[Adopted 12-3-2007 by Ord. No. 527[1]]
[1]
Editor's Note: This ordinance also repealed
former Art. II, Emergency and Municipal Services Tax, adopted 12-8-2005
by Ord. No. 519.
This article shall be known and cited as the
"Local Services Tax Ordinance."
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 Council of the Borough of Evans City.
The area within the corporate limits of the Borough of Evans
City.
The person, persons, agency, associate and/or corporate entity
designated by the Borough Council to collect the tax and to carry
out and administer the provisions of this article.
Earned income.
The Department of Community and Economic Development.
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, being 53 P.S.
§ 6913, as amended.
Any person, partnership, limited partnership, limited liability
company, unincorporated association, institution, trust corporation,
governmental agency, or any other body engaged in business or situated
in the Borough employing one or more employees engaged in nay occupation,
including a self-employed person.
The net income from the operation of a business, profession,
or other activity, as the 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,
as amended.
Any livelihood, job, trade, profession, business or enterprise
of any kind, including services, domestic or other, for which monetary
compensation is received or charged, performed within the Borough
of Evans City.
The tax imposed by this article.
Any natural person liable for the tax levied by this article,
including any person engaged in any occupation, trade and or profession
within the corporate limits of the Borough of Evans City.
The period from January 1 until December 31 in any year;
a calendar year.
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 Borough of Evans City 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 Borough Council form time to time:
emergency services, which shall include emergency medical services,
police service and/or fire services; construction and/or maintenance;
reduction of property taxes; or 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 Borough
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 Borough of Evans City. 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.
A.
Exemptions. The following persons shall be exempt
from the Local Services 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 one-hundred-percent-permanent 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.
(3)
For purposes of the 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.
(4)
Any person whose total earned income and net profits
from all sources within the political subdivision is less than $12,000
for the calendar year in which the local services tax is levied.
B.
Procedure.
(1)
A person seeking to claim an exemption from the local services tax must annually file an exemption certificate with the Borough 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 Borough utilizes a tax collection officer pursuant to § 160-12 of this article, the Borough 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 Borough for the year prior to fiscal year for which the employee is requesting to be exempted from the local services tax. Upon receipt of the exemption certificate and until otherwise instructed by the Borough or except as required by clause, 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.
(2)
With respect to a person who claimed an exemption for a given calendar year from the local services tax, upon notification to an employer by the person or by the Borough that the person has received earned income and net profits from all sources within the Borough 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 that the Borough 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 B(3).
(3)
If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the tax for the calendar year under Subsection B(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 Subsection B(2), a lump sum equal to the amount of tax that was not withhold 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 that 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 Borough may pursue collection under this article.
C.
Refunds. The Borough, 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. (With respect to refunds, see 53 Pa.C.S.A. § 8425;
with respect to interest, see 53 Pa.C.S.A. § 8426.) 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 Borough or the Collector shall determine
eligibility for refunds to exempt persons and provide refunds.
A.
Every employer within the Borough, as well as those
outside of the Borough, but who engage in business within the Borough
shall, within 15 days after the effective date of the article or within
15 days after first becoming an employer, if it has not already done
so, 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 on or before March 30 of a calendar year, each employer shall deduct the pro rata amount of the tax pursuant to this § 160-11 herein, from the compensation payable to the taxpayer, file a return on a form prescribed by the Collector and pay the Collector the full amount of taxes deducted on or before April 30 of the calendar year. Thereafter, as to each taxpayer for whom no prior deduction has been made and who is employed for any length of time in any of the three-month periods ending June 30, September 30, and December 31 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 the Collector the full amount of all taxes deducted for each such three-month period on or before July 31 and October 31 of the calendar year, or January 31 of the following calendar year, respectively.
C.
Any employer who discontinues business or ceases operation
before December 31 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.
D.
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.
E.
As to employees who present official receipts evidencing
prior payment of the tax either directly or by collection though 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 § 160-7 of this article shill file a return on a form prescribed by the Collector and shall pay the tax directly to the Collector. Each such taxpayer who first becomes subject to the tax on or before March 31 of the calendar year shall file the return and pay the tax on or before April 30 of that calendar year, and each such taxpayer who first becomes subject to the tax after March 31 shall file the return and pay the tax on or before July 31 or October 31 of the calendar year, or January 31st of the following calendar year, which ever of such payment dates first occurs, at least 30 days after the taxpayer becomes subject to the tax.
Both resident and nonresident taxpayers shall,
by virtue of engaging in an occupation within the Borough, be subject
to the tax and the provisions of this article.
A.
Each employer within the Borough of Evans City, as
well as those employers situated outside of the Borough of Evans City,
but who engage in business within the Borough of Evans City, is hereby
charged with the duty of collecting tax from each of his employees
engaged by him or performing for him within the Borough of Evans City
and making a return and payment thereof to the Collector. Further,
each employer is hereby authorized to deduct this tax from 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 Borough of Evans City.
B.
A person subject to the local services tax shall be
assessed 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 combined rate of the local services 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 1/100 of a dollar. Collection
of the local services tax levied under this subsection 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 this article.
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.
The situs of the tax shall be the place of employment
of 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 the person's 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;
and
(3)
Third, the political subdivision in which a person
is employed and which imposes the tax nearest in miles to the person's
home.
E.
In the case of concurrent employment, an employer
shall refrain from withholding the local services tax if the employee
provides a recent pay statement from a principal employer that includes
the name of the employer, the length of payroll period and the amount
of the local services 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. As soon as
the Department of Community and Economic Development issues uniform
employee statement form, said form shall be issued.
F.
The local services 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
Borough shall provide a taxpayer a receipt of payment upon request
by the taxpayer.
A.
The Collector, on behalf of the Borough, shall collect
by suit or otherwise, all taxes, interest, fines and penalties imposed
by this article, as hereinafter set forth, 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 for collection through employers, requirements for evidence
and records and provisions for the examination and 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.
B.
The Collector shall collect, by suit or otherwise,
all taxes, interest, costs, fines and penalties due under this article
which are unpaid for a space of 30 days by making written demand therefor
certifying that the information contained therein is true and correct
and containing the name of the taxpayer or the spouse thereof and
the amount of tax due. Payment shall thereafter be due within 30 days
after such notice shall have been given. 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 1/2 of 1% 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 recovery of unpaid tax, the taxpayer shall, in addition,
be liable for the cost of collection as well as for the interest and
penalties. The Collector may accept payment under protest of the tax
claimed by the Borough in any case where any person disputes the Borough's
claim for the tax. If a court (or other body or individual) of competent
jurisdiction, at the final conclusion of the matter, 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
therefor, in an enforcement proceeding commenced by the Borough, pay
a penalty of not less than $100 nor more than $600 for each violation,
plus costs and reasonable attorney fees incurred by the Borough in
the enforcement proceedings. The enforcement proceeding shall be initiated
by complaint or by such other means as may be provided by the laws
of Pennsylvania.
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 Borough
Treasurer.
C.
The Borough may also commence appropriate actions
in equity, at law or otherwise 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
Borough Manager, the Collector and to any other officer or agent that
the Borough Council shall deem appropriate.
The tax shall not apply to any subject of tax
or person not within the taxing power of the Borough 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, of the application of such
provisions to other circumstances, shall remain in full force and
effect. This article shall continue in effect on a calendar year basis
without annual reenactment.
A.
Except as set forth hereafter, all ordinances or 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 2007 and all prior calendar years, or of an emergency and municipal
services tax for calendar year 2007, as the same existed prior to
this amendment.
B.
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 Borough Council.
