[Adopted 12-22-1981 by Ord. No. 81-7;
amended in its entirety 12-18-2007 by Ord. No. 2007-8]
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:
The person, public employee or private agency designated
by the political subdivision to collect and administer the tax herein
imposed.
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
Compensation as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
December 31, 1965, P.L. 1257, § 13, as amended, 53 P.S.
§ 6913, as amended.
Police, rescue, fire and ambulance services provided or funded
by the political subdivision.
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.
Indicates the singular and plural number, as well as male,
female and neuter genders.
A city, township or borough lawfully incorporated under the
laws of the Municipal Code of the Commonwealth of Pennsylvania.
The net income from the operation of a business, profession,
or other activity, as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
December 31, 1965, P.L. 1257, § 13, as amended, 53 P.S.
§ 6913, as amended.
Any trade, profession, business or undertaking of any type,
kind or character, including services, domestic or other, carried
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.
The area within the corporate limits of the Township of Falls.
Employer who employs a person in an occupation where the
person's principal employment is based.
The local services tax at the rate fixed in § 198-44 of this article.
The period from January 1 until December 31 in any year,
a calendar year.
A.
For specific revenue purposes, an annual tax is hereby
levied and assessed, commencing January 1, 2008, upon the privilege
of engaging in an occupation or profession with a primary place of
employment within Falls Township during the tax year. Each individual
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.
[Amended 1-2-2018 by Ord.
No. 2018-1]
B.
This tax may be used solely for the following purposes
as the same may be allocated by the Collector from time to time:
C.
The political subdivision shall use no less than 25%
of the funds derived from the tax for emergency services.
D.
This tax is in addition to all other taxes of any
kind or nature heretofore and hereafter levied by the political subdivision.
E.
The tax shall be no more than $52 on each individual
for each calendar year, irrespective of the number of Pennsylvania
municipalities within which an individual may be employed.
[Amended 1-2-2018 by Ord.
No. 2018-1]
A.
Exemption. Any individual whose total earned income
and net profits from all sources within the political subdivision
is less than $12,000 for any calendar year in which the tax is levied
is exempt from the payment of the tax for that calendar year. In addition,
the following individuals are exempt from payment of the tax:
(1)
Any individual 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 individual 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 disability.
(2)
Any individual 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. For the purposes of this 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 of the Pennsylvania
Air National Guard.
B.
Procedure to claim exemption.
(1)
An individual seeking to claim an exemption from the local services tax may annually file an exemption certificate with the political subdivision and with the individual's employer affirming that the individual 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 political subdivision utilizes a Collector, it shall provide a copy of the exemption certificate to that Collector. 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 political subdivision for the year prior to the fiscal year for which the employee is requesting to be exempted from the tax. Upon receipt of the exemption certificate and until otherwise instructed by the political subdivision or except as required by Subsection B(2), the employer shall not withhold the tax from the individual 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. The exemption certificate form shall be the uniform form provided by the political subdivision.
(2)
With respect to an individual who claimed an exemption for a given calendar year from the tax, upon notification to an employer by the individual or by the political subdivision that the individual has received earned income and net profits from all sources within the political subdivision equal to or in excess of $12,000 in that calendar year or that the individual is otherwise ineligible for the tax exemption for that calendar year, or upon an employer's payment to the individual of earned income within the municipality 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 individual under Subsection B(3).
(3)
If an individual who claimed an exemption for a given calendar year from the 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 individual, 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 withheld from the individual due to the exemption claimed by the individual 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 the employment of an individual subject to withholding of the tax under this subsection is subsequently severed in that calendar year, the individual shall be liable for any outstanding balance of tax due, and the political subdivision may pursue collection under this article.
C.
Refunds. The political subdivision, in consultation
with the Collector and the DCED, shall establish procedures for the
processing of refund claims for any tax paid by any individual 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. 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
political subdivision or the Collector shall determine eligibility
for exemption and provide refunds to exempt individuals.
A.
Each employer within the political subdivision, as
well as those employers situated outside the political subdivision
but who engage in business within the political subdivision, is hereby
charged with the duty of collecting the tax from each of his employees
engaged by him or performing for him within the political subdivision
and making a return and payment thereof to the Collector. Further,
each employer is hereby authorized to deduct this tax for 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 political subdivision.
B.
A person subject to the tax shall be assessed by the employer 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 rate of the 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 tax 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 Subsection D of this section. For purposes of this subsection, "combined rate" shall mean the aggregate annual rate of the tax levied by the public school district operating within the political subdivision.
C.
No person shall be subject to the payment of the local
services tax by more than one municipality during each payroll period.
D.
In the case of concurrent employment, an employer
shall refrain from withholding the 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 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. The employee's statement shall be provided
on the form approved by the DCED.
E.
The tax shall be no more than $52 on each person for
each calendar year, irrespective of the number of municipalities within
which a person may be employed. The municipality shall provide a taxpayer
a receipt of payment upon request by the taxpayer.
F.
No employer shall be held liable for failure to withhold the tax or for the payment of the withheld tax money to the political subdivision if the failure to withhold taxes 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. Further, an employer shall 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 provisions of § 198-44.1B of this article and this section and remits the amount so withheld in accordance with this article.
G.
Employers shall be required to remit the local services
taxes 30 days after the end of each quarter of a calendar year.
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 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.
In each tax year, each employer shall use his
employment records to determine the number of employees from whom
such tax shall be deducted and paid over to the Collector on or before
the 30th day following the end of each calendar quarter of each such
tax year.
Each self-employed person who performs services
of any type of kind or engages in any occupation within a primary
place of employment within the political subdivision shall be required
to comply with this article and pay the pro rata portion of the tax
due to the Collector on or before the 30th day following the end of
each quarter.
A.
The situs of the tax shall be the place of employment
on 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 that the person work in more than one municipality during
a payroll period, the priority of claim to collect the local services
tax shall be in the following order:
(1)
First, the municipality in which a person maintains
his principal office or is principally employed;
(2)
Second, the municipality in which the person resides
and works if the tax is levied by that municipality;
(3)
Third, the municipality in which a person is employed
and which imposes the tax nearest in miles to the person's home.
B.
In case of dispute, a tax receipt of the taxing authority
for that calendar year declaring that the taxpayer has made prior
payment constitutes prima facie certification of payment to all other
municipalities.
All employers and self-employed persons 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
within the municipality 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 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 in this article.
A.
The Collector shall be appointed by resolution of
the political subdivision. It shall be the duty of the Collector 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 Collector is hereby charged with the administration
and enforcement of this article and is hereby charged and empowered,
subject to political subdivision approval, 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 Collector shall have the
right to appeal consistent with the Local Taxpayers Bill of Rights
under Act 50 of 1998[1].
[1]
Editor's Note: See 53 Pa.C.S.A. § 8421
et seq.
C.
The Collector is hereby authorized to examine the
books and payroll records of any employer in order to verify the accuracy
of any return 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 Collector the means, facilities and opportunity for such examination.
A.
In the event that any tax under this article remains
due or unpaid 30 days after the due dates set forth, the Collector
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 6% on the amount of such tax shall be calculated beginning
with the due date of the tax and a penalty of 5% shall be added to
the flat rate of such tax for nonpayment thereof. Where suit is brought
for the recovery of this tax or other appropriate remedy undertaken,
the individual liable therefore shall, in addition, be responsible
and liable for the costs of collection, including attorneys' fees
and court costs.
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 custody and control setting
forth the number of employees subject to this tax who are in his employment,
or whoever fails or refuses to file any return required by this article
shall be guilty of 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
or any employer who shall have failed or who refuses to file a return
required by this article.
A.
Nothing contained in this article shall be construed
to empower the political subdivision to levy and collect the tax hereby
imposed on any occupation not within the taxing power of the political
subdivision under the Constitution of the United States and the laws
of the Commonwealth of Pennsylvania.
B.
If the tax hereby imposed under the provisions of
this article shall be held by any court of competent jurisdiction
to be in violation of the Constitution of the United States or of
the laws of the Commonwealth of Pennsylvania as to any individual,
the decision of the court shall not affect or impair the right to
impose or collect said tax or the validity of the tax so imposed on
other persons or individuals as herein provided.
Except as set forth herein, 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 the calendar year 2005 and all prior calendar years, or of an
emergency and municipal services tax, plus applicable penalties and
interest, for the calendar years 2006 and 2007, as the same exist
prior to this amendment.
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 Township of Falls.
