Chapter 24 – Taxation, Special

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CHAPTER 24

TAXATION, SPECIAL

 

PART 1
EARNED INCOME TAX

§101. Definitions
§102. Imposition of Tax
§103. Declaration and Payment of Tax
§104. Collection at Source
§105. Powers and Duties of the Income Tax Officer
§106. Suit for Collection of Tax
§107. Interest and Penalties
§108. Payment and Refunds
§109. Appointment of Income Tax Officer
§110. Applicability
§111. Credit to Out-of-State Residents
§112. Manner and Proportion of Credit to Out-of-State Residents
§113. Reciprocal Agreements
§114. Fines and Penalties for Violation

 

PART 2
PER CAPITA TAX

§201. Tax Imposed
§202. Collection of Tax
§203. On Same Tax Schedule
§204. All Persons to be Taxed
§205. Tax to Continue Without Reenactment

 

PART 3
LOCAL SERVICES TAX

§301. Title
§302. Authority
§303. Purpose
§304. Definitions
§305. Levy
§306. Restricted Use

§307. Duty of Employer
§308. Returns
§309. Dates for Determining Tax Liability and Payment
§310. Individuals Engaged in More than One Occupation
§311. Exemptions to the Local Services Tax
§312. Self-Employed Individuals
§313. Employees and Self-Employed Individuals Residing Beyond the Limits of Hampden Township
§314. Administration of Tax
§315. Suit for Collection
§316. Fine and Penalty

 

PART 4
REALTY TRANSFER TAX

§401. Short Title
§402. Authority
§403. Definitions
§404. Imposition of Tax
§405. Evidence of Payment
§406. Exempt Parties
§407. Excluded Transactions
§408. Documents Relating to Associations or Corporations and Members,
Partners, Stockholders or Shareholders Thereof.
§409. Acquired Company
§410. Credits Against Tax
§411. Extension of Lease
§412. Proceeds of Judicial Sale
§413. Statement of Value; Penalty
§414. Unlawful Acts; Penalty
§415. Civil Penalties
§416. Lien
§417. Enforcement
§418. Collector
§419. Regulations
§420. Interpretation/Effect

 

PART 5
TAX COLLECTION POLICIES

§501. Tax Reporting and Settlement Procedure
§502. Exoneration Procedures
§503 Collection of Tax Certification Fees
§504 Costs of Collection

PART 6
ACTIVE VOLUNTEER EARNED INCOME TAX CREDIT

§601. Title
§602. Authority
§603. Purpose
§604. Definitions
§605. Eligibility
§606. Determination of Earned Income Tax Credit
§607. Certification Procedure
§608. Volunteer Service Credit Program
§609. Service Record Log
§610. Submission of Eligibility List
§611. Appeal
§612. Penalties for False Reporting

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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PART 1

EARNED INCOME TAX

§101. DEFINITIONS.

All terms defined in the Local Tax Enabling Act shall have the meanings set forth therein. The following terms shall have the meanings set forth herein:

Collector. The person or entity appointed as tax officer pursuant to the Local Tax Enabling Act to collect the Tax.
Effective Date. January 1, 2011.
Enactment. This Ordinance and/or Part.
Governing Body. The Board of Township Commissioners of Hampden Township.
Local Tax Enabling Act. The Local Tax Enabling Act, as set forth in 53 P.S. § 6901 et seq. while such numbering and provisions remain in effect under Act 32 of 2008, and as set forth in 53 P.S. § 6924.101 et seq. when such numbering and provisions become effective under Act 32, and as amended in the future.
TCD. Any tax collection district to which the Taxing Authority or any part of the Taxing Authority is assigned under the Local Tax Enabling Act.
TCC. The tax collection committee established to govern and oversee the collection of earned income tax within the TCD under the Local Tax Enabling Act.
Tax. The tax imposed by this Enactment.
Tax Return. A form prescribed by the Collector for reporting the amount of Tax or other amount owed or required to be withheld, remitted, or reported under this Enactment or the Local Tax Enabling Act.
Tax Year. The period from January 1 to December 31.
Taxing Authority. Hampden Township, Cumberland County, Pennsylvania.

 

(Ord. 67-9, 12/11/1967; as amended by Ord. 10-07, 11/03/2010)

 

§102. IMPOSITION OF TAX.

1. General Purpose Resident Tax. The Taxing Authority hereby imposes a Tax for general revenue purposes at the rate of 1% on earned income and net profits of individual residents of the Taxing Authority.
2. General Purpose Municipal Nonresident Tax. The Taxing Authority also imposes a Tax for general revenue purposes at the rate of 1% on earned income and net profits derived by an individual who is not a resident of the Taxing Authority from any work, business, profession, or activity, of any kind engaged in within the boundaries of the Taxing Authority.
3. Ongoing Tax. The Tax shall continue at the above rates during the current Tax Year and each Tax Year thereafter, without annual re-enactment, until this Enactment is repealed or the rate is changed.
4. Combined Tax Rate Applicable to Residents. Currently, the total rate applicable to residents of the Taxing Authority, including the tax imposed by the school district and municipality in which the individual resides, is 1.60%.
5. Municipal Tax Rate Applicable to Nonresidents. Currently, the total rate applicable to non-residents working within the Taxing Authority based on the municipal non-resident tax rate is 1%.
6. Local Tax Enabling Act Applicable. The Tax is imposed under authority of the Local Tax Enabling Act, and all provisions thereof that relate to a tax on earned income or net profits are incorporated into this Enactment. Any future amendments to the Local Tax Enabling Act that are required to be applied to a tax on earned income or net profits will automatically become part of this Enactment upon the effective date of such amendment, without the need for formal amendment of this Enactment, to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
7. Applicable Laws, Regulations, Policies, and Procedures. The Tax shall be collected and administered in accordance with: (1) all applicable laws and regulations; and (2) policies and procedures adopted by the TCC or by the Collector. This includes any regulations, policies, and procedures adopted in the future to the maximum extent allowed by 1 Pa.C.S.A. § 1937.

(Ord. 67-9, 12/11/1967; as amended by Ord. 10-07, 11/03/2010)

 

§103. NO EXEMPTION FROM TAX.

Although credits and deductions against Tax are permitted under certain circumstances as provided in applicable law and regulations, no individuals are exempt from Tax based on age, income, or other factors.

(Ord. 67-9, 12/11/1967; as amended by Ord. 10-07, 11/03/2010)

 

§104. INDIVIDUAL TAX RETURNS AND PAYMENTS.

Every individual receiving earned income or earning net profits in any Tax Year shall file Tax Returns and pay Tax in accordance with the Local Tax Enabling Act.

(Ord. 67-9, 12/11/1967; as amended by Ord. 10-07, 11/03/2010)

 

§105. EMPLOYER WITHOLDING, REMITTANCE AND TAX RETURNS.

Every employer shall register, withhold, and remit Tax, and file Tax Returns in accordance with the Local Tax Enabling Act.

(Ord. 67-9, 12/11/1967; as amended by Ord. 10-07, 11/03/2010)

 

§106. TAX COLLECTOR.

The Tax will be collected from individuals and employers by the Collector.

(Ord. 67-9, 12/11/1967; as amended by Ord. 10-07, 11/03/2010)

 

§107. INTEREST, PENALTIES AND FINES.

Individuals and employers are subject to interest, penalties, costs, and fines in accordance with the Local Tax Enabling Act, including costs imposed by the Collector in accordance with the Local Tax Enabling Act.

(Ord. 67-9, 12/11/1967; as amended by Ord. 10-07, 11/03/2010)

 

§108. PAYMENT AND REFUNDS.

The Income Tax Officer or his agent is hereby authorized to accept payment of the amount of tax claimed by Hampden Township in any case where any person disputes the validity or amount of the Township’s claim for the tax. If it is thereafter judicially determined by a court of competent jurisdiction that there has been an overpayment, it shall be refunded or credited to the taxpayer or employer who paid.

(Ord. 67-9, 12/11/1967, §8)

 

§109. APPOINTMENT OF INCOME TAX OFFICER.

The Board of Commissioners shall by resolution hereafter to be adopted, designate such person, persons, firm or corporation as Income Tax Officer at such rate of compensation as it shall deem appropriate, whose term shall expire at the end of the year for which appointed. The Board of Commissioners and the Income Tax Officer may contract with an agent and delegate thereto the powers and duties prescribed in this part for the Income Tax Officer. The designated Income Tax Officer shall have the powers and duties prescribed in this Part.

(Ord. 67-9, 12/11/1967, §9)

 

§110. APPLICABILITY.

1. The tax imposed by this Part shall not apply:

A. To any person as to whom it is beyond the legal power of Hampden Township to impose the tax herein provided for under the Constitution of the United States and the Constitution or laws of the Commonwealth of Pennsylvania.

B. To the net profits of any institution or organization operated for public, religious, education or charitable purposes, to an institution or organization not organized or operated for private profit, or to a trust or a foundation established for any of the said purposes.

2. This Section shall not be construed to exempt any employer from the duty of collecting the tax at source from his employees and paying the amount collected to the Income Tax Officer or his agent under the provisions of §104 of this Part.

(Ord. 67-9, 12/11/1967, §10)

 

§111. CREDIT TO OUT-OF-STATE RESIDENTS.

Payment of any tax on income to any state other than Pennsylvania or to any political subdivision located outside the boundaries of Pennsylvania by residents of said other state or said political subdivision shall, to the extent that such income includes salaries, wages, commissions, or other compensation or net profits of businesses, professions or other activities but in the manner and in such proportions as hereinafter set forth, be credited to and allowed as a deduction from the liability of such person for any other tax or salaries, wages, commissions, other compensation or net profits of businesses, professions or other activities imposed by this Part.

(Ord. 67-9, 12/11/1967; as added by Ord. 81-3, 8/7/1981)

 

§112. MANNER AND PROPORTION OF CREDIT TO OUT-OF-STATE RESIDENTS.

The out-of-state resident entitled to the credit of deduction provided in §111 hereof, shall have the local earned income tax that is imposed by this Part deducted from said person’s earned income by said person’s employer and said out-of-state resident who receives net profits from businesses, professions or other activities shall file a quarterly return together with an appropriate tax payment for said quarter. When the said out-of-state resident files his or her final return together with evidence or having paid a similar tax to the jurisdiction of his residence, a credit or deduction will be allowed in proportion to the concurrent period from which the taxes are imposed by or for the political subdivision of the other state but not in excess of the amount previously paid for the concurrent period.

 

(Ord. 67-9, 12/11/1967; as added by Ord. 81-3, 8/7/1981, §1)

§113. RECIPROCAL AGREEMENTS.

The Board of Commissioners may enter into reciprocal agreements with other municipalities pertaining to the collection of tax moneys from nonresidents and payment to the respective municipalities of residence which have a tax which would pre-exempt the tax herein imposed on nonresidents.

(Ord. 67-9, 12/11/1967, §11)

 

§114. FINES AND PENALTIES FOR VIOLATION.

1. Any person who fails, neglects or refuses to make any declaration or return required by this part; any employer who fails, neglects or refuses to pay the tax deducted from his employees; and any person who refuses to permit the Income Tax Officer or any agent properly designated by him to examine his books, records and papers; and any person who makes any incomplete, false or fraudulent return to avoid the payment of the whole or any part of the tax imposed by this Part shall, upon conviction thereof, be sentenced to pay a fine of not more than $500 for each offense plus costs and, in default of payment of said fine and costs, to be imprisoned for a period not exceeding 30 days. [Ord. 98-7]

2. Any person, employer or corporation who, except as permitted by the provisions of §105(4) of this Part, divulges any information which is confidential under the provisions of said subsection shall, upon conviction thereof, be sentenced to pay a fine of not more than $500 for each offense plus costs and, in default of payment of said fine and costs, to be imprisoned for a period not exceeding 30 days. [Ord. 98-7]

3. The penalties imposed under this Section shall be in addition to any other penalty im-posed by any other Section of this Part or other laws. Where suit is brought for the recovery of any such tax, the person liable therefore shall, in addition, be liable for the costs of collection and the interest and penalties herein imposed.

4. The failure of any taxpayer or employer to receive or procure the forms required for making any declaration or return required by this Part shall not excuse him from making such declaration or return.

(Ord. 67-9, 12/11/1967; as amended by Ord. 81-3, 8/7/1981; by Ord. 84-6, 7/3/1984; by Ord. 98-7, 8/27/1998 and by Ord. 10-07, 11/03/2010)

 

 

 

 

 

 

 

 

 

 

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PART 2

PER CAPITA TAX

 

§201. TAX IMPOSED.

There is hereby levied and assessed for the fiscal year of 2014, and each year thereafter, a tax of $10 on each person of the age of 18 years or more, physically residing in Hampden Township, Cumberland County, Pennsylvania, at any time during the year of 2014 and each year
thereafter.

(Ord. 68-5, 3/26/1968, §1; as amended by Ord. 84-6, 7/3/1984, as amended by Ord. 13-15, 11/26/13)

 

§202. COLLECTION OF TAX.

The per capita tax shall be collected by the tax bureau, employee or public or private agency (referenced in this Part as the “collector of the per capita tax”) engaged by Hampden Township upon such terms, conditions and rate of compensation as determined by the Board of
Commissioners for such purposes. The collector of the per capita tax is authorized to take appropriate legal action to collect any unpaid taxes and recover all reasonable costs incurred in doing so in accordance with applicable law.

(Ord. 68-5, 3/26/1968, §2, as amended by Ord. 13-15, 11/26/13)

 

§203. ON SAME TAX SCHEDULE.

The per capita tax shall be due and payable to Hampden Township at the same time, subject to the same rebate and penalty, and collectable in the same manner and by the same methods as real estate taxes are collected by the elected (or appointed) Hampden Township Tax Collector.

(Ord. 68-5, 3/26/1968, §3, as amended by Ord. 13-15, 11/26/13)

 

§204. ALL PERSONS TO BE TAXED.

Said tax shall be collected from every person subject thereto, whether or not the name of such person shall appear on the list of persons subject to taxation within Hampden Township, as furnished to or prepared by the collector of the per capita tax, and whether or not notice shall have been given to such person of the fact that he or she is liable for the payment thereof.

(Ord. 68-5, 3/26/1968, §4, as amended by Ord. 13-15, 11/26/13)

 

§205. TAX TO CONTINUE WITHOUT REENACTMENT.

Said tax is enacted under the authority of the Act of December 31, 1965, P.L. 1257, known as the “Local Tax Enabling Act”; and, shall hereafter continue in force on a calendar year basis, without annual reenactment, as therein provided.

(Ord. 68-5, 3/26/1968, §5; as amended by Ord. 84-6, 7/3/1984)

PART 3

LOCAL SERVICES TAX

 

§301. TITLE.
This Ordinance shall be known and may be cited as the “Hampden Township Local Services Tax Ordinance.”

§302. AUTHORITY.

This Ordinance is enacted under the authority of the Local Tax Enabling Act, as amended by Act No. 7 of 2007.

§303. PURPOSE.

The purpose of this Ordinance is to provide revenue for police, fire and emergency services; road construction and maintenance; the reduction of property taxes and for such other purposes as may be specified for such tax from time to time by the laws of the Commonwealth of Pennsylvania.

§304. DEFINITIONS.

The following words and phrases when used in this Ordinance shall have the meanings as-cribed to them in this Section except where the context clearly indicates or requires a different meaning:

BOARD OF COMMISSIONERS – the governing body of the Township of Hampden.

COLLECTOR – the person or firm, from time to time, designated by Resolution of the Board of Commissioners of the Township of Hampden to collect and administer the provisions of this Ordinance and collect the tax levied by this Ordinance. Until changed by subsequent Resolution, the collector shall be the same person or firm last designated to collect the Emergency and Municipal Services Tax for the Township.

EARNED INCOME – “Compensation” as determined under section 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 Part I Subpart B Article V (relating to personal income tax) not including, however, wages or compensation paid to individuals 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 – an individual, partnership, association, corporation, governmental body, agency or other entity employing one or more persons on a salary, wage, commission, 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.

INDIVIDUAL – any person engaged in any occupation within the jurisdictional limits of Hampden Township whose total earned income and net profits within the Township are $12,000 or greater per calendar year.

NET PROFITS – The net income from the operation of a business, profession, or other activity, (except from Corporations), determined under section 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 Part 1 Subchapter B Article 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 instru-ments of the farming business;

(2) any gain on the sale of farming machinery;

(3) any gain on the sale of livestock held twelve months or more for draft, breeding or dairy purposes; and

(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 Hampden Township for which compensation is charged and/or received, whether by salary, wages, commissions, fees or net profits for services rendered.

RESERVE COMPONENT OF THE ARMED FORCES – 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.

TAX – the Local Services Tax levied by this Part.

TOWNSHIP – the area within the jurisdictional limits of Hampden Township.

YEAR – shall mean a calendar year.

§305. LEVY.

The Township of Hampden hereby levies and imposes on every individual engaging in an occupation within the jurisdictional limits of Hampden Township a tax in the amount of $52.00 per annum, beginning the first day of January, 2008 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 of Hampden.

§306. RESTRICTED USE.

The Township of Hampden shall use the revenue derived from this tax for the following pur-poses:

1. Emergency services, which shall include emergency medical services, police services and/or fire services;

2. Road construction and/or maintenance;

3. Reduction of property taxes;

4. Property tax relief through implementation of a homestead and farmstead exclusion in accordance with 53 Pa.C.S. Chapter 85, Subchapter F (relating to homestead property exclusion); and

5. For such other purposes as may be authorized for use of such tax revenue from time to time by the laws of the Commonwealth of Pennsylvania.

No less than twenty-five percent (25%) of the funds derived from the Local Services Tax shall be used for emergency services.

§307. DUTY OF EMPLOYER.

Each employer within Hampden Township and each employer situate outside Hampden Township who engages in business within Hampden 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 Hampden Township. Each person subject to the tax shall be assessed a pro rate 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 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 one-hundredth of a dollar.

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.

No employer shall be held liable for failure to withhold the Local Services Tax or for the pay-ment 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.

 

§308. RETURNS.

Employers are required to make and file a Local Services Tax Quarterly Return thirty (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.

§309. DATES FOR DETERMINING TAX LIABILITY AND PAYMENT.

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 July 30, October 30 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 July 30, October 30 and January 30, respectively.

§310. INDIVIDUALS ENGAGED IN MORE THAN ONE OCCUPATION.

In the event a person is engaged in more than one occupation; that is, concurrent em-ployment, or an occupation which requires working in more than one political subdivision during the payroll period, the priority of claim to collect the tax shall be in the following order:

1. The political subdivision in which the person maintains his principal office or is principally employed.

2. The political subdivision in which the person resides and works, if the tax is
levied by that political subdivision.

3. The political subdivision in which the person is employed and which imposes
the tax nearest in miles to the person’s home.

In the case of concurrent employment, an employer shall refrain from withholding the Local Services Tax, if the employee provides:

A. a recent pay statement from a principal employer that includes the name of the employer, the length of the payroll period and the amount of Local Services Tax withheld; and

B. a statement from the employee that the pay statement is from the employee’s principal employer and the employee will notify other employers of a change in principal place of employment within two weeks of its occurrence.

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. It is the intent of this section that no person shall be subject to the payment of the Local Services Tax by more than one political subdivision during each payroll period.

§311. EXEMPTIONS TO THE LOCAL SERVICES TAX

The Local Services Tax shall be no more than $52 on each individual for each calendar year, irrespective of the number of political subdivisions within which an individual may be em-ployed.

The following persons shall be exempt from the Local Services Tax:

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 Veterans’ Administration or its successor to be a total one hundred percent 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 taxable year.

A person seeking to claim an exemption from the Local Services Tax may annually file an ex-emption 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.

Upon receipt of the exemption certificate and until otherwise instructed by the collector of the tax the employer shall not withhold the tax from the person during the calendar year or re-mainder 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, that the person has received earned income and net profits from all sources within the Township 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 the 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:

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.

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.

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 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 political subdivision levying the tax may pursue collection under this act.

Employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employee from a Local Services Tax.

 

Employers shall be responsible for retaining a copy of all exemption certificates filed by em-ployees within a given calendar year for a minimum of three (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.

§312. SELF EMPLOYED INDIVIDUALS

All self-employed individuals and individuals whose employer is not required to withhold local taxes (certain state and federal agencies) will be billed quarterly for the Local Services Tax. The full amount of tax must be paid by the date indicated on such billing. If such taxpayer qualifies for a low-income exemption, the taxpayer may complete the required exemption certificate or make application for a refund of the tax paid.

 

§313. EMPLOYEES AND SELF-EMPLOYED INDIVIDUALS RESIDING BEYOND THE
LIMITS OF HAMPDEN TOWNSHIP.

All employers and self-employed individuals residing or having their place of business outside Hampden Township but who engage in any occupation within Hampden Township, do by virtue thereof agree to be bound by and subject themselves to the provisions, penalties and regulations promulgated under this Part with the same force and effect as though they were residents of Hampden Township. Further, any individual engaged in an occupation within Hampden Township and an employee of a non-resident employer may for the purpose of this Part be considered a self-employed person and in the event this tax is not paid, the collector shall have the option of proceeding against either the employer or employee for collection of this tax as hereinafter provided.

§314. ADMINISTRATION OF TAX.

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. It shall be the duty of the collector to accept and keep a record of the information submitted by
employers relating to the number of employees subject to the tax, the number of
employees exempt from the tax and the employee exemption certificates and
refunds of the tax paid to individuals and employers.

2. The collector is hereby charged with the administration and enforcement of this
Part and is hereby empowered to prescribe, adopt, promulgate and enforce 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; 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 collector shall have the right to appeal to the Court of Common Pleas of Cumberland County as in other cases provided.

3. The collector 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 the means, facilities and opportunity for such examination.

§315. SUIT FOR COLLECTION.

1. In the event any tax under this Part remains due or unpaid 30 days after the due date above set forth, the collector may sue for the recovery of such tax due or unpaid together with interest and penalty.

2. If for any reason the tax is not paid when due, interest at the rate of 6% per annum on the amount of said tax shall be calculated beginning with the due date of said tax and a penalty of 5% shall be added to the flat rate of said tax for nonpayment thereof. Where suit is brought for the recovery of this tax, the individual liable therefore shall, in addition, be responsible and liable for the costs of collection, including, but not limited to, attorney’s fees.

§316. FINE AND PENALTY.

Whoever makes any false or untrue statement on any return required by this Part, or who refuses inspection of his books, records or accounts in his custody and control in order to determine the number of employees subject to this tax who are in his employment, or who fails or refuses to file any return required by this Part, or fails or refuses to pay the tax herein levied shall, upon conviction, be sentenced to pay a fine of not more than $600 plus costs and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 30 days. 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 refused to file a return required by this Part.

 

(Ord. 05-15, 11/01/2005, §1; as amended by Ord. 05-18, 12/06/2005, §1; and by Ord. 07-14, 11/01/2007, §1)

PART 4

REALTY TRANSFER TAX

 

§401. SHORT TITLE.

This Part shall be known as the “Hampden Township Realty Transfer Tax Ordinance.”

(Ord. 86-11, 12/24/1986, §1)

 

§402. AUTHORITY.

This realty transfer tax is levied under authority of Article XI-D, entitled “Local Real Estate Transfer Tax,” of the Pennsylvania Real Estate Transfer Tax Act, which is a new Article added by Act 77-1986 (Act of July 2, 1986, No. 77, P.L. _____) to the Pennsylvania Real Estate Transfer Tax Act, Act 14-1981 (Act of May 5, 1981, No. 14, P.L. 36) as amended. The Pennsylvania Real Estate Transfer Tax Act is codified at 72 P.S. §8101-C et seq., and Article XI-D is codified at 72, P.S. §8101-D et seq.

(Ord. 86-11, 12/24/1986, §2)

 

§403. DEFINITIONS.

1. The following words when used in this Part shall have the meanings ascribed to them in this Section:

ASSOCIATION – a partnership, limited partnership, or any other form of unincorpo¬rated enterprise owned or conducted by two or more persons.

COLLECTOR – the Recorder of Deeds of Cumberland County, Pennsylvania, who is hereby appointed collector of the tax levied by this Part.

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, or 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 within the Township, but does not include wills, mortgages, deeds of trust or other instruments of like character given as security for a debt and deeds of release thereof to the debtor, land 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 instru¬ments which solely grant, vest or confirm a public utility easement. “Document” shall also include a declaration of acquisition required to be presented for recording under §409 of this Part.
FAMILY FARM CORPORATION – a corporation of which at least 75% of its assets are devoted to the business of agriculture and at least seventy-five percent (75%) of each class of stock of the corporation is continuously owned by members of the same family. The business of agriculture shall not be deemed to include:

(1) Recreational activities such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing.

(2) The raising, breeding or training of game animals or birds, fish, cats, dogs or pets or animals intended for use in sporting or recreational activities.

(3) Fur farming.

(4) Stockyard and slaughterhouse operations.

(5) Manufacturing or processing operations of any kind.

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.

PERSON – every natural person, association or corporation or entity of any kind. Whenever used in any clause 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 –

(1) Any lands, tenements or hereditaments within this Township, including without limitation buildings, structures, fixtures, mines, minerals, oil, gas, quarries, spaces with or without upper or lower boundaries, trees, and other improve¬ments, immovables or interests which by custom, usage or law pass with a conveyance of land, but excluding permanently attached machinery and equipment in an industrial plant.

(2) A condominium unit.

(3) 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% or more of the ownership interest in which is held by 35 or fewer persons and which:

(1) Derives 60% or more of its annual gross receipts from the ownership or disposition of real estate.

(2) Holds real estate, the value of which comprises 90% 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 –

(1) 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, as estate in fee simple, life estate, or perpetual leasehold.

(2) 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 approxi¬mating 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.

TOWNSHIP – the Township of Hampden in Cumberland County, Pennsylvania.

TRANSACTION – the making, executing, delivering, accepting or presenting for recording of a document.

VALUE –

(1) 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 therefore, 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 other encumbrances and ground rents also encumber or are charged against others 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 consider¬ation for the contract of sale.

(2) 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 within the Township determined by adjusting the assessed value of the real estate for local real estate tax purposes for the common level ratio or assessed values to market values of the taxing district in which the Township is located as established by the State Tax Equalization Board, or a commen¬surate part of the assessment where the assessment includes other real estate.

(3) In the case of an easement or other interest in real estate the value of which is not determinable under subsections (1) or (2), the actual monetary worth of such interest.

(4) The actual consideration for or actual monetary worth of any executory agreement for the construction of buildings, structures or other permanent improve¬ments to real estate between the grantor and other persons existing before the transfer and not removed thereby or between the grantor, the agent or principle of the grantor or a related corporation, association or partnership and the grantee existing before or effective with the transfer.

2. The singular shall include the plural and the masculine shall include the feminine and neuter.

(Ord. 86-11, 12/24/1986, §3)

 

§404. IMPOSITION OF TAX.

A tax is hereby levied and imposed, for general Township municipal purposes, on every real estate transaction, at the rate of 1% of the value of the real estate represented by the document involved in the real estate transaction.

A. The tax shall be payable at the earlier of the time the document is presented for recording, within 30 days of acceptance of the document or within 30 days of becoming an acquired company.

B. If the real estate is located partially within and partially outside the Township, the tax shall be calculated on the value of the portion within the Township.

C. The tax imposed hereunder shall be due and payable to the collector, as a joint and several liability, by 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. In the case of an acquired company, the company shall also have liability for payment of the tax. All such persons shall also be liable for any penalties imposed under this resolution.

D. It is the intent of this resolution that the entire burden of the tax imposed on a real estate transaction by the Township and other political subdivisions shall not exceed the limitations prescribed in §608 of the Local Tax Enabling Act, 53 P.S. §6908, so that if any other political subdivision imposes a tax on real estate transactions taxes under this resolution, the provisions of said §608 shall apply.

(Ord. 86-11, 12/24/1986, §4)

 

§405. EVIDENCE OF PAYMENT.

The payment of the tax imposed hereunder shall be evidenced by the collector affixing on the document an official stamp or writing setting forth the date of payment of the tax and amount of tax paid.

(Ord. 86-11, 12/24/1986, §5)

 

§406. EXEMPT PARTIES.

The United States, the Commonwealth or any of their instrumentali¬ties, agencies or political subdivisions shall be exempt from payment of the tax imposed by this Part. The exemption of such governmental bodies shall not, however, relieve any other party to a transaction from liability for the tax.

(Ord. 86-11, 12/24/1986, §6)

 

§407. EXCLUDED TRANSACTIONS.

1. The tax imposed by this Part 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 may include property line adjustments; provided, said reconveyance is made within one year from the date of condemnation.

B. A document which the Township is prohibited from taxing under the Constitu¬tion 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 of property passed by testate or intestate succession and held by cotenants; however, if any of the parties take 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 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 sister 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 one 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 decedent’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, 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 to a beneficiary of an ordinary trust.

J. A transfer for no or nominal actual consideration from trustee to successor trustee.

K. A transfer:

(1) For no or nominal actual consideration between principal and agent or straw party; or,

(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 Part.

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 is the property of the grantee in his individual capacity if the grantee claims an exemption from taxation under this subsection.
L. A transfer made pursuant to the statutory merger or consolidation of a corporation or statutory division of a nonprofit corporation, except where the Township reasonably deter-mines that the primary intent for such merger, consolidation or division is avoidance of the tax imposed by this Part.

M. 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 then 2 years.
N. 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.

O. 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 conservation, energy production, pollution control, warehousing or agriculture; and,

(2) The agency or authority has the full ownership interest in the real estate transferred.

P. 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 bona fide holder of a mortgage, unless the holder assigns the bid to another person.

Q. 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.

R. A transfer to a conservancy which possesses a tax exempt status pursuant to §501(c)(3) of the Internal Revenue Code of 1954, (68A Stat. 3, 26 U.S.C. §501(c)(3)) and which has as its primary purpose preservation of land for historic, recreational, scenic, agricultural or open space opportunities.

S. A transfer of real estate devoted to the business of agriculture to a family farm corpora-tion by a member of the same family which directly owns at least 75% percent of each class of the stock thereof.

T. A transfer between members of the same family of an ownership interest in a real estate company or family farm corporation.

U. A transaction wherein the tax due is $1.00 or less.

V. Leases for the production or extraction of coal, oil, natural gas or minerals and assign-ments 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. 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 Part.

(Ord. 86-11, 12/24/1986, §7)

 

§408. DOCUMENTS RELATING TO ASSOCIATIONS OR CORPORATIONS AND MEMBERS, PARTNERS, STOCKHOLDERS OR SHAREHOLDERS THEREOF.

Except as otherwise provided in §407, 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 purposes of this Part, corporations and associations are entities separate from their members, partners, stockholders or shareholders.

(Ord. 86-11, 12/24/1986, §8)

 

§409. ACQUIRED COMPANY.

1. A real estate company is an acquired company upon a change in the ownership interest in the company, however effected, if the change:

A. Does not affect the continuity of the company; and,

B. Of itself or together with prior changes has the effect of transferring, directly or indirectly, 90% 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 requirement of a family farm corporation under this Part.

3. Within 30 days after becoming an acquired company, the company shall present a declaration of acquisition to the collector for recording and for the affixation of the official stamp or writing evidencing payment of the tax. Such declaration shall set forth the value of real estate holdings of the acquired company in the Township.

(Ord. 86-11, 12/24/1986, §9)

§410. 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 consideration for the purchase 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 demised by the grantor, a credit for the amount of tax paid at the time of the demise 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. 86-11, 12/24/1986, §10)

 

§411. 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 for calculating the rental charge is established.

(Ord. 86-11, 12/24/1986, §11)

 

§412. 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, and the sheriff or other officer conducting said sale shall pay the tax herein imposed out of the first moneys 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. 86-11, 12/24/1986, §12)

 

§413. STATEMENT OF VALUE; PENALTY.

1. Every document lodged with or presented to the collector 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 Part. The provisions of this Section shall not apply to any excludable real estate transfers which are exempt 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 Part. The certified copy and statement of value shall be filed with the collector.

2. Any recorder of deeds who shall record any document upon which tax is imposed by this Part without the proper documentary stamp or stamps affixed thereto as required by this Part as is indicated in such document or accompanying statement of value shall, upon summary conviction, be sentenced to pay a fine of $50 and costs of prosecution, and in default of payment thereof, undergo imprisonment for not more than 30 days.

(Ord. 86-11, 12/24/1986, §13)

 

§414. UNLAWFUL ACTS; PENALTY.

1. It shall be unlawful for any person to:

A. Make, execute, deliver, accept, or present for recording or cause to be made, executed, delivered, accepted, or presented for recording any document without the full amount of tax thereon being duly paid.

B. Fail to record a declaration of acquisition, as required by this Part.

C. Fraudulently affix to any document, any forged evidence of payment.

D. Fail, neglect or refuse to comply with or violate other provisions of this Part or any rules and regulations promulgated by the Township under this Part, or any rules and regulations of the Pennsylvania Department of Revenue to the extent applicable to the tax levied hereunder.

2. Any person violating any of the provisions of this Part shall be, upon conviction thereof, sentenced to a fine of not more than $600 plus costs and, in default of payment of said fine and costs, to a term of imprisonment not to exceed 30 days. Each day on which a violation of this Part shall continue shall be deemed a separate offense. [Ord. 98-7]

(Ord. 86-11, 12/24/1986, §14; as amended by Ord. 98-7, 8/27/1998)

 

§415. CIVIL PENALTIES.

1. If any tax owing under the terms of this Part shall not be paid when due, 10% of the amount of the tax shall be added and collected as an initial penalty for nonpayment or underpayment of the tax.

2. In addition, if any tax owing under the terms of this Part shall not be paid when due, a penalty shall accrue on the amount of the unpaid tax at the rate of 1% per month or fractional part of a month, on the amount of the unpaid tax, from the due date until the amount of the tax is paid in full.

3. In addition, in the case of failure or any acquired company to record a declaration of acquisition, as required by this Part, unless it is shown to the satisfaction of the Township that such failure is due to reasonable cause, a penalty shall accrue on the amount of the unpaid tax at the rate of 5% per month or fractional part of a month, on the amount of the unpaid tax, from the due date until the amount of the tax is paid in full. This penalty shall be in addition to all other penalties, but shall not in the aggregate exceed 50% of the amount of the unpaid tax.

4. In addition, if any part of any underpayment of tax is due to fraud, there shall be added to the tax an amount equal to 50% of the underpayment.

5. In addition, if the Township files suit in order to collect the amount of any tax not paid when due under this Part, at the discretion of the court, any person liable for payment of the tax shall also be liable for reasonable attorneys’ fees incurred by the Township in prosecution of the suit.

6. No document upon which tax is imposed by this Part shall at any time be made the basis of any action or other legal proceeding, nor shall proof thereof be offered or received in evidence in any court of this Commonwealth, or recorded in the office of any Recorder of Deeds of any county of this Commonwealth, unless the tax imposed hereunder shall have been paid in full and evidence of payment have been affixed thereto by the collector.

(Ord. 86-11, 12/24/1986, §15)

 

§416. LIEN.

The tax imposed by this Part, together with all penalties, shall be a lien against the real estate to which the document relates and, in the case of an acquired company, the real estate owned by the acquired company. The lien shall date from the time when the tax is due and payable and shall continue until discharged by payment in full of the tax, together with all penalties. In order to enforce the lien, the Township may proceed under the Municipal Claims and Liens Act of 1923, 53 P.S. §7101 et seq., or in any other appropriate manner.

(Ord. 86-11, 12/24/1986, §16)

 

§417. ENFORCEMENT.

1. In order to determine whether the proper amount of tax has been paid, without limiting any other rights of the Township, the Township shall have the right to review all documents or records relating to any real estate transaction or any related transactions, and to take such other steps as the Township shall deem necessary or appropriate, including a review or audit of any documents or records of any party to a real estate transaction to determine the fair market value of the real estate or any other relevant matter as determined by the Township. Upon request of the Township, and at such place and time as specified by the Township, any party shall make available to the Township any documents or records requested by the Township.

2. In the event any tax is not paid when due, the Township may enforce payment of the tax, together with all penalties by suit in assumpsit or any other appropriate means.

(Ord. 86-11, 12/24/1986, §17)

 

§418. COLLECTOR.

1. As provided in 16 P.S. §11011-6, the Recorder of Deeds of Cumberland County shall be the collection agent for this tax, without compensation from the Township.

2. In order to ascertain the amount of taxes due when the property is located in more then one political subdivision, the collector shall not accept for recording any document unless it is accompanied by a statement of value showing what taxes are due each political subdivision.

3. On or before the 10th day of each month, the collector shall pay over to the Township all taxes collected under this Part, less 2% percent for use of the County, and shall also provide a report containing the information required by the Commonwealth of Pennsylvania in reporting collections of the Pennsylvania Realty Transfer Tax. The 2% commission shall be paid to the County.

4. In accordance with Act 77-1986, any recorder of deeds who shall record any document upon which tax is imposed under this Part without payment of tax as required under this Part, as is indicated in the document or accompanying statement of value shall, upon summary conviction, be sentenced to pay a fine of $50 and costs of prosecution.

(Ord. 86-11, 12/24/1986, §18)

§419. REGULATIONS.

The Township may promulgate and enforce reasonable rules and regulations for the interpretation, collection, and enforcement of the tax.

(Ord. 86-11, 12/24/1986, §20)

 

§420. INTERPRETATION/EFFECT.

1. To the extent of this Part imposes a tax on a real estate transaction which is subject to the Commonwealth of Pennsylvania realty transfer tax imposed by Act 77-1986, and to the extent not inconsistent herewith or with rules or regulations adopted by the Township, this Part shall be interpreted in the same manner as Act 77-1986 and in accordance with regulations promulgated there under.
2. The provisions of this Part, so far as they are the same as those of ordinances in force immediately prior to adoption of this Part, are intended as a continuation of such parts, and not as new enactments.

3. This Part is intended to supplement the realty transfer tax in effect prior to adoption of this Part by imposing a tax on real estate transactions not covered by prior ordinances and now taxable under Act 77-1986. This Part shall impose a tax on all transactions taxable under resolutions levying a realty transfer tax in force immediately prior to adoption of this Part, and also on all transactions which the Township is permitted to tax under Act 77-1986 to the fullest extent permissible.

4. To the extent the provisions of this Part tax real estate transactions taxable under ordi-nances levying a realty transfer tax in force immediately prior to adoption of this Part, this Part shall supersede said prior ordinances.

5. In the event this Part is declared invalid, the prior ordinances or ordinances of the Township levying a realty transfer tax shall remain in full force and effect, and shall not be affected in any way by adoption of this Part.

6. The provisions of this Part shall not affect any act done or liability incurred, nor shall they affect any suit or prosecution pending or to be instituted to enforce any right or penalty or to punish any offense, under the authority of any ordinances in force prior to adoption of this Part.

(Ord. 86-11, 12/24/1986, §21)

 

 

 

 

PART 5

TAX COLLECTION POLICIES

 

§501. TAX REPORTING AND SETTLEMENT PROCEDURE.

1. Upon receipt of the Township real estate tax duplicate from the County, Township personnel shall place on it the street light and fire hydrant tax amounts for the properties subject to such taxes.

2. At the time the Township tax duplicates are delivered to the Township Treasurer, the Board of Commissioners, upon motion, will charge the Township Treasurer with the respective amounts of real estate tax, per capita tax, street light tax, fire hydrant tax and any other tax to be collected by the Township Treasurer. A copy of this motion shall be delivered to the Township Treasurer together with the Township tax duplicates.

3. All additions or credits to the tax duplicates received from the County shall be applied against the amount of taxes to be collected by the Township Treasurer, on motion of the Board of Commissioners. A copy of this motion shall be delivered to the Township Treasurer.

4. Additions or credits to the street light tax or fire hydrant tax lists shall, upon motion, be approved by the Board of Commissioners and applied to the taxes to be collected by the Township Treasurer. A copy of this motion shall be delivered to the Township Treasurer.

5. On or before the tenth of each month, the Township Treasurer shall submit to the Township lists of the names of taxpayers who paid Township taxes during the preceding calendar month. One list shall include Township real estate tax, street light tax and fire hydrant tax and the other list shall include Township per capita tax. Each list shall be in alphabetical order and shall show the amount of each type of tax paid, indicating whether payment was at discount, at face or at penalty. Each list shall be accompanied by copies of the receipted tax bills on which the listings are based. The Township Treasurer shall remit to the Township, in conjunction with or prior to the submission of the lists, payments equaling the amount of Township taxes collected.

6. Upon receipt from the Township Treasurer of the lists for each month, Township personnel shall enter on the appropriate tax duplicate, next to the name of the taxpayer, the word “paid”, the amount paid and the title of the monthly list (June, July, etc.) on which the name is included.

7. As soon after the close of the calendar year as possible but, in no event, later than January 31, the Township Treasurer shall present a separate settlement sheet for each type of Township tax, containing the following data:

A. Amount of Township tax charged (at face).

B. Additions to duplicate (at face).

C. Credits to duplicate (at face).

D. Adjusted amount to be collected (at face), item A plus item B

E. Face amount of tax collected at discount.

F. Discount allowed.

G. Net amount of tax collected at discount (item E minus item F).

H. Face amount of tax collected at face.

I. Face amount of tax collected at penalty.

J. Penalty charged.

K. Total amount of tax collected at penalty (item I plus item J).

L. Total tax collected (at face), item E plus item H plus item I.

M. Total tax remitted (should equal the sum of items G, H and K).

N. Exonerations previously approved (at face).

O. Additional exonerations claimed (at face).

P. Amounts turned over as delinquent (at face).

Q. Penalty on amounts turned over as delinquent.

R. Balance to be accounted for (at face), item D minus items L, N, O and P.

Presented with the settlement sheet shall be alphabetical listings of delinquent taxpayers, al-phabetical listings of exonerations previously approved by the Board of Commissioners and alphabetical listings of additional exonerations claimed. (Each exoneration list shall include the name of the taxpayer, the amount and type of tax, the basis for exoneration and, with respect to exonerations previously approved, the date of such approval. The delinquent tax lists shall include the name of the taxpayer and the amount and type of tax.)

8. Upon receipt of the delinquent tax lists and exoneration lists from the Township Treasurer, Township personnel shall enter on the tax duplicate, next to the name of the taxpayer, the word “delinquent” or “exonerated” as appropriate, and the number of the delinquent list or exoneration list on which the name appears. All duplications shall be disallowed.

9. The Board of Commissioners or other Township personnel, at the direction of the Board of Commissioners, shall make such examination and verification of the delinquent lists exoneration lists, and supporting documents as shall be deemed appropriate.

10. After being satisfied that the exoneration lists are proper or after making such adjust-ments thereto as may be legally necessary, the Board of Commissioners, by motion, shall ap-prove the lists and relieve the Township Treasurer from further responsibility with respect to the taxes applicable thereto.

11. Concurrently with the approval of the exoneration lists, if possible, or if not, as soon thereafter as all differences have been accounted for, the Board of Commissioners shall, by motion, approve the settlement with the Township Treasurer.

(Res. 76-9, 7/6/1976)

 

§502. EXONERATION PROCEDURES.

1. Any resident who believes that he is entitled to exoneration from the payment of Township per capita taxes may claim exoneration on a form approved by the Board of Commissioners and available at the Office of the Township Treasurer.

2. The claim for exoneration shall, among other things, specify the basis for claiming exoneration, shall contain a statement that all of the information set forth is true and correct, shall be signed by the person claiming exoneration and shall be accompanied by such supporting documents or information as may be necessary to establish the claim for exoneration.

3. All claims for exoneration must be filed with the Township Treasurer not later than December 31 of the year for which exoneration is claimed. A separate claim must be filed for each year.

4. Upon receipt of a claim for exoneration, the Township Treasurer shall make such inquiry or investigation as is deemed necessary to verify the basis for the claim and shall then make a preliminary determination of whether the claim should be approved or rejected. The Township Treasurer shall inform the claimant of the preliminary determination.

5. If the preliminary determination is to approve the claim on any basis other than special circumstances, the Township Treasurer shall record the applicant’s name on an exoneration list to be forwarded to the Board of Commissioners on January 31 of the following year in accordance with the Tax Reporting and Settlement Procedures.

6. If the preliminary determination is to approve the claim on the basis of special circum-stances, the Township Treasurer shall promptly forward the claim, together with all supporting documentation, to the Board of Commissioners for final determination.

7. If the preliminary determination is to reject the claim (regardless of the basis for the claim) and, after being informed thereof, the claimant persists in the claim, the Township Treasurer shall promptly forward the claim, together with all supporting documentation, to the Board of Commissioners for final determination.

8. Upon receipt of any claim pursuant to subsections (6) and (7) hereof, the Board of Commis¬sioners shall review the claim and make a final determination. Before doing so, the Board in its sole discretion may make further inquiry into the matter and may afford the claimant an opportunity to appear and be heard.

9. Upon making a final determination in accordance with subsection (8), hereof, the Board of Commissioners shall give written notice thereof to the claimant and to the Township Treasurer. If the claim has been approved, the Township Treasurer shall record the claimant’s name on the approved exoneration list to be forwarded to the Board of Commissioners by January 31 of the following year in accordance with the Tax Reporting and Settlement Procedure. If the claim is rejected, the Township Treasurer shall proceed with normal tax collection procedures.

10. The Board of Commissioners may also approve exonerations in accordance with the exoneration policy in those situations where the taxpayer’s whereabouts are unknown or where the taxpayer neglects to file a formal claim if, on the basis of inquiry and investigation, it appears that exoneration is clearly justified.

(Res. 76-9, 7/6/1976)

 

§503. COLLECTION OF CERTAIN FEES BY THE TAX COLLECTOR

1. The duly elected tax collector in and for Hampden Township or the duly appointed tax collector in the event of a vacancy in the office of tax collector, is appointed the municipal officer authorized to provide tax certification upon request by the public.

2. The tax collector for Hampden Township is authorized to assess, collect and retain as compensation for providing the service of issuing tax certifications a fee of $20.00 for each tax certification requested. [Ord. 16-01]

3. The Tax Collector for Hampden Township is authorized to assess, collect and
retain as compensation for providing duplicate tax bills or research with respect to
tax payment a fee of $3.00 per parcel for each tax year researched or duplicate provided for requests for research or bills on one to 1,499 parcels and $2.00 per parcel for requests for research or bills on 1,500 or more parcels. [Ord. 11-03, amended by Ord. 14-04]

4. The Tax Collector for Hampden Township is authorized to assess, collect and
retain as compensation a fee of $15.00 from any person(s), corporation, partnership, association or other entity which makes payment to the Tax Collector of any sum, whether for taxes, fees, charges, interest, penalties, obligations or other amounts owed, for which a check is returned for insufficient or unavailable funds. [Ord 11-03]

 

(Ord. 05-05, 04/28/2005, §1. Ord. 11-03 1/4/11, and by Ord. 16-01 on 01/28/2016)

 

§ 504 COSTS OF COLLECTION.

1. Any tax collection agency, entity or person designated by Hampden Township to collect such taxes as may be established or imposed by this Chapter from time to time shall be authorized to impose, collect and retain from the applicable tax payer and/or employer the reasonable costs of collection on such taxes that become delinquent and/or remain unpaid. Such costs shall be established and approved by Hampden Township by Ordinance or Resolution from time to time as the Board of Commissioners of Hampden Township in its sole discretion shall decide.

(Ord. 09-04, 01/29/2009, §3)

WEST SHORE TAX BUREAU

SCHEDULE OF COSTS TO PROVIDE DELINQUENT TAX NOTICES
AND TO COLLECT DELINQUENT TAXES
FROM INDIVIDUAL TAXPAYERS AND EMPLOYERS

1. INDIVIDUAL EARNED INCOME TAX

A. Non-filing individual taxpayer delinquency notices:
First delinquent notice – 1st Class Mail (each notice) No Cost
Second delinquent notice – Certified Mail (each notice) $ 10.00
Notice of Tax Examination – Certified Mail (each notice) $ 10.00

B. Unpaid individual earned income tax:
First non-payment notice – 1st Class Mail (each notice) No Cost
Second non-payment notice – Certified Mail (each notice) $10.00
Payment schedule fee:
0 – 4 months $ 20.00
4 – 6 months $ 30.00
Wage Attachment $ 40.00
Suit in assumpsit or other appropriate remedy: Actual costs incurred *
Plus $20.00 preparation fee

C. Non-compliance with required quarterly individual
earned income tax payments (per quarter): $ 5.00

D. Cost to provide copies of filed tax returns or W-2 forms to taxpayers:
Current year and next prior year $ 5.00
Second prior year and older $ 10.00

2. EMPLOYER EARNED INCOME TAX

A. Non-filing tax return or support documentation (applicable for each quarter):
First delinquent notice – 1st Class Mail (each notice) No Cost
Second delinquent notice – Certified Mail (each notice) $ 10.00
Preparation of Non-Traffic Citation $ 20.00
Preparation on re-filling Non-Traffic Citation due to
non-compliance $ 40.00

B. Unpaid employer’s remittance of tax withheld from employee (applicable for each quarter):
First non-payment notice – 1st Class Mail (each notice) No Cost
Second non-payment notice – Certified Mail (each notice) $ 10.00
Payment Schedule fee:
0 – 4 months $ 20.00
4 – 6 months $ 30.00
Preparation of Non-Traffic Citation $ 20.00
Preparation on re-filing of Non-Traffic Citation due to
non-compliance $ 40.00
Suit in assumpsit or other appropriate remedy Actual costs incurred *
Plus $20.00 preparation fee

3. OTHER TAX COLLECTION SERVICES – Occupational Privilege Tax, Emergency and Municipal Services Tax, Local Services Tax (as applicable for the designated tax year or tax period)

A. Non-filing of return or supporting documentation:
First delinquent notice – 1st Class Mail (each notice) No Cost
Second delinquent notice – Certified Mail (each notice) $ 10.00
Preparation of Non-Traffic Citation $ 20.00
Preparation on re-filling Non-Traffic Citation due to
non-compliance $ 40.00

B. Unpaid taxes:
First non-payment notice – 1st Class Mail (each notice) No Cost
Second non-payment notice – Certified Mail (each notice) $ 10.00
Payment Schedule fee:
0 – 4 months $ 20.00
4 – 6 months $ 30.00
Preparation of Non-Traffic Citation $ 20.00
Preparation on re-filing of Non-Traffic Citation due to
non-compliance $ 40.00
Suit in assumpsit or other appropriate remedy Actual costs incurred *
Plus $20.00 preparation fee

* “Actual costs incurred” includes court fees such as filing and service costs, legal fees paid by West Shore Tax Bureau to prosecute or defend the specific case and any other costs incurred by the West Shore Tax Bureau while preparing to prosecute or defend the specific case, including but not limited to, witness fees, costs of obtaining certified documents from government regulatory agencies or other tax bureaus, etc.

 

 

 

 

 

 

 

 

 

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PART 6
ACTIVE VOLUNTEER EARNED INCOME TAX CREDIT
§ 601. TITLE.
This Ordinance shall be known as the “Active Volunteer Earned Income Tax Credit Ordinance”.

§ 602. AUTHORITY.

This Ordinance is authorized pursuant to the Act of November 21, 2016, P.L. 1509 (Act 172 of 2016) (35 Pa.C.S. § 79A01, et. seq.).

§ 603. PURPOSE.

The purpose of this Ordinance is to acknowledge the value and dedication of volunteer fire pro-tection provided by active volunteers and to encourage others to become involved as active vol-unteers in Hampden Township Volunteer Fire Company No. 1. Accordingly, this Ordinance provides financial incentives in the form of credits against the earned income tax imposed by Hampden Township.

§ 604. DEFINITIONS.

The following words and phrases when used in this Ordinance shall have the meanings ascribed to them in this Section:

ACTIVE VOLUNTEER – a volunteer for Hampden Township Volunteer Fire Company No. 1 who has complied with the requirements of Hampden Township’s Volunteer Service Credit Pro-gram and who is certified in accordance with §607 of this Ordinance.

BOARD OF COMMISSIONERS – the Board of Commissioners of Hampden Township, also known as the governing body of Hampden Township, a Pennsylvania first class township.

COMMISSIONER – the State Fire Commissioner of the Commonwealth of Pennsylvania.

EARNED INCOME TAX – a tax on earned income and net profits levied by Hampden Town-ship pursuant to Chapter 24, Part 1, Section 101, et. seq. of the Township of Hampden Code of Ordinances as authorized by the Local Tax Enabling Act (Act of December 31, 1965, P.L. 1257, No. 511).

INDIVIDUAL – a volunteer.

VOLUNTEER – a member of Hampden Township Volunteer Fire Company No. 1.

HAMPDEN TOWNSHIP VOLUNTEER FIRE COMPANY NO. 1 – the nonprofit chartered volunteer fire company providing fire protection services primarily within Hampden Township, having been established as such on May 31, 1955.

TAX CREDIT – the tax credit granted pursuant to §606, infra., below, of this Ordinance.

VOLUNTEER FIRE COMPANY – Hampden Township Volunteer Fire Company No. 1.

VOLUNTEER SERVICE CREDIT PROGRAM – the program established pursuant to §608 of this Ordinance for purposes of determining the active status of a volunteer of Hampden Town-ship Volunteer Fire Company No. 1.

§605. ELIGIBILITY.

An individual who is a resident of Hampden Township and subject to the Earned Income Tax imposed by Hampden Township may claim a tax credit as established in §606 if the individual is certified in accordance with §607 of this Ordinance.

§606. DETERMINATION OF EARNED INCOME TAX CREDIT.

For each individual meeting the eligibility requirements of §605 of the Ordinance, the following credit shall apply:

A. The amount of the tax credit for an individual having an annual income for Earned Income Tax purposes that is $50,000 or less, the tax credit shall be the product result-ing from multiplying such annual income by a factor of .005.

B. For the amount of the tax credit for an individual having an annual income for Earned Income Tax purposes of more than $50,000, the tax credit shall be $250.00.

When the eligible individual’s earned income tax liability is less than the amount of the tax cred-it, the tax credit shall equal the individual’s tax liability.

 

§607. CERTIFICATION PROCEDURE.

For an individual to be eligible to claim a tax credit, the following procedures shall be followed:

A. An active volunteer shall complete, sign and submit an application for certification
to the Chief of Hampden Township Volunteer Fire Company No. 1 no later than December 15 for certification applicable to the period just elapsed of December 1 through November 30.

B. The Chief and another officer of the Volunteer Fire Company shall sign the
application attesting to the individual’s status as an active volunteer or that the
individual can no longer serve as an active volunteer due to injury. Within 15
days of the receipt by the Chief of the application, the application, if signed by the
Chief and the Volunteer Fire Company officer, shall be delivered to the office of
the Township Manager of Hampden Township.

C. The Township Manager of Hampden Township shall within 15 days of receipt of
an application conduct a final review of the application to ensure it is properly
completed and thereafter process the application. Processing the application shall
consist of comparing the names of applicants who submitted an application for
certification against those names appearing on the eligibility list submitted by the
Chief to the Board of Commissioners as required under §610 of this Ordinance.
For those individuals who both submitted an application approved by the Chief
and officer under §607.B of this Ordinance and whose names also appear on the
eligibility list submitted by the Chief to the Board of Commissioners, the
Township Manager shall submit to the Board of Commissioners the list of eligible
active volunteer applicants for approval by the Board of Commissioners at a public
meeting to be held no later than January 31.

D. An active volunteer who was injured during a response to an emergency call and
can no longer serve as an active volunteer because of the injury and who would
otherwise be eligible for a tax credit shall be eligible for the tax credit for the
succeeding five (5) tax years. The injured volunteer must complete, sign and
submit an application for certification together with documentation from a licensed
physician to the Chief of Hampden Township Volunteer Fire Company No. 1 no
later than December 15 for certification applicable to the immediately preceding
period of December 1 through November 30. After submission of the application,
the procedures in §607.B and C, above, shall be followed.

E. Upon approval of the list of eligible volunteers by the Board of Commissioners at a public meeting, Hampden Township shall issue a tax credit certificate to the eli-gible volunteer and provide a listing of such eligible volunteers to the tax officer responsible for collecting the earned income tax for Hampden Township.

§608. VOLUNTEER SERVICE CREDIT PROGRAM.

The requirements necessary for a volunteer to be certified as being eligible as an active volunteer shall be established by Resolution of the Board of Commissioners from time to time in consultation with the Chief of the Volunteer Fire Company, and shall be based on the fol-lowing:

A. The number of emergency response calls to which the Volunteer responds.

B. The level of training and participation in formal training and drills for a Volunteer.

C. The total amount of time expended by a Volunteer on administrative and other sup-port services, including but not limited to:

1. fund raising
2. providing facility or equipment maintenance
3. financial bookkeeping.

D. The involvement in other events or projects that aid the financial viability, emergency response or operational readiness of the Volunteer Fire Company.

§609. SERVICE RECORD LOG.

The Chief of Hampden Township Volunteer Fire Company No. 1, or his or her de-signee, shall establish and maintain a service log that documents on an annual basis the activi-ties of each volunteer that qualifies for credit toward active service under the volunteer service credit program described in §608, above, which log shall include a calculation of the total credits earned for each volunteer in the Volunteer Fire Company. The service log shall docu-ment activities of each volunteer on an annual basis for the time period of December 1 through November 30.

The service log required to be maintained under this Section shall be subject to periodic review by the Commissioner, the Auditor General and the Board of Commissioners.

§610. SUBMISSION OF ELIGIBILITY LIST.

The Chief of Hampden Township Volunteer Fire Company No. 1 shall submit a nota-rized list to the Board of Commissioners no later than December 30 setting forth the names of eligible active volunteers who have complied with the requirements of the volunteer service credit program for the period beginning December 1 through November 30. Such notarized list shall identify those eligible active volunteers for the annual period (ending November 30) just completed.

§611. APPEAL.

A volunteer may appeal a decision of the Board of Commissioners not approving the volunteer as an active volunteer by submitting a written request for binding arbitration to the Hampden Township Manager within 10 days of the decision of the Board of Commissioners. Binding arbitration shall be conducted in accordance with the rules of the American Arbitra-tion Association and the costs of arbitration shall be shared equally between the parties to the arbitration proceeding.

§612. PENALTIES FOR FALSE REPORTING.

A. Any person who knowingly makes or conspires to make a false service record
report under this Part commits a misdemeanor of the first degree punishable by a
fine of $2,500.

B. Any person who knowingly provides or conspires to provide false information that
is used to compile a service record report under this Part commits a misdemeanor
of the first degree punishable by a fine of $2,500.

(Ord. 2017-13, 09/28/2017)

 

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