[Adopted 4-13-1976 by Ord. No. 144; amended
in its entirety 11-7-2007 by Ord. No. 2007-488 (Ch. 158, Art. III,
of the 1996 Code)]
This article shall be known and may be cited
as the "local services tax."
This article is enacted under authority of Act
511 of 1965, as amended, known as the "Local Tax Enabling Act."[1]
[1]
Editor's Note: See 53 P.S. § 6924.101
et seq.
As used in this article, unless the context
clearly indicates a different meaning, the following words shall have
the meanings set forth below:
The twelve-month period beginning January 1 and ending December
31.
Person, public employee, public agency, or private agency
designated by governing body of Patton Township to collect and administer
the tax.
"Compensation" as determined under Section 303 of the Act
of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of
1971,"[1] and regulations in 61 Pa. Code Part 1, 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 II 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.
A person, partnership, association, corporation, institution,
governmental body or unit or agency or any other entity employing
one or more persons for a salary, wage, commission or other compensation,
including self-employed individuals.
An exemption certificate substantially in the form of the
uniform certificate prescribed by the Pennsylvania Department of Community
and Economic Development affirming that the person reasonably expects
to receive earned income and/or net profits from all sources within
the municipality of less than $12,000 in the calendar year for which
the exemption certificate is filed, which exemption certificate has
attached to it a copy of all of the employee's last pay stubs or W-2
forms from employment within the municipality for the year prior to
the calendar year for which the employee is requesting to be exempted
from the tax. In addition to the income exemptions, provision has
been made for certain military exemptions.
Emergency 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.
Subchapter F.[2]
The Township of Patton.
The net income from the operation of a business, profession,
or other activity, except corporations, determined under Section 303
of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform
Code of 1971," and regulations in 61 Pa. Code Part 1, 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:
Any interest earnings generated from any monetary
accounts or investment instruments of the farming business;
Any gain on the sale of farm machinery;
Any gain on the sale of livestock held 12 months
or more for draft, breeding or dairy purposes; and
Any gain on the sale of other capital assets
of the farm (definition amended December 9, 2002, P.L. 1364, No. 166).
A person, partnership, association or other entity domiciled
outside Patton Township.
Any livelihood, job, trade, profession, business or enterprise
of any kind, including services, domestic or otherwise, for which
any earned income and/or net profits are charged and received from
sources within the municipality.
Any county, city, borough, incorporated town, township, school
district, vocational school district and county institutional district.
The calendar year before the current year.
The tax imposed by § 360-13 of this article.
Any natural person liable for the tax levied by § 360-13 of this article.
The municipality hereby levies and imposes on
every individual engaging in an occupation within the jurisdictional
limits of the municipality a tax in the amount of $52 per annum, beginning
the first day of January 2008 and continuing on a calendar basis annually
thereafter, until modified or repealed by a subsequent ordinance.
This tax is in addition to all other taxes of any kind or nature heretofore
levied by the municipality.
The tax levied by § 360-13 shall not be imposed upon the following persons:
A.
Any person 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 quadruple amputee or has a service-connected
disability declared by the United States Veterans' Administration
or its successor to be a total 100% permanent 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 calendar year. For
purposes of this subsection, "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.
C.
Any person whose
total earned income and/or net profits from all sources within the
municipality is less than $12,000 for the calendar year in which the
local services tax is levied.
A.
Every employer
shall, within 15 days after first becoming an employer, register with
the Collector the employer's name, address and such other information
as the Collector may require. Failure to register in a timely manner
does not relieve the employer of the requirements of this article.
B.
As to each taxpayer
employed for any length of time during any payroll period of an employer
during the calendar year, each employer shall deduct a pro rata share
of the tax from the earned income payable to the taxpayer with respect
to such payroll period. The pro rata share of the tax assessed on
a taxpayer for a payroll period shall be determined by dividing the
rate of the tax ($52) 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 of the tax, an employer
shall round down the amount of tax deducted for each payroll period
to the nearest one-hundredth of a dollar.
C.
Each employer
shall file a return on a form prescribed by the Collector and pay
the Collector the full amount of all such taxes deducted during a
calendar quarter within 30 days after the end of the calendar quarter.
A tax return must be filed for each calendar quarter, regardless of
whether withholdings were completed or any tax liability exists.
D.
Any employer
who discontinues business or ceases operation during the calendar
year shall, within 15 days after discontinuing business or ceasing
operation, file the return hereinabove required and pay the tax to
the Collector.
E.
The failure of
any employer to deduct the tax shall not relieve the employee from
the duty to file a return and pay the tax. Any employer who fails
to deduct the tax as required by this section or who fails to pay
such tax to the Collector shall be liable for such tax in full, as
though the tax had originally been levied against such employer. No
employer shall be liable for failure to deduct the tax if the failure
to deduct 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.
F.
Priority of withholding.
(1)
The tax shall
be withheld at the place of employment on the first day the person
becomes subject to the tax during each payroll period.
(2)
In the event
a person is engaged in more than one occupation, i.e., concurrent
employment, or an occupation which requires the person working in
more than one political subdivision during the payroll period, the
priority to withhold the local services tax shall be in the following
order:
(a)
The political
subdivision in which a person maintains their principal office or
is principally employed.
(b)
The political
subdivision in which the person resides and works, if the tax is levied
by that political subdivision.
(c)
The political
subdivision in which a person is employed and which imposes the tax
nearest in miles to the person's home.
G.
The employer shall not deduct the tax but shall maintain adequate records concerning the employees in the cases described in § 360-14A, § 360-14B and § 360-14C.
(1)
It is the
intent of this section that no person shall be subject to the payment
of the local services tax in more than one municipality during each
payroll period. No taxpayer shall be required to pay more than $52
in total during the calendar year. In the case of concurrent employment,
an employer shall refrain from withholding the local services tax
if the employee provides:
(a)
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 local
services tax withheld; and
(b)
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.
(2)
In the case of an employee claiming the exemption set forth at § 360-14C, an employer shall refrain from withholding the local services tax if:
(a)
The employee
has provided an exemption certificate to the employer;
(b)
The Collector
has not otherwise instructed the employer;
(c)
The employer
has not received notification from the person who claimed the exemption
or from the Collector that the person has received earned income and/or
net profits from all sources within the municipality 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; and
(d)
The employer
has not paid to the person earned income within the municipality an
amount equal to or in excess of $12,000 in that calendar year.
(3)
If a person has claimed exemption from the tax under § 360-14C for a given calendar year but either a) the employer has received notification from the person who claimed the exemption or from the Collector that the person has received earned income and/or net profits from all sources within the municipality 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 b) the employer has paid to the person earned income within the municipality an amount equal to or in excess of $12,000 in that calendar year, then the employer shall withhold the tax for the remainder of that calendar year, and the employer shall withhold from the person, for the first payroll period after receipt of the notification described in (item a) above or for the first payroll period after payments described in (item b) above have been made, a lump sum equal to the amount of tax that was not withheld from the person due to the exemption claimed by the person, 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 Collector may pursue collection under this article.
(4)
Each employer
shall ensure that exemption certificate forms are readily available
to employees at all times and shall furnish each new employee with
an exemption certificate form at the time of hiring and prior to the
first pay period of each calendar year.
(5)
A person seeking exemption from the tax under § 360-14C must annually file an exemption certificate with the employer and the Collector.
(6)
Each employer
within the municipality and each employer located outside the municipality
who engages in business within the municipality is hereby charged
with the duty of collecting the tax from each of the employees engaged
by the employer and performing work for the employer within the municipality.
Every taxpayer who is self-employed and has not filed an exemption certification with the Collector, or whose tax for any other reason is not collected under § 360-13 of this article, shall file a return on a form prescribed by the Collector and shall pay a pro rata share of the tax directly to the Collector within 30 days after the end of each calendar quarter. The pro rata share of the tax assessed on a taxpayer for a calendar quarter shall be determined by dividing the rate of the tax levied ($52) for the calendar year by four.
Both resident and nonresident taxpayers shall,
by virtue of engaging in an occupation within the municipality, be
subject to the tax and the provisions of this article.
The Collector, on behalf of the municipality,
shall collect and receive the taxes, interest, fines and penalties
imposed by this article; shall maintain records showing interest,
fines and penalties imposed by this article; and shall maintain records
showing the amounts received and the dates such amounts were received.
The Collector shall prescribe and issue all forms necessary for the
administration of the tax and shall enforce regulations adopted by
the governing body relating to any matter pertaining to the administration
of this article, including, but not limited to, requirements for collection
through employers, requirements for evidence and records, and provisions
for the examination and correction of returns. The Collector and any
designated agents may examine the records of any employer or supposed
employer or of any taxpayer or supposed taxpayer in order to ascertain
the tax due or verify the accuracy of any return. Every employer or
supposed employer and every taxpayer or supposed taxpayer shall give
the Collector and any designated agent all means, facilities and opportunity
for the examinations hereby authorized. Any such examination shall
be conducted within this municipality or at the office where the tax
return is processed.
The municipality or it's collector of the tax
may collect unpaid taxes from the taxpayer or employer owing such
taxes by suit as provided for by Act 511 of 1965, as amended, known
as the "Local Enabling Tax Act."
A.
The tax levied
pursuant to this article shall be due and payable on the date on which
the taxpayer is required to file a return, as set forth hereinbefore,
and if the same is not paid on that date, a penalty of 10% shall be
added thereto plus interest at the rate of 0.5% per month of the unpaid
tax for each month or fraction thereof during which the tax remains
unpaid.
B.
The failure of
a taxpayer to receive a tax return does not relieve their filing or
payment responsibility.
C.
The penalties
imposed under this section shall be in addition to any other penalty
imposed by any other section in this article.
A.
Any taxpayer
or employer who fails, neglects, or refuses to make a return required;
any employer who fails, neglects or refuses to register or to pay
the tax deducted from employees or fails, neglects, or refuses to
deduct or withhold the tax from employees; a taxpayer or employer
who refuses to permit the collector to examine the books, records,
and papers; and a taxpayer or employer who knowingly makes any incomplete,
false or fraudulent return or attempts to do anything whatsoever to
avoid the full disclosure of the amount of tax due in order to avoid
the payment of the whole or any part of the tax imposed shall, upon
conviction thereof before the Magisterial District Judge be sentenced
to pay a fine of not more than $500 for each offense, and costs, and,
in default of said fines and costs, be imprisoned for a period not
exceeding 30 days.
B.
The failure of
taxpayer or employer to receive or procure forms required for filing
the required return does not excuse the taxpayer or employer from
the filing requirement.
A.
Any person who
has overpaid the tax may obtain a refund by making a written application
for a refund to the Collector no later than one calendar year after
payment of the tax or three years after the due date for payment of
the tax, whichever is later, and satisfactorily proves to the Collector
that the taxpayer is entitled to the refund. Refunds made within 75
days of a refund request or 75 days after the last day the employer
is required to remit the tax to the Collector for the last quarter
of the calendar year, whichever is later, shall not be subject to
interest imposed under 53 Pa.C.S.A. § 8426. A refund shall
be provided only for an amount overpaid in a calendar year that exceeds
$1.
B.
Refund requests
must be submitted on the form approved by the Collector. It should
be noted that incomplete refund requests will be deferred until the
missing or incomplete information is provided. Refunds in the deferred
status are not subject to the payment of interest requirement.
The Collector shall provide a taxpayer a receipt
of payment of the tax upon request by the taxpayer. A stamped, self-addressed
envelope shall be furnished by the taxpayer if a receipt via return
mail is desired.
The tax shall not apply to any subject of tax
or person not within the taxing power of the municipality under the
Constitution of the United States and the laws of the Commonwealth
of Pennsylvania.
This article shall continue in force from one
calendar year to another without annual reenactment.
