[Adopted 9-10-2009 by Ord. No. 881[1]]
[1]
Editor's Note: This ordinance also repealed former Art. III,
Occupational Privilege Tax, adopted 12-28-1970 by Ord. No. 255, as
amended.
The following words and phrases, when used in this article,
shall have the meaning ascribed to them in this section, except where
the context or language clearly indicates or requires a different
meaning:
An individual, partnership, association, corporation, governmental
body, agency or other entity employing one or more persons on a salary,
commission or other compensation basis, including a self-employed
person.
Indicates the singular and plural number as well as male,
female and neuter genders.
Any person, male or female, who after the first day of January
2009, engages in any occupation, trade or profession of any nature,
type or kind whatsoever, within the corporate limits of the Township
of Whitemarsh, whether in the employ of another or self-employed (sometimes
referred to herein as "employee").
The person designated by the Board of Supervisors for the
collection of this tax.
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 Township of Whitemarsh
for which compensation is charged or received whether by means of
salary, wages, commissions or fees for services rendered.
The local services tax in the amount of $52 levied by this
article on each individual engaged in any occupation as hereinbefore
defined within the corporate limits of the Township of Whitemarsh.
From the effective date of this article and annually thereafter,
the Township of Whitemarsh hereby levies and imposes on each person
engaged in an occupation as herein defined within its corporate limits
a local services tax. This tax is in addition to all other taxes of
any kind or nature heretofore levied by the Township of Whitemarsh.
It shall be the obligation of each such person so engaged in an occupation
to pay or cause to be paid the tax herein imposed. The adoption of
this article shall constitute notice and demand for payment of the
tax.
The amount of the local services tax shall be $52 to be paid
by each individual so engaged in an occupation as herein defined.
Any individual who derives less than $12,000 per year from any
such occupation, shall be exempt from the payment of the tax.
Each employer is required to stop withholding the local services
tax if an employee files an upfront exemption certification. In order
to receive an upfront exemption, an employee must file an annual upfront
exemption form, provided by the Pennsylvania Department of Community
and Economic Development, with the Township and the employee's employer.
The exemption certificate shall verify that the employee earned income
and net profits of less than $12,000 for the relevant tax year. A
copy of the employee's most recent pay stubs or W-2 form must be attached
to the exemption certificate.
Each employer must resume withholding the Local Services Tax
from an employee who files an exemption certificate in the following
circumstances:
Each employer within the Township of Whitemarsh, as well as
those employers situated outside the Township of Whitemarsh but who
engage in business within said Township, are hereby charged with the
duty of collecting from each of his employees engaged by him and performing
for him within the Township said tax of $52 per annum and making a
return and payment thereof to the Local Services Tax Receiver. Further,
each employee in his employ, whether said employee is paid by salary,
wages or commission and whether or not part or all such services are
performed within the Township, shall be subject to the tax. The tax
must be assessed and collected on a pro-rata basis, determined by
the number of payroll periods established by an employer for the calendar
year. The pro-rata share of the tax assessed on each employee for
a payroll period is calculated by dividing the combined rate of the
local services tax by the number of payroll periods established by
the employer. When calculating the pro-rata share, employers are required
to round down to the nearest 1/100 of a dollar. Each employer must
remit withheld taxes to the designated Local Services Tax Receiver
30 days after the end of each calendar quarter.
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to him by the Local Services Tax
Receiver. Each employer, in filing the 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. If the employer fails
to file said return and pay said tax, whether or not said employer
makes collection thereof from the salary, wages or commissions paid
by him to an employee, the employer shall be responsible for the payment
of the tax in full without deducting a commission and as though the
tax had originally been levied against him.
Each employer shall use his employment records as of the first
day of May in determining the number of employees from whom said local
services tax shall be deducted and paid over to the local services
tax receiver, said payment to be made on or before July 31. Each employer
who engages the services of any individual in an occupation to be
performed in the Township of Whitemarsh on or after the first day
of May shall require said employee to furnish to him any certificate
of payment from the local services tax receiver showing that the local
services tax has theretofore been paid. In the event that such employee
has not previously paid his local services tax, the employer shall
deduct same within 30 days after the employee is hired and shall remit
such tax to the Local Services Tax Receiver.
Each individual who shall have more than one occupation within
the Township of Whitemarsh shall be subject to the payment of the
local services tax on his principal occupation, and his principal
employer shall deduct this tax and deliver to the employee evidence
of deduction on a form to be furnished to the employer by the Local
Services Tax Receiver. Said form shall be evidence of deduction having
been made and, when presented to any other employer, shall be authority
for such employer to refrain from deducting the local services tax
from the employee's wages, but such employer shall include such employee
on his return by setting forth the employee's name and the account
number of the employer who deducted the tax from said employee.
If an individual has two or more jobs in different political
subdivisions during a payroll period, the priority claim to collect
the local services tax is as follows:
A.
The political subdivision where the individual maintains his/her
principal office or is principally employed;
B.
The political subdivision where the individual resides and works;
and
C.
The political subdivision where the individual is employed that is
nearest in miles to the individual's residence.
All self-employed individuals who perform services of any type
or kind or engage in any occupation or profession within the Township
of Whitemarsh shall be required to comply with this article and pay
the tax to the Local Services Tax Receiver on or before July 31 or
as soon thereafter as he engages in any such occupation or profession
within the Township. The tax for self-employed individuals shall be
pro-rated on a quarterly basis. Self-employed individuals shall pay
the tax 30 days after the end of each quarter.
All employers and self-employed individuals residing or having
their place of business outside of the Township of Whitemarsh, but
who perform services of any type or kind or engage in any occupation
or profession within the Township of Whitemarsh, 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 Whitemarsh.
Further, any individual engaged in an occupation within the Township
of Whitemarsh who is an employee of a nonresident employer may, for
the purpose of this article, be considered a self-employed individual
and, in the event the local services tax is not paid by such individual,
the Local Services Tax Receiver shall have the option of proceeding
against either the employer or such individual for the collection
of the tax as hereinafter provided.
A.
It shall be the duty of the Local Services Tax Receiver to accept
and receive payments of the local services tax and to keep a record
thereof showing the amount received by him from each employer or self-employed
individual, together with the date the tax was received.
B.
The Local Services Tax Receiver 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 Local Services Tax Receiver shall have the right to
appeal to the Court of Common Pleas of Montgomery County.
C.
The Local Services Tax Receiver 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 afford
the Local Services Tax Receiver 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 date set forth herein, the Local Services Tax
Receiver 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 6% on the amount of said tax, calculated beginning with the due
date of said tax and penalty beginning with the due date of said tax,
and a penalty of 5% shall be added to the flat rate of said tax for
nonpayment thereof. Where suit is brought for the recovery of the
tax, the individual liable therefor shall, in addition, be responsible
and liable for the costs of collection.
Any employer 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 who
shall fail to pay the tax due shall, upon conviction before any court
of competent jurisdiction, be sentenced to pay a fine of not less
than $300 and not more than $1,000 for each offense and, in default
of payment of said fine and costs, be imprisoned in Montgomery County
Prison for a period not exceeding 30 days for each offense. It is
further provided that any 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. No penalty as provided herein shall be imposed if
such penalty is inconsistent with the provisions of Act 11, as amended.
