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This Part shall apply to the following eligible taxes levied by Dover Township: (a) per capita tax; (b) earned incom and net profits tax; (c) amusement device tax; (d) mercantile license tax; (e) business privilege tax; (f) any other eligible taxes permitted under the Act now or hereafter levied by the Township.
(Ord. 99-1, 1/11/1999, § 2; as amended by Ord. 2005-08, 10/24/2005)
The Township shall adopt by resolution a disclosure statement setting forth the rights of a taxpayer and the obligation of the local taxing authority during an audit or an administrative review of the taxpayer’s books or records, the administrative and judicial procedures by which a taxpayer may appeal or seek review of any adverse decision of the local taxing authority, the procedure for filing and processing claims and taxpayer complaints, and the enforcement procedures. The Township shall notify in the manner provided by law any taxpayer contacted regarding availability of the disclosure statement, and the Township shall make copies of the disclosure statement available to taxpayers upon request at no charge to the taxpayer.
(Ord. 99-1, 1/11/1999, § 3)
Part 8
Local Services Tax
Local Services Tax
The following words and phrases when used in this Part shall have the meanings ascribed to them in this Section except where the context clearly indicates or requires a different meaning:
Collector–the person or firm, from time to time, designated by resolution of the Board of Supervisors to collect and administer the provision of this Part and collect the tax levied by this Part.
Earned income–“compensation” as determined under § 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the “Tax Reform Code of 1971,” and regulations in 61 Pa.Code, Pt. I, Subpt. B, Art. V (relating to personal income tax) not including, however, wages or compensation paid to persons on active military service. Employee business expenses are allowable deductions as determined under Article III of the “Tax Reform Code of 1971.” Any housing allowance provided to a member of the clergy shall not be taxable as earned income.
Employer–a person, partnership, association, corporation, governmental body, agency or other entity employing one or more persons on a salary, wage, commis sion, fee or other compensation basis, including a self-employed person.
He, his or him–shall include singular and plural number and male, female and neuter gender.
Net profits–the net income from the operation of a business, profession, or other activity, (except from corporations), determined under § 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the “Tax Reform Code of 1971,” and regulations in 61 Pa.Code, Pt. 1, Subpt. B, Art. V (relating to personal income tax). The term does not include income which is not paid for services provided and which is in the nature of earnings from an investment. For taxpayers engaged in the business, profession or activity of farming the term shall not include:
(1) Any interest generated from monetary accounts or investment instruments of the farming business.
(2) Any gain on the sale of farming machinery.
(3) Any gain on the sale of livestock held 12 months or more for draft, breeding or dairy purposes.
(4) Any gain on the sale of other capital assets of the farm.
Occupation–any trade, profession, business or undertaking of any type, kind or character including services, domestic or other, carried on or performed within the jurisdictional limits of Dover Township for which compensation is charged and/or received, whether by salary, wages, commissions, fees or net profits for services rendered.
Person–any individual engaged in any occupation, trade or profession within the jurisdictional limits of the Township.
Tax–the local services tax levied in this Part.
Township–Dover Township.
Year–a calendar year.
(Ord. 2009-08, 11/23/2009, § 1)
1. The Township hereby levies and imposes on every person engaging in an occupation within the jurisdictional limits of Dover Township a tax in the amount of $52 per annum, beginning the first day of January, 2010, and continuing on a calendar basis annually thereafter, until modified or repealed by subsequent ordinance. This tax is in addition to all other taxes of any kind or nature heretofore levied by the Township.
2. The Township shall use the revenue derived from this tax for the following purposes; provided, however, that no less than 25% percent of the funds derived from this tax shall be used for emergency services, as defined herein:
A. Emergency services, which shall include emergency medical services, police services and/or fire services.
B. Road construction and/or maintenance.
C. Reduction of property taxes.
D. Property tax relief through implementation of a homestead and farmstead exclusion in accordance with 53 Pa.C.S., Ch. 85, Subch. F. (relating to homestead property exclusion), and, in accordance with § 22.6 of Act 7 of 2007, as amended from time to time.
3. The local services 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.
(Ord. 2009-08, 11/23/2009, § 1)
1. Exemption. Any person whose total earned income and net profits from all sources within the Township is less than $12,000 for any calendar year in which the local services tax is levied is exempt from the payment of the tax for that calendar year. In addition, the following persons are exempt from payment of the 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, the person is blind, paraplegic or a double or quadruple amputee or has a service connected disability declared by the United States Veterans’ Administration or its successor to be a total 100% 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. A “reserve component of the armed forces” shall mean the United States Army Reserve, United States Navy Reserve, United States Marine Corps Reserve, United States Coast Guard Reserve, United States Air Force Reserve, the Pennsylvania Army National Guard or the Pennsylvania Air National Guard.
2. A person seeking to claim an exemption from the local services tax must annually file an exemption certificate with the collector of the tax for the political subdivision levying the tax and file a copy of the certificate with the person’s employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the Township 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 Township for the year prior to the fiscal year for which the employee is requesting to be exempted from the local services tax.
3. Upon receipt of the exemption certificate and until otherwise instructed by the collector of the tax for the Township the employer shall not withhold the tax from the person during the calendar year or remainder of the calendar year for which the exemption certificate applies. With respect to a person who claimed an exemption from the local services tax, upon notification to an employer by the person or by the collector of the tax for the Township, that the person has received earned income and net profits from all sources within the Township that are 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 within that Township in an amount equal to or in excess of $12,000 in that calendar year, an employer shall withhold the local services tax from the person as follows:
A. If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the tax for the calendar year the employer shall withhold the tax for the remainder of that calendar year.
B. The employer shall withhold from the person, for the first payroll period after receipt of the notification under the above paragraph, a lump sum equal to the amount of the tax that was not withheld from the person due to the exemption certificate filed by the person, plus the per payroll amount due for that first payroll period.
C. 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.
4. In the event the employment of a person subject to withholding of the local services tax under this exception is severed in that calendar year, the person shall be liable for any outstanding balance of tax due and the Township may pursue collection under this Act.
5. Except as provided for in subsection .4 above, employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from a local services tax.
6. Employers shall be responsible for retaining a copy of all exemption certificates filed by employees within a given calendar year for a minimum of 3 years. Employers who have failed to withhold the local services tax from an employee or employees, and do not have copies of the employee exemption certificate or certificates, will be held responsible for the payment of the local services tax as if the tax had been originally levied against the employer.
(Ord. 2009-08, 11/23/2009, § 1)
1. Each employer within the Township and each employer situate outside the Township who engages in business within the Township, is hereby charged with the duty of collecting the tax from each of the employees engaged by the employer and performing work for the employer within the Township. Each 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.
2. 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 local services 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.
3. Employer collection of the local services tax shall be made on a payroll period basis for each payroll period, beginning with the first payroll period in which the person is engaging in an occupation.
4. No employer shall be held liable for failure to withhold the local services tax or for the payment of the withheld tax money to the Township 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.
(Ord. 2009-08, 11/23/2009, § 1)
1. Employers are required to make and file a local services tax quarterly return 30 days after the end of each quarter of a calendar year. The local services tax quarterly return shall list the name, address, Social Security number of the employee; the physical address of the employee’s place of employment; the number of payroll periods for which the local services tax was withheld and the amount of local services tax being remitted for each employee.
2. Each employer shall use his employment and payroll records from the first day of January to March 31 each year for determining the number of employees from whom said tax shall be deducted and paid over to the collector on or before April 30 of the same calendar year. Supplemental reports shall be made by each employer on or before July 31, October 31 and January 31 for new employees as reflected on his employment and payroll records from April 1 to June 30, July 1 to September 30 and October 1 to December 31, and payments on these supplemental reports shall be made on or before July 31, October 31 and January 31, respectively.
(Ord. 2009-08, 11/23/2009, § 1)
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