[Ord. 1203, 12/30/1968, § 1]
The following words and phrases, when used in this Part, shall
have the meanings ascribed to them in this § 201, except
where the context clearly indicates or requires a different meaning:
A partnership, limited partnership, or any other unincorporated
group of two or more persons.
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.
Borough Council of Pottstown.
The calendar year for which the tax is levied; provided,
however, as used herein, "current year" shall during 1969 refer only
to the period beginning July 1, 1969, and ending December 31, 1969.
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.
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent, and whether in cash or in property; not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workmen's compensation acts, occupational disease
acts and similar legislation, or payments commonly recognized as old
age benefits, retirement pay or pensions paid to persons retired from
service after reaching a specific age or after a stated period of
employment or payments commonly known as public assistance, or unemployment
compensation payments by any governmental agency or payments to reimburse
expenses or payments made by employers or labor unions for wage and
salary supplemental programs, including but not limited to, programs
covering hospitalization, sickness, disability or death, supplemental
unemployment benefits, strike benefits, social security and retirement.
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.
The Borough Council of the Borough of Pottstown, Montgomery
County, Pennsylvania.
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, after provision for all costs
and expenses incurred in the conduct thereof, determined either on
a cash or accrual basis in accordance with the accounting system used
in such business, profession, or other activity, but without deduction
of taxes based on income.
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 taxing district.
The calendar year following the current year.
A person, partnership, association, or any other entity required
under this Part to file a return of earned income or net profits,
or to pay a tax thereon.
[Ord. 1203, 12/10/1968, § 2]
1.
A tax for general revenue purposes is hereby imposed at the rate
of 1% on the following:
A.
Earned income received in the current year by residents of the taxing
district.
B.
Earned Income received in the current year within the taxing district
by nonresidents thereof.
C.
Net profits earned during the current year by residents of the taxing
district.
D.
Net profits earned during the current year within the taxing district
by nonresidents thereof.
2.
The tax levied under this Part shall be applicable to earned income
received and to net profits earned in the period beginning January
1 of the current year, and ending December 31 of the current year,
or for taxpayer fiscal years beginning in the current year, except
that taxes imposed for 1969 shall become effective July 1, 1969, and
the tax shall continue in force on a calendar year or taxpayer fiscal
year basis, without annual reenactment, unless the rate of tax is
subsequently changed. Regardless of the fiscal year of any taxpayer,
such taxpayer shall be liable for payment of the tax hereby imposed
from July 1, 1969. As used herein, the term "current year" shall during
1969 refer only to the period beginning July 1, 1969, and ending December
31, 1969.
[Ord. 1203, 12/30/1968, § 3]
1.
Net Profits.
A.
Except during 1969, every taxpayer 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 of the current year, September
15 of the current year, and January 15 of the succeeding year, respectively.
B.
Except during 1969, any taxpayer 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 of the current year, September
15 of the current year, or December 31 of the current year, whichever
of these dates next follows the date on which the taxpayer 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.
For the year 1969, or before September 15 every taxpayer making net
profits shall 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 July 1 and ending December 31, 1969, and
pay to the Officer in two equal installments the tax due thereon as
follows: the first installment on or before September 15, 1969, and
the second installment on or before January 15, 1970.
D.
For the year 1969, any taxpayer who first anticipates any net profits
after September 15, 1969, shall make and file the declaration hereinabove
required on or before January 15, 1970, and pay to the Officer the
tax due thereon on or before January 15, 1970.
E.
Every taxpayer 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 net profits earned
during the period beginning January 1 of the current year (July 1
in the year 1969), 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 taxpayer shall pay to
the Officer the balance of tax due or shall make demand for refund
or credit in the case of overpayment.
F.
Any taxpayer 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.
G.
The Officer is hereby 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 taxpayer
who has filed the declaration hereinabove required anticipates additional
net profits not previously declared or finds that he has overestimated
his anticipated net profits.
H.
Every taxpayer 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.
2.
Earned Income.
A.
Every taxpayer 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 of the current year (July 1
in the year 1969) and ending December 31 of the current year, the
total amount of tax due thereon, and the amount of tax due. At the
time of filing the final return, the taxpayer shall pay the balance
of the tax due or shall make demand for refund or credit in the case
of overpayment.
B.
Except during 1969, every taxpayer 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 prescribed or approved by
the Officer, a quarterly return on or before April 30 of the current
year, July 31 of the current year, October 31 of the current year,
and January 31 of the succeeding year, setting forth the aggregate
amount of earned income not subject to withholding by him during the
three-month periods ending March 31 of the current year, June 30 of
the current year, September 30 of the current year, and December 31
of the current year, respectively, and subject to the tax, together
with such other information as the Officer may require. Every taxpayer
making such return shall, at the time of filing thereof, pay to the
Officer the amount of tax shown as due thereon.
C.
For the short year beginning July 1, 1969, and ending December 31,
1969, the aforesaid requirements pertaining to the filing of quarterly
returns and to the payment of tax due thereon, the filing and payment
dates shall be October 31, 1969, and January 31, 1970.
[Ord. 1203, 12/30/1968, § 4]
1.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the taxing jurisdiction who employes
one or more persons, other than domestic servants, for a salary, wage,
commission or other compensation, who has not previously registered,
shall, within 15 days after becoming an employer, or within 15 days
after the effective date of this Part, whichever shall first occur,
register with the Officer his name and address and such other information
as the Officer may require.
2.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the taxing jurisdiction who employes
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 Part on the earned income due to
his employee or employees, and shall, or before October 31, 1969,
January 31, 1970, and thereafter on or before April 30 of the current
year, July 31 of the current year, October 31 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 September 30, 1969, December 31, 1969, and thereafter
ending March 31 of the current year, June 30 of the current year,
September 30 of the current year, and December 31 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
subdivision 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.
3.
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 taxing authority, 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.
4.
On or before February 28, of the succeeding year, every employer
shall file with the Officer:
A.
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 of the current year
(July 1 in the year 1969), and ending December 31 of the current year.
B.
A return withholding statement for each employee employed during
all or any part of the period beginning January 1 of the current year
(July 1 in the year 1969), 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 said period,
the amount of tax deducted, the political subdivisions imposing the
tax upon such employee, 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.
5.
Every 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.
6.
Except as otherwise provided in § 9 of the Local Tax Enabling
Act, every employer who willfully or negligently fails or omits to
make the deductions required by this § 104 shall be liable
for payment of the taxes which he was required to withhold to extent
that such taxes have not been recovered from the employee.
7.
The failure or omission of any employer to make the deductions required
by this § 104 shall not relieve any employee from the payment
of the tax or from complying with the requirements of this Part relating
to the filing of declarations and returns.
8.
If an employer makes a deduction of tax as required by this Part,
the amount deducted shall constitute in the hands of such employer
a trust fund held for the account of the governing body as beneficial
owner and the employee from whose earned income such tax was deducted
shall be deemed to have paid such tax.
[Ord. 1203, 12/30/1968, § 5]
1.
It shall be the duty of the Income Tax Officer to collect and receive
the taxes, fines and penalties imposed by this Part. It shall also
be his duty to keep a record showing the amount received by him from
each person paying the tax and, if paid by such person in respect
to another, the name of such other person, and the date of such receipt.
2.
The Income Tax Officer is hereby charged with the administration
and enforcement of the provisions of this Part, and all amendments
hereto, as well as all rules and regulations of Borough Council pertaining
hereto, for the administration and enforcement of this Part, 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
grant reasonable extensions of time upon proper cause shown for filing
declarations or returns on forms approved by Council, found necessary
for the administration of this Part.
3.
The Income Tax Officer, and agents designated in writing by him,
are hereby authorized to examine the books, papers and records of
any person 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 person is hereby directed and required to give to the Income
Tax Officer, or to any agent so designated by him, the opportunity
for such examinations and investigations as are hereby authorized.
4.
Any information gained by the Income Tax Officer, his agents, or
by any other official, agent or employee of the Borough of Pottstown
as a result of any declarations, returns, investigations, hearings
or verifications required or authorized by this Part shall be confidential
and shall not be disclosed by any person except for official use in
connection with the administration or enforcement of this Part or
as otherwise provided by law.
5.
The Income Tax Officer is authorized to examine any person under
oath concerning any income which was or should have been returned
for taxation, and shall have the power and is hereby authorized to
issue subpoenas to compel the attendance of persons whom he deems
necessary to examine as witnesses, and to compel the production of
books, records and papers relating to any account being examined.
6.
The Income Tax Officer, or any other official or agent so designated
by him, shall have the power to reexamine returns, correct erroneous
returns, consent to make refunds and authorize the refunding of taxes
erroneously or improperly collected from, or paid by, the taxpayers,
for any period of time not to exceed six years subsequent to the date
of payment of the sum involved.
7.
Any person aggrieved by an action of the Income Tax Officer shall
have the right of appeal as provided by law.
[Ord. 1203, 12/30/1968, § 6]
1.
The Income Tax Officer may sue in the name of the Borough of Pottstown
for the recovery of taxes due and unpaid under this Part.
2.
Any suit brought to recover the tax imposed by this Part 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 collection of any tax due or determined
to be due in the following cases:
A.
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 Part, there shall be no limitation.
B.
Where no 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 Income Tax Officer, reveals a fraudulent evasion
of taxes, there shall be no limitation.
C.
In the case of substantial understatement of tax liability of 25%
or more, and no fraud, suit shall be begun within six years.
D.
Where any person has deducted taxes under the provisions of this
Part and has failed to pay the amounts so deducted to the Income Tax
Officer, or where any person has willfully failed or omitted to make
the deductions required by this Part, there shall be no limitation.
E.
This § 106 shall not be construed to limit the Borough
from recovering delinquent taxes by any other means provided by this
Part.
3.
The Income Tax Officer may sue for recovery of an erroneous refund
provided 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.
[Ord. 1203, 12/30/1968, § 6]
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 0.5% 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.
[Ord. 1203, 12/30/1968, § 8]
The Income Tax Officer is hereby authorized to accept payment
of the amount of tax claimed by the Borough in any case where any
person disputes the validity or amount of the Borough's claim for
the tax. If it is thereafter judicially determined by a court of competent
jurisdiction that there has been an overpayment to the Income Tax
Officer, the amount of the overpayment shall be refunded to the person
who paid.
[Ord. 1203, 12/30/1968, § 9]
This Part shall not apply to:
A.
Any person as to whom it is beyond the legal power of the Borough
of Pottstown to impose the tax herein provided for under the Constitution
of Pennsylvania.
B.
The net profits of any institution, organization, trust, association
or foundation operated for public, religious, educational or charitable
purposes.
C.
Provided, that this § 209 shall not operate to relieve
or exempt any such entity from collection at source of earned income
of its employees and remittance of such collection to the Income Tax
Officer.
[Ord. 1203, 12/30/1968, § 9]
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 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 Income Tax Officer
or any agent designated by him to examine his books, records, and
papers, and any person who knowingly makes any 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 Part shall, upon conviction thereof, 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.
2.
Any person who divulges any information which is confidential under
the provisions of this Part shall, upon conviction thereof, 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.
3.
The penalties imposed under this § 210 shall be in addition
to any other penalty imposed by any other section of this Part.
4.
The failure of any person to receive or procure forms required for
making the declaration or returns required by this Part shall not
excuse him from making such declaration or return.
[Ord. 1203, 12/30/1968, § 11]
All provisions of the Local Tax Enabling Act, Act of December
31, 1965, P.L. 1257, as amended and supplemented, are hereby incorporated
in this Part by reference.
