Policy tax collection of personal school taxes

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SUSQUEHANNA TOWNSHIP SCHOOL DISTRICT Harrisburg, Pennsylvania 17109

POLICY

TAX COLLECTION OF PERSONAL SCHOOL TAXES/ TAX COLLECTOR RESPONSIBLITIES

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Authority

The Board of School Directors of the Susquehanna Township School District establishes the following policy for the collection of personal school taxes and for governing the tax collector's authority and responsibilities.

Definitions

Exoneration

An official action of the School Board to discharge the tax collector from liability for the collection of certain specified taxes.

Exemption

An exemption is a legislative or judicial action declaring certain persons to be without responsibility for payment of certain taxes. The Board may act to exempt a taxpayer from liability for a specified tax based upon criteria established by law or policy.

Taxpayer

Any person eighteen (18) years of age or older who is or becomes a resident or inhabitant of Susquehanna Township during the period of July 1 through June 30th of the tax year billed.

Indigent

A taxpayer whose income from all sources, as defined herein, is equal to or less than the board approved exemption amount applicable to the fiscal year prior to July 1 of the tax year billed. The current board approved exemption amount is $5,000.

Income From All Sources

Income from whatever source derived which is required to be included as gross income upon any individual's State Income Tax Return including but not limited to:

a. Compensation received from services rendered. Compensation means all types of payments for service rendered or to be rendered in the future, whether received in cash or in the form of property, services or other things of value. Compensation includes salaries, wages, fees, tips, gratuities, commissions, bonuses, incentive payments, vacation or holiday pay, termination or severance pay, sick pay unless excluded, stock options, educational stipends, meals and lodging not provided for the convenience of the employer, reimbursement in excess of allowable business expenses and any other income received for services rendered.

b. Net profits from the operation of a business, profession or farm

c. Rents, royalties, patents and copyrights

d. Income from estates and trusts

e. Gambling and Lottery winnings, other than prizes of Pennsylvania State lottery won on or after July 21, 1984.

Excluded from income computation is the following:

a. Periodic payments for sickness and disability other than regular wages.

b. Payments received under Worker's Compensation Acts, Occupational Disease Acts or similar legislation.

c. Pensions or retirement pay received after retirement from service after reaching a specific age or after a stated period of service; Important: Premature withdraws from retirement plans withdrawal taken prior to retirement are taxable to the extent the withdrawal exceeds contributions previously taxed to the employee. For example, interest on the monies is taxable.

d. Public assistance and unemployment compensation.

e. Payments made by employers or labor unions to programs covering hospitalization, sickness, disability, death, supplemental unemployment benefits, strike benefits, social security and retirement.

f. Child support and alimony.

g. Net gains on the sale of real property.

Act 511

The Local Tax Enabling Act, Act of December 31, 1965, P.L. 1257, No. 511 and any amendments thereto.

TAX COLLECTORS' RESPONSIBILITIES

Responsibility of Tax Collectors

Tax collectors shall be responsible for adherence to School Board Policy and Administrative Regulations. The District Superintendent, or his designee(s), is authorized to establish Administrative Regulations and procedures, within the confines of School Board Policy and applicable law, for the supervision of tax collectors.

Establishment

Compensation for the 4 year term of tax collectors shall be set by School Board resolution no later than the fifteenth day of February of the year of the Municipal Election.

Approved General Expenses

Tax collectors shall be reimbursed for approved expenses for the collection of Susquehanna Township School District taxes. In cases where tax collectors expend funds for supplies that are utilized for the joint collection of School District, county and municipality taxes, the expenses shall be shared on a pro rata basis. Requests for expense reimbursement shall be made in the same manner as required for school employees. Expenses shall be substantiated by proper invoice.

Tax Duplicates

The School District shall furnish tax collectors with Susquehanna Township School District approved tax duplicates for personal taxes. Tax collectors shall be required to maintain official tax records on the School District supplied duplicates. Tax collection law requires that the tax collectors maintain a current account of all monies collected by them under the authority of any duplicate or duplicates provided to them. They shall mark "paid" on each duplicate at the name of each taxable, the amount of taxes paid, and the date on which payment was made. The tax collectors shall, upon request by the Superintendent or Business Manager, provide any duplicates in their possession showing the uncollected taxes as of any date. The tax collectors shall add names to the tax duplicates as provided by law and in accordance with procedures established by the School District. All additions shall be verified through the Business Manager. Exemptions and exonerations must be approved by the Board of School Directors.

Bond Requirements

Bond premium expenses will be approved on a pro rata basis in accordance with public law. The County identifies the bonding agent through solicitation of competitive bid quotations. Each taxing district is liable to pay that percentage of the bond premium as the total taxes charged in the duplicate of the taxing district.

Mailing

Metered postage and envelopes will be provided by the School District to a mailing service for the mailing of personal tax bills on July 1st of each tax year. A pro rata reimbursement shall be made by the other taxing body in cases where joint mailings are involved.

Prohibition Against Certain Mailings

Tax collectors are prohibited from utilizing School District subsidized mailings for personal, political, or advertising purposes.

Deposit of Tax Funds

Tax collectors shall report School District tax funds in excess of $5,000 to the Business Office of the Susquehanna Township School District at least once a week. Lesser amounts on a monthly basis. These reports of these funds shall be accompanied by the appropriate deposit tickets and a check for the appropriate amount. A copy of the General Fund Deposit Ticket, the Statement of Tax Collections, and a copy of the appropriate tax notice stamped "paid" with actual date of receipt and amount shall be filed with the Business Office.

The Business Manager shall ensure that School District tax funds are deposited into the appropriate Susquehanna Township School District Account on a timely basis.

Filing/Processing of Exemption & Exoneration Forms

The processing of occupation tax exemption and exoneration forms shall be considered a part of the normal responsibilities of the tax collector. Tax collector should follow the directives with this Policy.

Settlement of Tax Duplicates

Tax collector shall make a complete settlement of all taxes for each fiscal year in accordance with guidelines and procedures provided by the Business Manager. Personal tax duplicates shall be settled and certified no later than January 31st of each school fiscal year.

EXONERATION/EXEMPTION FROM SCHOOL OCCUPATION TAXES ONLY (NOT EXEMPTION FROM PER CAPITA/ACT 511 TAXES)

The following is a list of the types of taxpayers from whom the School Board may exonerate the tax collector from the collection of occupation tax or exempt the taxpayer from payment of occupation tax:

a. Indigents as defined

b. Taxpayer is a member of the clergy with no other occupation.

c. Patient who is confined to a hospital or institution;

d. Member of the regular military on assigned active duty as of July 1st of the tax year.

e. Individual who is under 18 years of age on July 1 of the tax year billed.

f. Deceased individual may be exempted from any outstanding personal taxes at the time of death;

g. Individual who has moved residence from the District prior to July 1 of the fiscal year billed;

h. Individual who paid a like tax to another taxing authority for the same fiscal year and was a resident of that district on July 1;

i. Individual who has already paid occupation taxes to District for the same fiscal year;

j. Non-resident who has never lived in the District during fiscal year billed;

k. Individual 70 years of age or older as of July 1 of the fiscal year billed;

In order to qualify for exemption of occupation taxes, the taxpayer shall apply to the tax collector when he/she receives his/her tax bill.

Time Limits for Exemption Applications

The time limit for applying to the tax collector shall be determined by the billing date as follows:

a. For tax bills received in July, no later than December 31st; and b. For tax bills received in October, no later than March 31st. c. For tax bills received in January, no later than June 30th.

After December 31st for regular bills and March 31st, June 30th for interim bills, exemption applications shall be made to the delinquent tax collection agency.

Granting Exemption

The School Board may grant an exemption provided that:

a. A written claim therefore is filed with the Business Office by the tax collector or delinquent tax collection agency on behalf of the taxpayer or by the taxpayer on his/her own behalf; A tax exemption request form is available from the tax collector or the Delinquent Tax Collection Agency.

b. Every exemption request shall state the reason(s) upon which the taxpayer relies and shall be verified by a written declaration that it is made under the penalties of perjury; and

c. The taxpayer shall supply in a timely manner any and all documents requested to verify the accuracy of the request including, but not limited to:

(1) Statement from Dauphin County Board of Assistance;

(2) Proof of residence; Sales Agreement, Lease

(3) Military identification or orders;

(4) Receipted tax bill; and

(5) Pennsylvania earned income tax report.

d. The School District shall reserve the right to request further substantiating data upon completion of the calendar year in order to appropriately verify the accuracy of the exemption request.

e. Exemption requests may be audited by the state or local income tax bureau through referral from the Business Office.

f. The tax collector shall not forward any incomplete tax exemption request forms to the School District, but shall immediately return any such incomplete forms to the taxpayer with appropriate instructions for completion.

Taxpayer Responsibility

a. Any taxpayer whose exemption status changes subsequent to the filing of any tax exemption request form shall be responsible for notification of his/her change in status by written notice to the appropriate Tax Collector within thirty (30) days of such change.

b. Any taxpayer falsifying information on an tax exemption request form, exoneration form, or any other application shall be subject to appropriate legal action.

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