The following words, when used in this article, shall have the meaning ascribed to them in this section, except where the context clearly indicates or requires a different meaning:
- A partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.
- An enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, copartnership, association, or any other entity.
- A corporation or joint stock association organized under the laws of the United States, the State of Pennsylvania, or any other state, territory, or foreign country or dependency.
- An individual, copartnership, association, corporation, governmental body or unit or agency, or any other entity, who or that employs one or more persons on a salary, wage, commission or other compensation basis.
- NET PROFITS
- The net gain from the operation of a business, profession or enterprise after provision has been made for all costs and expenses incurred in the conduct thereof, either paid or accrued, in accordance with the accounting system used, and without deduction of taxes based on income.
- An individual, copartnership, association, or other entity domiciled outside the Borough of Waterford.
- Every mutual person, copartnership, fiduciary or association. Whenever used in any clause prescribing and imposing a penalty, the term "person," as applied to association, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
- An individual, copartnership, association, or other entity domiciled in the Borough of Waterford.
- A person, whether an individual, copartnership, association, or other entity, required hereunder to file a return of earnings or net profits, or to pay a tax thereon.
The singular includes the plural, and the masculine shall include the feminine and the neuter.
An annual tax for general revenue purposes of 1% is hereby imposed on:
Salaries, wages, commissions and other compensation earned on and after January 1, 1957, by residents of Waterford; and
Salaries, wages, commissions and other compensation earned on and after January 1, 1957, by nonresidents of Waterford for work done or services performed or rendered in Waterford; and
The net profits earned on and after January 1, 1957, of businesses, professions or other activities conducted by such residents; and
The net profits earned on and after January 1, 1957, of businesses, professions or other activities conducted in Waterford by nonresidents.
The taxes levied under Subsection A(1) and (2) of this section shall relate to and be levied, assessed and imposed on salaries, wages, commissions, and other compensation paid by an employer or on his behalf to any person who is employed by or renders services to him. The taxes levied under Subsection A(3) and (4) of this section shall relate to and be levied, assessed and imposed on the net profit of any business, profession or enterprise carried on by any person or owner or proprietor, either individually or in association with some other person or persons.
Said tax shall be levied, collected and paid with respect to the salaries, wages, commissions and other compensation earned on an after January 1, 1957, and with respect to the net profit of businesses, professions, rents or other activities, earned on and after.
Each person whose earnings are subject to tax imposed by this article or any like or similar ordinances imposing the same or similar tax heretofore or hereafter adopted shall, on or before March 25 of each year, make and file with the Receiver of Taxes a return on a form furnished by or obtainable from the Receiver of Taxes, setting forth the aggregate amount of salaries, wages, commissions and other compensation or net profits earned by him during the preceding year and subject to the said tax, together with such other information as the Receiver of Taxes may require; provided, however, that where the return is made for a fiscal year or any other period different from a calendar year, the said return shall be made within 75 days from the end of the said fiscal year or other period.
Such return shall also show the amount of tax levied, assessed and imposed by this article on such earnings and profits. The person making the said return shall, at the time of filing thereof, pay to the said Receiver of Taxes the amount of tax shown as due thereon; provided, however, that the taxpayer shall have the right to make an estimated return for each current year on or before March 15 of said year and to pay the amount of tax shown to be due in four equal installments, the first payment to be made on or before June 15 of the current year, the second on or before September 15 of the current year, the third on or before December 15 of the current year and the final payment on or before March 15 of the succeeding year, at which time he shall make a final return showing the amount of tax due and pay the balance shown thereon to be due after deducting the amount of the installments already paid; provided further that where any portion of the tax so due shall have been deducted at source and shall have been paid to the Receiver of Taxes by the person making the said deduction, credit for the amount paid shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable at the time of filing of said return, or as hereinabove provided; provided further that the Receiver of Taxes is authorized to provide by regulation that the return of an employer or employers, showing the amount of tax deducted by him or them from the salary, wages, or commissions of an employee, and paid by him or them to the Receiver of Taxes, shall be accepted as the return required of any employee whose sole income subject to the tax under this article, is such salary, wages or commissions.
Each employer within the Borough of Waterford who employs one or more persons on a salary or wage, commission or other compensation basis shall deduct, monthly or more often than monthly, at the time of the payment thereof, the tax of 1% of salaries, wages, commissions or other compensation due by the said employer to the said employee for services performed or rendered after February 1, 1954, and shall on or before the 15th day of March, June, September and December of each year, make a return and pay to the Receiver of Taxes the amount of tax so deducted during the proceeding three calendar months. Said return shall be on a form or forms furnished by or obtainable from the Receiver of Taxes and shall set forth the names and residence of each employee of said employer during all or any part of the proceeding three months period, the amounts of salaries, wages, commissions or other compensation earned during such preceding three-month period by each or such employees, together with such other pertinent information as the Receiver of Taxes may require. Upon proof being furnished by any taxpayer that a portion of his wages, salaries, commissions or other compensation has been retained by his employer for the purposes of being applied on tax provided for in this article, said taxpayer shall be given credit on his tax for the amount retained by his employer.
It shall be the duty of the Receiver of Taxes to collect and receive the tax levied, excesses and imposed by this article. It shall also be the duty of the Receiver of Taxes, in addition to keeping the records now required by law or ordinance; to keep a record showing the amount received by him from each taxpayer and the date of such receipt. For the purpose of enforcing the payment of the tax herein levied and the penalties herein imposed in accordance with the provisions of this article, the Receiver of Taxes of the Borough of Waterford shall have all of the authority and power of a duly elected and qualified tax collector and shall have the right to proceed to collect the taxes and penalties by distraint, by attachment of wages as provided for by law for attachment of wages for per capita tax, or by action at law as other debts of like amount are collected, and by any other means provided by law, all suits shall be brought in the name of the Borough of Waterford.
The Receiver of Taxes is hereby charged with the enforcement of the provisions of this article, and is hereby empowered, subject to the approval of the Borough Council of the Borough of Waterford, to adopt, promulgate and enforce rules and regulations relating to said matter or thing pertaining to the administration and enforcement of the provisions of this article, including provisions for the reexamination and correction of returns and payments alleged or found to be incorrect or as to which an overpayment or underpayment is claimed or found to have occurred.
The Receiver of Taxes or any agent or employee authorized in writing by him is hereby authorized to examine the books; papers, and records of said employer, or supposed employer, or of any taxpayer or supposed taxpayer in order to verify the accuracy of any return made, or if no return was made, to ascertain the tax imposed by this article. Every such employer or supposed employer, or of any taxpayer or supposed taxpayer, is hereby directed and required to give to the said Receiver of Taxes or his duly authorized agent or employee, the means, facilities and opportunity for such examinations and investigations as are hereby authorized. The Receiver of Taxes is hereby authorized to examine any person under oath concerning any income which was or should have been returned for taxation, and to this end may compel the production of books, papers and records and the attendance of all persons before him, whether as parties or witnesses, when he believes to have knowledge of such income.
Any information gained by the Receiver of Taxes or any other official or agents of the Borough as a result of any returns, investigations, hearings or verifications required or authorized by this article, shall be confidential, except for official, purposes, and exempt in accordance with proper judicial order, or as otherwise provided by late, and any person or agent divulging such information shall be subject to a fine or penalty of $100 and costs for each offense, or to undergo imprisonment for set more than 30 days for the nonpayment of such fine or penalty and costs within 10 days from the imposition thereof.
It shall be the duty of the Borough Council of the Borough of Waterford to appoint such officers, clerks, collectors or other assistants and employees as it may deem necessary for the assessment and collection of taxes imposed by this article, to fix the rate of compensation for the same, and to secure whatever supplies and equipment are necessary for the assessment and collection of said taxes.
All taxes imposed by this article remaining unpaid after they become due shall bear interest in addition to the amount of the unpaid tax at the rate of 6% per year, and the persons upon whom said taxes are imposed shall be further liable to a penalty of 1/2 of 1% of the amount of the unpaid tax for such month or fraction of a month for the first six months of nonpayment.
All taxes imposed by this article, together with all interest and penalties, shall be recoverable by the Borough of Waterford as other debts of like amount are recoverable, and shall be recoverable by distraint and by attachment of wages as provided by law for attachment of wages for per capita tax, and by any other means provided by law.
Any person who shall fail, neglect or refuse to make any return required by this article, or any taxpayer who shall fail, neglect or refuse to pay the tax, penalties and interest imposed by this article, or any person who shall refuse to permit the Receiver of Taxes or any agent or employee appointed by him in writing to examine his books, records, and papers, or who shall knowingly make any incomplete, false or fraudulent return or who shall attempt to do anything whatever to avoid the full disclosure of the amount of earnings or profits to avoid payment of the whole or any part of the tax, shall be subject to a fine or penalty of not less than $25 nor more than $500, for the use of the Borough of Waterford, and costs for each such offense, or to undergo imprisonment for not more than 60 days for the nonpayment of such fine or penalty and costs within 10 days from the imposition thereof.
Such fine or penalty shall be in addition to any other penalty imposed, levied and assessed by any other section of this article.
The failure of any employer or any taxpayer to receive or procure a return form shall not excuse him from making a return.
This article shall not apply to any persons or property as to whom or which is beyond the legal power of the Borough of Waterford to levy, assess and impose the tax or duties herein provided for.
Persons whose total income from all sources is less than $12,000 per annum are hereby exempted from this tax.
This article shall become effective January 1, 1957.
This article is enacted under the authority of the Act of June 25, 1947, P.L. 1125 and its amendments.
Editor's Note: See now the Local Tax Enabling Act, 53 P.S. § 6901 et seq. and 53 P.S. § 6924.101 et seq.