This article shall be known and may be cited
as the "Township of Cheltenham Local Services Tax Ordinance."
This article is enacted under the authority
of the Local Tax Enabling Act, as amended by Act No. 7 of 2007.
The purpose is to provide revenue for police,
fire and emergency services; road construction and maintenance; the
reduction of property taxes and for such other purposes as may be
specified for such tax from time to time by the laws of the Commonwealth
of Pennsylvania.
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 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 I, Subpart B, Art.
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
III of the Tax Reform Code of 1971. Any housing allowance provided to a member of the clergy shall not be taxable as earned income.
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, (except from 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 I, Subpart B, Art.
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:
A.
Any interest generated from monetary accounts
or investment instrument of the farming business;
B.
Any gain on the sale of farming machinery;
C.
Any gain on the sale of livestock held 12 months
or more for draft, breeding or dairy purposes; and
D.
Any gain on the sale of other capital assets
of the farm.
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, commission or fees for services rendered.
RESERVE COMPONENT OF THE ARMED FORCES
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.
TAX
The local services tax at the rate fixed in §
270-89 of this article.
TAX YEAR
The period from January 1 until December 31 in any year;
a calendar year.
The Township of Cheltenham hereby levies and
imposes on every individual engaging in an occupation within the jurisdictional
limits of the Township of Cheltenham 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
subsequent ordinance. This tax may be used solely for the following
purposes as the same may be allocated by the Township of Cheltenham
from time to time: emergency services, which shall include emergency
medical services, police services and/or fire services; road 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 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.
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.
Each employer shall use his employment and payroll
records from the first day of January to March 31 each year for determining
the number of employees from whom said tax shall be deducted and paid
over to the collector on or before April 30 of the same calendar year.
Supplemental reports shall be made by each employer on July 30, October
30 and January 31 for new employees as reflected on his employment
and payroll records from April 1 to June 30, July 1 to September 30
and October 1 to December 31, and payments on these supplemental reports
shall be made on July 30, October 30 and January 31, respectively.
Each self-employed individual who has earned
income or realizes net profit, as those terms are defined herein,
within the political subdivision shall be required to comply with
this article and pay the tax due to the Collector on or before the
30th day following the end of each quarter.
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 nonresidential
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.
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 fine and costs, to imprisonment for not 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.