employee's place of places
of employment, the employee's principal office or where the employee
is principally employed. Further, an employer shall not be liable
for payment of the local services tax in an amount exceeding the amount
withheld by the employer if the employer complies with the provisions
of § 24-403(B) of this Part and this section and remits
the amount so withheld in accordance with this Part.
7.
Employers shall be required to remit the local services taxes 30
days after the end of each quarter of a calendar year.
[Ord. No. 11/9/2006; as amended 12/13/2007]
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 Part, the employer shall be responsible for the
payment of the tax in full as though the tax had been originally levied
against the employer.
[Ord. No. 11/9/2006; as amended 12/13/2007]
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 thirtieth
day following the end of each calendar quarter of each such tax year.
[Ord. No. 11/9/2006; as amended 12/13/2007]
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 Part and pay the pro rata portion of the tax due
to the Collector on or before the thirtieth day following the end
of each quarter.
[Ord. No. 11/9/2006; as amended 12/13/2007]
1.
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
to work 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.
2.
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.
[Ord. No. 11/9/2006; as amended 12/13/2007]
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 Part 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 Part, 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 the tax as hereinafter provided.
[Ord. No. 11/9/2006; as amended 12/13/2007]
1.
The Collector shall be appointed by resolution of the political subdivision.
It shall be the duty of the Collector to accept and receive payments
of this tax and to keep a record thereof showing the amount received
by him from each employer of self-employed person, together with the
date the tax was received.
2.
The Collector is hereby charged with the administration and enforcement
of this Part and is hereby charged and empowered, subject to municipal
approval, to proscribe, adopt and promulgate rules and regulations
relating to any matter pertaining to the administration and enforcement
of this Part, including provisions for the examination of 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. Any person aggrieved by any
decision of the Collector shall have the right to appeal consistent
with the Local Taxpayers Bill of Rights under Act 50 of 1998, 53 Pa.C.S.A.
§ 8421 et seq.
3.
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.
[Ord. No. 11/9/2006; as amended 12/13/2007]
1.
In the event that any tax under this Part remains due or unpaid 30
days after the due dates above set forth, the 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 such tax shall be calculated beginning with
the due date of the tax and a penalty of 5% shall be added to the
flat rate of such tax for nonpayment thereof. Where suit is brought
for the recovery of this tax or other appropriate remedy undertaken,
the individual liable therefor shall, in addition, be responsible
and liable for the costs of collection.
[Ord. No. 11/9/2006; as amended 12/13/2007]
Whoever makes any false or untrue statement on any return required
by this Part, 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 Part
shall be guilty of a violation and, upon conviction thereof, shall
be sentenced to pay a fine of not more than $600 and costs of prosecution,
and, in default of payment of such fine and costs, to imprisonment
for not more than 30 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 Part.
[Ord. No. 11/9/2006; as amended 12/13/2007]
1.
Nothing contained in this Part shall be construed to empower the
political subdivision to levy and collect the tax hereby imposed on
any occupation not within the taxing power of the political subdivision
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 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 said tax or the
validity of the tax so imposed on other persons or individuals as
herein provided.
