Ordinance #318-87: Privilege Tax

An Ordinance of the Borough of Darlington, Beaver County, Pennsylvania imposing an Occupation Privilege Tax within the Borough.

Be it ordained and enacted and it is hereby ordained and enacted by the Council of the Borough of Darlington, County of Beaver and Commonwealth of Pennsylvania.

Sec. 1. This Ordinance shall be known and cited as the Occupation Privilege Tax Ordinance.

Sec. 2.   Definitions

As used in this Ordinance, unless the contexts clearly indicate a different meaning, the following words shall have the meanings set forth below:

  1. Collector……….The person, public employee or private agency designated by the Borough to collect and administer this occupation privilege.
  2. Compensation…Salaries, wages, commissions, tips, gross receipts or any other earnings.
  3. Employer……….Any person, partnership, limited partnership unincorporated, associations, institution, trust, corporation, governmental agency, or any other body engaged in business or situated in the Borough, employing one (1) or more employees engaged in occupation other than domestic servants.
  4. Occupation……..Any livelihood, job, trade, profession business or enterprise of any kind, including services, domestic or other for which any compensation is received.
  5. Tax……………….The tax imposed by this ordinance.
  6. Taxpayer…………Any natural person liable for the tax levied by this ordinance.

Sec. 3.   Levy

For general revenue purposes, an annual tax is levied upon the privilege of engaging in an occupation within the Borough, from the effective date of Ordinance. Each natural person who exercises that the privilege for any length of time in any year shall pay the tax of five ($5.00) Dollars for that year in accordance with the provisions of this Ordinance.

Sec. 4. Collection through Employers

  1. Every employer in the Borough shall, within fifteen (15) days after first becoming an employer, register with the Collector, the employers name, address and such other information as the Collector may require.
  2. As to each taxpayer employed for any length of time on or before March 31 of any year, each employer shall deduct the tax from compensation payable to the taxpayer, file a return on a form prescribed by the collector and pay the full amount of all such taxes on or before April 30 of that year. Thereafter, as to each taxpayer for whom no prior deduction has been made, who is employed for any length of time in any of the three (3) month period ending June 30, September 30, and December 31, each taxpayer and employer shall deduct the tax from compensation payable to the taxpayer, file a return on a form prescribed by the Collector and pay the full amount of all taxes deducted for each such three (3) month period on or before July 31, or October 31 of that year, and January 31, respectively of the following year.
  3. Any employer who discontinues business or ceases operation in the Borough shall, within fifteen (15) days after discontinuing business or section and pay the tax to the Collector.
  4. 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 pay the tax to the Collector, shall be liable for the tax in full, as though the tax had originally been levied against that employer.
  5. As to employees who present official receipts evidencing prior payment of the tax, either directly or by collection through other employers, the employer shall not deduct the tax but shall maintain adequate records concerning these employees.

Sec. 5.   Direct Payment by Taxpayers

Every taxpayer who is self-employed or whose tax for any reason is not collected under the preceding Section shall file a return on a form prescribed by the Collector and pay the tax on or before April 30, of each year. Each taxpayer who first becomes subject to the tax after March 31 of each year shall file his return and pay the tax on or before July 31 or October 31 of that year or January 31 of the following year, which ever date first occurs at least thirty (30) days after the taxpayer first becomes subject to the tax.

Sec. 6.   Non-resident Taxpayers

Both resident taxpayers shall, by virtue of engaging in an occupation within the Borough be subject to tax and the provisions of this Ordinance.

Sec. 7.   Administration and Enforcement

The Collector on behalf of the Borough shall collect and receive the taxes, interests, fines and penalties imposed by this ordinance, and shall maintain records showing the amounts received and the dates on which those amounts were received. The Collector shall prescribe and issue all forms necessary for the administration of the tax and may adopt and enforce regulations relating to any matters pertaining to the administration of this ordinance including, but not limited to requirements for the examination and correction of returns. The Collector and agents designated by him may examine the records of any borough employer and/or supposed employer or of any taxpayer in order to ascertain the tax due or verify the accuracy of any return. Every employer or supposed employer and every taxpayer or supposed taxpayer shall have the Collector and any agent designated by him all means, facilities and opportunity for the examinations authorized by this Section.

Sec. 8.   Collection

The Collector shall collect, by suit or otherwise, all taxes, interest, costs, fines and penalties due under this Ordinance and unpaid. If for any reason, any tax is not paid when due, interest at the rate of six (6%) percent per year on the amount of the unpaid taxes and an additional penalty of one-half (½) of one (1%) percent of the amount of the unpaid tax, for each month of fraction of month during which the tax remains unpaid shall be added and collected. Whenever suit is brought for the recovery of unpaid tax the taxpayer shall, in addition be liable for the costs of collection as well as for interest and penalties. The Collector may accept payment under protest of the tax claimed by the Borough in any case where any person disputes the Boroughs claim for the tax. If a court of competent jurisdiction thereafter decides that there has been overpayment to the collector, the Collector shall refund the amount of overpayment to the person who paid under protest. All refunds shall be made in conformity with the procedure prescribed by Council.

Sec. 9.   Penalties

Any person, firm, or corporation who shall violate any provision of this Ordinance shall, upon conviction thereof, be sentenced to pay a fine of not more than Three Hundred ($300.00) Dollars, and/or to imprisonment for a term not to exceed ninety (90) days

Sec. 10.   Exemptions

All persons earning less than One Thousand ($1,000.00) Dollars in any year are exempt from payment of this occupation privilege tax for that year.

Sec. 11.   Applicability and Severability

This tax shall not apply to any subject of tax or person not within the taxing power of the Borough under the Constitution of the United States and the laws and Constitution of the Commonwealth. If a final decision of a court of competent jurisdiction holds any provision of this, or the application of the provisions to any circumstances, to be illegal or unconstitutional, the other provisions of the Ordinance, or the application of the provisions to the other circumstances, shall remain in full force and effect. The intention of Council is that the provisions of this Ordinance shall be severable and that this would have been adopted if any such illegal or unconstitutional provisions had not been included.

Sec. 12.   That any ordinance, or part of any ordinance conflicting with this ordinance, be and the same is hereby repealed insofar as the same affects this Ordinance.

Enacted and ordained this 7th day of December, 1987.

Romaine Shugars, President of Council

Attest:                                    Virginia Martin, Secretary of Council

Approved this 7th day of December, 1987.

Romaine Shugars, Acting Mayor

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