[Ord. 1999-3, 6/8/1999]
The Local Taxpayers Bill of Rights, enacted as part of Act 50
of 1998, (hereinafter the "LTBR"), requires that every political subdivision
levying an eligible tax adopt regulations governing the administration
and collection of the tax, and setting forth a process for handling
appeals from decisions on assessments and refunds. This document provides
the regulations required by the LTBR. The disclosure statement also
required by the LTBR is provided in a separate document, which is
available upon request of the Tax Administrator.
[Ord. 1999-3, 6/8/1999]
The determination by the Tax Administrator of the amount
of underpayment by a taxpayer.
Any of the following taxes specified within the term "eligible
tax" under the LTBR, including interest and penalties provided by
law, when levied by the governing body of the local government, but
specifically not including any real estate tax:
Any tax authorized or permitted under the Act of December 31,
1965, (P.L. 12257, No. 511), known as the Local Tax Enabling Act or
Act 511.
Any per capita tax.
Any occupation, occupation assessment or occupation privilege
tax.
Any tax levied on income.
Any tax measured by gross receipts.
Any tax on a privilege.
Any tax on amusements or admissions.
Any tax on earned income and net profits.
The Hearing Officer appointed by local government to hear
administrative appeals regarding an eligible tax.
Lower Mount Bethel Township.
Subchapter C of Act 50 of 1998 of the Pennsylvania General
Assembly, 53 Pa.C.S.A. ยงยงย 8421ย โย 8428.
Any payment of tax which is determined in the manner provided
by law not to be legally due.
The Petition for Appeal and Refund described in ยงย 24-405.
The employee, agent, appointed Tax Collector, elected Tax
Collector, tax collection agency or other person to whom the governing
body of the local government has assigned or delegated responsibility
for the audits, assessment, determination or administration of an
eligible tax. Under the LTBR, this Tax Administrator is also referred
to and defined as the local taxing authority.
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 eligible tax levied by the local government.
The amount or portion of any eligible 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
Tax Administrator is seeking to collect its delinquent eligible taxes
or file a claim therefor.
[Ord. 1999-3, 6/8/1999]
1.ย
Minimum Time Periods for Taxpayer Response.
A.ย
The taxpayer shall have at least 30 calendar days from the mailing
date to respond to requests for information by the Tax Administrator.
The Tax Administrator shall grant a reasonable extension upon written
application explaining the reason(s) necessitating the extension,
which must amount to good cause. If the Tax Administrator denies a
request for extension, the Tax Administrator must inform the taxpayer
in writing of the basis for the denial and that the taxpayer must
immediately provide the requested information. If the Tax Administrator
grants an extension request, he must notify the taxpayer in writing
of the amount of extension granted. Generally, an extension will not
exceed 30 calendar days in length, and may be less, depending on the
circumstances.
B.ย
The Tax Administrator shall notify the taxpayer of the procedures
to obtain an extension in its initial request for information.
C.ย
The Tax Administrator shall take no lawful action against a taxpayer for the tax year in question until the expiration of the applicable response period for submission of the information requested, including extensions. For example, the Tax Administrator may not engage in any collection efforts until after expiration of the response period. After expiration of the response period, the Tax Administrator may engage in collection efforts permitted by the LTBR and discussed in ยงย 24-415 below.
2.ย
Requests for Prior Year Tax Returns.
A.ย
Except as provided in Subsection 2B, below, an initial inquiry by
the Tax Administrator 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 time mailing
date of the notice.
B.ย
The Tax Administrator may make an additional subsequent request for
a tax return or supporting information if, after the initial request,
the Tax Administrator 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. Generally,
however, the Tax Administrator should not make routine requests for
additional prior year returns.
C.ย
Notwithstanding the foregoing, the limitations in Subsection 2B above
on subsequent requests for prior year returns shall not apply if the
Tax Administrator has sufficient information to indicate that the
taxpayer failed to file a required return or to pay an eligible tax
which was due more than three years prior to the date of the notice.
Thus, in situations involving failure to file a required return or
to pay a required eligible tax, the Tax Administrator shall, in his
discretion, have the ability to request prior year returns due more
than three years prior and supporting information.
3.ย
Use of Federal or State Tax Information. The Tax Administrator may
require a taxpayer to provide copies of the taxpayer's federal
individual income tax return if the Tax Administrator can demonstrate
that the federal tax information is reasonably necessary for the enforcement
or collection of tax and the information is not available from other
available sources or the Pennsylvania Department of Revenue. The Tax
Administrator may also require a taxpayer to copies of the taxpayer's
state individual tax return.
[Ord. 1999-3, 6/8/1999]
1.ย
The Tax Administrator must notify the taxpayer in writing of the
basis for any underpayment that the Tax Administrator has determined
to exist with respect to any eligible tax. The purpose of this notification
is for the taxpayer to understand the exact reason why the Tax Administrator
believes an underpayment exists. This notification from the Tax Administrator
shall be written in a manner calculated to be understood by an average
person. The notification must include:
A.ย
The tax period or periods (usually measured in calendar years) for
which the underpayment is asserted.
B.ย
The amount of the alleged underpayment of the eligible tax detailed
by tax period.
C.ย
The legal basis (including any statutory or case law citations) upon
which the Tax Administrator has relied to determine that an underpayment
of an eligible tax exists.
D.ย
An itemization of the changes made by the Tax Administrator to a
return or report filed by the taxpayer that results in the determination
that an underpayment exists. A copy of any revised return or report
in the Tax Administrator's file must be provided to the taxpayer.
[Ord. 1999-3, 6/8/1999]
1.ย
Filing of Petitions. A taxpayer has the legal right to challenge
an assessment or denial of a refund claim under the LTBR. However,
a taxpayer has a right to one appeal only. If a taxpayer loses an
assessment appeal, the taxpayer is not entitled to a second refund
appeal after paying the tax. In addition, no administrative appeals
are provided for other decisions including, but not limited to, the
denial of an extension of time to provide information or the modification
or termination of an installment agreement. The LTBR requires political
subdivisions to establish appeals procedures. In order to begin the
appeal process, the taxpayer must file a complete and timely petition
(the "petition"). A petition is timely filed if the letter transmitting
the petition is postmarked by the United States Postal Service or
actually received on or before the final day on which the petition
is due. Receipts from carriers other than the United States Postal
Service are not accepted as proof of timely filing. Deadlines for
filing a petition are as follows:
A.ย
Petitions challenging the denial of a refund shall be filed within
three years after the due date for filing the report or return as
extended for one year after actual payment of the tax, whichever is
later. If no report or return is required, the petition shall be filed
within three years after the due date for payment of the eligible
tax or within one year after actual payment, whichever is later.
B.ย
Petitions for reassessment of tax shall be filed within 90 days of
the date of the assessment notice which has been sent to the taxpayer
by the Tax Administrator.
2.ย
The Tax Administrator shall make available a from of Petition for
Appeal and Refund.
3.ย
Contents. Any petition filed under Subsection 1A, shall:
A.ย
State the legal basis for claiming the refund or disagreeing with
the Tax Administrator's assessment.
B.ย
State the tax period or periods (i.e., years) to which it pertains.
C.ย
State the amount of the claim and the type of eligible tax detailed
by tax periods.
D.ย
Include all supporting documentation and calculations.
E.ย
Provide the name, address and telephone number of the taxpayer's
representative, if any.
F.ย
Include a statement certifying that the facts in the petition are
true and correct, under penalty of perjury, and that the petition
is not filed for purposes of delay.
G.ย
Include such other information (essentially identification) as is
reasonably requested by the Tax Administrator on the Petition for
Appeal and Refund provided to taxpayer.
4.ย
Hearing/Appeal on Record. The taxpayer shall have the right to request
a hearing in person or based on the petition and record (including
information on file and information submitted by taxpayer). A hearing
based only on the petition and record will not include any in person
hearing or oral arguments. The Hearing Officer shall have the right
to deny an oral hearing and/or oral argument where the taxpayer has
submitted an incomplete petition, or where the Hearing Officer has
determined that the appeal is frivolous, undertaken only for purpose
of delay, or otherwise without merit. If an oral hearing is denied,
the Hearing Officer shall notify the taxpayer in writing of the denial
and the basis for the denial.
[Ord. 1999-3, 6/8/1999]
1.ย
Any taxpayer filing a petition under ยงย 24-405 shall be entitled to a hearing and decision by the Hearing Officer, subject to a request for hearing and the failure to deny the request for hearing. Decisions on petitions shall be issued within 60 days of the date a complete and accurate petition is received. If the Hearing Officer does not act within 60 days the petition shall be deemed approved.
2.ย
Any person aggrieved by a decision under this section who has a direct
interest in the decision shall have the right to appeal to the Court
of Common Pleas of the County of Northampton vested with the jurisdiction
of local tax appeals by or pursuant to 42 Pa.C.S.A. ยงย 5571(b).
3.ย
Decisions by the Hearing Officer shall be made according to principles
of law and equity.
[Ord. 1999-3, 6/8/1999]
1.ย
A taxpayer may or may not choose to be represented by a taxpayer
representative. The taxpayer representative may be a lawyer, certified
public accountant, accountant or other tax advisor possessing appropriate
tax training to represent taxpayers in tax appeals. The taxpayer must
submit a written authorization to use a taxpayer representative. However,
a simple letter signed by a taxpayer authorizing representation will
be accepted as authorization. Such authorization shall include the
representative's name, address and telephone number.
2.ย
Copies of notices or communications may be sent by the Tax Administrator
or other representative of the political subdivision to the taxpayer's
representative. However, the original notice or communications will
always be sent directly to the taxpayer. Action taken by the taxpayer's
authorized representative (for example, requesting an extension of
time or submitting factual information) shall have the same force
and effect as if taken directly by the taxpayer.
3.ย
Reasonable notice of the hearing date will be provided to the taxpayer
by the Hearing Officer. The notice shall provide the date, time and
place of a hearing.
4.ย
The Hearing Officer may grant a taxpayer's written request for
a continuance of a hearing. A request for continuance shall be granted
only if supported by written reasons, and for good cause. A request
for continuance must be received at least five days before the scheduled
hearing date.
5.ย
The Hearing Officer shall preside and keep order over any scheduled
hearing. Hearings need not adhere to any technical rules of evidence,
but oral testimony shall be taken under oath or affirmation. At the
discretion of the Hearing Officer, deposition or affidavits may be
used in lieu of oral testimony.
6.ย
The Hearing Officer shall have the authority to take the following
actions:
A.ย
Delegate the hearing schedule to an employee, agent or other designee.
B.ย
Regulate the conduct of hearings including, but not limited to, scheduling,
timing, recesses, reconvening, adjournment and any other acts necessary
for the efficient conduct of a hearing.
C.ย
Administer oaths and affirmations.
D.ย
Receive evidence.
E.ย
Permit reasonable examination and cross-examination of witnesses.
F.ย
Require the production of written evidence such as books, records,
documents and any other pertinent information.
7.ย
The Hearing Officer's final decision shall be in writing and
signed by the Hearing Officer. The final decision shall be mailed
to the taxpayer, with a copy also mailed to the taxpayer's authorized
representative (if any).
[Ord. 1999-3, 6/8/1999]
1.ย
A taxpayer who has paid an eligible tax may file a written request
for refund or credit. A request for refund shall be made within three
years of the due date, as extended, for filing the report or tax return
or one year after actual payment of the 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 tax or within one year after
actual payment of the tax, whichever is later.
2.ย
A tax return filed by the taxpayer showing an overpayment shall be
deemed to be a written request for a cash refund unless otherwise
indicated on the tax return.
4.ย
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 within one year of the date of payment.
[Ord. 1999-3, 6/8/1999]
1.ย
Any taxpayer contacted by the Tax Administrator regarding the assessment,
audit, determination, review or collection of an eligible tax will
receive a taxpayer notice. The notice shall be incorporated into any
other correspondence sent to a taxpayer by the Tax Administrator regarding
the assessment, audit, determination, review or collection of tax.
The notice shall be substantially in the following form:
"You are entitled to receive a disclosure statement that sets
forth a written explanation of your rights with regard to the assessment,
audit, determination, review, appeal, enforcement, refund and collection
of any local taxes by calling the Lower Mount Bethel Township Tax
Collector Joann Palmeri at (610) 252-7448 during the hours of 9:00
a.m. through 5:00 p.m. on any weekday other than a holiday.
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"You may request a copy in person, by telephone or by mailing
a request to the following address: Alpha Avenue, Martins Creek, Pennsylvania
18063."
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2.ย
The disclosure statement will be made available to taxpayers upon
request at no charge to the taxpayer, including mailing costs. In
general, the Tax Administrator will make reasonable efforts to supply
all taxpayers with a copy of the disclosure statement.
[Ord. 1999-3, 6/8/1999]
1.ย
General Rule. All overpayments of an eligible tax made to the local
government shall bear simple interest from the date of overpayment
of such eligible tax until the date of resolution.
2.ย
Interest Rate. Interest on overpayments shall be paid at the same
rate as the Commonwealth of Pennsylvania is required to pay pursuant
to ยงย 806.1 of the Act of April 9, 1929 (P.L. 343, No. 176),
known as the Fiscal Code, 72 P.S. ยงย 1 et seq. As of December
1998, this interest rate is currently 9% annually (0.00247% daily).
3.ย
Exceptions to Payment of Interest.
A.ย
No interest shall be paid if an overpayment is refunded or applied
against any other eligible tax, interest or penalty due to the local
government within 75 days after time last date prescribed for filing
the report or tax return 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.ย
Interest is not required to be paid on taxpayer overpayments of interest
or a penalty(ies).
4.ย
Acceptance of Refund Check. The taxpayer's acceptance of a refund
check from the Tax Administrator or political subdivision shall not
prejudice any right of the taxpayer to claim any additional overpayment
and interest thereon. Tender of a refund check by the local government
shall be deemed to be acceptance of the check by the taxpayer for
purpose of this subsection.
5.ย
DATE OF OVERPAYMENT
DATE OF RESOLUTION
Definitions. As used in this section, the following words and phrases
shall have the meanings given to them in this subsection:
The later of the date paid or the date the tax is deemed
to have been overpaid as follows:
(1)
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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.
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(2)
|
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 or filing.
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(3)
|
An overpayment made before the last day prescribed for payment
shall be deemed to have been paid on the last day.
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(4)
|
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.
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(5)
|
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.
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The date the overpayment is refunded or credited as follows:
(1)
|
For a cash refund, a date preceding the date of the refund check
by not more than 30 days.
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(2)
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For a credit for an overpayment:
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(a)
|
The date of the Tax Administrator's notice to the taxpayer
of the determination of the credit.
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(b)
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The due date for payment of the eligible 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.
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[Ord. 1999-3, 6/8/1999]
1.ย
Errors and Delays. The purpose of this provision is to provide, in
the discretion of the Tax Administrator, a mechanism to abate (i.e.,
reduce) interest and/or penalties where an underpayment is the result
of an error or delay in performance by a representative of the Tax
Administrator. Accordingly, in the case of any underpayment, the Tax
Administrator, in its discretion, may offer to abate all or any part
of the interest relating to an eligible tax for any period for any
one or all of the following reasons:
A.ย
Any underpayment of an eligible tax finally determined to be due,
which is attributable in whole or in part to any error or delay by
the Tax Administrator in the performance of a ministerial act. For
purposes of this paragraph, 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 Tax Administrator has contacted
the taxpayer in writing within respect to the underpayment of tax
finally determined to be due or payable.
B.ย
Any payment of an eligible tax to the extent that any error or delay
in the payment is attributable to an officer, employee or agent of
the Tax Administrator being erroneous or dilatory in performance of
a ministerial act.
2.ย
The Tax Administrator shall determine what constitutes timely performance
of ministerial acts performed under this subsection.
A.ย
Abatement of any penalty or excess interest due to erroneous written
advice by the Tax Administrator. The Tax Administrator 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 Tax Administrator acting in the officer's, employee's
or agent's official capacity if:
(1)ย
The written advice was reasonably relied upon by the taxpayer
and was in response to a specific written request of the taxpayer.
(2)ย
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 to the Tax Administrator.
3.ย
Notwithstanding the foregoing, it shall be in the sole discretion
of the Tax Administrator whether or not to provide written tax advice
to a taxpayer. Taxpayers shall not have any right to compel the Tax
Administrator to provide written tax advice.
[Ord. 1999-3, 6/8/1999]
[Ord. 1999-3, 6/8/1999]
1.ย
The Tax Administrator has the discretion to enter into written agreements
with any taxpayer under which the taxpayer is allowed to satisfy liability
for tax in installment payments if the Tax Administrator determines
that the installment agreement will facilitate collection.
A.ย
Extent to which installment agreements remain in effect.
(1)ย
Except as otherwise provided in this subsection, any installment
agreement entered into by the Tax Administrator under this section
shall remain in effect for the term of the agreement.
(2)ย
The Tax Administrator may terminate any prior installment agreement
entered into under this section if:
(a)ย
Information which the taxpayer provided to the Tax Administrator
prior to the date of the installment agreement was inaccurate, false,
erroneous or incomplete in any manner, determined in the reasonable
discretion of the Tax Administrator.
(b)ย
The Tax Administrator reasonably believes and has determined
that collection of the eligible tax under the installment agreement
is in jeopardy.
(3)ย
The Tax Administrator finds that the financial condition of
the taxpayer has significantly changed, the Tax Administrator may
unilaterally alter, modify or terminate the installment agreement,
but only if the following conditions are satisfied:
(a)ย
The Tax Administrator provides a notice of its findings to the
taxpayer no later than 30 days prior to the date of the change of
the installment agreement.
(b)ย
The notice given by the Tax Administrator to the taxpayer provides
the reasons why the Tax Administrator believes that a significant
change, justifying a change to the installment agreement, has occurred.
(4)ย
The Tax Administrator may unilaterally and without notification
alter, modify or terminate the installment agreement entered into
by the Tax Administrator under this section if the taxpayer fails
to do any of the following:
(5)ย
No administrative appeal is permitted in tine event of an alteration,
modification or termination of an installment agreement. However,
an appeal may be made to the Court of Common Pleas of this county.
B.ย
Prepayment Permitted. Nothing in this section shall prevent a taxpayer
from prepaying, in whole or in part, any eligible tax under any installment
agreement with the Tax Administrator.
[Ord. 1999-3, 6/8/1999]
1.ย
Any information obtained by the Tax Administrator or Hearing Officer,
or any of their respective officers, agents, legal counsel, financial
accountants or employees as a result of any audit, assessment, return,
report, investigation, hearing, appeal or verification of a taxpayer
shall be confidential tax information. It shall be unlawful, except
for official purposes or as provided by law, for such person to:
A.ย
Divulge or make known in any manner any confidential information
obtained through any audit, return, assessment, investigation, report,
appeal, hearing or verification of a taxpayer to any person other
than the taxpayer or the taxpayer's authorized representative.
B.ย
Permit confidential tax information or any book containing any abstract
or particulars thereof to be seen or examined by any person other
than the taxpayer or the taxpayer's authorized representative.
C.ย
Print, publish or make known in any manner any confidential tax information
of a taxpayer.
2.ย
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 on the offender. If the offender is an officer or employee
of the Tax Administrator or the Hearing Officer, the officer or employee
shall be dismissed from office or discharged from employment.
[Ord. 1999-3, 6/8/1999]
If after the decision of an appeal, or if no appeal is requested by a taxpayer, the Tax Administrator may engage in efforts to collect any eligible tax determined to be legally due. Such efforts may include, but not be limited to, obtaining additional information, auditing taxpayer records, compromising the amount of the tax, interest or penalty owed, obtaining liens on the taxpayer's property, or obtaining wage attachments, levies or penalty owed, obtaining liens on the taxpayer's property or obtaining wage attachments, levies and seizures of the taxpayer's property. As provided in ยงย 24-413 of these regulations, the Tax Administrator may enter into a written installment agreement with the taxpayer if the Tax Administrator determines that an installment agreement will facilitate collection. The Tax Administrator also reserves the right to seek criminal prosecution of a taxpayer in appropriate circumstances.