[Ord. 7854, passed 12-20-2007]
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.
DCED
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
EARNED INCOME
Compensation as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
December 31, 1965, P.L. 1257, § 13, as amended, 53 P.S.
§ 6913, as amended.
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, as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
December 31, 1965, P.L. 1251, § 13, as amended, 53 P.S.
§ 6913, as amended.
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, commissions or fees for services rendered.
TAX
The Local Services Tax at the rate fixed in Section
345.02 of this article.
TAX YEAR
The period from January 1 until December 31 in any year;
a calendar year.
[Ord. 7854, passed 12-20-2007]
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 City
of New Castle, Pennsylvania, 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 City of New Castle from time to time:
(a) Emergency services, which shall include emergency medical services,
police services and/or fire services;
(b) Road construction and/or maintenance;
(c) Reduction of property taxes; or
(d) Property tax relief through implementation of a homestead and farmstead
exclusion in accordance with 53 Pa.C.S. 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 $52 on each person for each calendar year, irrespective
of the number of political subdivisions within which a person may
be employed.
[Ord. 7854, passed 12-20-2007]
(a) 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:
(1)
Any person who has 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
quadruple amputee or has a service-connected disability declared by
the United States Veterans' Administration or its successor to
be a total 100% disability.
(2)
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 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.
(b) Procedure to claim exemption.
(1)
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 Subparagraph
2, 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.
(2)
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
or 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 Subparagraph 3.
(3)
If a person who claimed an exemption for a given calendar year
from the tax becomes subject to the tax for the calendar year under
Subparagraph 2, 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
Subparagraph 2., 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 subsection 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 article.
(4)
Except as provided in Subparagraph 2, 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.
(c) Refunds. The individual, 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
calender 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 employer or the Collector shall determine eligibility
for exemption and provide refunds to exempt persons.
[Ord. 7854, passed 12-20-2007]
(a) 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.
(b) 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-hundredth 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 Paragraph
a of this section. For purposes of this paragraph, combined rate shall
mean the aggregate annual rate of the tax levied by the school district
and the municipality.
(c) No person shall be subject to the payment of the local services tax
by more than one political subdivision during each payroll period.
(d) 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.
(e) 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.
(f) 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 or 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 Subsection b of Section
931.03 of this article and this section and remits the amount so withheld in accordance with this article.
(g) Employers shall be required to remit the local services taxes 30
days after the end of each quarter of a calendar year.
[Ord. 7854, passed 12-20-2007]
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 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.
[Ord. 7854, passed 12-20-2007]
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 30th day
following the end of each calendar quarter of each such tax year.
[Ord. 7854, passed 12-20-2007]
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 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.
[Ord. 7854, passed 12-20-2007]
(a) 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:
(1)
First, the political subdivision in which a person maintains
his or her principal office or is principally employed;
(2)
Second, the political subdivision in which the person resides
and works if the tax is levied by that political subdivision;
(3)
Third, the political subdivision in which a person is employed
and which imposes the tax nearest in miles to the person's home.
(b) 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. 7854, passed 12-20-2007]
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 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 non-residential 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.
[Ord. 7854, passed 12-20-2007]
(a) 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 or self-employed person, together with the
date the tax was received.
(b) The Collector is hereby charged with the administration and enforcement
of this article 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 article, the examination and correction of 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. 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 (municipalities may detail their appeal
processes).
(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.
[Ord. 7854, passed 12-20-2007]
(a) In the event that any tax under this article 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 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 5% shall be added to the
flat rate of such tax for non-payment 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. 7854, passed 12-20-2007]
(a) Nothing contained in this article 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.
(b) If the tax hereby imposed under the provisions of this article shall
be held by any court of competent jurisdiction to be a 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 said tax or the
validity of the tax so imposed on other persons or individuals as
herein provided.
[Ord. 7854, passed 12-20-2007]
Except as set forth hereafter, all ordinances of 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 2005 and all prior calendar years, or of an emergency and municipal
services tax, plus applicable penalties and interest, for the calendar
years 2006 and 2007, as the same existed prior to this amendment.
[Ord. 7854, passed 12-20-2007]
The tax imposed by this article shall be effective on January
1, 2008 and all calendar years thereafter unless repealed or modified
by Ordinance of the City of New Castle, Pennsylvania.
[Ord. 7854, passed 12-20-2007]
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 $600 and costs of prosecution,
and, in default of payment of such tine and costs, to imprisonment
for nor 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 article.