Article 2
Taxation; Special
A. Earned Income and Net Profits Tax
§3-201 Imposition of Tax.
1. A tax for general revenue purposes at the rate of 1 percent is hereby imposed on earned income received and net profits earned by the residents of the Borough of Cornwall during the year beginning July 1, 1968, and ending June 30, 1969, and during each year thereafter without reenactment until this Article shall be repealed or the rate of the tax changed.
2. The terms “association,” “business,” “corporation,” “earned income,” “income tax officer,” “employer,” “net profits,” “person,” “preceding year,” “residents,” “succeeding year,” and “taxpayer” used in this Article 2A shall have the meanings ascribed to them in the “Act,” as well as any other definitions of terms given in the “Act.”
(Ord. 210, 5/13/1968, §1)
§3-202 Returns and Payments by Taxpayers.
1. Every taxpayer earning net profits or receiving earned income in any calendar year beginning with the year 1969 shall, on or before April 15 of the succeeding year, make and file with the income tax officer a return of those net profits or earned income, as the case may be, and pay the tax due under this Article 2A.
2. The Borough specifically absolves persons making net profits from filing an estimated return which requirement is optional in the “Act” and no such declarations and quarterly returns or payments by taxpayers as distinguished from withholding employers are required by this Article 2A.
(Ord. 210, 5/13/1968, §2)
§3-203 Employers’ Collection.
1. Every person in the Borough who employs one or more persons, other than a domestic servant, is required to register and to deduct the tax from the employees' earned income, and to file quarterly returns and reports and make remittances and to do all other acts required as fully set forth in §13(IV) of the “Act,” 53 P.S. §6913 (IV).
2. Any employer who has no place of business in this Borough, but who desires, for the convenience and with the consent of his employees residing in this Borough, to deduct tax hereunder from such employees' wages, shall be entitled to the commission hereafter allowed, and shall become subject to all obligations of timely filing of returns, reports, and remittances, and of maintaining and disclosing records, and to all interest and penalties with respect to such tax as he may actually deduct, in all respects, and with the same incidence, as though he were a resident employer. But no such deduction shall obligate such employer to continue to make future deductions.
3. Taxes deducted from the income of an employee by an employer shall be and remain in the hands of the employer's trust fund and property of the Borough until remitted to the earned income tax officer. These withholdings and deductions by the employer of earned income shall, as between the employee and this Borough, constitute payment of the tax by employee regardless of any insolvency or failure to remit on the employer's part.
4. Every employer who shall deduct taxes form the earned income of his employees and remit them together with the required forms and reports of the earned income tax bureau within the required time, shall be entitled to deduct from such remittance a commission of 2 percent as provided for in the “Act.” This 2 percent deduction by the employer is compensation for the services performed by them on behalf of the Borough.
(Ord. 210, 5/13/1968, §3)
§3-204 Earned Income Tax Officer.
1. The Borough designates the Lebanon County Earned Income Tax Bureau, an unincorporated association operated jointly by the school districts of Lebanon County, as its income tax officer to be subject to all requirements and to have all powers and duties as set forth in the “Act,” §13(V), 53 P.S. §6913 (V).
2. The compensation of the income tax officer shall be set and determined by the Lebanon County Earned Income Tax Collection Bureau and the compensation provision of the “Act” is inapplicable.
(Ord. 210, 5/13/1968, §4)
§3-205 Interest and Penalties; Suits for Collection.
1. All interest and penalties as authorized and imposed by §13(VIII), 53 P.S. §6913 (VIII), of the “Act” are hereby authorized and imposed.
2. All suits for collection of taxes under §13(VIII) of the “Act,” 53 P.S. §6913 (VIII), are authorized.
(Ord. 210, 5/13/1968, §5)
§3-206 Deductions and Losses.
1. Employee's unreimbursed business expenses: Business expenses for which an employee has not been reimbursed and which are deductible from wages in his Federal Income Tax Return in computing earned income under this Article 2A.
2. Losses: Losses incurred in the operation of a business shall be deductible from earned income or from net profits of another business in computing the tax but such losses shall not be carried over or carried back and shall not be deducted from the earned income or net profit of the spouse or any other party.
(Ord. 210, 5/13/1968, §6)
§3-207 Age Applicability of Taxes.
Persons under 16 Years of Age. The Borough finds that most minors under 16 years of age are unemancipated and subject to compulsory school attendance and are, for the most part, lacking in power to earn and to have legal control of property and money and that the collection of tax from persons under this age would yield inconsequential amounts, and would be unduly difficult and expensive to collect, and that minors in this group have been traditionally considered as comprising a separate class for many legislative and judicial purposes, and that to impose a tax on persons of this class would not be in the public interest. Therefore, persons under the age of 16 years are exempted from all liability for the tax under this Article 2A.
(Ord. 210, 5/13/1968, §7)
§3-208 Nonapplicability.
This Article 2A shall not apply to any person, institution or organization as to whom or which is beyond the legal power of this Borough to impose any tax or duty provided for in this Article 2A .
(Ord. 210, 5/13/1968, §8)
§3-209 Inclusion of Mandatory Provisions of the Act.
The present and future provisions of the “Act” notwithstanding prior mention in this Article 2A in specific subsections as being inapplicable are incorporated into this Article 2A by this reference and all mandatory provisions of §13, 53 P.S. §6913 , are hereby adopted. Any future provisions and supplements or amendments to the “Act” which are mandatory are hereby specifically included and shall automatically become a part of this Article 2A upon the effective date of their passage without formal amendment to this Article 2A by the Borough.
(Ord. 210, 5/13/1968, §9)
B. Realty Transfer Tax
§3-211 Authority.
A realty transfer tax for general revenue purposes is hereby imposed upon the transfer of real estate or interest in real estate situated within the Borough of Cornwall, regardless of where the documents making the transfer are made, executed or delivered or where the actual settlements on such transfer took place, as authorized by Article XI-D, “Local Real Estate Transfer Tax,” 72 P.S. §8101-D et seq.
(Ord. 2009-1, 7/13/2009)
§3-212 Definitions.
Association - a partnership, limited partnership, or any other form of unincorporated enterprise owned or conducted by two or more persons other than a private trust or decedent’s estate.
Corporation - a corporation, joint-stock association, business trust or banking institution which is organized under the laws of this Commonwealth, the United States or any other state, territory, foreign country or dependency.
Document - any deed, instrument or writing which conveys, transfers, demises, vests, confirms or evidences any transfer or demise of title to real estate, but does not include wills, mortgages, deeds or trust or other instruments of like character given as security for a debt and deeds of release thereof to the debtor, and contracts whereby the legal title does not pass to the grantee until the total consideration specified in the contract has been paid or any cancellation thereof unless the consideration is payable over a period of time exceeding 30 years, or instruments which solely grant, vest or confirm a public utility easement. “Document” also shall include a declaration of acquisition required to be presented for recording under §3-213.
Family farm corporation - a corporation of which at least 75 percent of its assets are devoted to the business of agriculture and at least 75 percent of each class of stock of the corporation is continuously owned by members of the same family. The business of agriculture shall include the leasing to members of the same family of property which is directly and principally used for agricultural purposes. The business of agriculture shall not be deemed to include:
A. Recreational activities such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing.
B. The raising, breeding or training of game animals or game birds, fish, cats, dogs or pets or animals intended for use in sporting or recreational activities.
C. Fur farming.
D. Stockyard and slaughterhouse operations.
E. Manufacturing or processing operations of any kind.
Family farm partnership - a partnership of which at least 75 percent of its assets are devoted to the business of agriculture and at least 75 percent of the interests in the partnership are continuously owned by members of the same family. The business of agriculture shall include the leasing to members of the same family of property which is directly and principally used for agricultural purposes. The business of agriculture shall not be deemed to include:
A. Recreational activities, such as but not limited to hunting, fishing, camping, skiing, show competition or racing.
B. The raisin, breeding or training of game animals or game birds, fish, cats, dogs or pets or animals intended for use in sporting or recreational activities.
C. Fur farming.
D. Stockyard and slaughterhouse operations.
E. Manufacturing or processing operations of any kind.
Living trust - any trust, other than a business trust, intended as a will substitute by the settlor which becomes effective during the lifetime of the settlor, but from which trust distributions cannot be made to any beneficiaries other than the settlor prior to the death of the settlor.
Members of the same family - any individual, such individual’s brothers and sisters, the brothers and sisters of such individual’s parents and grandparents, the ancestors and lineal descendants of any of the foregoing, a spouse of any of the foregoing, and the estate of any of the foregoing. Individuals related by the half-blood or legal adoption shall be treated as if they were related by the whole-blood.
Ordinary trust - any trust, other than a business trust or a living trust, which takes effect during the lifetime of the settlor and for which the trustees of the trust take title to property primarily for the purpose of protecting, managing or conserving it until distribution to the named beneficiaries of the trust. An ordinary trust does not include a trust that has an objective to carry on business and divide gains, nor does it either expressly or impliedly have any of the following features: the treatment of beneficiaries as associates, the treatment of the interests in the trust as personal property, the free transferability of beneficial interests in the trust, centralized management by the trustee or the beneficiaries, or continuity of life.
Person - every natural person, association or corporation. Whenever used in any Section prescribing and imposing a fine or imprisonment, or both, the term “person” as applied to associations, shall include the responsible members or general partners thereof, and as applied to corporations, the officers thereof.
Real estate -
A. All lands, tenements or hereditaments within this Borough including, without limitation buildings, structures, fixtures, mines, minerals, oil, gas, quarries, spaces with or without upper or lower boundaries, trees and other improvements, immovables or interests which by custom, usage or law pass with a conveyance of land, excluding permanently attached machinery and equipment in an industrial plant.
B. A condominium unit.
C. A tenant-stockholder’s interest in a cooperative housing corporation, trust or association under a proprietary lease or occupancy agreement.
Real estate company - a corporation or association which is primarily engaged in the business of holding, selling, or leasing real estate, 90 percent or more of the ownership interest in which is held by 35 or fewer persons and which:
A. Derives 60 percent or more of its annual gross receipts from the ownership of disposition of real estate.
B. Holds real estate, the value of which comprises 90 percent or more of the value of its entire tangible asset holdings exclusive of tangible assets which are freely transferable and actively traded on an established market.
Title to real estate -
A. Any interest in real estate which endures for a period of time, the termination of which is not fixed or ascertained by a specific number of years including, without limitation, an estate in fee simple, life estate or perpetual leasehold.
B. Any interest in real estate enduring for a fixed period of years but which, either by reason of the length of the term or the grant of a right to extend the term by renewal or otherwise, consists of a group of rights approximating those of an estate in fee simple, life estate or perpetual leasehold including, without limitation, a leasehold interest or possessory interest under a lease or occupancy agreement for a term of 30 years or more or a leasehold interest or possessory interest in real estate in which the lessee has equity.
Transaction - the making, executing, delivering, accepting or presenting for recording of a document.
Value -
A. In the case of any bona fide sale of real estate at arm’s length for actual monetary worth, the amount of the actual consideration therefor, paid or to be paid, including liens or other encumbrances thereon existing before the transfer and not removed thereby, whether or not the underlying indebtedness is assumed and ground rents, or a commensurate part thereof where such liens or encumbrances and ground rents also encumber or are charged against other real estate; provided, that where such documents shall set forth a nominal consideration, the “value” thereof shall be determined from the price set forth in or actual consideration for the contract of sale.
B. In the case of a gift, sale by execution upon a judgment or upon the foreclosure of a mortgage by a judicial officer, transactions without consideration or for consideration less than the actual monetary worth of the real estate, a taxable lease, an occupancy agreement, a leasehold or possessory interest, any exchange or properties, or the real estate of an acquired company, the actual monetary worth of the real estate determined by adjusting the assessed value of the real estate for local real estate tax purposes for the common level ratio factor developed by the Pennsylvania Department of Revenue for Pennsylvania realty transfer tax base calculations.
C. In the case of an easement or other interest in real estate the value of which is not determinable under subsection .A or .B, the actual monetary worth of such interest.
D. The actual consideration for or actual monetary worth of any executory agreement for the construction of buildings, structures or other permanent improvements to real estate between the grantor and other persons existing before the transfer and not removed thereby or between the grantor, the agent or principal of the grantor of a related corporation, association or partnership and the grantee existing before or effective with the transfer.
(Ord. 2009-1, 7/13/2009)
§3-213 Imposition of Tax; Interest.
1. Every person who makes, executes, delivers, accepts or presents for recording any document or in whose behalf any document is made, executed, delivered, accepted or presented for recording, shall be subject to pay for and in respect to the transaction or any part thereof, a tax at the rate of 1 percent of the value of the real estate represented by such document, which tax shall be payable at the earlier of the time the document is presented for recording or within 30 days of acceptance of such document or within 30 days of becoming an acquired company.
2. The payment of the tax imposed herein shall be evidenced by the affixing of an official stamp or writing by the Recorder of Deeds whereon the date of payment of the tax, amount of the tax and the signature of the collecting agent shall be set forth.
3. It is the intent of this Article that the entire burden of the tax imposed herein on a person or transfer shall not exceed the limitations prescribed in the Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257, 53 P.S. §6901 et seq., so that if any other political subdivision shall impose or hereafter shall impose such tax on the same person or transfer then the tax levied by the Borough under the authority of that Act shall, during the time such duplication of the tax exists, except as hereinafter otherwise provided, be ½ of the rate and such ½ rate shall become effective without any action on the part of the Borough; provided, however, that the Borough and any other political subdivision which imposes such tax on the same person or transfer may agree that, instead of limiting their respective rates to ½ of the rate here in provided, that they impose respectively different rates, the total of which shall not exceed the maximum rate permitted under the “Local Tax Enabling Act.”
4. The tax imposed under subsection .1 above and all applicable interest and penalties shall be administered, collected and enforced under the Act of December 31, 1965, P.L. 1257, No. 511, as amended, known as the “Local Tax Enabling Act,” 53 P.S. §6901 et seq.; provided, that if the correct amount of the tax is not paid by the last date prescribed for timely payment, the Borough, pursuant to §1102-D of the Tax Reform Code of 1971, 72 P.S. §8102-D, authorizes and directs the Department of Revenue of the Commonwealth of Pennsylvania to determine, collect and enforce the tax, interest and penalties.
5. Any tax imposed under subsection .1 that is not paid by the date the tax is due shall bear interest as prescribed for interest on delinquent municipal claims under the Act of May 16, 1923, P.L. 207, No. 153, 53 P.S. §7101 et seq., as amended, known as the “Municipal Claims and Tax Liens Act.” The interest rate shall be the lesser of the interest rate imposed upon delinquent Commonwealth taxes as provided in §806 of the Act of April 9, 1929, P.L. 343, No. 176, 72 P.S. §806, as amended, known as the “Fiscal Code,” or the maximum interest rate permitted under the Municipal Claims and Tax Liens Act, 53 P.S. §7101 et seq., for tax claims.
(Ord. 2009-1, 7/13/2009)
§3-214 Exempt Parties.
The United States, the Commonwealth or any of their instrumentalities, agencies or political subdivisions shall be exempt from payment of the tax imposed by this Article.
The exemption of such governmental bodies shall not, however, relieve any other party to a transaction from liability for the tax.
(Ord. 2009-1, 7/13/2009)
§3-215 Excluded Transactions.
1. The tax imposed by §3-213 shall not be imposed upon:
A. A transfer to the Commonwealth, or to any of its instrumentalities, agencies or political subdivisions, by gift, dedication or deed in lieu of condemnation or deed of confirmation in connection with condemnation proceedings, or a reconveyance by the condemning body of the property condemned to the owner of record at the time of condemnation which reconveyance is made within 1-year from the date of condemnation.
B. A document which the Borough is prohibited from taxing under the Constitution or statutes of the United States.
C. A conveyance to a municipality, township, school district or county pursuant to acquisition by the municipality, township, school district or county of a tax delinquent property at sheriff sale or tax claim bureau sale.
D. A transfer for no or nominal actual consideration which corrects or confirms a transfer previously recorded, but which does not extend or limit existing record legal title or interest.
E. A transfer of division in kind for no or nominal actual consideration or property passed by testate or intestate succession and held by cotenants; however, if any of the parties takes shares greater in value than their undivided interest, tax is due on the excess.
F. A transfer between husband and wife, between persons who were previously husband and wife who have since been divorced, provided the property or interest therein subject to such transfer was acquired by the husband and wife or husband or wife prior to the granting of the final decree in divorce, between parent and child or the spouse of such child, between brother or sister or spouse of a brother or sister and brother or the spouse of a brother or sister, and between a grandparent and grandchild or the spouse of such grandchild, except that a subsequent transfer by the grantee within 1 year shall be subject to tax as if the grantor were making such transfer.
G. A transfer for no or nominal actual consideration of property passing by testate or intestate succession from a personal representative of a decedent to the decent’s devisee or heir.
H. A transfer for no or nominal actual consideration to a trustee of an ordinary trust where the transfer of the same property would be exempt if the transfer was made directly from the grantor to all of the possible beneficiaries that are entitled to receive the property or proceeds from the sale of the property under the trust, whether or not such beneficiaries are contingent or specifically named. No such exemption shall be granted unless the Recorder of Deeds is presented with a copy of the trust instrument that clearly identifies the grantor and all possible beneficiaries.
I. A transfer for no or nominal actual consideration from a trustee of a living trust from settlor of the living trust. No such exemption shall be granted unless the Recorder of Deeds is presented with a copy of the living trust instrument.
J. A transfer for no or nominal actual consideration from a trustee of an ordinary trust to a specifically named beneficiary that is entitled to receive the property under the recorded trust instrument or to a contingent beneficiary where the transfer of the same property would be exempt if the transfer was made by the grantor of the property into the trust to that beneficiary. However, any transfer of real estate from a living trust during the settlor's lifetime shall be considered for the purposes of this Article as if such transfer were made directly from the settlor to the grantee.
K. A transfer for no or nominal actual consideration from a trustee of a living trust after the death of the settlor of the trust or from a trustee of a trust created pursuant to the will of a decedent to a beneficiary to whom the property is devised or bequeathed.
L. A transfer for no or nominal actual consideration from the trustee of a living trust to the settlor of the living trust if such property was originally conveyed to the trustee by the settlor.
M. A transfer for no or nominal actual consideration from a trustee to a beneficiary of an ordinary trust.
N. A transfer for no or nominal actual consideration from trustee to successor trustee.
O. A transfer:
(1) For no or nominal actual consideration between principal and agent or straw party.
(2) From or to an agent or straw party where, if the agent or straw party were his principal, no tax would be imposed under this Article.
Where the document by which title is acquired by a grantee or statement of value fails to set forth that the property was acquired by the grantee from, or for the benefit of, his principal, there is a rebuttable presumption that the property of the grantee in his individual capacity if the grantee claims an exemption from taxation under this clause.
P. A transfer made pursuant to the statutory merger or consolidation of a corporation or statutory division of a nonprofit corporation, except where the department reasonably determines that the primary intent for such merger, consolidation or division is avoidance of the tax imposed by this Article.
Q. A transfer from a corporation or association of real estate held of record in the name of the corporation or association where the grantee owns stock of the corporation or an interest in the association in the same proportion as his interest in or ownership of the real estate being conveyed and where the stock of the corporation or the interest in the association has been held by the grantee for more than 2-years.
R. A transfer from a nonprofit industrial development agency or authority to a grantee of property conveyed by the grantee to that agency or authority as security for a debt of the grantee or a transfer to a nonprofit industrial development agency or authority.
S. A transfer from a nonprofit industrial development agency or authority to a grantee purchasing directly from it, but only if:
(1) The grantee shall directly use such real estate for the primary purpose of manufacturing, fabricating, compounding, processing, publishing, research and development, transportation, energy conversion, energy production, pollution control, warehousing, or agriculture.
(2) The agency or authority has the full ownership interest in the real estate transferred.
T. A transfer by a mortgagor to the holder of a bona fide mortgage in default in lieu of a foreclosure or a transfer pursuant to a judicial sale in which the successful bidder is the bone fide holder of a mortgage, unless the holder assigns the bid to another person.
U. Any transfer between religious organizations or other bodies or persons holding title for a religious organization if such real estate is not being or has not been used by such transferor for commercial purposes.
V. A transfer to a conservancy which possesses a tax exempt status pursuant to §501(c)(3) of the Internal Revenue Code of 1954, and which has as its primary purpose preservation of land for historic, recreational, scenic, agricultural or open space opportunities; or a transfer from such a conservancy to the United States, the Commonwealth or to any of their instrumentalities, agencies or political subdivisions; or any transfer from such a conservancy where the real estate is encumbered by a perpetual agricultural conservation easement as defined by the Act of June 30, 1981 (P.L. 128, No. 43), known as the “Agricultural Area Security Law,” and such conservancy has owned the real estate for at least 2-years immediately prior to the transfer.
W. A transfer of real estate devoted to the business of agriculture to a family farm corporation by a member of the same family which directly owns at least 75 percent of each class of the stock thereof.
X. A transfer of real estate devoted to the business of agriculture to a family farm partnership by a member of the same family, which family directly owns at least 75 percent of the interests in the partnership.
Y. A transfer between members of the same family of an ownership interest in a real estate company, family farm corporation or family farm partnership which owns real estate.
Z. A transaction wherein the tax due is $1 or less.
AA. Leases for the production or extraction of coal, oil, natural gas or minerals and assignments thereof.
2. In order to exercise any exclusion provided in this Section, the true, full and complete value of the transfer shall be shown on the statement of value. A copy of the Pennsylvania Realty Transfer Tax Statement of Value may be submitted for this purpose. For leases of coal, oil, natural gas or minerals, the statement of value may be limited to an explanation of the reason such document is not subject to tax under this Article.
(Ord. 2009-1, 7/13/2009)
§3-216 Documents Relating to Associations or Corporations and Members, Partners, Stockholders or Shareholders Thereof.
Except as otherwise provided in §3-215, documents which make, confirm or evidence any transfer or demise of title to real estate between associations or corporations and the members, partners, shareholders or stockholders thereof are fully taxable. For the purpose of this Article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
(Ord. 2009-1, 7/13/2009)
§3-217 Acquired Company.
1. A real estate company is an acquired company upon a change in the ownership interest of the company, however effected, if the change does not affect the continuity of the company; and of itself or together with prior changes has the effect of transferring, directly or indirectly, 90 percent or more of the total ownership interest in the company within a period of 3 years.
2. With respect to real estate acquired after February 16, 1986, a family farm corporation is an acquired company when, because of voluntary or involuntary dissolution, it ceases to be a family farm corporation or when, because of issuance or transfer of stock or because of acquisition or transfer of assets that are devoted to the business of agriculture, it fails to meet the minimum requirements of a family farm corporation under this Article.
3. A family farm partnership is an acquired company when, because of voluntary or involuntary dissolution, it ceases to be a family farm partnership or when, because of transfer of partnership interests or because of acquisition or transfer of assets that are devoted to the business of agriculture, it fails to meet the minimum requirements of a family farm partnership under this Article.
4. Within 30 days after becoming an acquired company, the company shall present a declaration of acquisition with the reorder of each county in which it holds real estate for the affixation of documentary stamps and recording. Such declaration shall set forth the value of real estate holdings of the acquired company in such county. A copy of the Pennsylvania Realty Transfer Tax Declaration of Acquisition may be submitted for this purpose.
(Ord. 2009-1, 7/13/2009)
§3-218 Credits Against Tax.
1. Where there is a transfer of a residential property by a licensed real estate broker which property was transferred to him within the preceding year as consideration for the purchase of other residential property, a credit for the amount of the tax paid at the time of the transfer to him shall be given to him toward the amount of the tax due upon the transfer.
2. Where there is a transfer by a builder of residential property which was transferred to the builder within the preceding year as considered for the builder of new, previously unoccupied residential property, a credit for the amount of the tax paid at the time of the transfer to the builder shall be given to the builder toward the amount of the tax due upon the transfer.
3. Where there is a transfer of real estate which is leased by the grantor, a credit for the amount of tax paid at the time of the lease shall be given the grantor toward the tax due upon the transfer.
4. Where there is a conveyance by deed of real estate which was previously sold under a land contract by the grantor, a credit for the amount of tax paid at the time of the sale shall be given the grantor toward the tax due upon the deed.
5. If the tax due upon the transfer is greater than the credit given under this Section, the difference shall be paid. If the credit allowed is greater than the amount of tax due, no refund or carryover credit shall be allowed.
(Ord. 2009-1, 7/13/2009)
§3-219 Extension of Lease.
In determining the term of a lease, it shall be presumed that a right or option to renew or extend a lease will be exercised if the rental charge to the lessee is fixed or if a method of calculating the rental charge is established.
(Ord. 2009-1, 7/13/2009)
§3-220 Proceeds of Judicial Sale.
The tax herein imposed shall be fully paid, and have priority out of the proceeds of any judicial sale of real estate before any other obligation, claim, lien, judgment, estate or costs of the sale and of the writ upon which the sale is made except that state realty transfer tax, and the sheriff or other officer paid to him in connection therewith. If the proceeds of the sale are insufficient to pay the entire tax herein imposed, the purchaser shall be liable for the remaining tax.
(Ord. 2009-1, 7/13/2009)
§3-221 Duties of Recorder of Deeds.
1. As provided in 16 P.S. §11011-6, as amended by the Act of July 7, 1983 (P.L. 40, No. 21), the Recorder of Deeds shall be the collection agent for the local realty transfer tax including any amount payable to the Borough based on a redetermination of the amount of tax due by the Commonwealth of Pennsylvania of the Pennsylvania realty transfer tax, without compensation from the Borough.
2. In order to ascertain the amount of taxes due when the property is located in more than one political subdivision, the Recorder shall not accept for recording such a deed unless it is accompanied by a statement of value showing what taxes are due each Borough.
3. On or before the 10th of each month, the Recorder shall pay over to the Borough all local realty transfer taxes collected, less 2 percent for use of the County, together with a report containing the information as is required by the Commonwealth of Pennsylvania in reporting collections of the Pennsylvania realty transfer tax. The 2 percent commission shall be paid to the County.
4. Upon a redetermination of the amount of realty tax due by the Commonwealth of Pennsylvania, the Recorder shall rerecord the deed or record the additional realty transfer tax form only when both the State and local amounts and a rerecording or recording fee has been tendered.
(Ord. 2009-1, 7/13/2009)
§3-222 Statement of Value.
Every document lodged with or presented to the Recorder of Deeds for recording shall set forth therein and as a part of such document the true, full and complete value thereof, or shall be accompanied by a statement of value executed by a responsible person connected with the transaction showing such connection and setting forth the true, full and complete value thereof or the reason, if any, why such document is not subject to tax under this Article. A copy of the Pennsylvania Realty Transfer Tax Statement of Value may be submitted for this purpose. The provisions of this subsection shall not apply to any excludable real estate transfers which from taxation based on family relationship. Other documents presented for the affixation of stamps shall be accompanied by a certified copy of the document and statement of value executed by a responsible person connected with the transaction showing such connection and setting forth the true, full and complete value thereof or the reason, if any, why such document is not subject to tax under this Article.
(Ord. 2009-1, 7/13/2009)
§3-223 Penalties, Liens, Enforcement.
1. Civil Penalties.
A. If any part of any underpayment of tax imposed by this Article is due to fraud, there shall be added to the tax an amount equal to 50 percent of the underpayment.
B. In the case of failure to record a declaration required under this Article on the date prescribed therefor, unless it is shown that such failure is due to reasonable cause, there shall be added to the tax 5 percent of the amount of such tax if the failure is for not more than one month, with an additional 5 percent for each additional month or fraction thereof during which such failure continues, not exceeding 50 percent, in the aggregate.
2. Lien. The tax imposed by this Article shall become a lien upon the lands, tenements or hereditaments, or any interest therein, lying, being situated, wholly or in part within the boundaries of the Borough, which lands, tenements, hereditaments or interest therein are described in or conveyed by or transferred by the document which is the subject of the tax imposed, assessed and levied by this Article, said lien to begin at the time when the tax under this Article is due and payable, and continue until discharge by payment or in accordance with the law. The Solicitor is authorized to file a municipal or tax claim in the Court of Common Pleas of Allegheny County, in accordance with the provisions of the Municipal Claims and Liens Act of 1923, 53 P.S. §7101 et seq., its supplements and amendments.
3. Enforcement. All taxes imposed by this Article together with interest and penalties prescribed herein shall be recoverable as other debts of like character are recovered.
(Ord. 2009-1, 7/13/2009)
§3-224 Regulations.
The Borough Manager is charged with enforcement and collection of tax and is empowered to promulgate and enforce reasonable regulations for enforcement and collection of the tax. The regulations which have been promulgated by the Pennsylvania Department of Revenue under 72 P.S. §8101-C et seq. are incorporated into and made a part of this Article.
(Ord. 2009-1, 7/13/2009)
§3-225 Duration.
The provisions of this Article shall continue in full force on a calendar year basis without annual reenactment unless the rate of tax is changed.
(Ord. 2009-1, 7/13/2009)
C. Amusement and Admissions Tax
§3-231 Title and Statutory Authority.
This Subpart shall be known and may be cited as the “Cornwall Borough Amusement and Admissions Tax Ordinance.” This Article 2C is enacted under the authority of the Pennsylvania Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257, No. 511, as amended, 53 P.S. §6924.101 et seq., and as may be hereafter modified, amended or reenacted.
(Ord. 2010-3, 9/13/2010, §1)
§3-232 Definitions and Word Usage.
1. The following words or phrases, when used in this Article 2C, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning:
Amusement–all manner and forms of entertainment, including, without limitation, theatrical or operatic performances; concerts; vaudeville; circus, carnival and sideshows; all forms of entertainment at fairgrounds, waterparks, and amusement parks; athletic contests, including wrestling matches, boxing and sparring exhibitions, football and baseball games, skating, tennis, hockey, bathing, swimming, archery, shooting, riding, dancing, rowing, billiards, and pool; trade shows; conferences; conventions; and all other forms of diversion, sport, recreation or pastime, shows, exhibitions, contests, displays and games and all other methods of obtaining admission charges, donations, contributions or monetary charges of any character from the general public or a limited or selected number thereof, directly or indirectly, in return for other than tangible property or specific personal professional services. An amusement shall not include any activity which is exempted from taxation by the Local Tax Enabling Act.
Borough–the Borough of Cornwall, Lebanon County, Pennsylvania.
Borough Council–the governing body of the Borough.
Collector–the person authorized to administer the within tax or the collector’s duly authorized or deputized agents.
Established price–regular monetary charges of any character whatsoever, including donations, contributions and dues or membership fees (periodical or otherwise), fixed and exacted or in any manner received by producers, as herein defined, from the general public or a limited or selected number thereof, directly or indirectly, for the privilege to attend or engage in any entertainment or amusement, provided that when such entertainment or amusement is conducted at any place where the charge for admission is wholly or in part included in the price paid for refreshment, services or merchandise, the amount paid for admission to such amusement shall be deemed to be 50 percent of the amount paid for refreshment, service and merchandise. The established price shall not include any tax or charge which may be imposed by the Commonwealth of Pennsylvania.
Golf course–a facility for playing regulation golf with a series of 9 holes or 18 holes which is used solely for playing golf. For the purposes of §3-310.3, amusements other than playing golf which are conducted on a property which contains a 9-hole or 18-hole golf course including, but not limited to, miniature golf facilities, snow rides or tubing, skating, snowboarding, and/or water rides or tubing shall not be considered to be part of the golf course.
Local Tax Enabling Act or LTEA–the Act of December 31, 1965, P.L. 1257, No. 511, as amended, 53 P.S. §6924.101 et seq.
Person–any individual, association, partnership, public or private corporation whether for profit or not-for-profit, trust, estate, or other legally recognized entity. Whenever the term “person” is used in connection with any clause providing for the imposition of a fine or penalty or the ordering of the action to comply with the terms of this Article 2C, the term “person” shall include the members of an association, partnership or firm and the officers of any public or private corporation, whether for profit or not-for-profit.
Place of amusement–any place, indoors or outdoors, within the Borough where the general public or a limited or selected number thereof may, upon payment of an established price, attend or engage in any amusement, as herein defined, including, among others, theaters, opera houses, amusement parks, water parks, stadiums, arenas, baseball parks, skating rinks, circus or carnival tents or grounds, fairgrounds, conference or convention centers, hotels, social, sporting, athletic, riding, gun or country clubs, riding academies, golf driving ranges, miniature golf courses, bathing and swimming places, dance halls, tennis courts, archery, rifle or shotgun ranges, pool and billiard parlors, roof gardens, cabarets, nightclubs and other restaurants where amusement or entertainment is provided and other like places.
Producer–any person conducting any place of amusement, as herein defined, where the general public or a limited or selected number thereof may, upon the payment of an established price, attend or engage in any amusement.
Temporary or itinerant amusement–any amusement that is conducted for less than 60 consecutive calendar days.
2. The singular shall include the plural, and the masculine shall include the feminine and neuter.
(Ord. 2010-3, 9/13/2010, §1; as amended by Ord. 2015-3, 9/14/2015, §1)
§3-233 Permit Required; Tax to Be Paid.
1. On and after the effective date of this Article 2C, it shall be unlawful for any producer to continue to conduct or thereafter to begin to conduct any form of amusement at any permanent or temporary place of amusement or any itinerant form of amusement within the Borough unless an amusement permit or permits shall have been issued to him as hereafter prescribed and the tax herein imposed paid in accordance with the provisions herein made.
2. Every producer engaged in, desiring to continue to conduct or desiring hereafter to begin to conduct any amusement within the Borough shall file an application for a permanent, temporary or itinerant amusement permit or permits, as the case may be, with the collector. Each person shall apply for a separate amusement permit and shall be deemed to be a separate producer. If any producer conducts business under a fictitious name, such producer shall apply for registration in both the true and fictitious names of the producer and shall list the fictitious name first on the application. Such applications shall be made upon a form prescribed, prepared and furnished by the collector and shall set forth the name under which the producer conducts or intends to conduct an amusement; whether the producer conducts or intends to conduct a permanent, temporary or an itinerant form of amusement; type of amusement; establish price or established prices to be charged; location of the amusement and such other information as the collector may require.
3. If the producer has or intends to have more than one place of amusement within the Borough, he shall state the location of each such place and, in the case of a temporary or itinerant form of amusement, the date and length of time such amusement is to be conducted at each place.
4. In the case of an application for a permit for a temporary or itinerant place of amusement, the producer shall state the name and address of the owner, lessee or custodian of the premises upon which such amusement is to be conducted.
5. If a producer is an association or a corporation, the application shall state the names and addresses of the principal officers thereof and any other information prescribed by the collector for purposes of identification.
6. The application shall be signed and verified by oath or affirmation by the producer, if a natural person, and in case of an association, by a member or partner thereof, and in case of a corporation, by an executive officer thereof or some person specifically authorized by the corporation to sign the application, to which shall be attached the written evidence of his authority.
7. At the time of making such application, the applicant shall pay to the collector such permit fee as shall from time to time be provided for by Borough Council for each temporary or itinerant permit, which shall be good for no longer than 10 days, or such permit fee as shall from time to time be provided for by Borough Council for a permit good for the remainder of the calendar year.
8. Upon approval of the application and the payment of any permit fee or fees herein required, the collector shall grant and issue to each producer an annual, temporary or itinerant amusement permit for each place of amusement within the Borough set forth in his application.
9. Amusement permits shall not be assignable and shall be valid only for the persons in whose names issued and for the conduct of amusements at the places designated therein and shall at all times be conspicuously displayed at the places for which issued.
10. All permits for permanent places of amusement shall expire on the 31st day of December next succeeding the date upon which they are issued, unless sooner suspended, surrendered or revoked for cause by the proper authorities of the Borough.
11. Permits for temporary places of amusement or for forms of itinerant amusements shall expire at the time specified therein.
12. The producer of a temporary or itinerant form of amusement shall notify the collector promptly of any change in the original contemplated itinerary either as to date or time of the conduct of the amusement at each place.
13. Permits issued for permanent places of amusement under the provisions of this Article 2C may be renewed annually before the first day of January upon application made to the collector and the payment of such renewal fee as shall from time to time be provided for Borough Council.
14. Whenever any permit issued under the provisions of this Article 2C is defaced, destroyed or lost, the collector may issue a duplicate permit to the holder thereof upon the payment of such fee as shall from time to time be provided for by Borough Council.
15. The collector may suspend an amusement permit whenever he finds that the holder thereof has failed to comply with any provision of this Article 2C. Upon the suspension of any amusement permit, the collector shall request the holder thereof to surrender immediately all permits or duplicates thereof which have been issued to him, and the holder shall promptly surrender all such permits to the collector as directed. A producer whose permit has been suspended, upon request made in writing within 10 days after such suspension, shall be entitled to a hearing before Borough Council on or before the next regular meeting. After such hearing, Borough Council shall either rescind the order of suspension, for good cause appearing therefor, or continue the suspension or revoke the permit.
(Ord. 2010-3, 9/13/2010, §1)
§3-234 Tax Imposed.
1. A tax to provide revenue for general Borough purposes is hereby levied, assessed and imposed upon the admission fee or privilege to attend or engage in any amusement, as defined herein, within the Borough at the rate of 5 percent of the established price charged the general public or a limited or selected group thereof by any producer for such privilege, which shall be paid by the person acquiring such privilege.
2. In the case of persons (except bona fide employees of a producer or municipal or state officers on official business) admitted free or at a reduced rate to any place of amusement at a time when and under circumstances where an established price is charged to other persons of the same class for the same or similar accommodation, such tax is to be paid by the persons so admitted.
3. In the case of persons having the permanent use of boxes or seats in any place of amusement or a lease for the use of such box or seat in such place of amusement, the tax imposed by this Article 2C shall be computed on the established price for which a similar box or seat is sold for each performance or exhibition at which the box or seat is used or reserved by or for the lessee or holder, and such tax is to be paid by the lessee or holder.
(Ord. 2010-3, 9/13/2010, §1)
§3-235 Collection by Producers.
1. Producers shall collect the tax imposed by this Article 2C and shall be liable to the Borough as agents thereof for the payment of the same to the collector as hereinafter provided in this Article 2C.
2. Where permits are obtained for conducting amusements by persons who are not the owners, lessees or custodians of the places where the amusements are to be conducted or where the amusement is permitted by the owner, lessee or custodian of any place to be conducted without the procurement of a permit or permits required by this Article 2C, the tax imposed by this Article 2C shall be paid by the owner, lessee or custodian of such place where such amusement is held or conducted, unless paid by the producer conducting the amusement.
(Ord. 2010-3, 9/13/2010, §1)
§3-236 Duties of Producers.
1. For the purpose of ascertaining the amount of tax payable by the producers to the
Borough:
A. Every producer, except as hereinafter provided, conducting a place of amusement shall, on or before the 10th day of each month, transmit to the collector on forms prescribed and prepared by the collector a report, under oath or affirmation, of the amount of tax collected by him during the preceding month. Each separate producer shall file a separate report in the name(s) used by the producer in application for an amusement permit.
B. Every producer conducting a temporary or itinerant form of amusement, promptly after each performance shall file a report, under oath or affirmation, with the collector and furnish the information required therein.
C. Every producer, at the time of making every report required by this Section, shall compute the taxes collected by him and the taxes due the Borough and shall simultaneously transmit the report required by this Section to the collector and pay to the collector the taxes due the Borough during the period for which the report is made; provided, however, that such producer may deduct therefrom a 2 percent discount if the report is filed and the tax is paid on or before the due date thereof.
D. Every producer shall maintain daily records for each day on which an amusement is conducted, indicating the number of persons admitted to that amusement; the established price of admission or other such cover charge paid by each person; the number of persons admitted without paying the established price of admission and the established price of admission charged to other persons at the time of admission of the nonpaying admittee; and the gross amount of admission fees received on that day. All such information shall be set forth on the return filed pursuant to this Section.
2. The amount of all taxes imposed under the provisions of this Article 2C shall, in the case of places of permanent amusement, be due and payable on the 10th day of the next succeeding month, and in the case of temporary or itinerant forms of amusement, such taxes shall be due and payable on the day the reports in such cases are required.
3. If any producer shall neglect or refuse to make any report and/or payment as herein required, a penalty of 10 percent of the amount of the tax due and unpaid shall be added thereto, plus interest of 1¼ percent of the tax due for each month or fractional part thereof from the day the tax is due and payable until paid.
(Ord. 2010-3, 9/13/2010, §1)
§3-237 Method of Recovery.
1. The collector shall have the power in the name of the Borough to collect unpaid or unremitted taxes, interest and penalties from the producers owing such taxes, interest and penalties by institution of a civil action or other appropriate remedy.
2. If for any reason the tax is not paid or remitted when due and suit is brought for the recovery of any such tax, the person liable therefor shall, in addition, be liable for the costs of collection and interest and penalties herein imposed, including but not limited to legal fees and charges incurred by the Borough in the collection of the tax authorized by this Article 2C.
3. The collector, in case of the neglect or refusal of any person to make payment or remit the amount of tax due, shall have the power, to take all actions authorized by the LTEA for the collection of delinquent taxes.
4. The collector shall have the power to report all persons who have neglected or refused to pay or remit the amount of tax due to the Borough Solicitor.
5. The collector shall have the power to revoke the permit or permits of any person who shall fail or refuse to file a return as required by this Article 2C or who shall fail or refuse to pay or remit any taxes, interest or penalty due.
6. In addition to the above remedies, the collector shall have the power to recover unpaid or unremitted taxes as other debts or like amount are now by law recoverable.
(Ord. 2010-3, 9/13/2010, §1)
§3-238 Powers of Collector.
1. Investigation.
A. If the collector is not satisfied with the report and payment of tax made by any producer under the provisions of this Article 2C, he is hereby authorized and empowered to make a determination of the tax due by such producer, based upon the facts contained in the report or upon any information within his possession or that shall come into his possession.
B. The collector is authorized to examine all books, papers, tickets, ticket stubs and any other records whatsoever of any producer taxable under this Article 2C to verify the accuracy of any report or payment made under the provisions hereof or to ascertain whether the taxes imposed by this Article 2C have been paid.
C. Every person subject to the tax imposed by this Article 2C shall make his records or copies thereof available to the collector at any reasonable time and place requested, in writing, by the collector in order to enable the collector to make examination thereof as may be necessary to verify the accuracy of any payment made of the tax required by this Article 2C. However, a written request or demand of any records of a taxpayer shall not be deemed a condition precedent for commencement of any judicial proceeding against a taxpayer.
2. If any producer or supposed producer neglects or refuses to make a return or if, as a result of an investigation by the collector, a return is found to be incorrect, then in such case the collector shall estimate the tax due by said producer or supposed producer and determine any penalties or interest due. In all such cases of assessment, the collector shall give the producer assessed a notice in which shall be stated the amount of the amusement tax imposed or levied as well as any penalties or interest assessed.
3. If any producer neglects or refuses to pay any tax due after filing a return, then in such case the collector shall assess said producer the tax due and determine any penalties or interest due. In all such cases of assessment, the collector shall give the producer assessed a notice in which shall be stated the amount of the amusement tax due as well as any penalties or interest assessed.
4. The collector shall receive payment of the taxes, penalties and interest imposed by this Article 2C. It shall be his duty to keep a record showing the amount received by him from each person paying the tax and the date of such payment and to provide a report of this information monthly to Borough Council. When crediting any payment that is less than the total amount of interest, penalties and tax due, the collector shall first apply any sum received to outstanding interest, then to any outstanding penalties, and any remaining amounts received shall be applied to taxes due.
5. The collector is authorized and empowered to prescribe, adopt and promulgate rules and regulations relating to any matter or thing pertaining to the administration and enforcement of this Article 2C and the collection of the tax hereby imposed, subject to the approval of Borough Council.
(Ord. 2010-3, 9/13/2010, §1)
§3-239 Receipts to Be Paid into Treasury.
All taxes, interest and penalties received, collected or recovered under the provisions of this Article 2C shall be paid into the treasury of the Borough for the use and benefit of the Borough.
(Ord. 2010-3, 9/13/2010, §1)
§3-240 Exemptions.
1. The provisions of this Article 2C shall not be applicable to any person who is wholly exempt from taxation under the LTEA or to any amusement which is wholly exempt from taxation under the LTEA.
2. No amusement owned and/or operated by the Commonwealth of Pennsylvania or the Pennsylvania Historical and Museum Commission shall be subject to taxation under this Article 2C.
3. Golf courses shall not be considered amusements and shall not be subject to taxation under this Article 2C.
4. The tax imposed by this Article 2C shall not apply to admission to any form of amusement which involves the participation of students, and which is sponsored, organized, and promoted by, and whose benefits inure to a public school or a public school district within the Commonwealth of Pennsylvania or a nonprofit organization created and operated to coordinate such events, such as the Pennsylvania Interscholastic Athletic Association, or organizations or associations comprised of public school officials or public school educators, if a majority of the members of such nonprofit organization consists of public schools or public school districts, public school officials or public school educator’s. In order to obtain an exemption from the payment of this tax, the public school, public school district, or nonprofit organization must request the exemption from the collector, in writing, no later than 30 days prior to the scheduled event. A failure to follow this requirement and to provide any relevant information requested by the collector shall be cause for the collector to deny the exemption.
(Ord. 2010-3, 9/13/2010, §1)
§3-241 Violations and Penalties.
Any person, as defined in this Article 2C, who shall conduct or produce any amusement subject to the tax imposed by this Article 2C without first having secured a permit or after said permit has been revoked for failure to file a return or pay taxes due or any person who shall fail to file a tax return as required by the provisions of this Article 2C or any person who shall willfully file false return or any person who shall fail, neglect or refuse to comply with any other term or provision of this Article 2C shall, upon summary conviction, be sentenced to pay a fine of not more than $1,000 and not less than $50 and costs, including but not limited to legal fees and charges incurred by Cornwall Borough in the collection of the tax authorized in this Article 2C, which shall be collected as like fines or penalties are now by law collectible. Upon judgment against any person by summary conviction or by proceedings by summons on default of the payment of the fine or penalty imposed and the costs, the defendant may be sentenced and committed to the county jail for a period not exceeding 30 days. The fine imposed by this Section shall be in addition to any other penalty imposed by any other section of this Article 2C.
(Ord. 2010-3, 9/13/2010, §1)
D. Local Services Tax
§3-251 Title and Statutory Authority.
This Article 2D shall be known and may be cited as the “Cornwall Borough Local Services Tax Ordinance.” This Article 2D is enacted under the authority of the Pennsylvania Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257, No. 511, as amended, 53 P.S. §6924.101 et seq., and as may be hereafter modified, amended or reenacted.
(Ord. 2010-6, 11/8/2010, §1)
§3-252 Definitions and Word Usage.
1. The following words or phrases, when used in this Article 2D, shall have the meanings ascribed to them in this Section, except where the context clearly indicates a different meaning:
Borough–the Borough of Cornwall, Lebanon County, Pennsylvania.
Borough Council–the governing body of the Borough.
Collector–the person authorized to administer the within tax or the collector’s duly authorized or deputized agents.
Employer–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.
Fiscal year–the 12-month period beginning January 1, 2011, and ending December 31, 2011, and each 12 months thereafter.
He, his, or him–indicate the singular and plural number as well as male, female and neuter gender.
Individual–any person, male or female, engaged in any occupation, trade or profession within the corporate limits of the Borough of Cornwall.
Local Tax Enabling Act or LTEA–the Act of December 31, 1965, P.L. 1257, No. 511, as amended and reenacted, 53 P.S. §6924.101 et seq.
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 the Borough for which compensation is charged or received whether by means of salary, wages, commissions or fees for services rendered. An occupation also includes all earned income and all net profits, as those terms are defined in the Local Tax Enabling Act, from all sources within the Borough.
Tax–the local services tax in the amount of $52 per annum levied by this Article 2D which was previously referred to in this Article 2D as an occupational privilege tax and as an emergency and municipal services tax.
2. The singular shall include the plural, and the masculine shall include the feminine and neuter.
(Ord. 2010-6, 11/8/2010, §1)
§3-253 Imposition of Tax.
Beginning January 1, 2011, the Borough of Cornwall hereby levies and imposes on each occupation engaged in by individuals within its corporate limits during the fiscal year of 2011 and each year fiscal year thereafter a local services tax in the amount of $52 per annum, said tax to be paid by the individuals so engaged; provided; however, that all persons deriving less than $12,000 per year from such occupation, and all other persons whom the Local Tax Enabling Act exempts or shall in the future exempt from paying a local services tax shall be exempt from paying the Cornwall Borough local services tax. This tax is in addition to all other taxes of any kind or nature heretofore or hereafter levied by the Borough, and this tax shall continue in force on a calendar year basis, without annual reenactment, unless the rate of the tax is subsequently changed or this Article 2D is repealed. An individual may obtain a prospective exemption by filing an exemption certificate on a form provided by the collector with the collector and the individual’s employer.
(Ord. 2010-6, 11/8/2010, §1)
§3-254 Collection by Employer; Return and Payment.
Each employer who engages in business within the Borough is hereby charged with the duty of collecting from each of his employees engaged by him and performing for him within the Borough the said tax of $52 per annum and making a return and payment thereof to the collector. Notwithstanding the foregoing, no employer shall have an obligation to collect the local services tax from an employee who presents such employer with an exemption certificate meeting all requirements of the Local Tax Enabling Act unless such person who has presented the exemption certificate earns in excess of $12,000 in a calendar year. If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the local services tax for such calendar year, the employer shall withhold the tax in accordance with the requirements of the Local Tax Enabling Act. If a person who is subject to the local services tax ceases employment, such person shall make payment to the Borough of the portion of the local services tax which the employer did not withhold within 30 days after such person ceases to be employed by such employer.
(Ord. 2010-6, 11/8/2010, §1)
§3-255 Withholding by Employers.
1. Each employer is hereby authorized to deduct the local services tax from each employee in his employ, whether said employee is paid by salary, wages or commission. Each employer shall deduct the tax in accordance with the requirements of the Local Tax Enabling Act.
2. Local services taxes deducted from wages by an employer shall at all times be and remain the property of this Borough and shall constitute a trust fund in the employer’s hands until remitted to the collector. Deduction of taxes from wages shall, as between the employee and the Borough, constitute payment of the tax by the employee, regardless of any insolvency or failure to remit on the employer’s part.
(Ord. 2010-6, 11/8/2010, §1)
§3-256 Employer’s Returns.
1. Each employer shall prepare and file a return showing a computation of the tax on forms to be supplied by the collector.
2. If the employer fails to file said return and pay said tax, whether or not he makes collection thereof from the salary, wages or commissions paid by him to said employee, the employer shall be responsible for payment of the tax in full as though the tax had originally been levied against him.
(Ord. 2010-6, 11/8/2010, §1)
§3-257 Employer’s Return and Payment; Supplements.
Each employer shall remit the local services tax withheld from employees within 30 days after the end of each quarter of a calendar year. If the Local Tax Enabling Act is amended to require a different schedule of remitting taxes withheld from employees, compliance with the Local Tax Enabling Act shall be considered compliance with this Section.
(Ord. 2010-6, 11/8/2010, §1)
§3-258 Individuals Having More than One Occupation.
Each individual who shall have more than one occupation shall be subject to the payment of the local services tax in accordance with the provisions of the Local Tax Enabling Act governing payment of taxes by a person who has more than one employer.
(Ord. 2010-6, 11/8/2010, §1)
§3-259 Self-Employed Individuals.
All self-employed individuals who perform services of any type or kind or engage in any occupation or profession within the Borough shall be required to comply with this Article 2D on June 15 of the fiscal year or as soon thereafter as he engages in an occupation and earns $12,000.
(Ord. 2010-6, 11/8/2010, §1)
§3-260 Powers and Duties of Collector.
1. 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 Article 2D and is hereby charged and empowered to prescribe, adopt, and promulgate rules and regulations relating to any matter pertaining to the administration and enforcement of this Article 2D, including provisions for the examination of the payroll records of any employer subject to this Article 2D, the examination and correction of any return made in compliance with this Article 2D 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 Lebanon County as in other cases provided.
(Ord. 2010-6, 11/8/2010, §1)
§3-261 Recovery of Unpaid Tax; Interest and Penalty Added to Unpaid Tax.
1. In the event that any tax under this Article 2D remains due or unpaid 30 days after the due dates above set forth, the Borough may sue for the recovery of any such tax due or unpaid under this Article 2D together with interest and penalty.
2. If for any reason the tax is not paid when due, interest at the rate of 6 percent per annum on the amount of said tax shall be calculated beginning with the due date of said tax, and an additional penalty of ½ of 1 percent of the amount of the unpaid tax shall be added and collected for each month or fraction thereof during which the tax remains unpaid. Where suit is brought for the recovery of this tax, the individual liable therefor shall, in addition, be responsible and liable for the costs of collection, including attorneys’ fees.
3. Any individual or entity who or which fails or refuses to pay the tax or other amounts owed or to pay the tax deducted from employees shall, in addition to paying the amounts owed, pay reasonable costs incurred, as set forth in the regulations, by the Borough, collector, or any other person or entity appointed to collect the amount, to provide notices of delinquency or to implement similar procedures to collect delinquent taxes.
4. The collector or his duly authorized representative or agent 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 or his duly authorized representative or agent the means, facilities and opportunity for such examinations.
(Ord. 2010-6, 11/8/2010, §1)
§3-262 Adoption of Regulations.
The Borough Manager is hereby authorized to promulgate regulations for the processing of refund claims and all other matters necessary for the administration of the local services tax including, but not limited to, regulations governing all matters for which the Local Tax Enabling Act requires the adoption of regulations.
(Ord. 2010-6, 11/8/2010, §1)
§3-263 Use of Revenue.
The Borough shall use all revenue generated by the local services tax for purposes authorized in the Local Tax Enabling Act.
(Ord. 2010-6, 11/8/2010, §1)
§3-264 Violations and Penalties.
Any person who makes any false or untrue statement on any return required by this Article 2D, or who refuses inspection of his books, records or accounts in his custody and control setting forth the number of employees subject to this tax who are in his employment, or whoever fails or refuses to file any return required by this Article 2D or whoever fails to pay local services taxes payable by such person commits a violation of this Article 2D. If Borough Council or the collector determines that a person has committed or permitted the commission of a violation of this Article 2D, the Borough may institute summary criminal proceedings and/or may seek equitable relief. In the event summary criminal proceedings are instituted, the fine for the first offense shall be not less than $100 and not more than $600. The fine for a second offense shall not be less than $300 and not more than $600. The fine for a third or greater offense shall not be less than $500 and not more than $600. Each day or portion thereof in which a violation exists shall be considered a separate violation of this Article 2D. Each Section of this Article 2D which is violated shall be considered a separate violation. The amount of any fine imposed by a district justice or a court shall be in addition to any other fine which may be imposed under any other provisions of the Code of Ordinances of the Borough or under any statute. In default of payment of any fine, such person shall be liable to imprisonment for not more than 30 days. The action to enforce the Article 2D may be instituted against any person in charge of the business of any employer who shall have failed or refused to file a return required by this Article 2D.
(Ord. 2010-6, 11/8/2010, §1)
§3-265 Applicability; Validity.
1. Nothing contained in this Article 2D shall be construed to empower the Borough to levy and collect the tax hereby imposed on any occupation not within the taxing power of the Borough 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 Article 2D shall be held to be in violation of the Constitution of the United States or of the laws of the Commonwealth of Pennsylvania as to any individual, such decision 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.
3. It is the intent of this Article 2D that the entire burden of the tax imposed on an occupation by the Borough and the Cornwall Lebanon School District (if the School District shall impose any such tax) shall not exceed the limitations prescribed in §§311 and 320 of the Local Tax Enabling Act, 53 P.S. §§6924.311, 6924.320. If required by the Local Tax Enabling Act, the School District shall be entitled to its share of the tax.
(Ord. 2010-6, 11/8/2010, §1)