[Adopted 11-11-2008 by Ord. No. 341]
This article shall be known and may be cited as the "Adamstown
Borough Local Services Tax Ordinance." This article is enacted under
the authority of the Local Tax Enabling Act, 53 P.S. § 6901
et seq.[1]
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
A.
BOROUGH
COLLECTOR
COMPENSATION
COUNCIL
EARNED INCOME
EFFECTIVE DATE
EMPLOYEE
EMPLOYER
ENABLING ACT
HE, HIS or HIM
INDIVIDUAL
LTEA
NET PROFITS
OCCUPATION
REGULATIONS
SCHOOL DISTRICT
TAX
TAX RETURN
TAX YEAR
TAXPAYER
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.
The Borough of Adamstown, Lancaster and Berks Counties, Pennsylvania.
The person or agency appointed from time to time by Council
to assess and collect the tax imposed under and to administer the
provisions of this article.
Salaries, wages, commissions, tips, bonuses, fees or any
other payment or income.
The governing body of the Borough.
Earned income as defined in the LTEA.[1]
January 1, 2009.
An individual paid compensation by an employer to perform
work or services of any kind.
Any individual, partnership, limited partnership, unincorporated
association, institution, trust, corporation, government agency, or
other entity engaged in business or operating within the Borough,
employing one or more individuals engaged in any occupation, other
than domestic servants.
The Local Tax Enabling Act, 53 P.S. § 6901 et seq.,
and as amended in the future.[2]
Indicates the singular and plural number as well as male,
female and neuter gender.
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the Borough of Adamstown.
Local Tax Enabling Act, 53 P.S. § 6901 et seq.,
as amended.[3]
Net profits as defined in the LTEA.
Any livelihood, job, trade, profession, business or enterprise
of any kind, including services, domestic or other, for which any
compensation is received.
Regulations duly adopted by the Collector for administration
of the tax. To the extent allowed by law, including but not limited
to 1 Pa.C.S.A. § 1937, Council intends to incorporate future
amendments to the regulations. If a court prohibits such construction,
Council intends to incorporate the regulations as they exist on the
date of adoption of this article. A copy of the regulations currently
in force shall be available for public inspection.
The Cocalico School District.
The tax imposed by this article.
A form prescribed by the Collector for reporting the amount
of any tax deducted from an employee or otherwise owed under this
article.
The period from January 1 to December 31.
Any individual on whom the tax is imposed.
B.
The singular shall include the plural, and the masculine shall include
the feminine and the neuter.
A.
The Borough hereby imposes a local services tax of $52 on each individual
who engages in an occupation within the boundaries of the Borough.
The local services tax is imposed for the tax year starting on the
effective date and ending on the next December 31. The local services
tax is imposed for each tax year thereafter without annual reenactment
until this article is repealed or amended.
B.
The local services tax is based on an individual engaging in an occupation
within the Borough at any time during the tax year.
C.
All provisions of the LTEA imposing requirements applicable to a
local services tax are incorporated into this article. All provisions
of the regulations are incorporated into this article. If there is
any discrepancy between the regulations and the LTEA, the provisions
of the LTEA shall control.
D.
This tax is in addition to all other taxes of any kind or nature
heretofore levied by the Borough, and this tax shall continue in force
on a calendar-year basis, without annual reenactment, unless the rate
of the tax is subsequently changed or this article is repealed. The
tax is imposed and proceeds of the tax shall be used in accordance
with all applicable requirements of the LTEA.
A.
An individual whose total earned income and net profits from all
sources within the Borough in any tax year is less than $12,000 is
exempt from the tax for the tax year.
B.
Individuals may also be exempt for other reasons, including disability
resulting from serving in the armed forces, active duty as a member
of a reserve component of the armed forces, and other reasons as set
forth in the regulations.
C.
An individual may obtain exemption prospectively by filing a local
services tax exemption certificate on a form provided by the Collector
in accordance with the regulations. The exemption certificate shall
be filed with the Collector, and if the individual is an employee
also with the individual's employer.
D.
If an individual pays the tax and at the end of any tax year has
total income during the tax year that is less than the income exemption
amount, or otherwise qualifies for an exemption, the Borough will,
on request after the end of tax year, refund to the taxpayer the tax
paid for the tax year.
Rules applicable to individuals who engage in an occupation
in multiple jurisdictions are as set forth in the regulations.
A.
Every employer not registered under the provisions of an enactment
of the Borough imposing a tax on earned income and net profits shall,
within 30 days after the effective date of this article, or within
30 days after first becoming an employer, register with the Collector
the employer's name, address and any other information required by
the Collector on an employer registration form prescribed by the Collector.
B.
Every employer is required to deduct the tax as set forth in the
regulations from any compensation payable to any employee on whom
the tax is imposed, unless the employee has filed a local services
tax exemption certificate in accordance with the regulations. As set
forth in the regulations, the full amount of the tax shall be deducted
in lump sum if the combined municipal and school district tax rate
is $10 or less. As set forth in the regulations, the tax shall be
deducted pro rata on a per-payroll basis if the combined municipal
and school district tax rate exceeds $10.
C.
If an employee has filed a local services tax exemption certificate
and it is determined as set forth in the regulations that the employee
is not eligible for exemption or no longer eligible for exemption,
the employer shall start or restart withholding as set forth in the
regulations.
D.
As to each taxpayer employed at any time after the effective date
and on or before March 31, every employer shall deduct the tax from
compensation payable to the taxpayer as set forth in the regulations,
and shall file a tax return and pay to the Collector, on or before
April 30, the amount of tax deducted on or before March 31. As to
each taxpayer for whom the full amount of the tax has not previously
been deducted or paid directly by the taxpayer to the Collector, who
is employed at any time in any of the three-month periods ending June
30, September 30, and December 31, every employer shall deduct the
tax from compensation payable to the taxpayer as set forth in the
regulations and shall file a tax return and pay to the Collector on
or before the following July 31, October 31, and January 31, the amount
of tax deducted on or before June 30, September 30, and December 31,
respectively. Every employer shall follow this same procedure in every
tax year.
(1)
If a taxpayer is employed by more than one employer within the Borough,
the taxpayer's principal employer shall deduct the tax and deliver
to the employee evidence of the deduction on a form provided by the
Collector.
(2)
An employer shall not deduct the tax from compensation of an employee
who presents evidence on a form provided by the Collector of prior
deduction by an employer within the Borough, or who provides evidence
on a form provided by the Collector of prior payment of the tax directly
to the Collector or of prior payment during the same tax year of $52
as a tax imposed under the enabling act on an individual based on
engaging in an occupation in Pennsylvania.
E.
Any employer who discontinues business or ceases operation shall,
within 15 days after discontinuing business or ceasing operations,
file a tax return and pay to the Collector the full amount of the
tax deducted from employees prior to ceasing operations.
F.
Tax amounts deducted from wages by an employer shall at all times
be the property of the Borough and shall constitute a trust fund held
by the employer until remitted to the Collector; and deduction of
tax from wages shall, as between the employee and the Borough, constitute
payment of the tax by the employee, regardless of any insolvency or
failure to remit by the employer.
G.
Any employer who fails to deduct the tax or who fails to pay the
tax to the Collector shall be liable for the tax and applicable penalties
in full as though the tax had originally been imposed against such
employer. If the employer is a partnership, the partners thereof,
and if the employer is a corporation or limited liability company,
all officers thereof, shall have the same liability as the employer.
Every individual who is self-employed or whose tax for any other reason is not deducted by an employer under § 274-34 shall file a tax return and pay the tax directly to the Collector. Every such individual engaged in an occupation within the Borough at any time after the effective date of this article and on or before March 31 shall file a tax return and pay the full amount of the tax to the Collector on or before April 30. Every such individual who has not previously paid the full amount of the tax, who engages in an occupation within the Borough at any time in any of the three-month periods ending June 30, September 30, and December 31, shall file a tax return and pay the full amount of the tax to the Collector on or before the following July 31, October 31, and January 31, respectively. Every individual who is self-employed or whose tax for any other reason is not deducted by an employer under § 274-34 shall follow this same procedure in every tax year.
By virtue of engaging in an occupation within the Borough, both
resident and nonresident individuals are subject to the tax.
A.
The Collector shall collect the tax, fines and penalties imposed
by this article and shall keep records of collection.
B.
The Collector may examine the books, papers, and records of any individual
or employer in order to verify compliance with this article. Every
individual the Collector believes might be subject to the tax and
every employer or person the Collector believes might be an employer
shall, on request, meet with and show to the Collector all books,
papers, and records requested by the Collector. Every employer or
person the Collector believes might be an employer shall also provide
access to the employer's books, papers, and records at the employer's
place of business and provide a place for the Collector's review of
such books, papers, and records. For purposes of this article, records
shall include records in any form, including computer and other electronic
records.
C.
The Collector may file suit in its name or in the name of the Borough
for recovery of any amount owed to the Borough.
D.
Except as limited by any applicable law, the Collector shall have
all of the powers that the Borough has or that the law prescribes
for tax collectors relating to administration and enforcement of this
article.
E.
The Collector may promulgate and enforce regulations relating to
administration and enforcement of this article.
A.
In the event that any tax under this article remains due or unpaid,
a penalty of 5% of the amount unpaid for each month or a fraction
of a month during which the amount remains unpaid shall be imposed.
B.
Any individual or entity who or which fails or refuses to pay the
tax or other amounts owed or to pay the tax deducted from employees
shall, in addition to paying the amount owed, pay reasonable costs
incurred, as set forth in the regulations, by the Borough, Collector,
or any other person or entity appointed to collect the amount, to
provide notices of delinquency or to implement similar procedures
to collect delinquent taxes.
C.
If legal proceedings are commenced for failure to pay any amount
owed, the person or entity liable therefor shall, in addition to the
amount owed, pay to the Borough, the Collector, or any other person
or entity appointed to collect the tax the costs of collection, including
reasonable attorneys' fees.
D.
The failure of any person or entity to receive or procure forms required
for making a required filing or return shall not excuse making such
a filing or return.
Any person who 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 commits
a violation of this article. If the Council or the Collector determines
that a person has committed or permitted the commission of a violation
of this article, the Borough may institute summary criminal proceedings
and/or may seek equitable relief. In the event summary criminal proceedings
are instituted, the fine for the first offense shall be not less than
$100 and not more than $600. The fine for a second offense shall not
be less than $300 and not more than $600. The fine for a third or
greater offense shall not be less than $500 and not more than $600.
Each day or portion thereof in which a violation exists shall be considered
a separate violation of this article. Each section of this article
which is violated shall be considered a separate violation. The amount
of any fine imposed by a Magisterial District Judge or a court shall
be in addition to any other fine which may be imposed under any other
provisions of the Code of the Borough or under any statute. In default
of payment of any fine, such person shall be liable to imprisonment
for not more than 30 days. The action to enforce the article may be
instituted against any person in charge of the business of any employer
who shall have failed or refused to file a return required by this
article.
A.
Nothing contained in this article shall be construed to empower the
Borough to levy and collect the tax hereby imposed on any occupation
not within the taxing power of the Borough under the Constitution
of the United States and the laws of the Commonwealth of Pennsylvania.
B.
If the tax hereby imposed under the provisions of this article shall
be held to be in violation of the Constitution of the United States
or of the laws of the Commonwealth of Pennsylvania as to any individual,
such decision 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.
C.
It is the intent of this article that the entire burden of the tax
imposed on an occupation by the Borough and the School District shall
not exceed the limitations prescribed in Sections 2 and 8 of the LTEA,
53 P.S. §§ 6902, 6908,[1] and, therefore, the School District shall be entitled
to its share of the tax in accordance with the provisions of said
Sections 2 and 8, Act 222 of 2004, and Act 7 of 2007.
[1]
Editor's Note: See now 53 P.S. §§ 6924.301.1,
6924.31.
Nothing in this article or in the Code of the Borough of Adamstown,
as hereby amended, shall be construed to affect any suit or proceedings
pending in any court, or any rights acquired or liability incurred,
or any cause or causes of action existing prior to the adoption of
this amendment.
This article shall take effect and be in force on January 1,
2009.
