[Ord. 2009-14, 11/30/2009, § 159-50]
The Lower Macungie Township Board of Commissioners, for the purpose of providing revenue for emergency services and road maintenance and construction, does hereby impose on each adult resident and nonresident employed and/or engaged in an occupation within the jurisdiction of Lower Macungie Township a local services tax at a flat rate which said tax shall be in addition to all other taxes levied and assessed by the Township pursuant to any other laws of the Commonwealth of Pennsylvania.
[Ord. 2009-14, 11/30/2009, § 159-51]
Beginning on the effective date of this Part, each adult resident or nonresident employed within the boundaries of Lower Macungie Township shall be required to pay an annual local services tax in an amount of $52.
[Ord. 2009-14, 11/30/2009, § 159-52]
The local services tax shall not be subject to the imposition of the Local Tax Enabling Act, 53 P.S. § 6924.101 et seq., discount and penalty provisions in regard to the levy and collection of this local services tax.
[Ord. 2009-14, 11/30/2009, § 159-53]
The tax imposed by this Part shall be collected by the Township, an employee thereof, or any other individual or entity authorized to do so from time to time by ordinance or resolution of the Board of Commissioners in accordance with state and local regulations and in the same manner as other Township taxes. It shall be the duty of each adult employed within Lower Macungie Township to pay the local services tax in accordance with Local Tax Enabling Act, 53 P.S. § 6924.101 et seq. (hereinafter the "Act"). Each individual covered under this Part and required to pay the local services tax shall be assessed a pro rata share of the tax for each payroll period in which the individual is engaged in an occupation within the Township. The pro rata share of the tax assessed on the individual for a payroll period shall be determined by dividing the combined rate of the local service tax levied for the calendar year ($52) by the number of payroll periods established by the employer for the calendar year. 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 1/100 of a dollar. The collection of the local services tax shall be made on a payroll period basis for each payroll period in which the person is engaged in an occupation, except as otherwise provided for within the Act.
Each employer within Lower Macungie Township, as well as those employers situated outside Lower Macungie Township but who engage in business within Lower Macungie Township, shall withhold this local services tax from the compensation of their employees who are subject to the tax. This local services tax shall be withheld from each employee that is subject to the local services tax, and said tax shall be collected by the Township or any other individual or entity authorized by the Board of Commissioners to collect the tax in accordance with state and local regulations and in the same manner as other Township taxes.
[Ord. 2009-14, 11/30/2009, § 159-54]
The notice of tax due from the Township or any other individual or entity authorized by the Board of Commissioners to collect the tax shall constitute the warrant for the collection of the tax as hereby assessed. Each employer within Lower Macungie Township shall cooperate with the Township in identifying those people employed within the Township.
[Ord. 2009-14, 11/30/2009, § 159-55]
The following persons shall be exempt from the local services tax:
Any person who served in any war or armed conflict in which the United States was engaged and honorably discharged or released under honorable circumstances from active duty, 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.
Any person who earns less than $12,000 in earned income and net profits from all sources within Lower Macungie Township for the calendar year in which the local services tax is levied.
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Township, any other individual or entity authorized by the Board of Commissioners to collect the tax, and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within Lower Macungie Township 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 the employee's last pay stubs or W-2 forms from employment within Lower Macungie Township for the year prior to the fiscal year for which the employee is requesting to be exempted from the local services tax. Upon receipt of the exemption certificate and until otherwise instructed by Lower Macungie Township, 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 ensure that the exemption certificate forms, which are provided by the Department of Community and Economic Development, are readily available to employees at all times and shall furnish each new employee with a form at the time of hiring. For purposes of this section, earned income and net profits shall have the same meanings as in the Act.
With respect to a person who claimed an exemption for a given calendar year from the local services tax, upon notification to an employer by the person or by Lower Macungie Township that the person has received earned income and net profits from all sources within the Township 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 Township in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the local services tax from the person under Subsection 1C(3) below.
If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the tax for the calendar year under Subsection 1C(2) above, the employer shall withhold the tax for the remainder of that calendar year. The employer shall withhold from the person, for the first payroll period after receipt of the notification under Subsection 1C(2), a lump sum equal to the amount of tax that was not withheld from the person due to the exemption claimed by the person under this subsection, 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 subsection is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due, and the Township may pursue collection under this Part.
[Ord. 2009-14, 11/30/2009, § 159-56]
No person shall be subject to the payment of the local services tax by more than one political subdivision during each payroll period.
The situs of the local services tax shall be the place of employment on the first day the person becomes subject to the tax during each payroll period.
In the event a person is engaged in more than one occupation, that is, concurrent employment, or an occupation which requires the person working in more than one political subdivision during a payroll period, the priority of claim to collect the local services tax shall be in the following order: first, the political subdivision in which a person maintains the person's principal office or is principally employed; second, the political subdivision in which the person resides and works, if the tax is levied by that political subdivision; and third, the political subdivision in which a person is employed and which imposes the tax nearest in miles to the person's home.
In the case of concurrent employment, an employer shall refrain from withholding the local services tax 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 that the pay statement is from the employee's principal employer and the employee will notify other employers of a change in principal place of employment within two weeks of its occurrence.
[Ord. 2009-14, 11/30/2009, § 159-57]
A person claiming the right to a refund for the local services tax shall follow the regulations governing refunds in accordance with 53 Pa.C.S.A. §§ 8425 and 8426, as amended, and/or any Township ordinance or resolution governing said refunds.
[Ord. 2009-14, 11/30/2009, § 159-58; as amended by Ord. 2011-12, 10/6/2011]
Any resident or nonresident who fails or refuses to pay the local services tax or to render accurate information to an assessor concerning the status of their employment or age, shall, upon conviction thereof, be sentenced to pay a fine of not more than $600 per violation. The Township and any other individual or entity authorized by the Board of Commissioners to collect the Tax may also proceed with all other available remedies, including but not limited to, filing an action for the recovery of any tax due or unpaid under this Part, together with interest and penalty.