[Adopted 9-28-1987 by Ord. No. 87-27 (Ch.
122, Part 4, of the 1974 Code); amended in its entirety 11-26-2007 by Ord. No.
2007-36]
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:
The Finance Director of the Township of Radnor, or his duly
authorized representative.
Compensation as this term is defined in § 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
December 31, 1965, P.L. 1257, § 13, as amended, 53 P.S.
§ 6913, as amended.
An individual, partnership, association, limited-liability
corporation, limited-liability partnership, 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.
Any person engaged in any occupation, trade or profession
within the corporate limits of Radnor Township.
The net income from the operation of a business, profession,
or other activity, as this term is defined in § 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
December 31, 1965, P.L. 1257, § 13, as amended, 53 P.S.
§ 6913, as amended.
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 Radnor Township for
which compensation is charged or received; whether by means of salary,
wages, commission, tips, or fees for services rendered.
The area within the corporate limits of the Township of Radnor.
Includes sole proprietor, Schedule C filer, any member of
a limited-liability company, and any general partner of a partnership,
or partner who participates in partnership activity.
The local services tax, at the rate fixed in § 260-87 of this article.
The period from January 1 until December 31 in any year;
a calendar year.
The Township of Radnor.
A.
For specific revenue purposes, an annual tax is hereby
levied and assessed, commencing January 1, 2008, upon the privilege
of engaging in an occupation with a primary place of employment within
Radnor Township during the tax year. Each natural person who exercises
such privilege for any length of time during any tax year shall pay
the tax for that year in the amount of $52, assessed on a pro-rata
basis, in accordance with the provisions of this article.
B.
This tax may be used solely for the following purposes,
as the same may be allocated by the Township from time to time:
C.
The Township shall use no less than 25% of the funds
derived from the tax for emergency services. This tax is in addition
to all other taxes of any kind or nature heretofore levied by the
Township.
D.
The tax shall be no more than $52 on each person for
each calendar year, irrespective of the number of political subdivisions
within which a person may be employed.
A.
Exemption. Any person whose total earned income and
net profits from all sources within Radnor Township 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 one-hundred-percent disability.
(2)
Any person who serves as a member of a reserve component
of the armed forces and is on, or is called to, active duty for at
least three weeks, at any time during the taxable year. For the purposes
of this subsection, "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.
B.
Procedure to claim exemption.
(1)
A person seeking to claim an exemption from the local services tax must 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 Radnor Township of less than $12,000 in the calendar year for which the exemption certificate is filed. The exemption certificate shall be the form that is provided by and available from the Township. The exemption certificate shall have attached to it a copy of all of the employee's last pay stubs or W-2 forms from employment within Radnor Township 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 Township, or except as required by Subsection B(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.
(2)
With respect to a person who claimed an exemption from the 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 Radnor 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 municipality 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 under Subsection B(3).
(3)
If a person who claimed an exemption from the tax for a given calendar year becomes subject to the tax for the calendar year under Subsection B(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 B(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 Township may pursue collection under this article.
C.
Refunds. The Director shall establish procedures for
the processing of refund claims for any tax paid by any person who
is eligible for exemption. 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
Director shall determine eligibility for exemption and provide refunds
to exempt persons. Claims for refunds by exempt persons will be denied
in cases where the employer failed to remit the withheld local services
tax to the Township.
A.
Each employer within Radnor Township, as well as those
employers situated outside Radnor Township but who engage in business
within Radnor Township, is hereby charged with the duty of collecting
the tax from each of his employees engaged by him or performing for
him within Radnor Township and making a return and payment thereof
to the Director. Further, each employer is hereby authorized to deduct
this tax for each employee in his or her employ, whether said employee
is paid by salary, wage or commission and whether or not all such
services are performed within Radnor Township.
B.
A person subject to the tax shall be assessed by the employer a pro-rata share of the tax for each payroll period in which the person is engaging in an occupation. The pro-rata share of the tax assessed on the person for a payroll-period shall be determined by dividing the rate of the tax levied for the calendar year by the number of payroll periods established by the employer for the calendar year. For purposes of determining the pro rata share, an employer shall round down the amount of the tax collected each payroll period to the nearest 1/100 of a dollar. Collection of the tax shall be made on a payroll-period basis for each payroll period in which the person is engaging in an occupation, except as provided in Subsection D of this section. For purposes of this subsection, "combined rate" shall mean the aggregate annual rate of the tax levied by Radnor Township School District and the Township.
C.
No person shall be subject to the payment of the local
services tax by more than one political subdivision during each payroll
period.
D.
In the case of concurrent employment, an employer
shall refrain from withholding the tax if the employee provides a
recent pay statement from a principal employer that includes the name
of the employer, the length of the payroll period and the amount of
the tax withheld and a statement from the employee that the pay statement
is from the employee's principal employer, and the employee will notify
other employers of a change in principal place of employment within
two weeks of its occurrence. The employee's statement shall be provided
on an application for exemption form provided by and available from
the Township.
E.
The tax shall be no more than $52 on each person for
each calendar year, irrespective of the number of political subdivisions
within which a person may be employed. The Township shall provide
a taxpayer a receipt of payment upon request by the taxpayer.
F.
No employer shall be held liable for failure to withhold the tax or for the payment of the withheld tax money to the Township if the failure to withhold taxes arises from incorrect information submitted by the employee as to the employee's place or places of employment, the employee's principal office or where the employee is principally employed. Further, an employer shall not be liable for payment of the local services tax in an amount exceeding the amount withheld by the employer if the employer complies with the provisions of § 260-88B above and remits the amount so withheld in accordance with this article.
G.
Employers must remit the local services taxes on or
before the last day of the month following the end of each quarter
of a calendar year.
Each employer shall prepare and file a return
showing a computation of the tax on forms provided by or available
from the Township. If an employer fails to file the return or pay
the tax, whether or not the employer makes collection thereof from
the salary, wages or commissions paid by him or her to an employee,
except as provided hereafter in this article, the employer shall be
responsible for the payment of the tax in full as though the tax had
been originally levied against the employer.
In each tax year, each employer shall use his
or her employment records to determine the number of employees from
whom such tax shall be deducted and paid over to the Director on or
before the last day of the month following the end of each calendar
quarter of each such tax year.
Each self-employed individual who performs services
of any type or kind or engages in any occupation or profession within
Radnor Township shall be required to comply with this article and
pay the pro-rata portion of the tax due to the Township on or before
the 30th day following the end of each quarter.
A.
The situs of the tax shall be the place of employment
on the first day the person becomes subject to the tax during each
payroll period. In the event a person is engaged in more than one
occupation, that is, concurrent employment, or an occupation which
requires the person working in more than one political subdivision
during a payroll period, the priority of claim to collect the local
services tax shall be in the following order:
(1)
First, the political subdivision in which a person
maintains his or her principal office or is principally employed;
(2)
Second, the political subdivision in which the person
resides and works if the tax is levied by that political subdivision;
(3)
Third, the political subdivision in which a person
is employed and which imposes the tax nearest in miles to the person's
home.
B.
In case of dispute, a tax receipt of the taxing authority
for that calendar year declaring that the taxpayer has made prior
payment constitutes prima facie certification of payment to all other
political subdivisions.
All employers and self-employed individuals
residing or having their places of business outside of Radnor Township
but who perform services of any type or kind or engage in any occupation
or profession within Radnor Township 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 Radnor Township. Further,
any individual engaged in an occupation within Radnor Township and
an employee of a nonresidential employer may, for the purpose of this
article, be considered a self-employed person, and in the event his
or her 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 Director 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.
B.
The Director is hereby charged with the administration
and enforcement of this article and is hereby charged and empowered,
subject to municipal approval, 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 payroll records of any employer subject to this article or believed
to be 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
Director shall have the right to appeal consistent with the Township's
Local Taxpayer Bill of Rights.
C.
The Director 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 and determine the proper amount
of tax due and, if no return was made, to ascertain the tax due. Each
employer is hereby directed and required to give the Director the
means, facilities and opportunity for such examination.
D.
In the event an employer does not have sufficient
records to support the correct calculation of the tax, or fails to
make books and records available for examination, the Director is
authorized to ascertain the tax due using estimates.
[Amended 3-18-2013 by Ord. No. 2013-03]
A.
In the event that any tax under this article remains due or unpaid
30 days after the due dates set forth in this article, the Director
may sue for the recovery of any such tax due or unpaid under this
article, together with interest and penalty.
B.
If for any reason the tax is not paid when due, interest at the rate
of 1% per month, or fraction of a month, on the amount of such tax
shall be calculated beginning with the due date of the tax, and a
penalty of 10% shall be added to the flat rate of such tax for nonpayment
thereof.
C.
In addition to all interest and penalties as are allowed by law,
there shall be added to each delinquent local services tax such costs,
attorneys' fees, charges and expenses as are incurred by the Township
in the delinquent collection process.
D.
Such fees and charges shall be reasonable, and the same are hereby established in a cost rate schedule as set forth in Subsection E of this section. The rate schedule below is hereby determined to be reasonable, fair and necessary in order to allow the Township to collect past-due sums.
E.
Any entity empowered to collect local services taxes on behalf of
the Township is directed to add such costs of collection as are incurred
as set forth in the schedule below. Such entity which incurs costs
of collection shall be entitled to retain an amount equal to the sums
as set forth in the schedule below. Any sums collected pursuant to
this section shall be in addition to any tax penalty, interest or
other costs already part of the delinquent account or assessment.
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Schedule of Collection Costs
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(1)
Taxpayer notification and administration.
(a)
Taxpayer late filing or underpayment notice: $10.
(b)
Employer late filing notice or underpayment penalty notice for
quarterly or annual earned income tax or local services tax return:
10% of the tax, penalty and interest due, minimum charge $50.
(c)
Delinquent account servicing fee, including records imaging
or other detailed recordkeeping, office staffing, computer equipment
and software, office space, telephone, printing and imaging equipment,
supplies and postage used to generate delinquent notices and to establish
monthly payment plans: 10% of tax, penalty and interest due; minimum
charge $50.
(d)
Partial payment fee, where payment received does not pay account
in full: $3.
(e)
Fee for check returned from bank (NSF, account closed, etc.):
$29.
(f)
Notice of intent to file civil suit: $50.
(3)
Litigation.
(a)
Prepare Magisterial District Court complaint: $75.
(b)
Prepare for Magisterial District Court hearing: $100.
(c)
Attend Magisterial District Court trial or hearing: $150.
(d)
Attend Constable execution sale: $350.
(e)
Prepare arbitration complaint/appeal: $150.
(f)
Attend arbitration trial: $350.
(g)
Enter default judgment: $150.
(h)
Issue Sheriff's writ of execution: $250.
(i)
Attend Sheriff's sale: $250.
(j)
Non-litigation legal work: $70 per hour.
(k)
Litigation legal work: $80 per hour.
(l)
All other clerical work not itemized above: $50 per hour.
(4)
This schedule may be amended from time to time by separate resolution
of the Township of Radnor.
Whoever makes any false or untrue statement
on any return required by this article, or whoever refuses inspection
of the books, records or accounts in his or her custody and control
setting forth the number of employees subject to this tax who are
in his or her employment, or whoever fails or refuses to file any
return required by this article or to pay any tax imposed by this
article, shall be guilty of a violation and, upon conviction thereof,
shall be sentenced to pay a fine of not more than $600 for each offense,
and costs of prosecution, and, in default of payment of such fine
and costs, to imprisonment for not more than 30 days. The action to
enforce the penalty herein prescribed may be instituted against any
person in charge of the business of any employer who shall have failed
or who refuses to file a return required by this article or any person
who has failed to pay a tax imposed by this article. Each incidence
of noncompliance shall be considered a separate offense.
A.
Nothing contained in this article shall be construed
to empower the Township to levy and collect the tax hereby imposed
on any occupation not within the taxing power of the Township under
the Constitution of the United States and the laws of the Commonwealth
of Pennsylvania.
B.
If the tax hereby imposed under the provisions of
this article shall be held by any court of competent jurisdiction
to be in violation of the Constitution of the United States or of
the laws of the Commonwealth of Pennsylvania as to any individual,
the decision of the court 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.
