Part 2
Local Services Tax
§24-201 Definitions and Word Usage.
1. Definitions. As used in this Part, the following terms shall have the meanings indicated:
Borough–Selinsgrove Borough, Snyder County, Pennsylvania.
Borough Council–the duly elected Council of the Borough.
Borough Secretary–the duly appointed Secretary of the Borough.
Earned income–the definition of “earned income” set forth in §24-101 of Part 1, “Earned Income and Net Profits Tax,” is hereby adopted and incorporated herein by this reference. The definition for “earned income” is also set forth in §6913 of the Pennsylvania Local Tax Enabling Act as amended, 53 P.S. §6913, as amended. In the event there is a conflict between the two definitions, the definition set forth in the Pennsylvania Local Tax Enabling Act shall control.
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 self-employed person.
Individual–a person, male or female, engaged in any occupation within the Borough.
Net profits–the definition of “net profits” set forth in §24-101 of Part 1, “Earned Income and Net Profits Tax,” is hereby adopted and incorporated herein by this reference. The definition for “net profits” is also set forth in §6913 of the Pennsylvania Local Tax Enabling Act as amended, 53 P.S. §6913, as amended. In the event there is a conflict between the two definitions, the definition set forth in the Pennsylvania Local Tax Enabling Act shall control.
Occupation–any trade, profession, business, or undertaking of any type, kind or character, including services, domestic or other, carried on or performed within Selinsgrove Borough for which compensation is charged or received, whether by means of salary, wages, commissions, or fees for services rendered.
Person–a natural person, male or female, engaged in any occupation within Selinsgrove Borough.
Receiver of Taxes–the tax collector selected by a resolution of the Borough Council to receive and collect the local services tax.
Selinsgrove Borough– the area within the municipal limits of the Borough.
Tax–the Selinsgrove Borough local services tax in the amount of $52 levied by this Part.
2. Word Usage. “He,” “his,” or “him” shall mean and indicate the singular and plural numbers as well as male, female, and neuter genders.
(Ord. 760, 10/1/2007, §4)
§24-202 Levy.
The Borough Council hereby levies and imposes a local services tax on each person engaged in an occupation within Selinsgrove Borough during the effective term of this Part. The tax is in addition to all other taxes of any kind or nature heretofore levied by the Borough Council and shall continue from year to year until duly repealed.
(Ord. 760, 10/1/2007, §4)
§24-203 Exemption from Tax.
The following persons shall be exempt from the local services tax:
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, that 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 percent permanent disability;
B. Any person who serves as a member of a reserve component of the Armed Forces and is called to active duty at any time during the taxable year.
C. Any person whose total earned income and net profits from all sources within the Borough is less than $12,000 for the calendar year in which the local services tax is levied.
(Ord. 760, 10/1/2007, §4)
§24-204 Claim for Exemption.
1. A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the Borough Secretary and with the person’s employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the Borough 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 of the employee’s last pay stubs or W-2 Forms from employment within the Borough for the year prior to the fiscal year for which the employee is requesting to be exempted from this tax. Upon receipt of the exemption certificate and until otherwise instructed by the Borough or except as required by subsection .2 below, 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.
2. With respect to a person who claimed an exemption for a given calendar year from this tax, upon notification to an employer by the person or by the Borough that the person has received earned income and net profits from all sources within the Borough equal to or in excess of $12,000 in that calendar year or that the person is otherwise ineligible for the tax exemption for that calendar year, or upon an employer’s payment to the person of earned income with the Borough in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold this tax from the person under subsection .3 below.
3. If a person who claimed an exemption for a given calendar year from this tax becomes subject to the tax for the calendar year under subsection .2 above, 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 .2 above, a lump sum equal to the amount of the 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 after receipt of the notification under subsection .2 above. 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 is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of the tax due and the Borough may pursue collection under this Part.
4. Except as provided in subsection .2 above, it is the intent of this subsection that employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from this tax.
(Ord. 760, 10/1/2007, §4)
§24-205 Amount of Tax.
Beginning on the effective date of this Part, each person engaged in an occupation within Selinsgrove Borough during the effective term of this Part shall pay a local services tax in the amount of $52 per year on a calendar-year basis, unless exempted therefrom.
(Ord. 760, 10/1/2007, §4)
§24-206 Limitation on Use of Tax.
Any and all revenue raised by the tax may only be used by the Borough Council to pay for emergency services, which shall include emergency medical services, police services and/or fire services, road construction and/or maintenance, reduction of property taxes, property tax relief through implementation of a homestead and farmstead exclusion, and for no other purpose. No less than 25 percent of the funds derived from the local services tax shall be used for emergency services.
(Ord. 760, 10/1/2007, §4)
§24-207 Duty of Employers.
Each employer within Selinsgrove Borough and each employer situated outside of Selinsgrove Borough who engages in business within Selinsgrove Borough is hereby charged with the duty of collecting from each person engaged by him and performing an occupation for him within Selinsgrove Borough the tax of $52 per year and making a return and payment thereof to the Receiver of Taxes. Each employer is hereby authorized to deduct the tax from each person in his employ, whether such person is paid by salary, wages, or commission and whether part or all of such occupation is performed within Selinsgrove Borough.
(Ord. 760, 10/1/2007, §4)
§24-208 Pro Rata Assessment of Tax.
A person subject to the tax shall be assessed a pro rata share of the tax for each payroll period in which the person is engaging in an occupation. The pro rata share of the tax assessed on the person for a payroll period shall be determined by dividing the combined rate of the tax levied for the calendar year by the number of payroll periods established by the employer for the calendar year. For purposes of determining the pro rata share, an employer shall round down the amount of the tax collected each payroll period to the nearest 1/100 of a dollar. Collection of the tax shall be made on a payroll-period basis for each payroll period in which the person is engaging in an occupation within the Borough.
(Ord. 760, 10/1/2007, §4)
§24-209 Returns.
Each employer shall prepare and file a return showing a computation of the tax on forms to be supplied to him by the Borough Secretary or the Receiver of Taxes. It is further provided that if the employer fails to file said return and pay the tax, whether or not he makes collection thereof from the salary, wages, or commissions paid by him to the persons engaged by him in an occupation within Selinsgrove Borough, the employer shall be responsible for the payment of the tax in full and as though the tax had originally been levied against him.
(Ord. 760, 10/1/2007, §4)
§24-210 Dates for Determining Tax Liability and Payment.
Beginning on January 1, 2008, and continuing each year thereafter, each employer shall use his employment records from January 1 to March 31, from April 1 to June 30, from July 1 to September 30, and from October 1 to December 31 for determining the number of persons from whom the tax shall be deducted and the tax shall be paid over to the Receiver of Taxes on or before April 30, July 30, October 30, and January 30, respectively.
(Ord. 760, 10/1/2007, §4)
§24-211 Persons Engaged in More than One Occupation.
Each person who is engaged in more than one occupation within Selinsgrove Borough shall be subject to the payment of the tax on his principal occupation, and his principal employer shall deduct the tax and deliver to him evidence of the deduction on a form acceptable to the Borough Secretary or the Receiver of Taxes, which form shall be evidence of the deduction having been made and, when presented to any other employer, shall be authority for such employer to not deduct the tax from the person’s wages, but to include such person on his return by setting forth his name, address and the name and address of the employer who deducted the tax.
(Ord. 760, 10/1/2007, §4)
§24-212 Self-Employed Persons.
Each self-employed person engaged in an occupation within Selinsgrove Borough shall be required to comply with this Part and pay the tax to the Receiver of Taxes as set forth in §24-210 above.
(Ord. 760, 10/1/2007, §4)
§24-213 Nonresident Employers and Self-Employed Persons.
All employers and self-employed persons residing or having their place of business outside Selinsgrove Borough, but who themselves or whose employees engage in an occupation within Selinsgrove Borough, are by virtue thereof bound by and are subject to the provisions, penalties, and regulations promulgated under this Part. Furthermore, any employee of a nonresident employer or any person engaged in an occupation within Selinsgrove Borough may, for the purpose of this Part, be considered a self-employed person and, in the event the tax is not paid, the Borough shall have the option of proceeding against either the employer or the employee for the collection of the tax as hereinafter provided.
(Ord. 760, 10/1/2007, §4)
§24-214 Administration of Tax.
1. It shall be the duty of the Receiver of Taxes to accept and receive payments of the tax and to keep record thereof showing the amount received by him from each employer or self-employed person, together with the date the tax was received. The Receiver of Taxes shall provide a taxpayer a receipt of payment of the tax upon request by the taxpayer.
2. The Borough Secretary is hereby charged with the administration and enforcement of this Part and is hereby charged and empowered to adopt rules and regulations relating to any matter pertaining to the administration and enforcement of this Part, including provisions for the examination of the payroll records of any employer subject to this Part and the examination and correction of any return made in compliance with this Part and any payment alleged or found to be incorrect or as to which overpayment is claimed or found to have occurred. Any person aggrieved by any decision of the Borough Secretary shall have the right to appeal to the Snyder County Court of Common Pleas as in other cases involved.
3. The Borough Secretary is hereby authorized to examine the books and payroll records of any employer or, if no return was made, to ascertain the tax due. Each employer is hereby directed and required to give the Borough Secretary the means, facilities and opportunity for such examination.
4. The Borough shall adopt regulations for the processing of refund claims for overpaid tax for any calendar year. The regulations shall be consistent with 53 Pa.C.S.A. §§8425 and 8426. 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 imposed under 53 Pa.C.S.A. §8426. The Borough shall only provide refunds for amounts overpaid in a calendar year that exceed $1.
5. No employer shall be held liable for failure to withhold the tax or for the payment of the withheld tax money to the Borough if the failure to withhold the tax 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.
(Ord. 760, 10/1/2007, §4)
§24-215 Suits for Collection.
1. In the event that the tax under this Part remains due or unpaid 30 days after the dates set forth above, the Borough Secretary may sue for the recovery of the tax due or unpaid under this Part together with interest and penalty.
2. If for any reason the tax is not paid when due, interest at the rate of 6 percent on the amount of the tax shall be calculated beginning with the due date of the tax, and a penalty of 5 percent shall be added to the flat rate of the tax for nonpayment thereof. Where suit is brought for the recovery of the tax, the person liable therefore shall in addition, be responsible and liable for the costs of collection, including reasonable attorney’s fees.
(Ord. 760, 10/1/2007, §4)
§24-216 Violations and Penalties.
Whoever makes any false or untrue statements on any return required by this Part or whoever refuses inspection of his books, records or accounts in his custody and control, setting for the number of persons or employees subject to the tax who are in his employment or whoever fails or refuses to file any return required by this Part shall, upon being found liable therefor in a civil enforcement proceeding commenced by the Borough, shall pay a judgment of not more than $600 plus all court costs and reasonable attorney fees. No judgment shall commence or be imposed, levied or payable until the date of the determination of a violation by a magisterial district judge. If the defendant neither pays nor timely appeals the judgment, the Borough may enforce the judgment pursuant to the applicable rules of civil procedure. Each day that a violation continues or each Section of this Part which shall be found to have been violated shall constitute a separate violation. It is further provided that the action to enforce the fine and penalty herein provided may be instituted against any person in charge of the business of any employer who has failed or refuses to file a return required by this Part.
(Ord. 760, 10/1/2007, §4; as amended by Ord. 825, 10/3/2016, §5(B))