Presenter
Presented by Mr. Deasy
Title
Ordinance amending and supplementing the Pittsburgh Code, Title Two, Fiscal; Article VII, Business Related Taxes; Chapter 252, Emergency and Municipal Services Tax, by changing the title of Chapter 252 from, "EMERGENCY AND MUNICIPAL SERVICES TAX" to "LOCAL SERVICES TAX", and by otherwise changing the provisions of Chapter 252 so as to comply with the statutory requirements of Act 7 of 2007 in regard to exemptions, dates of payments and withholding.
Body
Be it resolved by the Council of the City of Pittsburgh as follows:
Section 1. The Pittsburgh Code, Title Two, Fiscal; Article VII, Business Related Taxes; Chapter 252 Emergency and Municipal Services Tax, is hereby amended and supplemented to read as follows:
Chapter 252: [EMEGENCY AND MUNICIPAL SERVICES TAX]
LOCAL SERVICES TAX
Section 252.01 DEFINITIONS.
[COMPENSATION. Any salaries, wages, commissions, tips, bonuses, fees, gross
receipts or any other income.]
EMPLOYER. A person, partnership, limited partnership, association, unincorporated or otherwise, corporation, institution, trust, governmental body or unit or agency, or any other entity situated or doing business in the city employing one (1) or more persons for a salary, wage, commission or other compensation.
EARNED INCOME. Compensation as this term is defined in Section 13, relating to earned income taxes, of the Local Tax Enabling Act, the Act of December 31, 1965, P.L.1257, Section 13, as amended, 53 P.S. Section 6913, as amended.
OCCUPATION. Any livelihood, job, trade, profession, business or enterprise of any kind for which any compensation is received. A person may have more than one (1) occupation.
PERSON. A natural person. Whenever used in any provision prescribing a fine or penalty the word "person", as applied to partnerships, shall mean the partners thereof, and as applied to corporations and unincorporated associations, shall mean the officers thereof.
TAXPAYER. Any natural person, resident or nonresident, liable for tax under this
chapter.
TAX YEAR. The present twelve-month period beginning January 1 and ending
December 31.
Section 252.02 LEVY AND RATE.
- For the purpose of supplementing the funds for (1) police, fire and/or emergency services; (2) road construction and/or maintenance; or (3) reduction of property taxes, a tax is hereby levied in the amount of fifty-two dollars ($52.00) upon the privilege of engaging in an occupation within the city for each calendar year. Each natural person who exercises such privilege [for any length of time] shall pay [a] the tax [in the amount of fifty-two dollars ($52.00)] in accordance with the provisions of this chapter.
[(b) The tax hereby levied shall not be imposed at the full rate of fifty-two dollars ($52.00) upon any natural person whose total income from all sources is less than twelve thousand dollars ($12,000). Any person that has total income from all sources that is less than twelve thousand dollars ($12,000.00) shall be subject to the tax at a reduced rate of ten dollars ($10.00).]
(b) The following persons shall be exempt from the tax hereby imposed: (1) 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 Veteran's Administration or its successor to be a total one hundred percent (100%) permanent disability; (2) 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 calendar year; and (3) Any person earning less than twelve thousand dollars ($12,000) from all sources within the city for the calendar year.
Section 252.03 COLLECTION THROUGH EMPLOYERS.
(a) Every employer not registered with the city shall, within fifteen (15) days after first becoming an employer, register with the Treasurer the employer's name, address and such other information as the Treasurer may require.
[(b) As to each taxpayer employed for any length of time on or before January 31 of the current tax year, each employer shall deduct the tax from compensation paid to the taxpayer, file a return on a form prescribed by the Treasurer and pay the Treasurer the full amount of all such taxes on or before February 28 of the current tax year. Thereafter, as to each taxpayer for whom no prior deduction has been made, who is employed for any length of time in any month, each employer shall deduct the tax from compensation payable to the taxpayer, file a return on a form prescribed by the Treasurer and pay to the Treasurer the full amount of all taxes deducted for each month on or before March 31, April 30, May 31, June 30, July 31, August 31, September 30, October 31, November 30 and December 31 of the current tax year, and January 31 of the following year, respectively.]
(b) Every employer shall withhold from a person subject to the Local Services Tax, a pro rata share of the tax for each payroll period in which the person engages in an occupation. The pro rata share of the tax assessed on the person for a payroll period shall be determined by dividing the rate of tax herein imposed for the calendar year by the number of payroll periods established by the employer for the calendar year. Every employer shall deduct the tax from compensation paid to the taxpayer, file a return on a form prescribed by the Treasurer and pay the Treasurer the full amount of all such tax withheld on or before April 30th of the current tax year, July 31st of the current year, October 31st of the current year and January 31st of the succeeding year.
(c) With respect to a person subject to the Local Services Tax, the situs of the tax shall be the place of employment on the first day the person becomes subject to the tax during each payroll period. In the event a person is engaged in more than one occupation, that is, concurrent employment, or an occupation which requires the person working in more than one political subdivision during a payroll period, the priority of claim to collect the local services tax shall be in the following order: first, the political subdivision in which a person maintains the person's principal office or is principally employed; second, the political subdivision in which the person resides and works, if the tax is levied by that political subdivision; and third, the political subdivision in which a person is employed and which imposes the tax nearest in miles to the person's home.
(d) In the event of concurrent employment, an employer shall refrain from withholding the Local Services Tax if the employee provides a recent pay statement from the principal employer that includes the name of the employer, the length of the payroll period and the amount of the Local Services Tax withheld and a statement from the employee that the pay statement is from the employee's principal employer and that the employee will notify other employers of a change in principal place of employment within two weeks of occurrence.
(e) A person seeking to claim exemption from the Local Services Tax may file an exemption certificate with the city and with the person's employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the city of less than twelve thousand dollars ($12,000) in the calendar year for which the exemption certificate is filed. Upon receipt of the exemption certificate and until otherwise instructed by the city, 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.
( 1 ) Upon notification to an employer by the person having claimed an exemption, or by the city, that the person has received earned income and/or net profits from all sources within the city equal to or in excess of twelve thousand dollars ($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 and/or net profits equal to or in excess of twelve thousand dollars ($12,000) from within the city, an employer shall withhold the Local Services Tax from the person.
( 2 ) If a person who claimed an exemption from the Local Services Tax for a given calendar year becomes subject to the tax during the calendar year, 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 notification a lump sum equal to the amount of tax that was not withheld from the person due to the exemption claimed plus the per payroll amount due for that first payroll period. Then 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 a person subject to withholding of the tax under this clause is subsequently severed from employment in that calendar year, the person shall be liable for any outstanding balance of tax due and the city shall have the right to pursue collection.
[(c)] (f) Any employer who discontinues business or ceases operation before December 31 of the current tax year, shall within fifteen (15) days after discontinuing business or ceasing operation, file the return hereinabove required and pay the tax to the Treasurer.
[(d)] (g) The failure of any employer to deduct the tax shall not relieve the employee from the duty to file a return and pay the tax. Any employer who fails to deduct the tax as required by this section, or who fails to pay the tax to the Treasurer, shall be liable for such tax in full as though the tax had originally been levied against the employer.
[(e)] (h) As to employees who present official receipts evidencing prior payment of the tax either directly or by collection through other employers in the city, the employer shall not deduct the tax but shall maintain adequate records concerning the employees.
[(f)] (i) If any employer fails, or refuses to pay over to the [City] Treasurer any tax required to be withheld under this section by the due date, a penalty of five (5) percent for every month or fraction thereof that the tax remains unpaid shall be added and collected from the employer, the penalty not to exceed fifty (50) percent.
Section 252.04 DIRECT PAYMENT BY TAXPAYERS.
Every taxpayer who is self-employed, or whose tax for any other reason is not collected under Section 252.03, shall file a return on a form prescribed by the Treasurer and shall pay the tax directly to the Treasurer. [Each taxpayer who first becomes subject to the tax in January of the current tax year shall file the return and pay the tax on or before February 28. Each taxpayer that becomes subject to the tax thereafter shall file and pay the tax as follows: March 31, April 30, May 31, June 30, July 31, August 31, September 30, October 31, November 30 and December 31 of the current tax year, and January 31 of the following year, respectively.] The tax shall be paid in the same manner as described in Section 252.03 (b).
Section 252.05 ADMINISTRATION AND ENFORCEMENT.
The Treasurer on behalf of the city shall accept and receive payments of this tax and any interest, fines and penalties imposed by this chapter, and shall maintain records showing the amount and the date the tax was received. He or she shall prescribe and issue all forms necessary for the administration of the tax and may adopt and enforce rules and regulations relating to any matter pertaining to the administration of this chapter, including but not limited to requirements of collection through employers, deductions and evidence and records, and also provisions for the examination and correction of returns. The Treasurer and his or her designees may examine the records of any employer or taxpayer, real or supposed, in order to ascertain the tax due or verify the accuracy of any return. Every employer and taxpayer, real or supposed, shall give the Treasurer or his or her designee all means, facilities and opportunity for the examinations hereby authorized.
Section 252.06 COLLECTION.
The Treasurer shall collect, by suit or otherwise, all taxes, due and unpaid. The Treasurer may accept payment under protest of the tax claimed by the city in any case where any person disputes the city's claim for the tax. If a court of competent jurisdiction thereafter decides that there has been overpayment to the Treasurer, the Treasurer shall refund the amount of the overpayment to the person who paid under protest. All refunds shall be made in conformity with the procedure prescribed in this title.
Section 2. This Ordinance shall be come effective January 1, 2008.