[1]
Editor's Note: This ordinance also repealed
former Art. I, Occupational Privilege Tax, adopted 2-4-1991 by Ord.
No. 3-1991.
This article shall be known as the "Mt. Pocono
Borough Local Services Tax Ordinance."
Unless otherwise expressly stated, the following
terms shall have, for the purpose of this article, the meaning herein
indicated:
The person appointed by the Borough Council to collect the
local services tax levied by this article and to administer the provisions
thereof.
Any corporation or joint-stock association, organized under
the laws of the United States, the Commonwealth of Pennsylvania, or
any other state, territory, or foreign country or dependency.
Any individual, partnership, association, corporation, governmental
body or unit or agency or any other entity who or that employs one
or more persons on a salary, wage, commission, or other compensation
basis.
An individual, fiduciary, partnership or other entity domiciled
outside the Borough of Mount Pocono.
Any enterprise, activity, profession, or undertaking of any
nature conducted for profit or ordinarily conducted for profit, whether
by an individual, association, or any other entity, whereby any wage,
salary, commission or other remuneration is earned.
A natural person, partnership, association, corporation or
fiduciary. Whenever used in any clause prescribing or imposing a penalty,
the term "person" as applied to associations shall mean the partners
or members thereof and as applied to corporations, the officers thereof.
An individual, partnership, association or other entity domiciled
in the Borough of Mount Pocono.
Includes salaries, wages, commissions, bonuses, incentive
payments, fees and tips that may accrue or be received by an individual
for services rendered, whether directly or through an agent and whether
in cash or in property, but shall not include periodic payments or
sick or disability benefits and those commonly recognized as old-age
benefits, retirement pay, or pensions paid to persons retired from
service after reaching a specific age or after a stated period of
employment, not public assistance or unemployment compensation payments,
nor any wages or compensation paid by the United States to any person
for active service in the Army, Navy or Air Force of the United States,
nor any bonus or additional compensation paid by the United States
or the Commonwealth of Pennsylvania or any other state for such service.
A person required hereunder to file a return on earnings
or net profits or to pay a tax thereon.
C.
Exemption. Any person 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 persons are exempt from payment of the tax:
(1)
Any person 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 person 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, 100% disability.
(2)
Any person 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 subparagraph, “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 or the Pennsylvania
Air National Guard.
D.
Procedure to claim exemption.
(1)
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the political subdivision and with the person's employer affirming that the person 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 tax collection officer, it shall provide a copy of the exemption certificate to that officer. 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 D(2), the employer shall not withhold the tax from the person 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 a person who claimed an exemption for a given calendar year from the tax, upon notification to an employer by the person or by the political subdivision that the person 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, an employer shall withhold the local services tax from the person under Subsection D(3).
(3)
If a person who claimed an exemption for a given calendar year from the tax becomes subject to the tax for the calendar year under Subsection D(2), the employer shall withhold the tax for the remainder of that calendar year. The employer shall withhold from the person, for the first payroll period after receipt of the notification under Subsection D(2), a lump sum equal to the amount of tax that was not withheld from the person due to the exemption claimed by the person 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 a person subject to withholding of the tax under this subsection is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due, and the political subdivision may pursue collection under this article.
E.
Refunds. The Borough of Mount Pocono, in consultation
with the Collector and DCED, shall establish procedures for the processing
of refund claims for any tax paid by any person 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
Borough of Mount Pocono or the Collector shall determine eligibility
for exemption and provide refunds to exempt persons.
A.
Every employer who employs one or more persons on
a salary, wage, commission or other compensation basis whose earnings
are subject to the tax imposed by this article shall deduct the amount
of tax levied by this article from the salaries, wages or compensation
paid to such employees. Such deductions shall be made on an annual
basis commencing in 2008, and thereafter on an annual basis.
B.
The tax shall be paid to the Collector on a form furnished,
which shall include the employee's name, home address and social security
number.
A.
Appointment of Collector. The Borough Council of Mount
Pocono Borough shall designate a Tax Collector by resolution, and
the compensation of such Collector shall be fixed by the Board by
resolution. The Collector shall collect and receive all taxes imposed
by this article; furnish receipts for their payment; keep records
showing amounts received by him from all taxpayers and the dates of
such receipts; and keep such other records as may be from time to
time required by the Borough Council.
B.
Powers of Collector. The Tax Collector is hereby charged
with the enforcement of the provisions of this article and is authorized
and empowered as follows:
(1)
To administer and enforce the provisions of this article
and all rules and regulations prescribed, adopted and promulgated
by the Borough Council relating to the enforcement and administration
hereof and, consistent with such rules and regulations, shall have
the power and authority to reexamine and correct any and all returns
filed hereunder, and to compute, settle and discharge all taxes hereby
levied.
(2)
The Collector or any agent or employee of the Borough,
authorized in writing by the Collector, is hereby authorized and empowered
to examine the books, papers and records of any employer or taxpayer
in order to verify the accuracy of any return made or, if no return
was made, to ascertain the tax imposed by this article. Every such
employer or taxpayer is hereby directed and required to give to the
said collector or duly authorized agent or employee of the Borough,
the means, facilities and opportunity for such examination and investigations
as are hereby authorized. The Collector is hereby authorized to examine
any person under oath concerning any income which was or should have
been returned for taxation and, to this end, may compel the production
as parties or witnesses of anyone he believed to have knowledge of
such income.
(3)
Any information obtained by the Collector or any authorized
agent or employee of the Borough as a result of any returns, investigations,
hearing or verification required or authorized by this article shall
be confidential except for official purposes and except where disclosure
of the contents thereof is required by proper judicial order or decree,
or as otherwise provided by law, and any person or agent who divulges
any information so obtained shall, upon conviction thereof, be subject
to a fine or penalty not exceeding $500 and costs for each offense
or to undergo imprisonment for not more than 30 days for the nonpayment
of such fine or penalty and costs.
The Borough Council of Mount Pocono Borough
shall be empowered from time to time to adopt by resolution additional
rules and regulations pertaining to this article.
A.
Interest and penalty for late payment. All taxes imposed
by this article remaining unpaid after they become due shall bear
interest at the rate of 10% per year and the persons upon whom said
taxes are imposed shall be further liable to a penalty of 10% of the
amount of the unpaid tax for each month or fraction of a month during
which the tax remains unpaid.
B.
Recovery. All taxes imposed by this article, together
with all interest and penalties accruing thereof, shall be recoverable
by the Borough as other like debts are recoverable.
Any person violating any provision of this article
shall, upon conviction thereof, be sentenced to pay a fine not exceeding
$600 and costs and, in default of payment thereof, shall be subject
to imprisonment for a term not to exceed 30 days. Each day that a
violation of this article continues shall constitute a separate offense.
This article and the tax herein levied shall
be effective for January 1, 2008, and on a continuing annual basis,
unless the rate of said tax is subsequently changed.
