[Ord. 2007-04, 11/8/2007]
This Part shall be known and may be cited as the "Local Taxpayers
Bill of Rights."
[Ord. 2007-04, 11/8/2007]
The following words and phrases, when used in this Part, shall
have the meanings given to them in this section, unless the context
clearly indicates otherwise:
ASSESSMENT
The determination by the Township of the amount of underpayment
by a taxpayer.
BOARD
A board of local tax appeals established under 53 Pa.C.S.A.
§ 8430 (relating to administrative appeals).
ELIGIBLE TAX
Any of the following, including interest and penalty provided
by law, when levied by a political subdivision:
A.
Any tax authorized or permitted under the Act of December 31,
1965 (P.L. 1257, No. 511, known as the "Local Tax Enabling Act").
B.
Any per capita tax levied under any act.
C.
Any occupation, occupation assessment or occupation privilege
tax levied under any act.
D.
Any tax on income levied under any act.
E.
Any tax measured by gross receipts levied under any act.
F.
Any tax on a privilege levied under any act.
G.
Any tax on amusements or admissions levied under any act.
H.
Any tax on earned income and net profits.
GOVERNING BODY
The Township Board of Supervisors of the Township of Allen,
Northampton County, Pennsylvania.
OVERPAYMENT
Any payment of tax which is determined in the manner provided
by law not to be legally due.
TAXPAYER
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 or pursuant to
the authority of an act providing for an eligible tax.
UNDERPAYMENT
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.
VOLUNTARY PAYMENT
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
Township is seeking to collect its delinquent taxes or file a claim
therefor.
[Ord. 2007-04, 11/8/2007]
1. Contents. The Township shall prepare a statement which sets forth
the following in simple and nontechnical terms:
A. The rights of a taxpayer and the obligation of the Township during
an audit or an administrative review of the taxpayer's books
or records.
B. The administration and judicial procedures by which a taxpayer may
appeal or seek review of any adverse decision of the Township.
C. The procedure for filing and processing refund claim and taxpayer
complaints.
D. The enforcement procedures.
2. Distribution. The Township 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
1. The Township 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:
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"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 Township of Allen at
(610) 262-7012 during normal business hours."
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[Ord. 2007-04, 11/8/2007]
1. Minimum Time Period for Taxpayer Response.
A. The taxpayer shall have at least 30 calendar days from the mailing
date to respond to request for information by the Township. The Township
shall grant additional reasonable extensions upon application for
good cause.
B. The Township shall notify the taxpayer of the procedures to obtain
an extension in its initial request.
C. The Township shall take no lawful action against a taxpayer for the
tax year in question until the expiration of the applicable response
period, including extensions.
2. Requests for Prior Year Returns.
A. Except as provided in Subsection
2B, an initial inquiry by the Township 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.
B. The Township may make a subsequent request for a tax return or supporting
information if, after the initial request, the Township determines
that the taxpayer failed to file a tax return, underreported income
or failed to pay a tax for one or more of the tax periods covered
by the initial request.
C. This subsection shall apply if the Township 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.
3. Use of Federal Tax Information. The Township may require a taxpayer
to provide copies of the taxpayer's federal individual income
tax return if the Township 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.
[Ord. 2007-04, 11/8/2007]
1. General Rule. A taxpayer who has paid an eligible tax to the Township
may file a written request with the Township for refund or credit
of the eligible tax. A request for refund shall be made within three
years of the 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.
A. For purposes of this section, a tax return filed by the taxpayer
with the Township showing an overpayment of tax shall be deemed to
be a written request for a cash refund unless otherwise indicated
on the tax return.
B. A request for refund under this section shall not be considered a
petition under § 53 Pa.C.S.A. § 8340 (relating
to petitions).
2. 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 Township within one year of the
date of the payment.
[Ord. 2007-04, 11/8/2007]
1. General Rule. All overpayments of tax due the Township, including
taxes on real property, shall bear simple interest from the date of
overpayment until the date of resolution.
2. Interest Rate. Interest on overpayments shall be allowed and paid
at the same rate as the commonwealth is required to pay pursuant to
Section 806.1 of the Act of April 9, 1929 (P.L. 343, No. 176), known
as the "Fiscal Code."
3. Exceptions.
A. No interest shall be allowed if an overpayment is refunded or applied
against any other tax, interest or penalty due the Township 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.
B. Overpayments of interest or penalty shall not bear any interest.
4. Acceptance of Refund Check. The taxpayer's acceptance of the
Township check shall not prejudice any right of the taxpayer to claim
any additional overpayment and interest thereon. Tender of a refund
check by the Township shall be deemed to be acceptance of the check
by the taxpayer for purposes of this section.
5. Definitions. As used in this section, the following words and phrases
shall have the meanings given to them in this section:
DATE OF OVERPAYMENT
The later of the date paid or the date tax is deemed to have
been overpaid as follows:
A.
Any tax actually deducted and withheld at the source shall be
deemed to have been overpaid on the last day of filing the report
for the tax period, determined without regard to any extension of
time for filing.
B.
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.
C.
An overpayment made before the last day prescribed for payment
shall be deemed to have been paid on the last day.
D.
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.
E.
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.
DATE OF RESOLUTION
The date the overpayment is refunded or credited as follows:
A.
For a cash refund, a date preceding the date of the Township's
refund check by not more than 30 days.
B.
For a credit for an overpayment.
(1)
The date of the Township's notice to the taxpayer of the
determination of the credit; or
(2)
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.
[Ord. 2007-04, 11/8/2007]
The Township shall notify the taxpayer, in writing, of the basis
for any underpayment that the Township 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 Township has relied to determine that
an underpayment exists.
D. An itemization of the revisions made by the Township to a return
or report filed by the taxpayer that results in the determination
that an underpayment exists.
[Ord. 2007-04, 11/8/2007]
1. Errors and Delays. In the case of any underpayment, the Township
may abate all or any part of interest for any period for the following:
A. Any underpayment or tax finally determined to be due attributable
in whole or in part to any error or delay by the Township 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
Township has contacted the taxpayer, in writing, with respect to the
underpayment of tax finally determined to be due or payable.
B. 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 Township
being erroneous or dilatory in performance of a ministerial act. The
Township shall determine what constitutes timely performance of ministerial
acts performed under this subsection.
2. Abatement Due to Erroneous Written Advice by the Borough.
A. The Township 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 Township acting in the officer's,
employee's or agent's official capacity if:
(1)
The written advice was reasonably relied upon by the taxpayer
and was in response to a specific written request of the taxpayer;
and
(2)
The portion of the penalty or addition to tax or excess interest
did not result from a failure by the taxpayer to provide adequate
or accurate information.
B. This subsection shall not be construed to require the Township to
provide written advice to taxpayers.
[Ord. 2007-04, 11/8/2007]
Unless otherwise specified by the taxpayer, all voluntary payments
of an eligible tax shall be prioritized by the Township as follows:
D. Any other fees or charges.
[Ord. 2007-04, 11/8/2007]
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 Township Tax Appeals
Board appointed by the Township Board of Supervisors. The Board shall
consist of at least three but not more than seven members. Qualifications
for service to the Board and compensation, if any, of the members
shall be determined by the Township Board of Supervisors. The Township
Board of Supervisors may enter into agreements with other political
subdivisions to establish a joint local tax appeal board.
B. Review and decision by the Township Board of Supervisors in executive
session.
C. A hearing and decision by a hearing officer appointed by the Township
Board of Supervisors. The Township Board of Supervisors shall determine
the qualifications and compensation, if any, of the hearing officer.
D. An administrative review or appeal process existing on the effective date of this Part that is substantially similar to the procedures in Subsection
A,
B or
C.
[Ord. 2007-04, 11/8/2007]
1. 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:
A. 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.
B. Petitions for reassessment of an eligible tax shall be filed within
90 days of the date of the assessment notice.
2. Contents. The Township Board of Supervisors shall adopt regulations
specifying the form and content of petitions, including the process
and deadlines.
[Ord. 2007-04, 11/8/2007]
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). The Township Board of Supervisors shall adopt regulations governing practice and procedure under this section.
[Ord. 2007-04, 11/8/2007]
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.
[Ord. 2007-04, 11/8/2007]
Any person aggrieved by a decision under this Part 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).
[Ord. 2007-04, 11/8/2007]
Decisions under this Part may be made according to principles
of law and equity.
[Ord. 2007-04, 11/8/2007]
1. Authorization. The Township 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 Township determines
that the agreement will facilitate collection.
2. Extent to Which Agreements Remain in Effect.
A. Except as otherwise provided in this section, any agreement entered into by the Township under Subsection
1 shall remain in effect for the term of the agreement.
B. The Township may terminate any prior agreement entered into under Subsection
1 if:
(1)
Information which the taxpayer provided to the Township prior
to the date of the agreement was inaccurate or incomplete; or
(2)
The Township believes that collection of any eligible tax under
the agreement is in jeopardy.
C. If the Township finds that the financial condition of the taxpayer
has significantly changed, the Township may alter, modify or terminate
the agreement, but only if:
(1)
Notice of the Township's finding is provided to the taxpayer
not later than 30 days prior to the date of such action; and
(2)
The notice contains the reasons why the Township believes a
significant change has occurred.
D. The Township may alter, modify or terminate an agreement entered into by the Township under Subsection
1 if the taxpayer fails to do any of the following:
(1)
Pay any installment at the time the installment is due under
such agreement.
(2)
Pay any other tax liability at the time liability is due.
(3)
Provide a financial condition update as requested by the Township.
3. 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 Township.
[Ord. 2007-04, 11/8/2007]
1. Any information gained by the Township 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 Township to:
A. Divulge or make known in any manner any confidential information
gained in any return, investigation, hearing or verification to any
person.
B. Permit confidential tax information or any book containing any abstract
or particulars thereof to be seen or examined by any person.
C. Print public or make known in any manner any confidential tax information.
2. 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 cost,
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 Township,
the officer or employee shall be dismissed from office or discharged
from employment.
[Ord. 2007-04, 11/8/2007]
Except as provided in §
24-506 (Interest on Overpayment), this Part shall not apply to any tax on real property.