[Adopted 1-20-1986 as Ch. 24, Part
3, of the 1986 Code; amended in its entirety 10-15-2007 by Ord. No.
2007-20]
A.
EMPLOYER
INDIVIDUAL
OCCUPATION
RESERVE COMPONENT OF THE ARMED FORCES
TAX
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:
A person, partnership, association, corporation, governmental
body, agency or other entity employing one or more individuals on
a salary, wage, commission or other compensation basis, including
a self-employed person.
Any person, male or female, engaged in any occupation within
the boundaries of the Township of West Hanover.
Any trade, profession, business, employment or undertaking
of any type, kind or character, including services, domestic or other,
carried on or performed within the boundaries of the Township of West
Hanover for which compensation is charged or received in salary, wages,
commissions, fees for services rendered or any other basis.
The United States Army Reserve, United States Naval 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 local services tax in the amount of $52 levied by this
article.
B.
Word usage. "He," "his" or "him" shall include the
singular and plural number, as well as male, female and neuter genders.
Pursuant to the authority granted by the Local
Tax Enabling Act (53 P.S. § 6901 et seq.),[1] the Township of West Hanover hereby levies and imposes
on each occupation engaged in by individuals within the Township of
West Hanover during the fiscal year 1986, and each fiscal year thereafter,
a local services tax. This tax shall be in addition to all other taxes
of any kind or nature heretofore levied by West Hanover Township and
by any other municipality or taxing body and shall be collected by
the Manager of West Hanover Township or by such other person as the
Board of Supervisors may from time to time hereafter appoint. Such
tax shall continue in force on a fiscal-year basis, without annual
reenactment, unless the rate of tax is subsequently changed.
[1]
Editor’s Note: See now 53 P.S. § 6924.101 et seq.
The following individuals shall be exempt from
the Local Services Tax:
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 State Veterans' Administration or its successor
to be a total one-hundred-percent 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 taxable year.
C.
Any individual subject to this tax who derives less
than $12,000 in total earned income per year from any occupation engaged
in within the boundaries of the Township of West Hanover, Dauphin
County, Pennsylvania, shall be exempt from the local services tax
established by this article.
D.
Claim exemption process.
(1)
A person seeking to claim an exemption from the local
services tax may annually file an exemption certificate with the Township
and with the individual's employer affirming that the individual reasonably
expects to receive earned income and net profits from all sources
of less than $12,000 in the calendar year for which the exemption
certificate is filed.
(2)
Required information for the exemption certificates:
All exemption certificates submitted to an employer and the Township
shall have attached to it a copy of all of the employee's last pay
stub(s) 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
exempt from the local services tax.
(3)
Upon receipt of the exemption certificate at the Township,
the Township Manager shall contact the respective employer in writing
and instruct the employer as to the status of the exemption claim.
Each employer within the Township of West Hanover,
as well as those employers situated outside of the Township of West
Hanover but who have employees who engage in business within the Township
of West Hanover, is hereby charged with the following duties:
A.
To collect from each of his employees engaged by him
and performing duties or services for him within the Township of West
Hanover the aforesaid local services tax of $52 per annum. Each employee
subject to the local services tax shall be assessed a pro-rata share
of the tax for each payroll period in which the individual is engaging
in an occupation. The pro-rata share of the tax assessed on the individual
for a payroll period shall be determined by dividing the combined
rate of the local services tax for the calendar year by the number
of payroll periods established by the employer for the calendar year
(example: tax of $52 divided by 26 pay periods equals a pro-rated
deduction of $2 per pay period.).
B.
To make a return and make payment of the local services
tax collected hereunder to the Manager of the Township of West Hanover,
or to such other person designated by the Board of Supervisors to
collect such taxes.
C.
To deduct this tax from each employee in his employment,
whether said employee is paid by salary, wages or commissions, and
whether or not part or all of such services are performed within the
Township of West Hanover.
D.
To secure from the Manager of the Township of West
Hanover (or other designated person) the tax return forms for reporting
the taxes collected. Employers are also required to secure copies
of: the exemption certificate forms; the uniform employee statement
forms; and any other relevant forms for its employees that are created
by the Pennsylvania Department of Community and Economic Development.
E.
To prepare and file a quarterly local services tax return showing the computation of the pro-rated share of the tax on the forms supplied by the Township. Each return and payment of the pro-rated tax collected from each employee will also be accompanied by any exemption certificates (see Subsection G) submitted by employees to the employer. All employers shall remit the local services taxes collected, any summary report, and any exemption forms to the Township after the end of each quarter of the calendar year with the first payment due on April 30. The remaining quarterly reports shall be made by each employer on or before July 31, October 31 and January 31 of the following year as reflected upon his employment records.
F.
It is further provided that if the employer fails
to file said return and pay said tax, whether or not he makes collection
thereof from the salary, wages or commissions paid by him to said
employee or employees, the employer shall be responsible for the payment
of the tax in full, as though the tax had originally been levied against
him.
G.
Exemption certificates:
(1)
Upon receipt of an exemption certificate from an employee,
employers shall forward a copy of the exemption certificate to the
Township with the employer's quarterly return.
(2)
Until otherwise instructed by the Township, the employer
shall not withhold the local services tax from an employee during
the calendar year or the remainder of the calendar year for which
the exemption certificate applies.
(3)
Employers shall ensure that 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.
H.
Restoration of collection of tax if exemption status
changes.
(1)
All employers must "restart" withholding the local
services tax from an employee who files an exemption certificate in
the following circumstances:
(2)
If any of the circumstances listed above are met,
the employer will collect the local services tax from the previously
exempted employee for the remainder of that calendar year. The employer
shall withhold from the person, for the first payroll period after
the individual's earned income level causes him/her to be subject
to the tax, a lump sum equal to the amount of the tax that was not
withheld from the individual due to the exemption plus the pro-rated
per payroll amount due for that first pay period. The amount of tax
withheld per payroll period for the remaining payroll periods in that
calendar year shall be the same amount withheld in the same manner
as other nonexempt employees.
I.
Tax obligation when exempt employee's employment is
severed. In the event the employment of an individual who was exempt
and becomes subject to the local services tax is subsequently severed
in that calendar year, the person shall be liable for any outstanding
balance of the tax due and the Township may pursue collection of the
tax.
Each employer shall use employment records from
the first day of January of each year for determining the number of
employees from whom said tax shall be deducted and paid over to the
agent for collection of the same designated by the Board of Supervisors
of the Township of West Hanover. The local services tax shall be applicable
to employment in the period beginning January 1 of the current year
and ending December 31 of the current year. Taxes imposed for the
first time shall become effective from January 1 of the year and shall
continue in force on a calendar year. Supplemental reports shall be
made by each employer with the quarterly tax payments due on or before
July 31, October 31 and January 31 of each year for changes in employees
as reflected upon his employment records from April 1 to June 30,
July 1 to September 30 and October 1 to December 31.
A.
Each individual who shall have more than one occupation
within the Township of West Hanover shall be subject to the payment
of this tax on his principal occupation, and his principal employer
shall deduct this tax and deliver to him evidence of deduction on
a form to be furnished to the employer by the Township of West Hanover,
which form shall be evidence of deduction having been made and, when
presented to any other employer, shall be authority for such employer
not to deduct this tax from the employee's wages, but shall, nevertheless,
require the employer to include such employee on his return of taxes
and shall require the employer to set forth his name and address,
and the name and account number of the employer who deducted this
tax.
B.
In the event that a person is engaged in more than
one occupation, or an occupation which requires his working in more
than one political subdivision during the calendar year, and thereby
subjects the employee to the possibility of payment of multiple local
services taxes, the priority of claim to collect such local services
tax shall be in the following order; first, the political subdivision
in which a person maintains his principal office or is principally
employed; second, the political subdivision in which the person resides
and works, if such a tax is levied by that political subdivision;
and third, the political subdivision in which a person is employed
and which imposes the tax nearest in miles to the person's home. The
place of employment shall be determined as of the day the taxpayer
first becomes subject to the tax during the calendar year. It is the
intent of this provision that no person shall pay more than $52 in
local services taxes in any calendar year, irrespective of the number
of political subdivisions within which such person may be employed
within any given calendar year. In case of dispute, a tax receipt
of the taxing authority for a disputed calendar year, declaring that
the taxpayer has made prior payment, shall constitute prima facie
certification of payment to all other political subdivisions.
C.
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 the 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 on uniform
forms developed by the Pennsylvania Department of Community and Economic
Development.
All self-employed individuals who perform services
of any type or kind or engage in any occupation or profession within
the Township of West Hanover shall be required to comply with this
article and pay the tax to the agent for collection of the same designated
by the Board of Supervisors on April 15 of each year, or as soon thereafter
as he engages in an occupation.
All employers and self-employed individuals
residing or having their place of business outside the Township of
West Hanover but who perform services of any type or kind, or engage
in any occupation or profession, within West Hanover Township 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 West
Hanover Township. Further, any individual engaged in an occupation
within the Township of West Hanover who is an employee of a nonresident
employer may, for the purpose of this article, be considered a self-employed
person, and in the event that this tax is not paid, West Hanover Township
shall have the option of proceeding against either the employer or
the employee for the collection of this tax as hereinafter provided.
A.
It shall be the duty of the agent for the collection
of the local services tax of the Township of West Hanover 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 agent for the collection of the local services
tax is hereby charged with the administration and enforcement of this
article, and is hereby charged and empowered to prescribe, adopt and
promulgate rules and regulations relating to any matter pertaining
to the administration and enforcement of this article, including provisions
for the examination of payroll records of any employer subject to
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 agent for the
collection of the local services tax shall have the right to appeal
to the Court of Common Pleas of Dauphin County, as in other cases
provided.
C.
The agent for the collection of the local services
tax, or his duly authorized representative or agent, is hereby authorized
to examine the books and payroll records of any employer in order
to verify the accuracy of any return of taxes 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 agent for the collection
of the local services tax, or his duly authorized representative or
agent, the means, facilities and opportunity for such examinations.
D.
In accordance with Act 511 and HB 197, all tax proceeds
from local service taxes collected shall be used for police, fire
and/or emergency services; road construction and/or maintenance; and/or
reduction of property taxes. All taxes collected shall be deposited
in the Local Services Tax Fund established by resolution of the Board
of Supervisors.
E.
The Township shall provide any local services taxpayer
a receipt of payment upon request by the taxpayer.
F.
No employer shall be held liable for failure to withhold
the local services tax or for the payment of the withheld tax money
to a political subdivision if the failure 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. The employer shall also 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 provision
of this article and remits the amount so withheld accordingly.
A.
In the event that any tax under this article remains
due or unpaid 30 days after the due dates above set forth, the agent
for the collection of the tax 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 1 1/2% per month on the amount of said tax shall
be calculated beginning with the due date of said tax, until paid,
and a penalty of 10% shall be added to the flat rate of said tax for
nonpayment thereof. Suit may be brought for the recovery of this tax
and, where suit is brought, the individual liable for the payment
of the tax shall, in addition, be responsible and liable for the costs
of collection.
Whoever makes any false or untrue statement
on any return of taxes required by this article, or whoever refuses
inspection of his books, records or accounts in his custody and control
setting forth the number of employees to this tax who are in his employment,
or whoever fails or refuses to file any return required by this article,
or whoever fails or refuses to pay any tax required by this article,
shall, upon conviction before any District Justice, be sentenced to
pay a fine of not more than $600 for each offense, plus costs. It
is further provided that the action to enforce the fine and penalty
herein provided may be instituted against any person in charge of
the business of any employer who has failed or refused to file a return
required by this article. It is further provided that, upon judgment
against any person by summary conviction, or by proceedings by summons
on default of the payment of the fine or penalty imposed and the costs,
the defendant may be sentenced and committed to the county prison
for a period not exceeding 30 days.
