Source: https://www.ecode360.com/27122255
Timestamp: 2020-02-20 08:59:50
Document Index: 376099939

Matched Legal Cases: ['§ 325', '§ 325', '§ 325', '§ 325', '§ 325', '§ 325', '§ 325', '§ 325', '§ 325', '§ 325', '§ 325', '§ 325', '§ 325']

City of Washington, PA Local Services Tax
Ch 325 Art X Local Services Tax
§ 325-83 Definitions.
§ 325-84 Imposition of tax.
§ 325-85 Exemptions and refunds.
§ 325-86 Duty of employer to collect.
§ 325-87 Returns.
§ 325-88 Dates for determining tax liability and payment.
§ 325-89 Self-employed individuals.
§ 325-90 Individuals engaged in more than one occupation or employed in more than one political subdivision.
§ 325-91 Nonresidents subject to tax.
§ 325-92 Administration of tax.
§ 325-93 Suits for collection.
§ 325-94 Violations and penalties.
§ 325-95 When effective.
[Adopted 10-6-2011 by Ord. No. 1845]
The person, public employee or private agency approved by the Washington County Tax Collection Committee to collect and administer the tax herein imposed.
The compensation required to be reported, as determined by the Pennsylvania Department of Revenue under Section 303 of the Tax Reform Code of 1971, as amended,[1] and rules and regulations promulgated thereunder. Employee business expenses as reported to or determined by the Department of Revenue under Article III of the Tax Reform Code shall constitute allowable deductions in determining earned income. The term does not include offsets for business losses. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
A person, business entity or other entity employing one of more person for a salary, wage, commission or other compensation. The term includes the commonwealth, a political subdivision and an instrumentality or public authority of either. For purposes of penalties under this article, the term includes a corporate officer.
Any person, male or female, engaged in any occupation, trade or profession within the corporate limits of the City.
The net income from the operation of a business, profession, or other activity, as required to be reported or determined by the Pennsylvania Department of Revenue under Section 303 of the Tax Reform Code of 1971, as amended, and rules and regulations promulgated thereunder. The term does not include income under any of the following:
Any trade, profession, business or undertaking of any kind or character, including services, domestic or other, earned in or performed within the corporate limits of the political subdivision, for which compensation is charged or received, whether by means of salary, wages, commission or fees for services rendered.
Includes cities, boroughs and public school districts.
The Washington County Tax Collection Committee.
For specific revenue purposes, an annual tax is hereby levied and assessed, commencing January 1, 2012, upon the privilege of engaging in an occupation with a primary place of employment within the City 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 $52, assessed on a pro rata basis, in accordance with the provisions of this article. This tax may be used solely for the following purposes, as the same may be allocated by the City from time to time: 1) emergency services, which shall include emergency medical services, police services and/or fire services; 2) road construction and/or maintenance; 3) reduction of property taxes; or 4) property tax relief through implementation of a homestead property exclusion in accordance with 53 Pa.C.S.A. Chapter 85, Subchapter F[1] (relating to homestead property exclusion). The City 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 City. The tax shall be no more than $52 on each person for each calendar year, irrespective of the number of political subdivisions within which a person may be employed.
A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Collector with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the City of less than $12,000 in the calendar year for which the exemption certificate is filed. 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 political subdivision 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 political subdivision or except as required by Subsection B(2), 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. The exemption certificate form shall be the uniform form provided by the political subdivision.
If a person who claimed an extension for a given calendar year from the tax becomes subject to the tax for the calendar year under Subsection B(2), 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 B(2), 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 clause is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due, and the political subdivision may pursue collection under this article.
Refunds. The TCC, 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 exemption and provide refunds to exempt persons.
Each employer within the City, as well as those employers situated outside the City but who engage in business within the City, is hereby charged with the duty of collecting the tax from each employee engaged by him or performing for him within the City and making a return and payment thereof to the Collector. Further, each employer is hereby authorized to deduct this tax for 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 the City.
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 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 D 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 City.
The tax shall be $52 on each person for each calendar year, irrespective of the number of political subdivisions within which a person may be employed. The political subdivision shall provide a taxpayer a receipt of payment upon request by the taxpayer.
No employer shall be held liable for failure to withhold the tax or for the payment of the withheld tax money to the City 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 this article and remits the amount so withheld in accordance with this article.
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 the City shall be required to comply with this article 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.
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 required 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:
Third, the political subdivision in which a person is employed and which imposed the tax nearest in miles to the person's home.
All employers and self-employed individuals residing or having their places of business outside of the political subdivision but who perform services of any type or kind or engage in any occupation or profession within the political subdivision do, by virtue thereof, agree to be bound by and subject themselves to the provisions, penalties and regulations promulgated under this article with the same force and effect as though they were residents of the political subdivision. Further, any individual engaged in an occupation within the political subdivision and an employee of a nonresidential employer may, for the purpose of this section, be considered a self-employed person, and in the event his or her tax is not paid, the political subdivision shall have the option of proceeding against either the employer or employee for the collection of this tax as hereinafter provided.
The Collector is hereby charged with the administration and enforcement of this article and is hereby charged and empowered, subject to TCC approval, to prescribe, adopt and promulgate rules and regulations relating to any matter pertaining to the administration and enforcement of this article, including provisions for the examination of payroll records of any employer subject to this article, the examination and correction of any return 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 consistent with the Local Taxpayers Bill of Rights under Act 50 of 1998 (municipalities may detail their appeal processes).[1]
Editor's Note: See Art. V, Local Taxpayers Bill of Rights, of this chapter.
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 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.
The tax imposed by this article shall be effective on January 1, 2012, and all calendar years thereafter unless repealed or modified by ordinance of the City.