[Ord. 11-1972, 10/11/1972, § 1]
As used in this Part, the following terms shall have the meanings
indicated:
Borough of Conshohocken
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.
The calendar year for which the tax is levied.
The place where one resides 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 bode 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. 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,
wages, 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 to labor unions for wages 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.
Person, public employee or private agency designated by the
Borough 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 corporation, 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 of the Borough.
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.
[Ord. 11-1972, 10/11/1972, § 2]
1.
A tax for general Borough revenue purposes of 1% is hereby imposed
on the following:
A.
All income earned on and after January 1, 1973, by residents.
B.
All income earned on and after January 1, 1973, by nonresidents employed
within the Borough.
C.
The net profits earned on and after January 1, 1973, of businesses,
professions and other activities conducted by residents.
D.
The net profits earned on and after January 1, 1973, of businesses,
professions and other activities conducted by nonresidents within
the Borough.
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, 1973, and ending December 31, 1973, or for taxpayer fiscal years
beginning in the year 1973, and the tax shall continue in force on
a calendar year or taxpayer fiscal year basis, without annual reenactment,
unless the rate of the tax is subsequently changed. The Borough may
change the rate and such changes in rate shall become effective on
the date specified in the amending ordinance.
[Ord. 11-1972, 10/11/1972, § 3; as amended by Ord.
14-1982, 12/27/1982, §§ 1 and 2]
1.
Net Profits.
A.
Every individual resident 18 years of age or older, or any new resident
over the age of 18 years of age who has not previously registered,
shall within 15 days of obtaining such age or becoming a resident,
register with the Income Tax Officer providing their name, address
and other such information as the Income Tax Officer may require.
Commencing with the calendar year beginning January 1, 1973, every
taxpayer who makes any net profits shall, on or before April 30, 1973,
and said day of each year thereafter, make and file with the Income
Tax Officer a declaration of his estimated net profits during the
period beginning January 1, and ending December 31, of the then current
year. The Income Tax Officer shall supply the required declaration
forms and the taxpayer upon filing the same shall pay to the Income
Tax Officer the total amount of the tax determined to be due under
the estimate as follows:
B.
If the taxpayer anticipates net profits after April 30 of the calendar
year, then he shall make and file a declaration on or before July
31, or October 31, of the then current year, whichever of these dates
next follows the date on which the taxpayer first anticipates such
net profits. The taxpayer shall pay to the Income Tax Officer in equal
installments the amount of tax due thereon on or before the quarterly
payment dates which remain after the filing of his first declaration.
C.
On or before April 15, 1974, and said day of each year thereafter,
every taxpayer shall file with the Income Tax 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 and ending December 31, of the current year, the total amount
of tax due thereon, and the total amount of tax theretofore paid with
the estimated return. At the time of filing a final return, the taxpayer
shall pay to the Income Tax Officer the balance of tax due or shall
make demand for a refund or credit in case of any overpayment.
D.
The Income Tax Officer may be 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
over-estimated his anticipated net profits.
E.
Every taxpayer who discontinues his business before December 31 of
the current year shall, within 30 days after the discontinuance of
the business, file his-final return as hereinabove required and pay
the tax due or make demand for refund or credit in the case of an
overpayment.
2.
Earned Income.
A.
Annual Earned Income Tax Return. Every taxpayer shall, on or before
April 15 of the succeeding year, make and file with the Income Tax
Officer, on a form prescribed, prepared and supplied by the Officer,
a final return showing the total amount of earned income received
during the period beginning January 1, 1973, and ending December 31,
1973, and for the period beginning January first and ending December
31 of each current year thereafter, the total amount of tax due thereon,
the amount of the tax paid thereon, the amount of the tax thereon
that has been withheld in the event the provisions relating to withholding
hereinafter set forth have been invoked by the Borough and the balance
of the 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. In the case where no income
was earned and unless specifically exempted from doing so by the Income
Tax Officer, a return must be filed stating the reason no income was
earned.
B.
Earned Income not Subject to Withholding. Every taxpayer who is employed
for a salary, wage, commission or other compensation and who has received
any earned income not subject to the provisions relating to collection
at the source, shall make and file with the Income Tax Officer on
a form prescribed, prepared and supplied 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, respectively,
and subject to the tax, together with other information as the Income
Tax Officer shall require. Every taxpayer who makes such a return
shall, at the time of filing of the return with the Income Tax Officer,
pay to the Officer the amount of tax shown due thereon.
[Ord. 11-1972, 10/11/1972, § 4]
1.
Every employer, as hereinbefore described and defined, shall be obligated
from January 1, 1973, and thereafter so long as this Part is in effect
to withhold from wages of employees subject to the tax imposed by
this Part, the amount of tax due in accordance with the withholding
procedure set forth hereinafter.
2.
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, who has not previously registered, shall, within
15 days after becoming an employer, register with the Income Tax Officer
his name and address and such other information as the Officer may
require.
3.
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 Part on the earned income due to his employee
or employees, and shall, 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 Income
Tax Officer the amount of taxes deducted during the preceding 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. Such return, unless otherwise agreed upon between
the Income Tax Officer and employer, shall show the name and Social
Security number or identification number supplied by the officer of
each employee, the earned income of such employee during such preceding
three-month period, the tax deducted therefrom, the political subdivisions
imposing the tax, 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.
4.
Monthly Reporting. 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 Income Tax Officer to file his return
and pay the tax monthly in such cases, payment of tax shall be made
to the Income Tax Officer on or before the last day of the month succeeding
the month for which the tax was withheld.
5.
On or before February 28, of the succeeding year, every employer
shall file with the Income Tax 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 Income Tax Officer for the period beginning January 1, of the
current year 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, and ending December 31, of the current year, setting forth the
employee's name, address, Social Security number or identification
number supplied by the Income Tax Officer, 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.
6.
Termination of Business. Every employer who discontinues business
for any reason 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.
7.
Every employer who willfully or negligently falls or omits to make
the deductions required by this Section shall be liable for the payment
of the taxes which he was required to withhold to the extent that
such taxes have not been recovered from the employee.
8.
The failure or omission of any 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 Part relating
to the filing of declarations and returns.
[Ord. 11-1972, 10/11/1972, § 5; as amended by Ord.
9-2008, 12/17/2008]
1.
The office of Income Tax Officer is hereby created by this Part and
the Borough shall from time to time by separate resolution appoint
a person or company to administer the provisions of this Part, who
will be designated as Income Tax Officer.
2.
The Income Tax Officer shall be bonded as the Borough may determine,
said bond to cover all monies coming into his hands on behalf of the
Borough, the cost of the bond to be paid by the Borough. Before entering
upon his official duties, the Income, Tax Officer shall give and acknowledge
the bond to the Borough. Said bond shall be in compliance with the
provisions of the Local Tax Enabling Act, in all respects, and subject
to the approval of the Borough Solicitor.
3.
The Income Tax Officer shall collect and receive all such taxes,
shall furnish a receipt for payment when requested to do so by a taxpayer
and shall keep a record showing the amount received by him for each
taxpayer under this Part together with the date of the receipt of
such payment.
4.
The Income Tax Officer is hereby empowered to prescribe rules and
regulations relating to any matter or thing pertaining to the administration
and enforcement of the provisions of this Part; subject, however,
to the approval of the Council of the Borough. Such rules and regulations
shall be inscribed by the Income Tax Officer into a book kept for
that purpose and opened to the inspection of the public and thereupon
shall have the same force and effect as if it had been incorporated
into this Part.
5.
The Income Tax Officer, or any other person designated by the Borough,
is hereby authorized to examine any of the books, papers and records
of any employer, supposed employer, taxpayer, or supposed taxpayer,
in order to verify the accuracy of any return made, or, if no return
is made, to ascertain the amount of tax due by any person under this
Part. Every such employer supposed employer, taxpayer/or supposed
taxpayer shall give to the Income Tax Officer, or such other authorized
person, the means, facilities and opportunities for such examination
and investigation hereby authorized.
6.
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.
7.
The Income Tax Officer, or any other official or agent so designated
by the Borough, shall have the power to re-examine returns, correct
erroneous returns, consent to make refunds, and authorize the refunding
of taxes erroneously or improperly collected from, or paid by, the
taxpayer, for any period of time not to exceed six years subsequent
to the date of payment of the sum involved.
8.
Any information gained by the Income Tax Officer, or any other official
or agent of the Borough as a result of any return, investigation,
hearing or examination required or authorized by this Part shall become
confidential, except for official purposes, or except in accordance
with proper judicial order or as otherwise provided by law. Any disclosure
of such information contrary to the provisions of this Section shall
constitute a violation of this Part.
9.
Any person who, except as permitted by the provisions of the foregoing subsection (8) of this Section, 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 plus costs and, in default of payment of such fine and costs, to be imprisoned for a period not exceeding 30 days.
[Ord. 11-1972, 10/11/1972 § 6]
The Income Tax Officer shall receive such compensation for his
services and expenses as determined by the Borough from time to time.
In the case of a single tax collector established pursuant to subsection
(b) of § 10 of Act 511, the Borough shall share in the compensation
of the expense of a single officer according to the proportionate
share that the Borough collects from the total annual collections.
[Ord. 11-1972, 10/11/1972, § 7]
1.
The Income Tax Officer may sue in the name of the Borough 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 thereafter 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:
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 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 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 amount as 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 Part shall not be construed to limit the Borough from recovering
the delinquent taxes by any other means provided in the Local Tax
Enabling Act.
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. 11-1972, 10/11/1972, § 8]
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 .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 such tax, the person liable
therefore shall, in addition, be liable for the costs of collection
and the interest and penalties herein provided.
[Ord. 11-1972, 10/11/1972, § 9; as amended by Ord.
9-2008, 12/17/2008]
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 taxes deducted from his employees
or fails, neglects or refuses to deduct withholding taxes 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 plus costs and, in default of payment
of such fine and costs, to be imprisoned for a period not exceeding
30 days.
2.
The penalties imposed under this Section shall be in addition to
any other penalty imposed by any other Section of this Part.
3.
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. 11-1972, 10/11/1972, § 10]
This Part shall not apply to personal property or persons to
whom or which is beyond the legal power of the Borough to impose the
tax herein provided; the net profits of any institution, organization,
trust, association or foundation operated for public, religious, educational
or charitable purposes; provided, that this subsection shall not operate
to relieve or exempt any such entity from collection at source of
earned income of its employees and remittance of such collections
to the Income Tax Officer.
