[Adopted at time of adoption of Code (see Ch. 1, General
Provisions, Art. I)]
This article shall be known and may be cited as the "Local Taxpayers
Bill of Rights Act."
The following words and phrases, when used in this article,
shall have the meanings given to them in this section unless the context
clearly indicates otherwise:
The determination by a Borough of the amount of underpayment
by a taxpayer.
A board of local tax appeals established under 53 Pa.C.S.A.
§ 8430 (relating to administrative appeals).
Any of the following, including interest and penalty provided
by law, when levied by a political subdivision:
Any tax authorized or permitted under the Act of December 31,
1965 (P.L. 1257, No. 511), known as the "Local Tax Enabling Act."[1]
Any per capita tax levied under any act.
Any occupation, occupation assessment or occupation privilege
tax levied under any act.
Any tax on income levied under any act.
Any tax measured by gross receipts levied under any act.
Any tax on a privilege levied under any act.
Any tax on amusements or admissions levied under any act.
Any tax on earned income and net profits.
A city council, borough council, incorporated town council,
board of township commissioners, board of township supervisors, a
governing council of a home rule municipality or option plan municipality,
a governing council of any similar general purpose unit of government
which may hereafter be created by statute or a board of school directors
of a school district.
A political subdivision levying an eligible tax. The term
shall include any officer, agent, agency, clerk, income tax officer,
collector, employee or other person to whom the governing body 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 governing body.
Any payment of tax which is determined 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 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 act providing for an eligible tax.
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
Borough is seeking to collect its delinquent taxes or file a claim
therefor.
[1]
Editor's Note: See 53 P.S. § 6901 et seq. and 53 P.S.
§§ 6924.101 to 6924.312.
A.
Contents. The Borough shall prepare a statement which sets forth
the following in simple and nontechnical terms:
(1)
The rights of a taxpayer and the obligations of the Borough during
an audit or an administrative review of the taxpayer's books
or records.
(2)
The administration and judicial procedures by which a taxpayer may
appeal or seek review of any adverse decision of the Borough.
(3)
The procedure for filing and processing refund claim and taxpayer
complaints.
(4)
The enforcement procedures.
B.
Distribution. The Borough shall notify any taxpayer contacted regarding the assessment, audit, determination, review or collection of an eligible tax of the availability of the statement under Subsection A. The Borough shall make copies of the statement available to taxpayers upon request at no charge to the taxpayer, including mailing costs. The notification shall be stated as follows:
|
"You are entitled to receive a written explanation of your rights
with regard to the audit, appeal, enforcement, refund and collection
of local taxes by calling the Borough of Hellertown during the hours
of __________.
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A.
Minimum time period for taxpayer response.
(1)
The taxpayer shall have at least 30 calendar days from the mailing
date to respond to a request for information by the Borough. The Borough
shall grant additional reasonable extensions upon application for
good cause.
(2)
The Borough shall notify the taxpayer of the procedures to obtain
an extension in its initial request.
(3)
The Borough shall take no lawful action against a taxpayer for the
tax year in question until the expiration of the applicable response
period, including extensions.
B.
Requests for prior year returns.
(1)
Except as provided in Subsection B(2), an initial inquiry by the Borough regarding a taxpayer's compliance with any eligible tax may include taxes required to be paid or tax returns required to be filed no more than three years prior to the mailing date of the notice.
(2)
The Borough may make a subsequent request for a tax return or supporting
information if, after the initial request, the Borough determines
that the taxpayer failed to file a tax return, under-reported income
or failed to pay a tax for one or more of the tax periods covered
by the initial request.
(3)
This subsection shall not apply if the Borough has sufficient information
to indicate that the taxpayer failed to file a required return or
pay an eligible tax which was due more than three years prior to the
date of the notice.
C.
Use of federal tax information. The Borough may require a taxpayer
to provide copies of the taxpayer's federal individual income
tax return if the Borough can demonstrate that the federal tax information
is reasonably necessary for the enforcement or collection of an eligible
tax and the information is not available from other available sources
or the Department of Revenue.
A.
General rule. A taxpayer who has paid an eligible tax to the Borough
may file a written request with the Borough for refund or credit of
the eligible tax. A request for refund shall be made within three
years of the due date for filing the report, as extended, or one year
after actual payment of the eligible tax, whichever is later. If no
report is required, the request shall be made within three years after
the due date for payment of the eligible tax or within one year after
actual payment of the eligible tax, whichever is later.
(1)
For purposes of this section, a tax return filed by the taxpayer
with the Borough showing an overpayment of tax shall be deemed to
be a written request for a cash refund unless otherwise indicated
on the tax return.
(2)
A request for refund under this section shall not be considered a
petition under 53 Pa.C.S.A. § 8430 (relating to petitions).
B.
Notice of underpayment. For amounts paid as a result of a notice
asserting or informing a taxpayer of an underpayment, a written request
for refund shall be filed with the Borough within one year of the
date of the payment.
A.
General rule. All overpayments of tax due the Borough, including
taxes on real property, shall bear simple interest from the date of
overpayment until the date of resolution.
C.
Exceptions.
(1)
No interest shall be allowed if an overpayment is refunded or applied
against any other tax, interest or penalty due the Borough within
75 days after the last date prescribed for filing the report of the
tax liability or within 75 days after the date the return or report
of the liability due is filed, whichever is later.
(2)
Overpayments of interest or penalty shall not bear any interest.
D.
Acceptance of refund check. The taxpayer's acceptance of the
Borough check shall not prejudice any right of the taxpayer to claim
any additional overpayment and interest thereon. Tender of a refund
check by the Borough shall be deemed to be acceptance of the check
by the taxpayer for purposes of this section.
E.
DATE OF OVERPAYMENT
(1)
(2)
(3)
(4)
(5)
DATE OF RESOLUTION
(1)
(2)
(a)
(b)
Definitions. As used in this section, the following words and phrases
shall have the meaning given to them in this section:
The later of the date paid or the date tax is deemed to have
been overpaid as follows:
Any tax actually deducted and withheld at the source shall be
deemed to have been overpaid on the last day for filing the report
for the tax period, determined without regard to any extension of
time for filing.
Any amount overpaid as estimated tax for the tax period shall
be deemed to have been overpaid on the last day for filing the final
report for the tax period, determined without regard to any extension
of time for filing.
An overpayment made before the last day prescribed for payment
shall be deemed to have been paid on the last day.
Any amount claimed to be overpaid with respect to which a lawful
administrative review or appellate procedure is initiated shall be
deemed to have been overpaid 60 days following the date of initiation
of the review or procedure.
Any amount shown not to be due on an amended income or earned
income and net profits tax return shall be deemed to have been overpaid
60 days following the date of filing of the amended income tax return.
The date the overpayment is refunded or credited, as follows:
For a cash refund, a date preceding the date of the Borough's
refund check by not more than 30 days.
For a credit for an overpayment:
The date of the Borough's notice to the taxpayer of the
determination of the credit; or
The due date for payment of the tax against which the credit
is applied, whichever first occurs. For a cash refund of a previously
determined credit, interest shall be paid on the amount of the credit
from a date 90 days after the filing of a request to convert the credit
to a cash refund to a date preceding the date of the refund check
by not more than 30 days, whether or not the refund check is accepted
by the taxpayer after tender.
The Borough shall notify the taxpayer, in writing, of the basis
for any underpayment that the Borough has determined to exist. The
notification shall include:
A.
The tax period or periods for which the underpayment is asserted.
B.
The amount of the underpayment detailed by tax period.
C.
The legal basis upon which the Borough has relied to determine that
an underpayment exists.
D.
An itemization of the revisions made by the Borough to a return or
report filed by the taxpayer that results in the determination that
an underpayment exists.
A.
Errors and delays. In the case of any underpayment, the Borough may
abate all or any part of interest for any period for the following:
(1)
Any underpayment or tax finally determined to be due attributable
in whole or in part to any error or delay by the Borough in the performance
of a ministerial act. For purposes of this subsection, an error or
delay shall be taken into account only if no significant aspect of
the error or delay can be attributed to the taxpayer and after the
Borough has contacted the taxpayer, in writing, with respect to the
underpayment of tax finally determined to be due or payable.
(2)
Any payment of a tax to the extent that any error in delay in the
payment is attributable to an officer, employee or agent of the Borough
being erroneous or dilatory in performance of a ministerial act. The
Borough shall determine what constitutes timely performance of ministerial
acts performed under this subsection.
B.
Abatement due to erroneous written advice by the Borough.
(1)
The Borough shall abate any portion of any penalty or excess interest
attributable to erroneous advice furnished to the taxpayer in writing
by an officer, employee or agent of the Borough acting in the officer's,
employee's or agent's official capacity, if:
(2)
This subsection shall not be construed to require the Borough to
provide written advice to taxpayers.
Unless otherwise specified by the taxpayer, all voluntary payments
of an eligible tax shall be prioritized by the Borough, as follows:
A political subdivision levying an eligible tax shall establish
an administrative process to receive and make determinations on petitions
from taxpayers relating to the assessment, determination or refund
of an eligible tax. The administrative process shall consist of any
one of the following:
A.
Review and decision or hearing and decision by the Borough Tax Appeals
Board appointed by the Borough Council. The Board shall consist of
at least three but not more than seven members. Qualifications for
service on the Board and compensation, if any, of the members shall
be determined by the Borough Council. The Borough Council may enter
into agreements with other political subdivisions to establish a joint
local tax appeal board.
B.
Review and decision by the Borough Council in executive session.
C.
A hearing and decision by a hearing officer appointed by the Borough
Council. The Borough Council shall determine the qualifications and
compensation, if any, of the hearing officer.
A.
Filing. 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. Deadlines
for filing petitions are as follows:
(1)
Refund petitions shall be filed within three years after the due
date for filing the report, as extended, or one year after actual
payment of an eligible tax, whichever is later. If no report is required,
the petition shall be filed within three years after the due date
for payment of an eligible tax or within one year after actual payment,
whichever is later.
(2)
Petitions for reassessment of an eligible tax shall be filed within
90 days of the date of the assessment notice.
B.
Contents. The Borough Council shall adopt regulations specifying
the form and content of petitions, including the process and deadlines.
Practice and procedure under this section shall not be governed by 2 Pa.C.S.A. Chapter 5 Subchapter B (relating to practice and procedure of local agencies) and Chapter 7 Subchapter B (relating to judicial review of local agency action).[1] The Borough Council shall adopt regulations governing
practice and procedure under this section.
[1]
Editor's Note: See 2 Pa.C.S.A. § 551 et seq. and §
751 et seq.
Decisions on petitions submitted under this section shall be
issued within 60 days of the date a complete and accurate petition
is received. Failure to act within 60 days shall result in the petition
being deemed approved.
Any person aggrieved by a decision under this article who has
a direct interest in the decision shall have the right to appeal to
the court vested with the jurisdiction of local tax appeals by or
pursuant to 42 Pa.C.S.A. (relating to judiciary and judicial procedure).
Decisions under this article may be made according to principles
of law and equity.
A.
Authorization. The Borough may enter into written agreements with
any taxpayer under which the taxpayer is allowed to satisfy liability
for any eligible tax in installment payments if the Borough determines
that the agreement will facilitate collection.
B.
Extent to which agreements remain in effect.
(1)
Except as otherwise provided in this section, any agreement entered into by the Borough under Subsection A shall remain in effect for the term of the agreement.
(3)
If the Borough finds that the financial condition of the taxpayer
has significantly changed, the Borough may alter, modify or terminate
the agreement, but only if:
C.
Prepayment permitted. Nothing in this section shall prevent a taxpayer
from prepaying in whole or in part any eligible tax under any agreement
with the Borough.
A.
Any information gained by the Borough as a result of any audit, return,
report, investigation, hearing or verification shall be confidential
tax information. It shall be unlawful, except for official purposes
or as provided by law, for the Borough to:
(1)
Divulge or make known in any manner any confidential information
gained in any return, investigation, hearing or verification to any
person.
(2)
Permit confidential tax information or any book containing any abstract
or particulars thereof to be seen or examined by any person.
(3)
Print public or make known in any manner any confidential tax information.
B.
An offense under this section is a misdemeanor of the third degree
and, upon conviction thereof, a fine of not more than $2,500 and costs,
or a term of imprisonment for not more than one year, or both, may
be imposed. If the offender is an officer or employee of the Borough,
the officer or employee shall be dismissed from office or discharged
from employment.
Except as provided in 53 Pa.C.S.A. § 8426 (relating
to interest on overpayment) this section shall not apply to any tax
on real property.
