[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Editor's Note: Said ordinance was also repealed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:
The area within the corporate limits of the Borough of Kane.
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.
The twelve-month period beginning January 1 and ending December
31 in any tax year.
Indicates the singular and plural number as well as male,
female and neuter gender.
Any person, male or female, engaged in any occupation, trade
or profession within the corporation limits of the Borough.
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.
The person designated by the Borough of Kane for the collection
of the local services tax imposed by this article.
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.
