[Ord. 398, 3/11/2013, § 1-601]
This Part shall be known as the "LTEA Costs of Collection Ordinance."
[Ord. 398, 3/11/2013, § 1-602]
When used herein, the following terms shall have the following
meanings:
COSTS OF COLLECTION
The reasonable costs incurred to provide notices of delinquency
or to implement similar procedures utilized to collect delinquent
employer taxes and delinquent taxes from delinquent employers and
delinquent taxpayers, including the initial delinquent collection
fee, the delinquent collection fee and expenses.
DELINQUENT COLLECTION FEE
A cost of collection recovered by Tax Officer from delinquent employers and delinquent taxpayers. Liability for the delinquent collection fee shall commence in accordance with §
1-604 of this Part.
DELINQUENT EMPLOYER TAXES
Any taxes not paid on or before the due date by an employer
having a duty to withhold and pay taxes pursuant to the LTEA. Delinquent
employer taxes shall include all applicable penalties, interest, costs
of collection and fines and penalties in accordance with applicable
law.
DELINQUENT TAXES
Any taxes, other than taxes subject to withholding, not paid
on or before the due date by any taxpayer. Delinquent taxes shall
include all applicable penalties, interest, costs of collection and
fines and penalties in accordance with applicable law.
EMPLOYER
A person, business entity or other entity employing one or
more persons for a salary, wage, commission or other compensation
and having a duty to withhold taxes from its employees, file a return
and pay the Tax Officer pursuant to the provisions of the LTEA.
EXPENSES
All actual out-of-pocket expenses paid or incurred by Tax
Officer to collect delinquent employer taxes and delinquent taxes,
including, but not limited to, court costs, Sheriffs fees and postage
expenses.
FINES AND PENALTIES
Those fines and penalties imposed by a court of competent
jurisdiction pursuant to the LTEA and any other applicable law.
GROSS COLLECTIONS
All taxes due, including the tax principal plus accumulated
penalties and interest and fines and penalties.
INITIAL DELINQUENT COLLECTION FEE
A cost of collection recovered by Tax Officer from delinquent employers and delinquent taxpayers. Liability for the initial delinquent collection fee shall commence in accordance with §
1-604 of this Part.
TAX OFFICER
Includes its owners, shareholders, directors, employees,
agents and legal counsel, their owners, shareholders, partners, employees
and agents.
TAX OR TAXES
2011 and prior years' earned income taxes, net profits taxes,
and local services taxes. This term shall also include local services
taxes for tax years 2012 and thereafter.
TAXPAYER(S)
Any individual, including self-employed individuals, required
under the LTEA to file a return of a tax or to pay a tax.
[Ord. 398, 3/11/2013, § 1-603]
1. Expenses. Expenses shall be recovered by Tax Officer as part of delinquent
employer taxes and delinquent taxes collected.
2. Initial Delinquent Collection Fee. The initial delinquent collection
fee shall be 10% of gross collections calculated on the first of the
month for the entire month, or part thereof, in which delinquent employer
taxes and delinquent taxes are paid-in-full.
3. Delinquent Collection Fee. The delinquent collection fee shall be
20% of gross collections calculated on the first of the month for
the entire month, or part thereof, in which delinquent employer taxes
and delinquent taxes are paid-in-full.
4. Fines and Penalties. Fines and penalties shall be in the amounts
approved by a court of competent jurisdiction.
[Ord. 398, 3/11/2013, § 1-604]
1. This Part shall take effect on the date of enactment.
2. Costs of collection and fines and penalties shall apply to delinquent
employer taxes and delinquent taxes relating to taxes for the 2011
tax year and for all prior tax years still due and owing as of the
effective date of this Part.
3. Costs of collection and fines and penalties shall apply to delinquent
local services taxes relating to taxes for the 2012, tax year and
subsequent tax years on the first day of the succeeding year.
4. Expenses shall be recovered from delinquent employers and delinquent
taxpayers from the date on which taxes became delinquent employer
taxes and delinquent taxes.
5. The initial delinquent collection fee shall accrue as follows:
A. Delinquent Employers.
(1)
The initial delinquent collection fee shall commence for all
delinquent taxes still due and owing for tax years 2011 and prior
on the effective date of this Part and shall continue through the
last day of the required notice described in § 1-605.1,
of this Part, at which time the initial delinquent collection fee
shall cease.
(2)
The initial delinquent collection fee shall commence for all
delinquent local services tax due and owing for tax year 2012 and
subsequent tax years on the first day of the succeeding year, and
shall continue through the last day of the required notice described
in § 1-605.1, of this Part, at which time the Initial delinquent
collection fee shall cease.
B. Delinquent Taxpayers.
(1)
The initial delinquent collection fee shall commence for all
delinquent taxes still due and owing for tax years 2011 and prior
on the effective date of this Part and shall continue through the
last day of the required notice described in § 1-605.1,
of this Part, at which time the initial delinquent collection fee
shall cease.
(2)
The initial delinquent collection fee shall commence for all
delinquent local services taxes due and owing for tax year 2012 and
subsequent tax years on the first day of the succeeding year, and
shall continue through the last day of the required notice described
in § 1-605.1, of this Part, at which time the initial delinquent
collection fee shall cease.
6. Delinquent Collection Fee. For both delinquent employers and delinquent
taxpayers, the delinquent collection fee shall commence on the first
day following the last day of the required notice described in § 1-605.1,
of this Part and shall continue until the end of the month in which
the delinquent employer taxes and delinquent taxes are paid-in-full.
7. Fines and Penalties. Fines and penalties shall be recoverable from
the date awarded by a court of competent jurisdiction.
[Ord. 398, 3/11/2013, § 1-605]
1. Required Notice. Tax Officer shall mail, by first-class mail, a written
notice to each delinquent employer and delinquent taxpayer known to
Tax Officer advising them of the balance due for delinquent employer
taxes and delinquent taxes, including costs of collection ("required
notice"). The required notice shall be deemed received on the next
date following the mailing date and shall provide the delinquent employer
and delinquent taxpayer 30 days in which to pay the delinquent employer
taxes and delinquent taxes in full.
2. Any balance due for delinquent employer taxes and delinquent taxes
remaining following the 30th day after the required notice shall no
longer be subject to the initial delinquent collection fee, but shall
be subject to the delinquent collection fee regardless of whether
there exists an agreement to pay the delinquent employer taxes or
delinquent taxes in installments or following any forbearance.
3. Costs of collection shall be recoverable as part of the delinquent
employer taxes and delinquent taxes, as well as in any legal proceeding
initiated by counsel for Tax Officer, including claims filed in Federal
Bankruptcy Court proceedings.
4. Tax Officer shall assess and collect costs of collection in accordance
with the LTEA and as otherwise authorized by applicable law. Tax Officer
shall retain costs of collection and one-half of any fines and penalties
recovered. The remaining one-half of any fines and penalties recovered
shall be paid to the Borough.
[Ord. 398, 3/11/2013, § 1-606]
Fines and penalties shall be in addition to any costs of collection
due. Tax Officer shall charge and recover costs of collection from
any delinquent employer or delinquent taxpayer even after a court
awards fines and penalties, unless otherwise provided by applicable
law.