[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
This Part shall be known and may be cited as "The Forward Township
Local Services Tax Ordinance."
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
The following words and phrases, when used in this Part, shall
have the meanings ascribed to them in this section, except where the
context or language clearly indicates or requires a different meaning:
COLLECTOR
The person, public employee or private agency designated
by Forward Township to collect and administer the tax herein imposed.
DCED
The Department of Community and Economic Development of the
Commonwealth of Pennsylvania.
EARNED INCOME
Compensation as this term is defined in Section 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
Dec. 31, 1965, P.L. 1257, Section 13, as amended, 53 P.S. § 6913,
as amended.
EMPLOYER
An individual, partnership, association, limited liability
corporation, limited liability partnership, corporation, governmental
body, agency or other entity employing one or more persons on a salary,
wage, commission or other compensation basis, including a self-employed
person.
HE, HIS or HIM
Indicates the singular and plural number, as well as male,
female and neuter genders.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of Forward Township.
NET PROFITS
The net income from the operation of a business, profession,
or other activity, as this term is defined in § 13 (relating
to earned income taxes) of the Local Tax Enabling Act, the Act of
Dec. 31, 1965, P.L. 1257, Section 13, as amended, 53 P.S. § 6913,
as amended.
OCCUPATION
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 Forward Township for
which compensation is charged or received, whether by means of salary,
wages, commission or fees for services rendered.
TAX
The local services tax at the rate fixed in §
24-203 of this Part.
TAX YEAR
The period from January 1 until December 31 in any year;
a calendar year.
TOWNSHIP
The area within the corporate limits of Forward Township.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
For specific revenue purposes, an annual tax is hereby levied
and assessed, commencing January 1, 2008, upon the privilege of engaging
in an occupation with a primary place of employment within Forward
Township during the tax year. Each natural person who exercises such
privilege for any length of time during any tax year shall pay the
tax for that year in the amount of $26, assessed on a pro rata basis,
in accordance with the provisions of this Part. This tax may be used
solely for the following purposes as the same may be allocated by
the Board of Supervisors from time to time: emergency services, which
shall include emergency medical services, police services and/or fire
services; road construction and/or maintenance; reduction of property
taxes; or property tax relief through implementation of a homestead
and farmstead exclusion in accordance with 53 Pa.C.S.A. Ch. 85, Subch.
F (relating to homestead property exclusion). The Township shall use
no less than 25% of the funds derived from the tax for emergency services.
This tax is in addition to all other taxes of any kind or nature heretofore
levied by the Township. The tax shall be no more than $26 on each
person for each calendar year, irrespective of the number of political
subdivisions within which a person may be employed.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
1. Exemption. Any person whose total earned income and net profits from
all sources within the Township is less than $12,000 for any calendar
year in which the tax is levied is exempt from the payment of the
tax for that calendar year. In addition, the following persons are
exempt from payment of the tax:
A. Any person who has served in any war or armed conflict in which the
United States was engaged 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% disability.
B. 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 the purposes of this subparagraph, "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 State Air Force Reserve, the Pennsylvania
Army National Guard or the Pennsylvania Air National Guard.
2. Procedure to Claim Exemption.
A. A person seeking to claim an exemption from the local services tax shall annually file an exemption certificate with the Township and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the Township of less than $12,000 in the calendar year for which the exemption certificate is filed. In the event the Township utilizes a tax collection officer, it shall provide a copy of the exemption certificate to that officer. 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 the Township for the year prior to the fiscal year for which the employee is requesting to be exempted from the tax. Upon receipt of the exemption certificate and until otherwise instructed by the Township or except as required by Subsection
2B, 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 are readily available to employees at all times and shall furnish each new employee with a form at the time of hiring.
B. With respect to a person who claimed an exemption for a given calendar year from the tax, upon notification to an employer by the person or by the 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
2C.
C. If a person who claimed an exemption for a given calendar year from the tax becomes subject to the tax for the calendar year under Subsection
2B, 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
2B, 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.
D. Except as provided in Subsection
2B, it is the intent of this Subsection that employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from a local services tax.
3. Refunds. The Board of Supervisors, in consultation with the Collector
and DCED, shall establish procedures for the processing of refund
claims for any tax paid by any person who is eligible for exemption,
which procedures shall be in accord with provisions of the General
Municipal Law relating to refunds of overpayments and interest on
overpayments. Refunds made within 75 days of a refund request or 75
days after the last day the employer is required to remit the tax
for the last quarter of the calendar year, whichever is later, shall
not be subject to interest. No refunds shall be made for amounts overpaid
in a calendar year that do not exceed $1. The Collector shall determine
eligibility for refunds to exempt persons and provide refunds.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
1. Each employer within Forward Township, as well as those employers
situated outside Forward Township but who engage in business within
Forward Township, is hereby charged with the duty of collecting the
tax from each of his employees engaged by him or performing for him
within Forward Township and making a return and payment thereof to
the Collector. Further, each employer is hereby authorized to deduct
this tax from each employee in his or her employ, whether said employee
is paid by salary, wage or commission and whether or not all such
services are performed within Forward Township.
2. A person subject to the tax shall be assessed by the employer a pro rata share of the tax for each payroll period in which the person is engaging in an occupation. The pro rata share of the tax assessed on the person for a payroll period shall be determined by dividing the combined rate of the tax levied for the calendar year 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. Collection of the tax shall be made on a payroll period basis for each payroll period in which the person is engaging in an occupation, except as provided in Subsection
4 of this section. For purposes of this subsection, "combined rate" shall mean the aggregate annual rate of the tax levied by the school district and the Township.
3. No person shall be subject to the payment of the local services tax
by more than one political subdivision during each payroll period.
4. In the case of concurrent employment, an employer shall refrain from
withholding the 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 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 the occurrence. The employee's statement shall be provided
on the form approved by DCED.
5. The tax shall be no more than $26 on each person for each calendar
year, irrespective of the number of political subdivisions within
which a person may be employed. The Township shall provide a taxpayer
a receipt of payment upon request by the taxpayer.
6. No employer shall be held liable for failure to withhold the tax or for the payment of the withheld tax money to the Township if the failure to withhold taxes arises from incorrect information submitted by the employee as to the employee's place or places of employment, the employee's principal office or where the employee is principally employed. Further, an employer shall not be liable for payment of the local services tax in an amount exceeding the amount withheld by the employer if the employer complies with the provisions of Subsection
2 of §
24-204 of this Part and this section and remits the amount so withheld in accordance with this Part.
7. Employers shall be required to remit the local services taxes 30
days after the end of each quarter of a calendar year.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
Each employer shall prepare and file a return showing a computation
of the tax on forms to be supplied to the employer by the Collector.
If an employer fails to file the return and pay the tax, whether or
not the employer makes collection thereof from the salary, wages or
commissions paid by him or her to an employee, except as provided
hereafter in this Part, the employer shall be responsible for the
payment of the tax in full as though the tax had been originally levied
against the employer.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
In each tax year, each employer shall use his or her employment
records to determine the number of employees from whom such tax shall
be deducted and paid over to the Collector on or before the 30th day
following the end of each calendar quarter of each such tax year.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
Each self-employed individual who performs services of any type
or kind or engages in any occupation or profession within a primary
place of employment within Forward Township shall be required to comply
with this Part and pay the pro rata portion of the tax due to the
Collector on or before the 30th day following the end of each quarter.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
1. The situs of the 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:
A. First, the political subdivision in which a person maintains his
or her principal office or is principally employed;
B. Second, the political subdivision in which the person resides and
works if the tax is levied by that political subdivision;
C. Third, the political subdivision in which a person is employed and
which imposes the tax nearest in miles to the person's home.
2. In case of dispute, a tax receipt of the taxing authority for that
calendar year declaring that the taxpayer has made prior payment constitutes
prima facie certification of payment to all other political subdivisions.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
All employers and self-employed individuals residing or having
their places of business outside of Forward Township but who perform
services of any type or kind or engage in any occupation or profession
within Forward Township do, by virtue thereof, agree to be bound by
and subject themselves to the provisions, penalties and regulations
promulgated under this Part with the same force and effect as though
they were residents of Forward Township. Further, any individual engaged
in an occupation within Forward Township and an employee of a nonresidential
employer may, for the purpose of this Part, be considered a self-employed
person, and in the event his or her tax is not paid, the Township
shall have the option of proceeding against either the employer or
employee for the collection of this tax as hereinafter provided.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
1. The Collector shall be appointed by resolution of the Board of Supervisors.
It shall be the duty of the Collector to accept and receive payments
of this tax and to keep a record thereof showing the amount received
by him from each employer or self-employed person, together with the
date the tax was received.
2. The Collector is hereby charged with the administration and enforcement
of this Part and is hereby charged and empowered, subject to Board
of Supervisors approval, to prescribe, adopt and promulgate rules
and regulations relating to any matter pertaining to the administration
and enforcement of this Part, including provisions for the examination
of payroll records of any employer subject to this Part, the examination
and correction of any return made in compliance with this Part and
any payment alleged or found to be incorrect or as to which overpayment
is claimed or found to have occurred. Any person aggrieved by any
decision of the Collector shall have the right to appeal to the Court
of Common Pleas of Butler County as in other cases provided.
3. The Collector is hereby authorized to examine the books and payroll
records of any employer in order to verify the accuracy of any return
made by an employer or, if no return was made, to ascertain the tax
due. Each employer is hereby directed and required to give the Collector
the means, facilities and opportunity for such examination.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
1. In the event that any tax under this Part remains due or unpaid 30
days after the due dates above set forth, the Collector may sue for
the recovery of any such tax due or unpaid under this Part, together
with interest and penalty.
2. If for any reason the tax is not paid when due, interest at the rate
of 6% on the amount of such tax shall be calculated beginning with
the due date of the tax, and a penalty of 5% shall be added to the
flat rate of such tax for nonpayment thereof. Where suit is brought
for the recovery of this tax or other appropriate remedy undertaken,
the individual liable therefor shall, in addition, be responsible
and liable for the costs of collection.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
Whoever makes any false or untrue statement on any return required
by this Part, or whoever refuses inspection of the books, records
or accounts in his or her custody and control setting forth the number
of employees subject to this tax who are in his or her employment,
or whoever fails or refuses to file any return required by this Part
shall be guilty of a violation and, upon conviction thereof, shall
be sentenced to pay a fine of not more than $600, and costs of prosecution,
and, in default of payment of such fine and costs, to imprisonment
for not more than 30 days. The action to enforce the penalty herein
prescribed may be instituted against any person in charge of the business
of any employer who shall have failed or who refuses to file a return
required by this Part.
[Ord. No. 12/9/1969; as amended by Ord. No. 85-2, 3/12/1985;
Ord. 2007-2, 12/28/2007]
1. Nothing contained in this Part shall be construed to empower Forward
Township to levy and collect the tax hereby imposed on any occupation
not within the taxing power of the Township under the Constitution
of the United States and the laws of the Commonwealth of Pennsylvania.
2. If the tax hereby imposed under the provisions of this Part shall
be held by any court of competent jurisdiction to be in violation
of the Constitution of the United States or of the laws of the Commonwealth
of Pennsylvania as to any individual, the decision of the court 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.