[Adopted 11-27-2007 by Ord. No. 2007-5]
Editor's Note: This ordinance superseded former Art. VIII, Emergency and Municipal Services Tax, adopted 12-31-2004 by Ord. No. 2004-8.
This article shall be known and may be cited as the “Millersville Borough Local Services Tax Ordinance.” This article is enacted under the authority of the Local Tax Enabling Act, 53 P.S. § 6901 et seq., and continues and redesignates the emergency and municipal services tax as the local services tax pursuant to Act No. 222 of 2004 and Act No. 7 of 2007.
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:
- BOROUGH OF MILLERSVILLE or BOROUGH
- The area within the corporate limits of the Borough of Millersville.
- The person or agency appointed from time to time by the Millersville Borough Council to assess and collect the tax imposed under and to administer the provisions of this article.
- 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, 2008, and ending December 31, 2008, and each 12 months thereafter.
- HE, HIS, or HIM
- Indicate 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 corporate limits of the Borough of Millersville.
- LOCAL TAX ENABLING ACT
- The Act of December 31, 1965, P.L. 1257, No. 511, as amended and as may be amended in the future, 53 P.S. § 6901 et seq.
- 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 Borough of Millersville for which compensation is charged or received, whether by means of salary, wages, commissions or fees for services rendered. An occupation also includes all earned income and all net profits, as those terms are defined in the Local Tax Enabling Act, from all sources within the Borough.
- The local services tax in the amount of $52 per annum levied by this article, which was previously referred to in this article as an occupational privilege tax and as an emergency and municipal services tax.
Beginning January 1, 2008, the Borough of Millersville hereby levies and imposes on each occupation engaged in by individuals within its corporate limits during the fiscal year of 2008 and each year fiscal year thereafter an emergency and municipal services tax in the amount of $52 per annum, said tax to be paid by the individuals so engaged; provided; however, that all persons deriving less than $12,000 per year from such occupation and all other persons whom the Local Tax Enabling Act exempts from paying a local services tax shall be exempted from the Millersville Borough local services tax. This tax is in addition to all other taxes of any kind or nature heretofore levied by the Borough, and this tax shall continue in force on a calendar-year basis, without annual reenactment, unless the rate of the tax is subsequently changed or this article is repealed. An individual may obtain a prospective exemption by filing an exemption certificate, on a form provided by the collector, with the collector and the individual's employer.
Each employer who engages in business within the Borough of Millersville is hereby charged with the duty of collecting from each of his employees engaged by him and performing for him within the Borough of Millersville the said tax of $52 per annum and making a return and payment thereof to the collector. Notwithstanding the foregoing, no employer shall have an obligation to collect the local services tax from an employee who presents such employer with an exemption certificate meeting all requirements of the Local Tax Enabling Act, unless such person who has presented the exemption certificate earns in excess of $12,000 in a calendar year. If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the local services tax for such calendar year, the employer shall withhold the tax in accordance with the requirements of the Local Tax Enabling Act. If a person who is subject to the local services tax ceases employment, such person shall make payment to the Borough of the portion of the local services tax which the employer did not withhold within 30 days after such person ceases to be employed by such employer.
Each employer is hereby authorized to deduct the local services tax from each employee in his employ, whether said employee is paid by salary, wages or commission and whether or not part or all of such services are performed within the Borough.
Local services taxes deducted from wages by an employer shall at all times be and remain the property of this Borough and shall constitute a trust fund in the employer's hands until remitted to the collector. Deduction of taxes from wages shall, as between the employee and the Borough, constitute payment of the tax by the employee, regardless of any insolvency or failure to remit on the employer's part.
Each employer shall prepare and file a return showing a computation of the tax on forms to be supplied by the collector.
Each employer, in filing this return and making payment of the tax withheld from his employees, shall be entitled to retain a commission calculated at the rate of 2% of the gross tax due and payable, provided that such tax is collected and paid over by the employer on or before the dates hereinafter set forth. It is further provided that, 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 to said employee, the employer shall be responsible for payment of the tax in full without deducting a commission and as though the tax had originally been levied against him.
Each employer shall remit the local services tax withheld from employees within 30 days after the end of each quarter of a calendar year. If the Local Tax Enabling Act is amended to require a different schedule of remitting taxes withheld from employees, compliance with the Local Tax Enabling Act shall be considered compliance with this section.
Each individual who shall have more than one occupation shall be subject to the payment of the local services tax in accordance with the provisions of the Local Tax Enabling Act governing payment of taxes by a person who has more than one employer.
All self-employed individuals who perform services of any type or kind or engage in any occupation or profession within the Borough shall be required to comply with this article on June 15 of the fiscal year or as soon thereafter as they engage in an occupation and earn $12,000.
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.
The collector 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, 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 to the Court of Common Pleas of Lancaster County as in other cases provided.
In the event that any tax under this article remains due or unpaid 30 days after the due dates above set forth, the Borough may sue for the recovery of any such tax due or unpaid under this article, together with interest and penalty.
If, for any reason, the tax is not paid when due, interest at the rate of 6% per annum on the amount of said tax shall be calculated beginning with the due date of said tax, and an additional penalty of 1/2% of the amount of the unpaid tax shall be added and collected for each month or fraction thereof during which the tax remains unpaid. 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, including attorneys' fees.
The collector or his duly authorized representative or agent 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 or his duly authorized representative or agent the means, facilities and opportunity for such examinations.
The Borough Manager is hereby authorized to promulgate regulations for the processing of refund claims and all other matters necessary for the administration of the Local Services Tax, including but not limited to regulations governing all matters for which the Local Tax Enabling Act requires the adoption of regulations.
The Borough shall use all revenue generated by the local services tax for purposes authorized in the Local Tax Enabling Act.
Any person who 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 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, or whoever fails to pay local services taxes payable by such person commits a violation of this article. If the Borough Council or the collector determines that a person has committed or permitted the commission of a violation of this article, the Borough may institute summary criminal proceedings and/or may seek equitable relief. In the event that summary criminal proceedings are instituted, the fine for the first offense shall be not less than $100 and not more than $600. The fine for a second offense shall not be less than $300 and not more than $600. The fine for a third or greater offense shall not be less than $500 and not more than $600. Each day or portion thereof on which a violation exists shall be considered a separate violation of this article Each section of this article which is violated shall be considered a separate violation. The amount of any fine imposed by a Magisterial District Judge or a court shall be in addition to any other fine which may be imposed under any other provisions of the Code of the Borough or under any statute. In default of payment of any fine, such person shall be liable to imprisonment for not more than 30 days. The action to enforce the article may be instituted against any person in charge of the business of any employer who shall have failed or refused to file a return required by this article.
Nothing contained in this article shall be construed to empower the Borough to levy and collect the tax hereby imposed on any occupation not within the taxing power of the Borough under the Constitution of the United States and the laws of the Commonwealth of Pennsylvania.
If the tax hereby imposed under the provisions of this article shall be held to be in violation of the Constitution of the United States or of the laws of the Commonwealth of Pennsylvania as to any individual, such decision 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.
It is the intent of this article that the entire burden of the tax imposed on an occupation by the Borough and the Penn Manor School District (if the school district shall impose such tax) shall not exceed the limitations prescribed in Sections 2 and 8 of the Local Tax Enabling Act, 53 P.S. §§ 6902 and 6908, and therefore the school district (if the school district shall impose such tax) shall be entitled to its share of the tax in accordance with the provisions of said Sections 2 and 8, Act 222 of 2004, and Act 7 of 2007.