[Ord. 1982-17, 11/15/1982, § 1; as amended by Ord. 2004-12, 12/20/2004, § 1; by Ord. 2005-15, 12/19/2005, § 1; and by Ord. 2007-14, 12/17/2007]
A local services tax at the flat rate of $52 per annum is hereby levied, assessed and imposed for and during the fiscal year beginning January 1, 2008, and ending December 31, 2008, and each year thereafter, upon each person gainfully employed within the Borough of Doylestown, Bucks County, Pennsylvania.
[Ord. 1982-17, 11/15/1982, § 2; as amended by Ord. 2004-12, 12/20/2004, § 1; and by Ord. 2007-14, 12/17/2007]
The following words or phrases when used in this Part 3 shall have the meanings ascribed to them in this section except where the context clearly indicates a contrary meaning:
- Any person who engages in any occupation within the corporate limits of the Borough of Doylestown, whether in the employ of another or self-employed.
- Any individual, partnership, corporation or other legal entity, including a governmental body, employing one or more persons within the Borough of Doylestown on a salary, commission or other compensation basis including a self-employed person.
- GAINFULLY EMPLOYED
- Engaging in an occupation for a wage, salary or other compensation on either a part-time or a full-time basis. "Housewives" and "homemakers," as such, shall not be considered to be in gainful employment.
- 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 Borough of Doylestown for which compensation is charged or received, whether by means of salary, wages, commissions or fees for services rendered.
- Any individual human being who has attained the age of 18 years on or after the effective date of this Part 3.
- The local services tax levied by this Part 3.
- TAX RECEIVER
- The person or entity designated by Borough Council from time to time, by resolution, to collect the local services tax.
[Ord. 1982-17, 11/15/1982, § 3; as amended by Ord. 2007-14, 12/17/2007]
The tax hereby imposed is levied upon each person who exercises the privilege of engaging in gainful employment within the Borough of Doylestown for any length of time during any year, and such person shall be assessed a pro rata share of the said tax for each payroll period in which the person is engaging in such gainful employment. The pro rata share of the tax assessed on such person for a payroll period shall be determined by dividing the total tax hereby imposed for the calendar year by the number of payroll periods established by the employer for such calendar year. This tax is in addition to all other taxes of any kind or nature levied by the Borough of Doylestown.
[Ord. 1982-17, 11/15/1982, § 4; as amended by Ord. 1984-17, 10/15/1984, § 1; by Ord. 2004-12, 12/20/2004, § 3; by Ord. 2005-15, 12/19/2005, §§ 2, 3; and by Ord. 2007-14, 12/17/2007]
The tax hereby imposed shall be paid to the Tax Receiver of the Borough of Doylestown.
Each employer, in accordance with the provisions and requirements of the Local Tax Enabling Act (53 P.S. § 6901, et seq.), is hereby charged with the duty of collecting from each of its employees engaged by such employer and performing services for such employer within the Borough of Doylestown, the pro rata share of the tax assessed on such employee, on a payroll period basis, for each payroll period in which such person is engaging in such gainful employment, and making a return and payment thereof to the Tax Receiver. For purposes of determining the pro rata share, an employer shall round down the amount of the tax collected each payroll period to the nearest one-hundredth of a dollar. Each employer is hereby authorized to deduct this tax from each employee whether said employee is paid by salary, wages, commissions, or otherwise and regardless of whether part or all of such services are performed within the Borough of Doylestown.
Each employer shall prepare and file a return showing the computation of the tax on forms to be supplied by the Tax Receiver and shall remit all taxes deducted and collected from his employees pursuant to this Part 3 within 30 days after the end of each quarter of a calendar year. Each employer in filing this return and making payment of the tax withheld from his employees shall be entitled to retain a commission of 2% of the gross tax due, provided that such tax is collected and paid over by the employer on or before the due date. It is hereby further provided that if the employer fails to file said return and/or remit said tax on or before the due date, whether or not the employer makes collection from his employees, the employer shall be liable and responsible for the payment of the tax and penalty in full without deducting a commission as though the tax had originally been levied against the employer.
Each employer shall keep and use its employment records to determine the identity and number of employees from whom the tax shall be deducted and the return filed. The return and the tax due thereon shall be made and paid over to the Tax Receiver when due. The Tax Receiver shall provide a taxpayer a receipt of payment upon request by the taxpayer.
If the tax is not paid by the due date, a penalty of 10% of the amount of the tax together with interest computed at 6% per annum until paid shall be added to the tax and collected by the Tax Receiver.
The following persons shall be exempt from payment of the local services tax levied, assessed and imposed pursuant to this Part 3:
Any person who served in any war or armed conflict in which the United States was engaged and is honorably discharged and is honorably discharged or released under honorable circumstances from active service if, as a result of military service, the person is blind, paraplegic or a double or quadruple amputee or has a service-connected disability declared by the United States Veterans' Administration or its successor to be a total 100% permanent disability.
Any person who serves as a member of a reserve component of the armed forces and is called to active duty at any time during the taxable year. For purposes of this subsection, "reserve component of the armed forces" shall mean the United States Army Reserve, United States Navy Reserve, United States Marine Corps Reserve, United States Coast Guard Reserve, United States Air Force Reserve, the Pennsylvania Army National Guard or the Pennsylvania Air National Guard.
Any person whose total earned income and net profits from all sources within the Borough of Doylestown is less than $12,000 for the calendar year in which the local services tax imposed pursuant to this Part 3 is levied.
A person seeking to claim an exemption from the local services tax imposed hereunder may annually file an exemption certificate with the Tax Receiver and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the political subdivision of less than $12,000 in the calendar year for which the exemption certificate is filed. The exemption certificate shall have attached to it a copy of all of the employee's last pay stubs or W-2 forms from employment within the Borough of Doylestown for the year prior to the fiscal year for which the employee is requesting to be exempted from the tax imposed hereby. Upon receipt of the exemption certificate and until otherwise instructed by the Tax Receiver or except as required by subparagraph (2) below, the employer shall not withhold the tax from the person during the calendar year or the remainder of the calendar year for which the exemption certificate applies. Employers shall insure that the exemption certificate forms (which shall be uniform exemption certificate forms developed and produced by the Department of Community and Economic Development) are readily available to employees at all times and they shall furnish each new employee with such form at the time of hiring.
With respect to a person who claimed an exemption for a given calendar year from the local services tax imposed hereby, upon notification to an employer by the person or by the Tax Receiver that the person has received earned income and net profits from all sources within the Borough of Doylestown equal to or in excess of $12,000 in that calendar year or that the person is otherwise ineligible for the tax exemption for that calendar year, or upon an employer's payment to the person of earned income within the Borough of Doylestown in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the local services tax as provided for in subsection (3) below.
If a person who claimed an exemption for a given calendar year from the tax imposed hereby becomes subject to the tax for that calendar year pursuant to subparagraph (2) above, the employer shall withhold the tax for the remainder of that calendar year. The employer shall also withhold from the person, for the first payroll period after receipt of the notification under subparagraph (2) above, a lump sum equal to the amount of tax that was not withheld from the person due to the exemption claimed by the person pursuant to the provisions of this Part 3, plus the per payroll amount due for that first payroll period. The amount of tax withheld per payroll period for the remaining payroll periods in that calendar year shall be the same amount withheld for other employees. In the event the employment of a person subject to withholding of the tax under this subparagraph (3) is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due and the Tax Receiver is authorized to pursue collection to recover same.
Except as provided in subparagraph (2) above, it is the intent of this Part 3 that employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from the tax imposed hereby.
[Ord. 1982-17, 11/15/1982, § 5; as amended by Ord. 2007-14, 12/17/2007]
In the case of concurrent employment, an employer shall refrain from withholding the local services tax imposed hereby, if the employee provides a recent pay statement from a principal employer that includes the name of the employer, the length of the payroll period and the amount of the local services tax withheld and a statement from the employee (which shall be on a uniform statement form developed and produced by the Department of Community and Economic Development) that the pay statement is from the employee's principal employer, and the employee will notify other employers of a change in the principal place of employment within two weeks of its occurrence.
[Ord. 1982-17, 11/15/1982, § 6; as amended by Ord. 2007-14, 12/17/2007]
All employers as defined herein, regardless of whether they reside or have their place of business within the Borough of Doylestown, are bound by the provisions of this Part 3.
[Ord. 1982-17, 11/15/1982, § 7; as amended by Ord. 2007-14, 12/17/2007]
The Tax Receiver is hereby charged with the administration of this Part 3 in accordance with the provisions of the Local Tax Enabling Act (53 P.S. § 6901, et seq.) and is further authorized and empowered to examine employee records of any employer subject to this Part 3. In addition, the Tax Receiver is charged with the duty of commencing suit for the recovery of any tax due or unpaid under this Part 3, together with interest and penalties.
[Ord. 1982-17, 11/15/1982, § 8; as amended by Ord. 2007-14, 12/17/2007]
Any person who makes any false or untrue statement on any return required by this Part 3 or who refuses inspection of his books and employment records or fails or refuses to file any return required by this Part 3 or who shall fail to pay the tax due shall, upon conviction thereof before any District Judge, be sentenced to pay a fine of not more than $300 for each offense and in default of the payment thereof, to undergo imprisonment for a period not exceeding 90 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 and pay the tax required by this Part 3.
[Ord. 1982-17, 11/15/1982, § 9; as amended by Ord. 2007-14, 12/17/2007]
The provisions of this Part 3 are severable and, if any of its provisions shall be held invalid or unconstitutional, the decision of the Court shall not affect or invalidate any of the remaining provisions. It is hereby declared to be the legislative intent that this Part 3 would have been adopted if such illegal, invalid or unconstitutional provision had not been included therein.