[Added 11-13-2007 by Ord. No. A-981]
This article, and any supplements and amendments thereto, shall be known and cited as the "Local Services Tax Ordinance" and shall act as a repeal of the previous occupation privilege tax adopted by ordinance on November 2, 1981.[1]
[1]
Editor's Note: Said ordinance was also repealed by Ord. No. A-976, adopted 12-11-2006, which comprised former Art. IV, Emergency Municipal Services Tax.
As used in this article, the following terms shall have the meanings indicated:
BOROUGH
The area within the corporate limits of the Borough of Kane.
EMPLOYER
An individual, partnership, association, 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.
FISCAL YEAR
The twelve-month period beginning January 1 and ending December 31 in any tax year.
HE, HIS and HIM
Indicates the singular and plural number as well as male, female and neuter gender.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade or profession within the corporation limits of the Borough.
OCCUPATION
Any trade, profession, business or undertaking of any type, kind or character, including domestic or other, carried on or performed within the corporate limits of the Borough, for which compensation is charged or received, whether by means of salary, wages, commission or fees for services rendered.
RECEIVER OF TAXES
The person designated by the Borough of Kane for the collection of the local services tax imposed by this article.
TAX
The local services tax in the amount of $52 levied by this article.
For purposes of road construction and/or maintenance, police, fire and/or emergency services, and/or reduction of property taxes, the Borough of Kane hereby levies a tax upon the privilege of engaging in an occupation within the Borough during the fiscal year. Each individual who exercises such privilege shall pay the tax in the amount of $52 in accordance with this article, generating an estimated revenue of $78,000. This tax is in addition to all other taxes of any kind or nature heretofore levied by the Borough of Kane; provided, however, that there is hereby exempted from this tax any person whose total income from all sources is less than $12,000 per annum.
Each employer within the Borough of Kane is hereby charged with the duty of collecting the said tax of $52 per year in accordance with the terms of this article, withholding not a lump sum, but prorated as a total tax divided by the number of payroll periods, from each employee who engaged in an occupation, as herein defined, for the benefit of said employer or in the service of said employer within the Borough of Kane during the fiscal year. Such employer shall make a return and payment of said tax to the Receiver of Taxes, 30 days after the end of each quarter, and each such employer is hereby authorized to deduct said tax from each such employee, whether or not such employee is paid by salary, wages or commission and whether or not part of all of such services are performed within the Borough of Kane.
Each employer shall prepare and file a return showing a computation of the tax on forms to be supplied to him by the Receiver of Taxes. If the employer fails to file the return and pay the tax, whether or not he makes collection of it from the salary, wages or commission paid by him to any employee, the employer shall be responsible for the payment of the tax in full and as though the tax has originally been levied against him.
A. 
As to each taxpayer employed for any length of time on or before March 31 of any year, each employer shall deduct the tax from compensation payable to the taxpayer and file a return on a form prescribed by the Receiver of Taxes on or before April 30 of that year. Thereafter, as to each taxpayer for whom no prior deduction has been made, who is employed for any length of time in any of the three-month periods ending June 30, September 30 and December 31 each year, the employer shall deduct the tax from compensation payable to the taxpayer and file a return on a form prescribed by the Receiver of Taxes for taxes deducted for each three-month period on or before July 31 and October 31 of the tax year and January 31 of the following year.
B. 
Any employer who discontinues business or ceases operation shall, within 15 days after discontinuing business or ceasing operation, file the return hereinabove required and pay the tax to the Receiver of Taxes.
Each individual who shall have more than one occupation within the Borough 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 Receiver of Taxes, which form shall be evidence of deduction having been made and, when presented to any other employer, no deduction should be made from the employee's wages but to include that employee on his return by setting forth his name, address and the name and account number of the employer who deducted this tax.
All self-employed individuals who perform services of any type or kind, engaged in any occupation or profession within the Borough, shall be required to comply with this article and pay the tax to the Receiver of Taxes as soon afterward as they engage in an occupation and in each succeeding tax year.
All employers and self-employed individuals residing or having their place of business outside the Borough but who perform services of any type or kind or engage in any occupation or profession within the Borough do, by virtue thereof, agree to be bound by and subject themselves by the provisions, penalties and regulations promulgated under this article with the same force and effect as though they were residents of the Borough. Further, any individual engaged in an occupation within the Borough and an employee of a nonresident employer may, for the purpose of this article, be considered a self-employed person; and, in the event this tax is not paid, the Borough shall have the option of proceeding against either the employer or employee for the collection of this tax.
Any individual anticipating an annual income of less than $12,000 may file a certificate with the Borough and employer, with supporting documentation such as a W-2 form from the previous year. Once a certificate is filed, the employer shall not withhold the tax. If an employee ultimately earns more than $12,000 during the tax year, the balance due will be withheld in a lump sum. If any individual has paid or has had deducted the tax and if, at the end of the calendar year, it is determined that said individual has not earned $12,000, an application made to the Receiver of Taxes and submission of satisfactory proof thereof shall entitle said individual to the return or refund of the tax paid or deducted.
This article is enacted under the authority of Act No. 7 of 2007 and shall take effect immediately, to be in effect for the fiscal year 2008 and each fiscal year thereafter until revised, amended or revoked by action of the Kane Borough Council.