[Adopted 11-29-2007 by Ord. No. 2007-12[1]]
[1]
Editor's Note: This ordinance superseded former Art. V, Emergency and Municipal Services Tax, adopted 4-5-1967 by Ord. No. 1967-9, as amended.
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:
COLLECTOR
The person or entity appointed by the Board of Commissioners to collect the tax imposed by this article.
[Added 10-28-2010 by Ord. No. 2010-06]
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 and subsequent twelve-month periods thereafter.
HE, HIS or HIM
Includes the singular and plural number as well as male, female and neuter genders.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade or profession within the Township of Caln.
OCCUPATION
Any trade, profession, business or undertaking of any type, kind or character, including services, domestic or other, carried on or performed within the Township of Caln for which compensation is charged or received, whether by means of salary, wages, commissions or fees for services rendered.
TAX
The local services tax in the amount of $52 levied by this article.
TCC
The Tax Collection Committee established to govern and oversee the collection of earned income tax and, at the discretion of the Board of Commissioners, the local services tax pursuant to the Local Tax Enabling Act.
[Added 10-28-2010 by Ord. No. 2010-06]
TOWNSHIP OF CALN
All the area within the Township of Caln, including the Veterans Administration Hospital.
TREASURER
The Treasurer of the Township of Caln.
A. 
The Township of Caln hereby levies and imposes a local services tax on each occupation engaged in by individuals within the Township of Caln beginning with the fiscal year which commences January 1, 2008, and each fiscal year thereafter; provided, however, that any and all individuals earning less than $12,000 per year from all sources shall be exempt from payment of said local services tax. This tax is in addition to all other taxes of any kind or nature heretofore levied by the Township of Caln.
B. 
Any individual who has paid a local services tax for a calendar year may, between January 1 and April 15 of the next succeeding calendar year, file an application for a rebate, and said individual shall be entitled to a rebate, provided that an application is timely filed and provided that it is proven to the satisfaction of the Township’s Tax Collector, pursuant to rules and regulations of the Tax Collector, that the individual earned income in the calendar year for which the rebate is sought in an amount less than $12,000.
[Amended 10-28-2010 by Ord. No. 2010-06]
C. 
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Township and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the Township of less than $12,000 in the calendar year for which exemption certificate is filed. The Township shall provide a copy of the tax exemption certificate to the Tax Collector. Upon receipt of the exemption certificate and until otherwise instructed by the person or the Township, 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.
D. 
If a person claims an exemption from the local services tax for a given calendar year, upon notification to an employer by the person or by the Township that the person has received earned income and net profits from all sources within the Township equal to or in excess of $12,000 in that calendar year, or that the person is otherwise ineligible for the tax exemption for that calendar year, or upon an employer's payment to the person of earned income within the Township 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 person pursuant to the procedure specified in Subsection E below.
E. 
If a person who claimed an exemption for a given calendar year from the local services tax thereafter becomes subject to the tax for that calendar year, 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 that the person is subject to the tax, a lump sum equal to the amount of tax that was not withheld from the person due to the claim of exemption, 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 clause is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due.
F. 
Additionally, the following persons shall be exempt from the local services tax:
(1) 
Any person who has served in any war or armed conflict in which the United States of America 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 that has been declared by the Veterans' Administration or its successor to be a total, one-hundred-percent permanent disability; and
(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.
Beginning with the first day of January in each fiscal year commencing with fiscal year 2008, each occupation, as hereinbefore defined, engaged in within the Township of Caln is subject to a local services tax in the amount of $52 per annum, said tax to be paid by the individual so engaged.
[Amended 10-28-2010 by Ord. No. 2010-06]
Each employer within the Township of Caln, as well as those employers situated outside the Township of Caln but who engage in business within the Township of Caln, is hereby charged with the duty of collection from each of his employees engaged by him and the said employees performing services within Caln Township for him the said tax of $52 per annum and making a return and payment thereof to the Tax Collector. Further, each employer is hereby required to deduct this tax from each employee in his employ, whether said employee is paid by salary, wages or commission and whether all such services or only part thereof are performed within the Township of Caln. The tax shall be deducted at a maximum rate of $1 per week, with the employer being required to withhold the tax on the frequency of the employee’s payroll schedule and the forms filed and payment made to the Tax Collector on a quarterly basis.
[Amended 10-28-2010 by Ord. No. 2010-06]
Each employer shall prepare and file a return showing a computation of the tax on forms to be supplied to him by the Tax Collector. If the employer fails to file said return and pay said tax, whether or not he makes collection thereof from the salary, wages or commissions paid by him from his employees, the employer shall be responsible for the payment of the tax in full as though the tax had originally been levied against him.
[Amended 10-28-2010 by Ord. No. 2010-06]
Each employer shall use his employment records as of the first day of January in each year for determining the number of employees from whom said tax shall be deducted and paid over to the Tax Collector on or before April 30 of each year. Supplemental reports and payment of taxes collected shall be made by each employer on the following schedule:
A. 
For employees hired April 1 through June 31; pay tax and file report by July 31.
B. 
For employees hired July 1 to September 30: file report and pay tax before October 31.
C. 
For employees hired October 1 through December 31: pay tax and file report on or before January 31 of the following year.
[Amended 10-28-2010 by Ord. No. 2010-06]
Each individual who shall have more than one occupation within the Township of Caln 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 deductions on a form to be furnished to the employer by the Tax Collector, which form shall be evidence of deduction having been made and, when presented to any other employer, shall be authority for such employer to not deduct this tax from the employee’s wages but to include such employee on his return by setting forth his name, address and the name and account number of the employer who deducted this tax.
[Amended 10-28-2010 by Ord. No. 2010-06]
All self-employed individuals who perform services of any type or kind or are engaged in any occupation or profession within the Township of Caln shall be required to comply with this article and pay the tax to the Tax Collector on a quarterly basis.
All employers and self-employed individuals residing or having their place of business outside the Township of Caln but who perform services of any type or kind or engage in any occupation or profession within the Township of Caln 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 Township of Caln. Further, any individual engaged in an occupation within the Township of Caln 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 Township shall have the option of proceeding against either the employer or employee for the collection of this tax as hereinafter provided.
A. 
It shall be the duty of the Tax 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.
[Amended 10-28-2010 by Ord. No. 2010-06]
B. 
The Treasurer is hereby charged with the administration and enforcement of this article and is hereby charged and empowered 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 the payroll records of any employer subject to this article, and 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 Treasurer shall have the right of appeal to the Court of Common Pleas of Chester County as in other cases provided.
C. 
The Treasurer 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 Treasurer 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 above in § 141-48, the Township may sue for the recovery of any such tax due or unpaid under this article, together with interest and penalty.
[Amended 10-28-2010 by Ord. No. 2010-06]
B. 
If for any reason the tax is not paid when due, interest at the rate of 6% on the amount of said tax shall be calculated beginning with the due date of said tax, and a penalty of 10% shall be added to the flat rate of said tax for nonpayment thereof. Where suit is brought for the recovery of this tax, the individual liable therefor shall, in addition, be responsible and liable for the costs of collection.
A. 
Whoever makes any false or untrue statement on any return required by this article, or whoever refuses inspection of his 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, upon summary conviction before an issuing authority having jurisdiction thereof, be sentenced to pay a fine of not more than $100 for each offense and, in default of payment of said fine, be imprisoned in Chester County Prison for a period not exceeding 30 days for each offense. 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 refuses to file a return required by this article.
B. 
The continuation of a violation for each successive day shall constitute a separate offense, and the person or persons allowing or permitting the continuation of the violation may be punished as provided above for each separate offense.
The Township shall utilize the funds received from the tax imposed by this article for the following purposes only: police, fire and/or medical emergency services; road construction and/or maintenance; reduction of property taxes; and property tax relief through the implementation of a homestead and farmstead exclusion.
Nothing contained in this article shall be construed to empower the Township of Caln to levy and collect the tax hereby imposed on any occupation not within the taxing power of the Township of Caln under the Constitution of the United States and the laws of the Commonwealth of Pennsylvania.