[Adopted 12-11-2007 by Ord. No. 07-13]
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:
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.
The singular and plural number as well as male and neuter
gender.
Any person, male or female, who after the 1st day of January
2008 engages in any occupation, trade or profession of any nature,
type or kind whatsoever within the corporate limits of the Middletown
Township, whether in the employ of another or self-employed.
The person designated by 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 Middletown Township,
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 Middletown.
From the effective date of this article and annually thereafter,
Middletown Township 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 Middletown Township. 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.
The use of the tax shall be restricted to include those services permitted
under state legislation. These services include emergency services,
road construction and maintenance, and homestead exemption property
tax relief. At least 25% of the tax shall be used for emergency services
funding.
Any person who derives less than $12,000 per year from such
occupations shall be exempt from the payment of the tax.
Employers are required to stop withholding the local services
tax if an employee files an upfront municipal affidavit. In order
to receive an upfront exemption, employees must file an annual upfront
municipal affidavit with the municipality and the employee's
employer. The affidavit would verify that the employee receives earned
income and net profits of less than $12,000 for the year. A copy of
the employee's last pay stubs or W-2 forms from the prior year
must be attached to the exemption affidavit.
Employers must restart withholding the local services tax from
an employee who files an exemption affidavit in the following circumstances:
Every employer within Middletown Township as well as those employers
situated outside Middletown Township but who engage in business within
the 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 the 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 taxpayer for a payroll
period is calculated by dividing 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. Employers must remit withheld
taxes to the designated tax collector 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/her by the local services
tax receiver. It is further provided that if the employer fails to
file said return and pay said tax, whether or not be 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.
Each employer shall use his employment records as of the first
day of May in determining the number of employees from whom the 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 Middletown Township 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 remit to
the local services tax receiver.
Each individual who shall have more than one occupation within
Middletown Township 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 to the employer by the local services tax receiver, which
form shall be evidence of deduction having been made and, when presented
to any other employer, shall be authority for such employer to not
deduct this tax from the employee wages but to include such employee
on his return by setting forth his name and the account number of
the employer who deducted this tax.
If a taxpayer 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:
All self-employed individuals who perform services of any type
or kind, engage in any occupation or profession within Middletown
Township shall be required to comply with this article and pay the
tax to the local services tax receiver on July 31, or as soon thereafter
as he engages in an occupation. The tax for self-employed individuals
should be prorated on a quarterly basis. Self-employed taxpayers shall
pay the tax 30 days after each quarter ends.
All employers and self-employed individuals residing or having
their place of business outside of the Middletown Township, but who
perform services of any type or kind or engage in any occupation or
profession within the Middletown 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 the Middletown Township.
Further, any individual engaged in an occupation within the Township
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 local services tax receiver 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 local services tax receiver 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 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 Bucks County as in other cases
provided.
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 give
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 above set forth, 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 this
tax, the individual liable therefor shall, in addition, be responsible
and liable for the costs of collection.
Whoever 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 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 Bucks County Prison 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 refuses to file a return required by this article.
A.
Nothing contained in this article shall be construed to empower Middletown
Township to levy and collect the tax hereby imposed on any occupation
not within the taxing power of said municipality under the Constitution
of the United States and the Constitution and 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 or 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.
