• Policy #3518

    SUSQUEHANNA TOWNSHIP SCHOOL DISTRICT

    Harrisburg, Pennsylvania 17109

     POLICY

     TAX COLLECTION OF PERSONAL SCHOOL TAXES/

    TAX COLLECTOR RESPONSIBILITIES


    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.

     

    Exemption From School Code Per Capita and Act 511 Per Capita Taxes

                 There shall be no exemption for School Code Per Capita and Act 511 Per Capita Taxes except for such conditions as are prescribed by law: The following are conditions warranting exemption, provided proper evidence.

    1.   Institutionalized Persons

    3.   Legally Blind

    2.   Physically or Mentally Incapacitated

    4.   Active Military

      Appeal of Exemption Denial to School Board

                 A taxpayer may file a request for an exemption with the School Board under the

    following circumstance:

                 a. The Business Office has notified the taxpayer that it will recommend to the School

         Board the denial of the request for exemption.

                 The taxpayer shall appeal in writing to the School Board from the denial by the Business

    Office.

                 The written appeal shall state the reasons the taxpayer alleges that the Business Office's

    Decision was erroneous.

                 The Business Office shall submit the original request and inform the board of its reasons

    for denial of the request.

     

    Refunds

                 The School Board may grant a refund, in whole or in part, upon determination that a personal tax has been paid under mistake of law or fact, or under an invalid law, subject to the following prerequisites:

               

     a. The School Board shall make no refund unless a verified written claim therefore is

         filed with the Business Office within two years after the date of payment of the sum

         involved; and

     b. Every claim for refund shall state the reasons upon which the taxpayer relies and shall 

         include a verification by the taxpayer that the facts set forth therein are true and are

        declared under penalties of perjury.

                 c. Proof of payment is attached. Proof of payment shall include copies of a canceled

         check or receipted tax bill.

     Adopted by the School Board - November 23, 1998