[Ord. No. 1273, § 3, 12-14-1998]
(a)
This article shall be known and may be cited as the "Local Taxpayers
Bill of Rights." This Local Taxpayers Bill of Rights applies with
respect to all taxes imposed upon taxpayers by the Township pursuant
to the Local Tax Enabling Act, all per capita taxes; all occupation,
occupation assessment or occupational privilege taxes; gross receipts
taxes; privilege taxes; real estate transfer taxes; amusement or admission
taxes and earned income and net profit taxes.
(b)
This article shall also constitute the regulations required by Pennsylvania
Act 50 of 1998.
[Ord. No. 1273, § 3, 12-14-1998]
The following terms, when used in this article, shall have the
meaning indicated in this section except where the context clearly
indicates or requires a different meaning:
The determination by the Township of the amount of underpayment
by a taxpayer.
The amusement tax, mercantile tax, occupation privilege tax, real estate transfer tax, business privilege tax, solid waste processing and disposal tax and earned income tax referred to in this Chapter 22. Eligible tax shall also include the reference to "Township tax," "tax" and "taxes."
The Finance Director appointed under Section 606 of the Home
Rule Charter or the designated representative of the Finance Director.
Any payment of tax which is determine in the manner provided
by law not to be legally due.
An individual, partnership, association, corporation, limited
liability company, estate, trust, trustee, fiduciary or any other
entity subject to or claiming an exemption from any eligible tax or
under a duty to perform an act for itself or for another under or
pursuant to the authority of an ordinance providing for an eligible
tax.
The Township of Plymouth, Montgomery County, Pennsylvania,
a Home Rule Municipality, acting by and through its Township Council
or, in appropriate cases, acting by and through its authorized representatives.
Township shall also mean the "governing body" and the "local taxing
authority" referred to in Pennsylvania Act 50 of 1998. The term "Township"
shall include any officer, agent, agency, clerk, income tax officer,
collector, employee or other person to whom the Township has assigned
responsibility for the audit, assessment, determination or administration
of an eligible tax. The term shall not include a tax collector or
collection agency who has no authority to audit a taxpayer or determine
the amount of an eligible tax or whose only responsibility is to collect
an eligible tax on behalf of the Township.
The amount or portion of any tax determined to be legally
due in the manner provided by law for which payment or remittance
has not been made.
A payment of an eligible tax made pursuant to the free will
of the taxpayer. The term does not include a payment made as a result
of distraint or levy or pursuant to a legal proceeding in which the
Township is seeking to collect its delinquent taxes or file a claim
therefor.
[Ord. No. 1273, § 3, 12-14-1998]
(a)
Taxpayer response:
(1)
Thirty days to respond. If the Township requests information,
the taxpayer has thirty (30) days from the mailing date of the Township's
request to respond.
(2)
Extensions. The Township may grant reasonable extensions to
respond upon application in writing for good cause. The taxpayer's
written request for an extension should be received by the Finance
Director within the first thirty-day period.
(3)
No Township action within response period. The Township will
not take action against the taxpayer for a tax year in question until
the end of the response period, including extensions.
(b)
Tax years in question:
(1)
The Township's initial request is limited to taxes required
to be paid or tax returns required to be filed no more than three
(3) years prior to the mailing date of the notice.
(2)
If the Township determines that a taxpayer has failed to file
a tax return, underreported income, or failed to pay a tax for one
or more of the tax periods covered by the initial request, the Township
may make a subsequent request for a tax return or other supporting
information.
(3)
If a taxpayer has failed to file a required return or pay a
tax which was due more than three (3) years prior to the date of a
notice, then the three-year period will not apply.
(c)
Use of federal tax information. The Township may require the taxpayer
to provide copies of the taxpayer's federal income tax return if the
federal tax information is reasonably necessary for the enforcement
or collection of Township taxes and the information is not available
from other available sources or the Pennsylvania Department of Revenue.
(d)
Notice of basis of underpayment. The Township will notify the taxpayer
in writing of the basis for any underpayment that the Township has
determined to exist, including:
(1)
The tax period or periods for which the underpayment is asserted.
(2)
The amount of the underpayment detailed by tax period.
(3)
The legal basis upon which the Township has relied to determine
that an underpayment exists.
(4)
An itemization of any revisions made by the Township to a return
or report filed by the taxpayer that results in the determination
of an underpayment.
(e)
Abatement of certain interest and penalty:
(1)
Errors and delays. The Township may abate all or any part of
interest for any period if the underpayment was caused by any error
or delay by the Township, provided no significant aspect of the error
or delay can be attributed to the taxpayer.
(2)
Abatement due to erroneous written advice by the Township.
a.
The Township will abate any portion of any penalty or excess
interest attributable to erroneous written advice furnished to the
taxpayer by the Township if the written advice was reasonably relied
upon by the taxpayer, was in response to a specific written request
by the taxpayer, and the portion of penalty or additional tax or excess
interest did not result from a failure by the taxpayer to provide
adequate or accurate information.
b.
However, the Township is not required to provide written advice
to taxpayers.
(3)
Application of payments. Unless specified by the taxpayer, all
voluntary payments of eligible taxes shall be prioritized and applied,
respectively, to the tax, the interest, the penalty, and any other
fees and charges.
(f)
Books and records.
(1)
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 exemptions or exclusions
for any portion of gross receipts must maintain complete records which
will support the validity of the claim. Such claims will be disallowed
if not sufficiently proven by the taxpayer.
(2)
If records are not available for the entire period requested
for review, the Township may utilize whatever information or records
are available to reconstruct, as accurately as possible, figures that
reflect the business activity of the taxpayer for the period involved.
(3)
If records are not available to support the returns which were
filed or which should have been filed, the taxpayer will be required
to make them available to the Township at the cost of the taxpayer.
(g)
Inspection and examination. The Finance Director, or the designated
representative of the Finance Director, 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.
(h)
Audits. The Finance Director has the right to have a designated representative
of the Township audit any tax return and to verify its accuracy or
assess its efficiency, together with penalty and interest, upon the
completion of that review.
(i)
Installment agreements. The Township may enter into written agreements
with any taxpayer under which the taxpayer is allowed to satisfy a
tax liability in installment payments, if the Township determines
that the agreement will facilitate collection. An installment agreement
may be modified or terminated if the taxpayer provided inaccurate
or incomplete information, if the collection of the tax is in jeopardy,
if there is a significant change in the taxpayer's financial condition,
if the taxpayer fails to provide a financial condition update or fails
to pay an installment when due. A taxpayer may prepay in whole or
in part any eligible tax.
(j)
Confidentiality of tax information. Any information gained by the
Township as a result of any audit, return, report, investigation,
hearing or verification shall be confidential tax information except
as otherwise provided by law.
(k)
Taxes on real property. Except for the provisions pertaining to interest
on overpayments, the contents of this Local Taxpayers Bill of Rights
shall not apply to any tax on real property.
[Ord. No. 1273, § 3, 12-14-1998]
(a)
Administrative appeals. The administrative process shall consist
of the following:
(1)
Petition. Any taxpayer who contests an assessment, determination
or refund of a Township tax must request a review within ninety (90)
days of the receipt of an assessment or determination, by filing a
written petition with the Finance Director for that purpose.
a.
Timely filing of petition. A petition is timely filed if the
letter transmitting the petition is postmarked by the United States
Postal Service on or before the final day on which the petition is
required to be filed.
1.
Refund petitions shall be filed within three (3) years after
the due date for filing the tax return, as extended, or one year after
actual payment of the tax, whichever is later.
2.
Petitions for reassessment of a Township tax shall be filed
within ninety (90) days of the date of the assessment notice.
b.
Contents of petition. The petition shall contain the name, address
and federal taxpayer employer identification number or social security
number of the petitioner; shall provide in detail the nature of the
taxpayer's claim and the taxpayer's accounting and legal basis for
the claim.
c.
Township Council review. Township Council shall review the petition
in executive session.
d.
Written decision by Township Council. Township Council shall
issue a written decision within sixty (60) days of the date a complete
and accurate petition is received. Failure by the Township to act
within the sixty (60) days shall result in the petition being deemed
approved.
e.
Applicable law. Decisions by Township Council may be made according
to principles of Pennsylvania law and equity.
(2)
Judicial appeal. Any person aggrieved by a final decision of
Township Council may, within thirty (30) days after receipt of the
notice of such decision, appeal the decision to the Court of Common
Pleas of Montgomery County, Pennsylvania. No administrative process
or judicial appeal will operate to suspend the accrual of penalty
and interest from the date the tax was due to the date it is actually
paid.
(3)
Forms. The Township shall provide a form of petition which may
be obtained by a taxpayer at no cost to the taxpayer.
[Ord. No. 1273, § 3, 12-14-1998]
(a)
Refund of overpayment. A taxpayer may file a written request with
the Finance Director for a refund or credit of any eligible tax within
three (3) years of the due date for the tax return, as extended, or
one year after actual payment of the tax, whichever is later. For
amounts paid as a result of a notice of asserting or informing a taxpayer
of an underpayment, a written request for a refund shall be filed
with the Finance Director within one year of the date of the payment.
If no report is required, the refund request shall be made within
three (3) years of the due date for payment of the eligible tax or
within one year after actual payment of the eligible tax, whichever
is later. A tax return filed by the taxpayer with the Township showing
an overpayment of tax shall be considered a written request for a
cash refund unless otherwise indicated on the tax return.
(b)
Interest on overpayment. All overpayments of tax paid to the Township
shall bear simple interest from the date of overpayment until the
date of resolution at the same interest rate as the Commonwealth of
Pennsylvania is required to pay pursuant to the Pennsylvania Fiscal
Code, except:
(1)
No interest shall be paid if an overpayment is refunded or applied
against any other eligible tax, interest or penalty due the Township
within seventy-five (75) days after the due date of a tax return or
within seventy-five (75) days after the actual filing of the tax return,
whichever is later; and, no interest shall be paid on overpayments
of interest or penalty. Acceptance of a refund check by a taxpayer
shall not prejudice the taxpayer from claiming any additional overpayment
and interest thereon.
(2)
The definitions of "date of overpayment" and "date of resolution"
shall be in accordance with Pennsylvania Act 50 of 1998.
(c)
Taxpayer complaint. All taxpayer complaints shall be directed to
the Finance Director.
[Ord. No. 1273, § 3, 12-14-1998]
(a)
Legal action for recovery of unpaid taxes, penalty and interest.
The Township may bring legal action to recover taxes, penalty and
interest due as follows:
(1)
Criminal citation. The filing of a criminal citation in the
district court having jurisdiction for violation of the Township's
tax ordinance. Violations of the ordinance provide for fines of up
to one thousand dollars ($1,000.00) per day.
(2)
Municipal lien. The filing of a municipal lien for the amount
of tax due together with any interest and penalties.
(3)
Civil complaint. The filing of a civil complaint in the Court
of Common Pleas of Montgomery County for all past and current taxes
due plus penalties and interest.
(4)
Fees and costs. In all legal actions, the Township will request
court costs and attorney fees.
[Ord. No. 1273, § 3, 12-14-1998]
Any provision contained in Chapter 22, "Taxation," Article I, "In General;" Article II, "Amusement Tax;" Article III, "Mercantile Tax;" Article IV, "Occupation Privilege Tax;" Article V, "Real Estate Transfer Tax;" Article VI, "Real Estate Tax;" Article VII, "Business Privilege Tax;" Article VIII, "Solid Waste Processing and Disposal Tax;" and, Article IX, "Earned Income Tax," which is inconsistent with the provisions of this Article X, "Local Taxpayers Bill of Rights," is hereby repealed. All other provisions contained in the aforementioned articles shall remain in full force and effect.
