[Adopted 1-19-2005 by Ord. No. 890; amended in its entirety 11-14-2007 by Ord. No. 903]
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 area within the limits and jurisdiction of the Borough of Baden, Beaver County, Pennsylvania.
- 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 and ending December 31.
- HE, HIS, or HIM
- Shall mean and 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 limits of the Borough of Baden.
- LOCAL SERVICES TAX OFFICER or OFFICER
- The person, public employee, or private agency designated by the Borough of Baden to collect and administer the local services tax hereby imposed.
- Any trade, profession, business, or undertaking of any type, kind or character, including services, domestic or other, carried on or performed within the limits of the Borough of Baden, for which compensation is charged or received by means of salary, wages, commissions or fees for services rendered.
- The local services tax in the amount of $52 levied by this article.
The Borough of Baden hereby levies and imposes on each individual engaged in any occupation within the territorial limits of the Borough of Baden during this fiscal year, and each fiscal year thereafter, a local services tax. This tax is an addition to all other taxes of any kind or nature heretofore levied by the Borough of Baden, provided that all individuals deriving less than $12,000 per year from all sources of income shall be exempt from the local services tax. In addition, disabled veterans and members of the Armed Forces Reserves on active duty during the tax year shall be exempt from the local services tax. Uniform exemption forms will be provided by the Pennsylvania Department of Economic Development and shall be made available by the Borough of Baden. The local services tax in the amount as herein levied is due in its entirety to the Borough of Baden, and $5 per payment per year shall be tendered to the Ambridge Area School District from said tax.
Beginning with the first day of January, each occupation, as hereinbefore defined, engaged in within the limits of the Borough of Baden shall be subject to a local services tax in the amount of $52 per annum, said tax to be paid by the individual so engaged.
Each employer within the Borough of Baden, as well as those employers situated outside the Borough of Baden, is hereby charged with the duty of collecting from each of his employees engaged by him, and performing for him within the Borough of Baden, the said tax of $52 per annum and making a return and payment thereof to the local services tax officer. Further, each employer is hereby authorized to deduct this tax from each employee in his employ, whether the said employee is paid by salary, wages, or commission, and whether or not part or all such services are performed within the Borough of Baden. Each employer shall deduct said tax on a pro-rata basis determined by the number of payroll periods established by an employer for a calendar year for each such employee for each period as set forth in § 168-6, unless the tax has previously been withheld from the employee in the fiscal year by the employer or the employee provides verification to the employer that the tax has previously been withheld for a like amount in the fiscal year. In the event the tax has been withheld in an amount less than the rate of tax herein levied, then, in such event, the employer shall deduct an amount equal to the difference between the amount previously withheld in such fiscal year and the tax herein levied by the Borough of Baden.
Each employer shall prepare and file a return showing a computation of the tax on forms to be supplied by the tax officer. 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 the payment of the tax in full as though the tax had originally been levied against him. The failure to receive notice shall not relieve the employer or any person subject to this article from the withholding or payment of any taxes imposed by the Borough of Baden, and such employer or taxpayer, as the case may be, shall be charged with the taxes as though he had received notice.
For each fiscal year, each employer shall use his employment records from January 1 to March 31, in conjunction with his employment records from April 1 to June 30, in conjunction with his employment records from July 1 to September 30, in conjunction with his employment records from October 1 to December 31, for determining the number and names of those employees from whom the said tax shall be deducted and paid over to the local services tax officer. Payment of said tax, when applicable, by the aggregate earnings of an employee shall be made by the employer to the local services tax officer on or before the last day of April, July, October and January for each year this tax is in force; except that, where the employer has in their possession local services taxes in excess of $500, then, in such an event, the taxes shall be forwarded to the designated officer 30 days after the end of the month the tax was withheld, and in no event beyond the designated due dates, whichever first occurs. The Borough of Baden shall provide a receipt to taxpayers upon request.
Each individual who shall have more than one occupation within the Borough of Baden shall be subject to the payment of this tax on his principal occupation, and his principal employer shall deduct this tax and deliver to him evidence of deduction on a form to be furnished by the employer and acceptable to the officer, which form shall be evidence of deduction having been made, and when presented to any other employer shall be authority for such other employer to not deduct this tax from the employee's wages. However, the name of such employee shall be included in a quarterly return of the employer to the local services tax officer by setting forth the name and address of such employee and the name, address and account number of the employer who actually deducted this tax.
All self-employed individuals who perform services of any kind or type, engaged in any occupation or profession within the Borough of Baden, shall be required to comply with this article and pay the tax to the officer on or before the designated due dates as set forth in § 168-6 herein. The failure to receive notice shall not relieve any person subject to this article from the payment of any taxes imposed by the Borough of Baden, and such taxpayer shall be charged with the taxes as though he had received notice.
All employers and self-employed individuals residing and having their place of business outside the Borough of Baden, but who perform services of any type or kind, or engage in any occupation or profession, within the Borough of Baden, are, by virtue thereof, bound by and subject to the provisions, penalties and regulations promulgated under this article with the same force and effect as though they were residents of the Borough of Baden. Further, any individual engaged in an occupation within the Borough of Baden and an employee of a nonresident employer may, for the purpose of this article, be considered a self-employed person; and in the event this tax is not paid, the Borough of Baden shall have the option of proceeding against either the employer or employee for the collection of this tax as hereinafter provided. Each such employer and individual, as the case may be, shall be subject to the provisions of this article as it applies to payment, reporting and any other applicable provision of this article.
It shall be the duty of the local services tax officer 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 local services tax officer 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 to which overpayment is claimed or found to have occurred. Any person aggrieved by any decision of the local tax officer shall have the right to appeal in accordance with the provisions of the Local Taxpayers Bill of Rights or to the court of competent jurisdiction, as in other cases provided.
The local tax officer is hereby authorized to examine the books and payroll 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 local tax officer the means, facilities and opportunity to examine such books and payroll of the employer and to ascertain the tax due, if any.
Taxpayers anticipating an annual income of less than $12,000 may file a certificate with the Borough and employer with supporting documentation; and upon filing said certificate, the employer shall not withhold the tax. If an employee ultimately earns more than $12,000, the balance due shall be withheld and paid in one lump sum. The Borough shall adopt regulations for back-end refunds.
In the event that any tax under this article remains due or unpaid for 30 days after the due date above set forth, the local services tax officer may sue for the recovery of any such tax due or unpaid under this article, together with interest and penalty.
If said tax is not paid when due, interest at the rate of 6% per annum shall be calculated, beginning with the due date of said tax, and a penalty of 10% shall be added to the flat rate of said tax for the nonpayment thereof. 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 and reasonable attorneys' fees.
Whoever makes false and untrue statements on any return required by this article, or who refuses inspection of the books, records and accounts in his custody and control setting forth the number of employees in his employment subject to this tax, or whoever fails or refuses to file any return required by this article shall, upon conviction before any District Magistrate of the Borough of Baden, be sentenced to pay a fine of not more than $500 and costs for each offense, and in default of the payment of said fine and costs, be imprisoned in the Beaver County jail for a period not exceeding 30 days for each offense. It is further provided that the 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 refused to file a return required by this article.
Provisions of this article shall be severable; and if any of its provisions shall be held invalid or unconstitutional, the decision of the court to this effect shall not affect or invalidate any of the remaining provisions. It is hereby declared to be the legislative intent of the Council of the Borough of Baden that this article would have been adopted if such illegal, invalid or unconstitutional provisions had not been included herein.
Nothing contained in this article shall be construed to empower the Borough of Baden to levy and collect the tax hereby imposed on any occupation not within the taxing power of the Borough of Baden 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 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 the right to impose or collect said tax from, or the validity of the tax so imposed on, other persons or individuals as herein provided.