This article shall be known and may be cited as the "Borough
of Economy 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, and the Pennsylvania
Borough Code.
The purpose of this article 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 clearly indicates or requires a different meaning:
COLLECTOR
The person or firm, from time to time, designated by motion
of the Borough Council of the Borough of Economy to collect and administer
the provision of this article and collect the tax levied by this article.
Until changed by subsequent motion, the collector shall be the same
person or firm last designated to collect the emergency and municipal
services tax for the Borough of Economy.
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 Pt. I Subpt. 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, corporation, governmental
body, agency or other entity employing one or more persons on a salary,
wage, commission, fee or other compensation basis, including a self-employed
person.
HE, HIS or HIM
Shall include singular and plural number and male, female
and neuter gender.
INDIVIDUAL
Any person engaged in any occupation, trade or profession
within the jurisdictional limits of Borough of Economy whose total
earned income and net profits within the Borough of Economy are greater
than $12,000 per calendar year.
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 Pt. 1 Subpt. 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
instruments 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, carried
on or performed within the jurisdictional limits of the Borough of
Economy for which compensation is charged and/or received, whether
by salary, wages, commissions, fees or net profits 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 levied in this article.
YEAR
Shall mean a calendar year.
The Borough of Economy hereby levies and imposes on every individual
engaging in an occupation within the jurisdictional limits of the
Borough of Economy a tax in the amount of $52 per annum, beginning
the first day of January 2010 and continuing on a calendar basis annually
thereafter, until modified or repealed by subsequent ordinance. This
tax is in addition to all other taxes of any kind or nature heretofore
levied by Borough of Economy.
Employers are required to make and file a local services tax
quarterly return 30 days after the end of each quarter of a calendar
year. The local services tax quarterly return shall list the name,
address, social security number of the employee; the physical address
of the employee's place of employment; the number of payroll
periods for which the local services tax was withheld and the amount
of local services tax being remitted for each employee.
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 30, respectively.
All self-employed individuals and individuals whose employer
is not required to withhold local taxes (certain state and federal
agencies) will be billed quarterly for the local services tax. The
full amount of tax must be paid by the date indicated on such billing.
If such taxpayer qualifies for a low-income exemption, the taxpayer
may complete the required exemption certificate or make application
for a refund of the tax paid.
All employers and self-employed individuals residing or having
their place of business outside the Borough of Economy, but who engage
in any occupation within the Borough of Economy, 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 Borough of Economy.
Further, any individual engaged in an occupation within the Borough
of Economy 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 collector shall have the option of proceeding
against either the employer or employee for collection of this tax
as hereinafter provided.
Whoever makes any false or untrue statement on any return required
by this article, or who refuses inspection of his books, records or
accounts in his custody and control in order to determine the number
of employees subject to this tax who are in his employment, or who
fails or refuses to file any return required by this article, or fails
or refuses to pay the tax herein levied shall, upon conviction, be
sentenced to pay a fine of not more than $600 plus costs and, in default
of payment of said fine and costs, be sentenced to a term of imprisonment
not to exceed 30 days. 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.
This article shall become effective in accordance with applicable
law and with the repeal of the previous Emergency and Municipal Services
Tax Ordinances, effective January 1, 2010.