[Adopted 11-21-1966 by Ord. No. 347]
A.
ASSOCIATION
BOROUGH
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EMPLOYER
INCOME TAX OFFICER and OFFICER
NET PROFITS
(1)
(2)
(3)
(4)
NONRESIDENT
PERSON or INDIVIDUAL
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
The following terms shall have, for the purpose of
this article, the meanings herein indicated:
A partnership, limited partnership or any other unincorporated
group of two or more persons.
Edgeworth Borough, Allegheny County, Pennsylvania.
An enterprise, activity, profession or any other undertaking
of an unincorporated nature conducted for profit or ordinarily conducted
for profit, whether by a person, partnership, association or any other
entity.
A corporation or joint-stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania or
any other state, territory, foreign country or dependency.
The calendar year for which the tax is levied.
The place where one lives and has his permanent home and
to which he has the intention of returning whenever he is absent.
Actual residence is not necessarily "domicile," for "domicile" is
the fixed place of abode which, in the intention of the taxpayer,
is permanent rather than transitory. "Domicile" is the place in which
a man has voluntarily fixed the habitation of himself and his family,
not for a mere special or limited purpose, but with the present intention
of making a permanent home, until some event occurs to induce him
to adopt some other permanent home. In the case of businesses or associations,
the "domicile" is that place considered as the center of business
affairs and the place where its functions are discharged.
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,"[1] and regulations in 61 Pa. Code Pt. I Subpt. B Art. V (relating to personal income tax). Employee business expenses are allowable deductions as determined under Article III of the Tax Reform Code of 1971. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
[Amended 4-15-2003 by Ord. No. 488]
A person, partnership, association, corporation, institution,
governmental body or unit or agency or any other entity employing
one or more persons for a salary, wage, commission or other compensation.
A person, public employee or private agency designated by
the governing body to collect and administer the tax on earned income
and net profits.
The net income from the operation of a business, profession,
or other activity, except 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,"[2] and regulations in 61 Pa. Code Pt. I Subpt. B Art. 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:
[Amended 4-15-2003 by Ord. No. 488]
Any interest earnings generated from any monetary
accounts or investment instruments of the farming business;
Any gain on the sale of farm machinery;
Any gain on the sale of livestock held 12 months
or more for draft, breeding or dairy purposes; and
Any gain on the sale of other capital assets
of the farm.
A person, partnership, association or other entity domiciled
outside the taxing district.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Borough.
The calendar year following the current year.
A person, partnership, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
B.
The singular shall include the plural, and the masculine
shall include the feminine and the neuter.
A tax of 1/2 of 1% of all earned income received
by residents and of all net proceeds earned by residents from the
conduct of businesses, professions and other activities during the
calendar year beginning January 1, 1967, and ending December 31, 1967,
or during the fiscal year thereof beginning in such calendar year
is hereby imposed, and such tax shall continue in force from year
to year without annual reenactment unless an ordinance amending or
repealing the same is enacted.
A.
Every resident making net profits shall, on or before
April 15 of the current year, make and file with the officer on a
form prescribed or approved by the officer a declaration of his estimated
net profits during the period beginning January 1 and ending December
31 of the current year and pay to the officer in four equal quarterly
installments the tax due thereon as follows: the first installment
at the time of filing the declaration and the other installments on
or before June 15 and September 15 of the current year and January
15 of the succeeding year, respectively.
B.
Any resident who first anticipates any net profit
after April 15 of the current year shall make and file the declaration
hereinabove required on or before June 15, September 15 or December
31 of the current year, whichever of these dates next follows the
date on which the resident first anticipates such net profit, and
pay to the officer in equal installments the tax due thereon on or
before the quarterly payment dates which remain after the filing of
the declaration.
C.
Every resident making net profits shall, on or before
April 15 of the succeeding year, make and file with the officer on
a form prescribed or approved by the officer a final return showing
the amount of the net profits earned during the period beginning January
1 and ending December 31 of the current year, the total amount of
tax due thereon and the total amount of tax paid thereon. At the time
of filing the final return, the resident shall pay to the officer
the balance of tax due or shall make demand for refund or credit in
the case of overpayment.
D.
Any resident making net profits may, in lieu of paying
the fourth quarterly installment of his estimated tax, elect to make
and file with the officer on or before January 31 of the succeeding
year the final return as hereinabove required.
E.
The officer is authorized to provide, by regulation,
for the making and filing of adjusted declarations of estimated net
profits and for the payments of the estimated tax in cases where a
resident who has filed the declaration hereinabove required anticipates
additional net profits not previously declared or finds that he has
overestimated his anticipated net profits.
F.
Every resident making net profits who discontinues
business prior to December 31 of the current year shall, within 30
days after the discontinuance of business, file his final return as
hereinabove required and pay the tax due.
A.
Every resident receiving earned income shall, on or
before April 15 of the succeeding year, make and file with the officer
on a form prescribed or approved by the officer a final return showing
the amount of earned income received during the period beginning January
1 and ending December 31 of the current year, the total amount of
tax due thereon, the amount of tax paid thereon, the amount of tax
thereon that has been withheld pursuant to the provisions relating
to the collection at source and the balance, if any, of tax due. At
the time of filing the final return, the resident shall pay the balance
of the tax due or shall make demand for refund or credit in the case
of overpayment.
B.
Every resident who is employed for a salary, wage,
commission or other compensation and who received any earned income
not subject to the provisions relating to collection at source shall
make and file with the officer on a form prescribed or approved by
the officer a quarterly return on or before April 30, July 31 and
October 31, all of the current year, and January 31 of the succeeding
year, setting forth the aggregate amount of earned income not subject
to withholding received by him during the three-month periods ending
March 31, June 30, September 30 and December 31, all of the current
year, respectively, and subject to the tax, together with such other
information as the officer may require. Every resident making such
return shall, at the time of filing thereof, pay to the officer the
amount of tax shown as due thereon.
A.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the Borough who
employs one or more persons, other than domestic servants, for a salary,
wage, commission or other compensation shall deduct, at the time of
payment thereof, the tax imposed by this article on the earned income
due to his employee or employees and shall, on or before April 30,
July 31 and October 31, all of the current year, and January 31 of
the succeeding year, file a return and pay to the officer the amount
of taxes deducted during the preceding three-month periods ending
March 31, June 30, September 30 and December 31, all of the current
year, respectively. Such return, unless otherwise agreed upon between
the officer and employer, shall show the name and social security
number of each such employee, the earned income of such employee during
such preceding three-month period, the tax deducted therefrom, the
political subdivisions imposing the tax upon such employee, the total
earned income of all such employees during such preceding three-month
period and the total tax deducted therefrom and paid with the return.
B.
Any employer who, for two of the preceding four quarterly
periods, has failed to deduct the proper tax or any part thereof or
has failed to pay over the proper amount of tax to the Borough may
be required by the officer to file his return and pay the tax monthly.
In such cases, payments of tax shall be made to the officer on or
before the last day of the month succeeding the month for which the
tax was withheld.
C.
On or before February 28 of the succeeding year, every
such employer shall file with the officer:
(1)
An annual return showing the total amount of earned
income paid, the total amount of tax deducted and the total amount
of tax paid to the officer for the period beginning January 1 and
ending December 31 of the current year.
(2)
A return withholding statement for each employee employed
during all or any part of the period beginning January 1 and ending
December 31 of the current year, setting forth the employee's name,
address and social security number, the amount of earned income paid
to the employee during such period and the amount of tax paid to the
officer. Every employer shall furnish two copies of the individual
return to the employee for whom it is filed.
D.
Every such employer who discontinues business prior
to December 31 of the current year shall, within 30 days after the
discontinuance of business, file the returns and withholding statements
hereinabove required and pay the tax due.
E.
Except as otherwise provided in Section 9 of Act No.
511 of 1965,[1] every such employer who willfully or negligently fails
or omits to make the deductions required by this section shall be
liable for payment of the taxes which he was required to withhold
to the extent that such taxes have not been recovered from the employee.
[1]
Editor's Note: See now 53 P.S. § 6924.101
et seq.
F.
The failure or omission of any such employer to make
the deductions required by this section shall not relieve any employee
from the payment of the tax or from complying with the requirements
of this article relating to the filing of declarations and returns.
A.
The Borough Manager is hereby appointed the officer
to collect the taxes imposed by this article. It shall be the duty
of the officer to collect and receive the taxes, fines and penalties
imposed by this article. It shall also be his duty to keep a record
showing the amount received by him from each person or business paying
the tax and the date of such receipt.
B.
Bond.
(1)
The officer, before entering upon his official duties,
shall give and acknowledge a bond to the Borough and/or any other
political subdivisions appointing him. If the Borough and/or any other
such political subdivisions shall, by resolution, designate the bond
previously given by the officer as adequate, such bond shall be sufficient
to satisfy the requirements of this subsection.
(2)
The bond shall be joint and several, with one or more
corporate sureties which shall be surety companies authorized to do
business in this commonwealth and duly licensed by the Insurance Commissioner
of this commonwealth.
(3)
The bond shall be conditioned upon the faithful discharge
by the officer, his clerks, assistants and appointees of all trusts
confided in him by virtue of his office, upon the faithful execution
of all duties required of him by virtue of his office, upon the just
and faithful accounting or payment over, according to law, of all
moneys and all balances thereof paid to, received or held by him by
virtue of his office and upon the delivery to his successor or successors
in office of all books, papers, documents or other official things
held in right of his office.
(4)
The bond shall be taken in the name of the Borough
and/or any other appointing authority or authorities and shall be
for the use of the Borough and/or any other political subdivisions
appointing the officer and for the use of such other person or persons
for whom money shall be collected or received, or as his interest
shall otherwise appear, in case of a breach of any of the conditions
thereof by the acts or neglect of the principal on the bond.
(5)
The Borough and/or any other political subdivisions
appointing the officer or any person may sue upon the bond in its
or his own name for its or his own use.
(6)
The bond shall contain the name or names of the surety
company or companies bound thereon. The Borough and/or any other political
subdivisions appointing the officer shall fix the amount of the bond
at an amount equal to the maximum amount of taxes which may be in
the possession of the officer at any given time.
(7)
The Borough and/or any other political subdivisions
appointing the officer may, at any time, upon cause shown and due
notice to the officer and his surety or sureties, require or allow
the substitution or the addition of a surety company acceptable to
the Borough and/or any other such political subdivisions for the purpose
of making the bond sufficient in amount, without releasing the surety
or sureties first approved from any accrued liability or previous
action on such bond.
(8)
The Borough and/or any other political subdivisions
appointing the officer shall designate the custodian of the bond required
to be given by the officer.
C.
The officer charged with the administration and enforcement
of the provisions of this article is hereby empowered to prescribe,
adopt, promulgate and enforce rules and regulations relating to any
matter pertaining to the administration and enforcement of this article,
including provisions for the reexamination and correction of declarations
and returns and of payments alleged or found to be incorrect or as
to which an overpayment is claimed or found to have occurred and to
make refunds in case of overpayment, for any period of time not to
exceed six years subsequent to the date of payment of the sum involved,
and to prescribe forms necessary for the administration of this article.
No rule or regulation of any kind shall be enforceable unless it has
been approved by resolution by the Borough. A copy of such rules and
regulations currently in force shall be available for public inspection.
D.
The officer shall refund, on petition of and proof
by the taxpayer, earned income tax paid on the taxpayer's ordinary
and necessary business expenses, to the extent that such expenses
are not paid by the taxpayer's employer.
E.
The officer and the agents designated by him are hereby
authorized to examine the books, papers and records of any employer
or of any taxpayer or of any person whom the officer reasonably believes
to be an employer or taxpayer in order to verify the accuracy of any
declaration or return or, if no declaration or return was filed, to
ascertain the tax due. Every employer and every taxpayer and every
person whom the officer reasonably believes to be an employer or taxpayer
is hereby directed and required to give to the officer or to any agent
designated by him the means, facilities and opportunity for such examination
and investigations as are hereby authorized.
F.
Any information gained by the officer, his agents
or by any other official or agent of the Borough as a result of any
declarations, returns, investigations, hearings or verifications required
or authorized by this article shall be confidential, except for official
purposes and except in accordance with a proper judicial order or
as otherwise provided by law.
G.
The officer is authorized to establish different filing,
reporting and payment dates for taxpayers whose fiscal years do not
coincide with the calendar year.
The income tax officer shall receive such compensation
for his services and expenses as determined by the Borough.
A.
The officer may sue in the name of the Borough for
the recovery of taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by this
article shall be begun within three years after such tax is due or
within three years after the declaration or return has been filed,
whichever date is later; provided, however, that this limitation shall
not prevent the institution of a suit for the collection of any tax
due or determined to be due in the following cases:
(1)
Where no declaration or return was filed by any person,
although a declaration or return was required to be filed by him under
provisions of this article, there shall be no limitation.
(2)
Where an examination of the declaration or return
filed by any person or of other evidence relating to such declaration
or return in the possession of the officer reveals a fraudulent evasion
of taxes, there shall be no limitation.
(3)
In the case of substantial understatement of tax liability
of 25% or more and no fraud, suit shall be begun within six years.
(4)
Where any person has deducted taxes under the provisions
of this article and has failed to pay the amounts so deducted to the
officer or where any person has willfully failed or omitted to make
the deductions required by this section, there shall be no limitation.
C.
The officer may sue for recovery of an erroneous refund,
provided that such suit is begun two years after making such refund,
except that the suit may be brought within five years if it appears
that any part of the refund was induced by fraud or misrepresentation
of material fact.
D.
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 and an additional
penalty of 1/2 of 1% of the amount of the unpaid tax for each month
or fraction thereof during which the tax remains unpaid shall be added
and collected. Where suit is brought for the recovery of any such
tax, the person liable therefor shall, in addition, be liable for
the costs of collection and the interest and penalties herein imposed.
A.
Any person who fails, neglects or refuses to make
any declaration or return required by this article, any employer who
fails, neglects or refuses to register or to pay the tax deducted
from his employees or fails, neglects or refuses to deduct or withhold
the tax from his employees, any person who refuses to permit the officer
or any agent designated by him to examine his books, records and papers
and any person who knowingly makes an incomplete, false or fraudulent
return or attempts to do anything whatsoever to avoid the full disclosure
of the amount of his net profits or earned income in order to avoid
the payment of the whole or any part of the tax imposed by this article
shall, upon conviction thereof before any District Justice, be sentenced
to pay a fine of not more than $500 for each offense, and costs, and,
in default of payment of said fine and costs, to be imprisoned for
a period not exceeding 30 days.
[Amended 3-12-1996 by Ord. No. 455]
B.
Any person who divulges any information which is confidential
under the provisions of this article shall, upon conviction thereof
before any District Justice, be sentenced to pay a fine of not more
than $500 for each offense, and costs, and, in default of payment
of said fines and costs, to be imprisoned for a period not exceeding
30 days.
[Amended 3-12-1996 by Ord. No. 455]
C.
The penalties imposed under this section shall be
in addition to any other penalty imposed by any other section of this
article.
D.
The failure of any person to receive or procure forms
required for making the declaration or returns required by this article
shall not excuse him from making such declaration or return.