[Adopted 12-17-1998 by Ord. No. 212 (Ch.
24, Part 6, of the 1995 Code)]
This article shall be known and may be cited
as the "Lower Pottsgrove Township Local Taxpayer Bill of Rights."
This Local Taxpayer Bill of Rights applies with respect to all taxes
imposed by the Township pursuant to the Local Tax Enabling Act, all
per capita taxes; all occupation, occupation assessment or occupational
privilege taxes; and net profits and earned income taxes. It shall
apply to realty transfer taxes only as provided in § 8426
(relating to interest on overpayment) of the Pennsylvania Local Taxpayers
Bill of Rights, Act 50 of 1998.
A.
Township requests for information.
(1)
The Township, its Tax Collector, Auditor, Solicitor
or other designated representative is authorized to examine the books
and records of any taxpayer in order to verify the accuracy of any
return made or, if no return was made, to ascertain whether the tax
should be imposed and, if so, the amount of the tax due.
(2)
The Township Tax Collector is authorized to examine
any person under oath concerning any income which was or should have
been returned for taxation, to issue subpoenas and to compel the production
of books, records and papers relating to any account being examined.
(3)
The Township, its Tax Collector or other designated
representative may request information from a taxpayer concerning
the taxpayer's compliance with Township tax ordinances. Books, journals,
invoices, documents and other accounting records utilized by the taxpayer
in the ordinary course of business must be kept in a manner which
will reflect actual business operations. There must be objective criteria
in these books and records, as well as in underlying documents, such
as invoices, to support the returns filed by the taxpayer. A taxpayer
claiming an exemption or exclusion for any portion of gross receipts
or other taxes must maintain complete records which will support the
validity of such claims. Such claims will be disallowed if not sufficiently
proven by the taxpayer.
(4)
Except as otherwise provided herein, an initial inquiry
by the Township, its Tax Collector or other designee for information
regarding the taxpayer's compliance with Township tax ordinances may
include taxes required to be paid or tax returns required to be filed
no more than three years prior to the mailing date of the inquiry
notice.
(5)
However, the Township, its Tax Collector or other
designee may make a subsequent request for tax returns or supporting
information if, after the initial request, the Township determines
that the taxpayer has failed to file a return, has underreported income
or receipts, or has failed to pay a tax for one or more of the tax
periods covered by the initial request.
(6)
In the event the Township has sufficient information
to indicate that the taxpayer has failed to file a required return
or to pay a tax which was due more than three years prior to the date
of the notice, the three-year limitation shall not apply and the Township
may request information for any such tax years.
(7)
The Township may require any taxpayer to provide copies
of the taxpayer's federal income tax return. The Township shall require
individuals to provide federal tax returns only where the federal
tax information is reasonably necessary for the enforcement or collection
of an eligible tax and information is not available to the Township
from other sources or the Department of Revenue.
(8)
Any information obtained by the Township as a result
of any audit, return, report, investigation, hearing or verification
shall be confidential tax information, except as provided by law.
However, the information on any license or permit application shall
be a public record.
B.
Taxpayer response.
(1)
Thirty days to respond. When the Township makes an
initial request for information from the taxpayer, the taxpayer shall
have at least 30 calendar days from the mailing date of the request
to respond.
(2)
Extensions. Upon written application by the taxpayer
submitted to the Township (or its Auditor, Tax Collector or other
designee, if the request for information is from the Auditor, Tax
Collector or other designee) within the initial thirty-day period,
and where good cause for an extension exists, the Township shall grant
a reasonable extension of time for the taxpayer to respond.
(3)
No action by the Township within the response period.
The Township shall take no lawful action against a taxpayer for the
tax year(s) in question until the expiration of the response period.
(4)
Taxpayer records. The books, journals, invoices and
other accounting records of the taxpayer as used in its ordinary course
of business must be kept in a manner which will reflect actual business
operations of the taxpayer. The books and records of the taxpayer
must contain objective criteria to support the returns filed by the
taxpayer. A taxpayer claiming an exemption or exclusion for any portion
of gross receipts or other taxes must maintain complete records which
will support the validity of such claims. Such claims will be disallowed
if not sufficiently proven by the taxpayer.
(5)
Making taxpayer records available. The taxpayer is
required, at the taxpayer's cost, to make all records available to
the Township, its Tax Collector or other designee to support the returns
which were filed or should have been filed by the taxpayer. If the
taxpayer does not have records for the entire period requested for
review, the Township may utilize whatever information or records are
available to reconstruct, as accurately as possible, the figures that
reflect the business activity of the taxpayer for the period involved.
C.
Audit. The Township has the right to have its Tax
Collector or another designated representative audit any tax return
to verify its accuracy and to assess or reassess the amount of tax
due. In the event a taxpayer has failed to file a required return,
the Township has the right to have its Auditor examine the books and
records of the taxpayer or such other information as is available
to determine and assess the amount of tax due.
D.
Notice of basis of underpayment.
(1)
The Township will notify the taxpayer in writing of
the basis for any underpayment that the Township has determined to
exist, including:
(a)
The tax period(s) for which the underpayment
is asserted.
(b)
The amount of the underpayment detailed by tax
period.
(c)
The legal basis upon which the Township has
relied to determine that an underpayment exists.
(d)
An itemization of the revisions made by the
Township to a return or report filed by the taxpayer that results
in the determination that an underpayment exists.
(2)
Unless otherwise specified by the taxpayer, the Township
shall apply all voluntary payments of taxes first to taxes owed, then
to interest, then to penalty, and then to any other fees and charges.
E.
Abatement of certain interest and penalties.
(1)
Errors and delays. In the case of an underpayment,
where the Township or its representative has contacted the taxpayer
in writing with respect to the underpayment of tax finally determined
to be due or payable, the Township may abate all or any part of interest
for any period if the underpayment is attributable in whole or in
part to any error or delay by the Township or its designated representative
in the performance of a ministerial act, provided that no significant
aspect of the error or delay is attributable to the taxpayer. The
Township shall determine what constitutes timely performance of ministerial
acts.
(2)
Erroneous written advice by the Township. The Township
is not required by law to provide written advice to taxpayers. However,
the Township shall abate any portion of penalty or interest which
is attributable to erroneous advice furnished to the taxpayer in writing
by an officer, employee or agent of the Township acting in his or
her official capacity, in the following circumstances:
(a)
The written advice was in response to a specific
written request to the taxpayer.
(b)
The taxpayer reasonably relied upon the written
advice.
(c)
The portion of the penalty or addition to tax
or excess interest did not result from a failure by the taxpayer to
provide adequate or accurate information.
F.
Installment agreements. In order to facilitate collection,
the Township, at its discretion, may enter into written agreements
with any taxpayer, under which the taxpayer is allowed to satisfy
a tax liability in installment payments. The Township, at its election,
may modify or terminate any installment agreement where:
(1)
The taxpayer has provided inaccurate or incomplete
information.
(2)
The Township believes that collection of the tax under
the agreement is in jeopardy.
(3)
The Township finds that the financial condition of
the taxpayer has significantly changed and has given 30 days' notice
of the finding and reasons for the finding to the taxpayer.
(4)
The taxpayer fails to pay any installment at the time
due under the agreement.
(5)
The taxpayer fails to pay any other tax liability
at the time the agreement is in effect.
(6)
The taxpayer fails to provide a financial condition
update as requested by the Township.
A.
Requests for refunds. A taxpayer who believes that he, she or it has overpaid a tax to the Township may file a written request for refund or credit of the tax with the Township. The taxpayer shall simultaneously file a copy of the request with the Township Tax Collector or other designated representative which collects that tax. Upon receipt of the request for refund or credit, the Tax Collector or other designated representative shall have 30 days to investigate the request, determine whether a refund or credit is due and report such findings, in writing, to the Township and the taxpayer. If the taxpayer does not agree with such findings, within 30 days of the notice of findings the taxpayer may file a written appeal to the Township's Board of Commissioners. The taxpayer shall give a copy of the appeal to the Tax Collector or other designated representative which collects the tax at issue. The appeal procedure shall be in accordance with § 220-48 hereof.
(1)
Except as otherwise provided herein, all requests
for refunds must be made within three years of the due date for filing
the return or report, as extended, or one year after actual payment
of the tax, whichever is later.
(2)
For amounts paid as a result of a notice asserting
or informing a taxpayer of an underpayment, a written request for
refund must be filed with the Township within one year of the date
of payment.
(3)
If no report or return is required, the refund request
must be made within three years after the due date for payment of
the tax or within one year after actual payment of the tax, whichever
is later.
(4)
For purposes of this section, a tax return filed by
the taxpayer with the Township which shows an overpayment of tax shall
be deemed to be a written request for a cash refund if the taxpayer
provides all necessary documentation to support the taxpayer's right
to refund. If the taxpayer indicates on the return that the taxpayer
desires the overpayment to be applied as a credit toward other taxes,
the return showing the overpayment shall not be deemed a written request
for cash refund.
B.
Interest on overpayment. All overpayments of a tax
due to the Township, including taxes on real property, shall bear
simple interest from the date of overpayment until the date of resolution.
(1)
Interest rate. Interest on overpayments shall be allowed
and paid at the same rate as the commonwealth is required to pay pursuant
to § 806.1 of the Act of April 9, 1929, P.L. 343, No. 176,
known as the "Fiscal Code."
(2)
Exceptions. No interest shall be allowed if an overpayment
is refunded or applied against any other tax, interest or penalty
due to the Township within 75 days after the last date prescribed
for filing the report of the tax liability or within 75 days after
the date the return or report of the liability due is filed, whichever
is later.
(3)
Overpayments of interest or penalty. Overpayments
of interest or penalty shall not bear any interest.
(4)
Acceptance of refund check. Tender of a refund check
by the Township shall be deemed to be acceptance of the check by the
taxpayer for purposes of this section. The taxpayer's acceptance of
the Township's check shall not prejudice any right of the taxpayer
to claim any additional overpayment and interest thereon. "Date of
overpayment" and "date of resolution" shall be defined in the same
manner as those terms are defined in the Pennsylvania Local Taxpayers
Bill of Rights Act, Act 50 of 1998, § 8426(e).[1]
[1]
Editor's Note: See 53 Pa.C.S.A. § 8426(e).
Petitions. A taxpayer may file a petition for
review of an assessment determination or refund finding with the Board
of Commissioners. The taxpayer shall simultaneously file a copy of
the petition with the Township Tax Collector or other designated representative
which collects the tax at issue. Upon receipt of the petition, the
Tax Collector or other designated representative shall have 30 days
to investigate the petition, attempt to settle the dispute with the
taxpayer and report its findings, in writing, to the Township and
the taxpayer. If the Tax Collector or other representative and the
taxpayer have reached an agreement, such agreement shall be reduced
to writing and submitted to the Board of Commissioners for approval,
modification or disapproval at the next regularly scheduled meeting
of the Board of Commissioners in executive session. Notice of the
decision of the Board of Commissioners shall be given to the taxpayer
in writing. If no agreement is reached, the taxpayer may file a written
appeal to the Township's Board of Zoning Appeals.
