[Adopted 1-7-1980 by Ord. No. 115 (Ch.
24, Part 3, of the 1993 Code); amended in its entirety 12-3-2007 by Ord. No.
413]
This article shall be known and may be cited
as the “Upper Pottsgrove Township local services tax Ordinance.”
The following words and phrases, when used in
this article shall have the meanings ascribed to them in this section,
unless the context clearly indicates a different meaning:
The twelve-month period beginning January 1 and ending December
31.
The person appointed by Upper Pottsgrove Township to collect
the occupational privilege tax here levied.
Compensation, as determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations found in 61 Pa. Code, Part 1, Subpart B, Article V (relating to personal income tax); not including, however, wages or compensation paid to individuals on active military service.
An individual, partnership, association, 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.
An exemption certificate substantially in the form of a uniform
certificate prescribed by the Pennsylvania Department of Community
and Economic Development affirming that the person reasonably expects
to receive earned income and/or net profits from all sources within
Upper Pottsgrove Township of less than $12,000 in the calendar year
for which the exemption certificate is filed, which exemption certificate
has attached to it a copy of all of the employees last pay stubs or
W-2 forms from employment within Upper Pottsgrove Township for the
tax year prior to the calendar year for which the employee is requesting
to be exempted from the tax. In addition to the income exemptions,
provision has been made for certain military exemptions.
The singular and plural number as well as male, female and
neuter gender.
Any person, male or female, engaged in any occupation, grade
or profession within the corporate limits of Upper Pottsgrove Township.
Emergency Services, road construction and/or maintenance,
reduction of property taxes, and property tax relief through implementation
of a homestead and farmstead exclusion in accordance with 53 Pa.C.S.A.
Subchapter F.
The net income from operation of a business, profession, or other activity, except corporations, determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code, Part 1, Subpart B, Article V (relating to personal income tax). The term does not include income which is not paid for services provided and which is in the nature of earnings from an investment. For taxpayers engaged in the business, profession, or activity of farming, the term shall not include:
Any interest earnings generated from any monetary
accounts or investment instruments of a farming business;
Any gain on the sale of farm machinery;
Any gain on the sale of livestock held 12 months
or more for draft, breeding, or dairy purposes; and
Any gain on the sale of other capital assets
of the farm (definition amended December 9, 2002, P.L. 1364, No. 166).
A person, partnership, association or other entity domiciled
outside Upper Pottsgrove Township.
Any livelihood, job, trade, profession, business or enterprise
of any kind, including services, domestic or otherwise, for which
any earned income and/or net profits are charged and received from
sources within Upper Pottsgrove Township.
The exercising or carrying on by any means or manner of any
occupation whatsoever, as hereinabove defined.
The local services tax of Upper Pottsgrove Township imposed
by this article.
Any natural person liable for the Upper Pottsgrove Township
local services tax levied by this article.
The area within the corporate limits of Upper Pottsgrove
Township.
Effective January 4, 2008, and continuing thereafter
annually on a calendar-year basis, Upper Pottsgrove Township hereby
levies and imposes on each individual engaged in an occupation within
the corporate limits of Upper Pottsgrove Township a local services
tax in the manner and at the rate hereinafter set forth. This tax
is in addition to all other taxes of any kind or nature heretofore
levied by Upper Pottsgrove Township.
Beginning on the fourth day of January 2008, each engagement in an occupation subject to this tax, as set forth in § 318-8 of this article, shall be subject to the payment of a local services tax of $52, to be paid by each individual exercising the privilege of engaging in any such occupation, as defined in this article, within the corporate limits of Upper Pottsgrove Township; provided, however, that this tax shall not be imposed on the following persons:
A.
Any person who 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% or permanent disability.
B.
Any person who serves as a member of a reserved component
of the Armed Forces of the United States and is called to active duty
at any time during the calendar year. For purposes of this subsection,
"reserve component of the Armed Forces" shall mean the United States
Army Reserve, United States Naval Reserve, United States Marine Corps
Reserve, United States Coast Guard Reserve, United States Air Force
Reserve, the Pennsylvania Army National Guard, or the Pennsylvania
International Guard.
A.
Said tax shall be paid to the Collector and shall
be due and payable in accordance with the following schedule:
|
Taxes Due and Withheld
|
Reports Due and Payable
| |
|---|---|---|
|
January 1 - March 31
|
April 30
| |
|
April 1 - June 30
|
July 31
| |
|
July 1 - September 30
|
October 31
| |
|
October 1 - December 31
|
January 31
|
Each employer within Upper Pottsgrove Township is hereby charged with the duty of collecting and paying over to the Collector, from each employee engaged in his services, the local services tax of $52 per year upon each individual employed by said employer who performs services on behalf of said employer within the geographical limits of Upper Pottsgrove Township or who is engaged in an occupation, as defined in § 318-8 of this article, for the benefit of said employer or in the service of the employer within the geographical limits of Upper Pottsgrove Township. As to each employee employed for any length of time during any payroll period of an employer during the calendar year, each employer shall deduct a pro-rata share of the tax from the earned income payable to the employee with respect to such payroll period. The pro-rata share of the tax assessed on an employee for a payroll period shall be determined by dividing the rate of the tax ($52) levied for the calendar year by the number of payroll periods established by the employer for the calendar year. Each employer shall make a return in payment of said tax and is authorized to deduct the said local services tax at rates hereby imposed from each employee in his service, whether said employee is paid by salary, wages, or commission. Each employer within Upper Pottsgrove Township shall prepare and file a return showing a computation of the tax on a form to be obtained from the Tax Collector. Each employer, in filing his return and making payment by deduction from the salary, wages, commissions, or other compensation payable by him to his employees, shall be entitled to retain a commission, calculated at 2% on the gross tax due and payable by each individual, provided that such taxes are collected and paid over by the employer on or before the due dates, as listed in § 318-11A of this article. It is further provided that if the employer fails to file said return and pay said tax, but makes collection thereof from the salary, wages, or commissions paid by him to said employee, the employer shall be responsible for the payment of the tax in full, without any deductions or commissions, as though the tax had originally been levied against him.
Each individual who shall have more than one
occupation within Upper Pottsgrove Township shall be subject to the
payment of the annual local services tax solely upon the privilege
of engaging in his principal occupation; and his principal occupation
employer shall deliver to him a certificate of payment, in a form
to be furnished to the employer by the Collector, certifying to any
other employer of such individual that said occupational privilege
tax has been paid by the employee to the employer and in turn remitted
by said employer to the Collector. Any employer receiving said certificate
of payment of the local services tax by another employer by deduction
from the said individual shall not deduct or collect the local services
tax imposed by this article.
Each employer in Upper Pottsgrove Township shall use his employment records as of January 4, 2008, and January 1 of each calendar year thereafter, in determining the number of employees from whom the said occupational privilege tax shall be deducted and paid over to the Tax Collector. Each employer who engages the services of an individual in an occupation to be performed in Upper Pottsgrove Township on or after January 4, 2008, and January 1 of each calendar year thereafter, shall require said employee to furnish to him a certificate of payment from the Tax Collector showing that the occupational privilege tax has theretofore been paid. In the event that such employee has not previously paid his occupational privilege tax, the employer shall deduct same within 30 days after the employee is hired and remit same to the Tax Collector on or before the due dates listed in § 318-11A.
Each self-employed individual in Upper Pottsgrove Township who performs any service of any kind or any type within the corporate limits of Upper Pottsgrove Township, whether the same be regarded either as a profession or as a business, who has not filed an exemption certificate, as provided for in this article, with the Collector, or whose tax for any other reason is not collected under § 318-12 of this article, shall be required to pay a local services tax of $52 for himself and shall be further required to deduct and pay over, in the manner hereinbefore set forth in § 318-12, an annual local services tax of $52 for every individual in his employ who is engaged in the performance of any occupation or profession for him within Upper Pottsgrove Township. Any individual engaged in any occupation within Upper Pottsgrove Township who is the employee of another and who is subject to this tax, as hereinbefore defined, shall be liable for the payment of the local services tax of $52 for himself and shall be treated and regarded as a self-employed individual if the location of the business of his employer is beyond the corporate limits of Upper Pottsgrove Township. Each employer whose business is located beyond the corporate limits of Upper Pottsgrove Township shall be required to furnish to the Collector a list of all individuals employed by him who exercise the privilege of engaging in any occupation of any type or character within the corporate limits of Upper Pottsgrove Township during the calendar year.
Where a person is engaged in domestic services
for others, and has more than one employer in the performance of such
services, the employer by whom such domestic is employed on January
4, 2008, and January 1 for each calendar year thereafter, shall be
responsible for the collection and payment of the annual occupational
privilege tax for such domestic to the Collector; and, in the event
the domestic is not employed by any person on January 4, 2008, and
January 1 for each calendar year thereafter, the said responsibility
for deduction and payment over to Upper Pottsgrove Township of the
occupational privilege tax shall rest upon the employer of the domestic
on the next succeeding date following January 4, 2008, and January
1 for each calendar year thereafter; and said employer shall furnish
to said domestic employee a certificate of payment of said local services
tax to be exhibited to all other employers of said domestic; and the
production of said certificate of such other employers shall excuse
them from the deduction of any further occupational privilege tax
from said domestic employee for the year.
In order to receive an up-front exemption from
the local services tax, an employee must file an annual up-front exemption
form with Upper Pottsgrove Township and the employee's employer. The
exemption certificate must verify that the employee reasonably expects
to receive earned income and net profits of less than $12,000 from
all sources within Upper Pottsgrove Township for the calendar year
for which the exemption certificate is filed. A copy of the employee's
last pay stubs or W-2 forms from employment within Upper Pottsgrove
Township for the year prior to the calendar year for which the employee
is requesting an exemption must be attached to the exemption certificate.
Employers must make up-front exemption forms readily available to
all employees at all times and provide new employees with the forms
at the time of hiring.
A.
Upon receipt of an up-front exemption form and until
otherwise instructed by Upper Pottsgrove Township, employers must
stop withholding the local services tax for the specific calendar
year from employees for whom the exemption applies.
B.
Employers must restart withholding the local services
tax from an employee who files an exemption certificate in the following
circumstances:
D.
Except for monitoring when an employee who has filed
an exemption certificate earns more than $12,000, nothing in this
section shall require employers to investigate exemptions, monitor
tax exemption eligibility, or exempt an employee from the local services
tax.
A.
It shall be the duty of the Collector to collect and
receive the taxes, fines or penalties imposed by this article. It
shall also be his duty to keep a record showing the amount received
by him from each self-employed person paying the tax and the date
of such receipt; it further shall be his duty to keep a record showing
the amount received by him from any employer paying the tax on behalf
of his employees by the deduction made by such employer from the salaries,
wages, commissions or other forms of compensation.
B.
The Collector is hereby charged with the administration
and enforcement of the provisions of this article, is hereby empowered
to prescribe, adopt, promulgate and enforce rules and regulations
relating to any matter pertaining to the administration and enforcement
of this article, including a provision for the examination of the
payroll records of any employer within Upper Pottsgrove Township;
and further for the reexamination and correction of any returns made
in compliance with this article 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 as in other cases provided.
C.
The Collector is hereby authorized to examine the
books and payroll of any employer in order to verify the accuracy
of any return made by any employer on behalf of his employees or,
if no return was made, to ascertain the occupational privilege tax
due. Each employer in Upper Pottsgrove Township is hereby directed
and required to give to the Collector the means, facilities and opportunities
for such examinations and investigations as are hereby authorized.
In the event any person subject to the payment
of this tax is employed in more than one political subdivision during
the year, which levies a local services tax, the priority of claim
to collect such occupational privilege tax shall, in accordance with
Act 511,[1] be in the following order:
A.
The political subdivision in which the person maintains
his principal office or is principally employed.
B.
The political subdivision in which the person resides
and works, if such tax is levied by that political subdivision.
C.
The political subdivision in which a person is employed
and which imposes the tax nearest in miles to the person's home. The
place of employment shall be determined as of the date the taxpayer
first becomes subject to the tax during the calendar year.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
A.
In the event that any tax under this article remains due and unpaid for 60 days after the due dates set forth in § 318-11A of this article, the Collector may sue for the recovery of any such tax due and unpaid under this article, together with interest and penalty.
B.
If, for any reason, the tax is not paid when due, interest at the rate of 6% on the amount of said tax shall be calculated, beginning 30 days after the due dates set forth in § 318-11A of this article. Where suit is brought for the recovery of any occupational privilege tax, the individual liable therefor shall, in addition, be responsible and liable for the cost of collection and the interest and penalties therein imposed.
Any person who shall violate any provision of
this article shall, upon conviction thereof, be sentenced to pay a
fine not exceeding $600 and costs and, in default of payment thereof,
shall be subject to imprisonment for a term not to exceed 30 days.
Each day that a violation of this article continues shall constitute
a separate offense.
This article shall become effective on January
4, 2008, and shall continue in full force and effect annually hereafter
on a calendar-year basis as provided for by the Local Tax Enabling
Act, as amended.
