This Article shall be known and cited as the "Local Services Tax Ordinance."
[Adopted 9-10-2007 by Ord. No. 380]
As used in this Article, the following words and phrases shall have the meanings prescribed to them in this section, except where the context or language clearly indicates or requires a different meaning.
The 12-month period beginning the first day of January.
The person, persons, public or private agency, association and/or corporate entity designated by the Township Board of Supervisors to collect the tax and to carry out and administer the provisions of this Chapter.
Salaries, wages, commissions, tips, bonuses, fees, gross receipts or any other income.
Any person, partnership, limited partnership, unincorporated association, institution, trust, corporation, governmental agency, or any other body engaged in business or situated in the Township employing one or more employees engaged in any occupation, other than domestic servants.
Any livelihood, job, trade, profession, business or enterprise of any kind, including services, domestic or other, for which monetary compensation is received or charged.
The tax imposed by this Article.
Any natural person liable for the tax levied by this Article.
The Township of Marshall.
The Board of Supervisors of the Township of Marshall.
A.
For those purposes referenced in the Local Tax Enabling Act, 53 P.S. § 6901 et seq., as amended, a tax in the amount of $52 per year is hereby levied upon the privilege of engaging in an occupation within the Township in the calendar year 2007 and in each succeeding calendar year. Each natural person who exercises such privilege for any length of time shall pay the tax in accordance with the provisions of this Article.
B.
The tax hereby levied shall not be levied upon (1) any natural person whose total income during the subject calendar year is less than $12,000; (2) 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; or (3) 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 purposes of this section, "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. The Township Manager shall promulgate regulations for the processing of refund claims for the emergency municipal services tax paid by any person who is eligible for this exemption.
C.
The Township Manager shall promulgate regulations for the processing of refund claims for any taxpayer who overpaid the tax by more than $1 for any calendar year.
D.
A person seeking to claim an exemption from the tax may annually file an exemption certificate with the Township and with the person's employer affirming that the person reasonably to receive earned income and net profits from all sources within the Township of less than $12,000 in the calendar year for which the exemption certificate is filed. The Township shall provide a copy of the exemption certificate to the Collector. 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 Township 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 Township or as required by § 180-22E, herein, the employer shall not withhold the tax from the person during the calendar year or the remainder of the calendar year for which this 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. As per Act 7 of 2007, the Department of Community and Economic Development shall develop uniform exemption certificates and make the certificates available to the Township and employers.
E.
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 Township that the person has received earned income and net profits from all sources within the Township 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 Township in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the tax from the person in accordance with § 108-22F, within.
F.
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 § 108-22E, herein, 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 § 108-22E, herein, 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 the 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 served in that calendar year, the person shall be liable for any outstanding balance of the tax due and the Township may pursue collection.
G.
Except as provided in § 108-22E, herein, it is the intent of this section that employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from the tax.
A.
Every employer shall, within 15 days after the effective date of this Article or within 15 days after first becoming an employer, register with the Collector by providing the employer's name, address and such other information deemed necessary or required by the Collector.
B.
For each taxpayer employed for any length of time during a calendar year, each employer shall deduct a pro rata share of the tax from compensation payable to the taxpayer for each payroll period in which the taxpayer is engaging in the occupation. The pro rata share of the tax assessed on the taxpayer for a payroll period shall be determined by dividing total amount of the tax for the calendar year, $52, 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 levied under this Article shall be made on a payroll period basis for each payroll period in which the taxpayer is engaging in the occupation.
C.
For each taxpayer employed for any length of time on or before March 31st of a calendar year, each employer shall file a return on a form prescribed by the Collector and pay the Collector the full amount of taxes deducted for such three-month period on or before April 30th of the calendar year. Thereafter, as to each taxpayer for who pro rata deductions have been made and who is employed for any length of time in any of the three-month periods ending June 30th, September 30th, and December 31st of the calendar year, each employer shall deduct the tax from compensation payable to the taxpayer, file a return on a form prescribed by the Collector and pay to the Collector the full amount of all the taxes deducted for each such three-month period on or before July 31st and October 31st of the calendar year, or January 31st of the following calendar year, respectively.
D.
Any employer who discontinues business or ceases operation before December 31st of 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, without deduction of any fees provided for in this section, as though the tax had originally been levied against the employer.
F.
As to employees who present official receipts evidencing prior payment of the tax either directly or by collection through other employers, the employer shall not deduct the tax but shall maintain adequate records concerning such employees.
Every taxpayer who is self-employed or whose tax for any other reason is not collected under Section 180-23 of this Article shall file a return on a form prescribed by the Collector and shall pay the tax directly to the Collector. Taxpayers subject to the tax shall file the return and pay the tax on a quarterly basis on or before April 31st, July 31st, October 31st of the calendar year and January 31st of the following calendar year.
Both resident and nonresident taxpayers shall, by virtue of engaging in an occupation within the Township, be subject to the tax and the provisions of this Article.
The Collector, on behalf of the Township, shall collect and receive the taxes, interests, 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 may adopt and enforce regulations 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 mad correction of returns. The Collector and agents designated by the Collector may examine the records of any employer or supposed employer or of any taxpayer or supposed taxpayer in order to ascertain the tax due and verify the accuracy of any return. Every, employer or supposed employer and every taxpayer or supposed taxpayer shall give the Collector and any agent designated by the Collector all means, facilities and opportunity for the examinations hereby authorized.
The Collector shall collect, by suit or otherwise, all taxes, interest, costs, fines and penalties due under this Chapter and unpaid. If for any reason any tax is not paid when due, interest at the rate of 6% per year on the amount of unpaid tax and an additional penalty of 0.5% of the amount of unpaid tax, for each month or fraction of month during which the tax remains unpaid, shall be added and collected. Whenever suit is brought for the recover, of unpaid tax, the taxpayer shall, in addition, be liable for the costs of collection as well as for interest and penalties. The Collector may accept payment under protest of the tax claimed by the Township in any case where any person disputes the Township's claim for the tax. If a court of competent jurisdiction thereafter decides that there has been overpayment to the Collector, then the Collector shall refund the amount of the overpayment to the person who paid under protest.
A.
Any person, firm or corporation or entity who violates a provision of this Article, or who fails to comply therewith, or with any of the requirements thereof, shall, upon being found liable therefore in a civil enforcement proceeding commenced by the Township, pay a civil penalty of not less than $100 nor more than $600 for each violation, plus costs and reasonable attorney fees incurred by the Township in the enforcement proceedings. The civil enforcement proceeding shall be initiated by complaint or by such other means as may be provided by the Pennsylvania Rules of Civil Procedure.
B.
A separate offense shall arise for each day or portion thereof in which a violation is found to exist or for each section of this Article found to have been violated. All fines and penalties collected for violation of this Article shall be paid to the Township Treasurer.
C.
The Township may also commence appropriate actions in equity, at law or other to prevent, restrain, correct, enjoin, or abate violations of this Article.
D.
The initial determination of a violation of this Article and the service of notice of violation are hereby delegated to the Township Secretary, the Collector and their designees and to any other officer or agent that the Board of Supervisors shall deem appropriate.
The tax shall not apply to any subject of tax or person not within the taxing power of the Township under the Constitution of the United States of America and the laws and Constitution of the Commonwealth of Pennsylvania. If a final decision of a court of competent jurisdiction holds any provision of this Article or the application of any provision to any circumstances, to be illegal or unconstitutional, then the other provisions of this Article, or the application of such provision to other circumstances, shall remain in full force and effect. This Article shall continue in effect on a calendar year basis without annual reenactment.
This Article and the tax hereby imposed are adopted and levied pursuant to the authority conferred by the Local Tax Enabling Act, 53 P.S. § 6901 et seq., as amended.