[Adopted 10-23-1996 by Ord. No. 420Z (Ch.
24, Part 11, of the 1994 Code)]
This article shall be known and may be cited
as the "Hatfield Township Earned Income and Net Profits Tax Ordinance."
The following words and phrases, when used in
this article, shall have the meanings ascribed to them in this section:
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 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 voluntarily fixed place of
habitation of a person, 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 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
hereunder to file a return of earned income or net profits, or to
pay a tax thereon.
[Amended 3-22-2000 by Ord. No. 461; 12-8-2004 by Res. No.
04-43; 12-10-2008 by Ord. No. 581; 12-21-2009 by Ord. No.
594]
A.
A tax of 0.5% will be imposed for general revenue
purposes upon the following:
(1)
Earned
income paid to or received by residents of Hatfield Township.
(2)
Earned
income paid to or received by nonresidents of Hatfield Township for
work done or services performed or rendered in Hatfield Township.
(3)
Net
profits earned from operation of a business, profession or other activity
carried on by residents of Hatfield Township.
(4)
Net
profits earned from operation of a business, profession or other activity
carried on by nonresidents of Hatfield Township in Hatfield Township.
B.
The taxes levied under Subsection A(1) and (2) herein shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by an employer or on his behalf to a person who is employed by him. The taxes levied under Subsection A(3) and (4) herein shall relate to and be imposed upon the net profits of any business, profession or other activity carried on by any person or persons.
C.
The tax levied under this article shall be applicable
to earned income received and to net profits earned in the period
beginning January 1, 1997, and ending December 31, 1997, and the tax
shall continue in force each year thereafter beginning January 1 of
said year and ending December 31 of said year without annual reenactment.
In the case of a taxpayer on a fiscal-year basis, the tax levied under
this article shall be applicable to earned income received and to
net profits earned beginning January 1, 1997, and ending at the end
of the taxpayer's fiscal year, and for each year thereafter beginning
on the first day of the taxpayer's fiscal year and ending on the last
day of the taxpayer's fiscal year, without annual reenactment.
A.
Net profits.
(1)
Every taxpayer making net profits shall, on or before
April 15 of the current year, make and file with the income tax 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 of 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.
(2)
Any taxpayer who first anticipates any net profits
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.
(3)
Every taxpayer shall, on or before April 15 of the
succeeding year, make and 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 paid
thereon. At the time of filing the final return, the taxpayer shall
pay to the officer the balance of the tax due or shall make demand
for refund or credit in the case of overpayment.
(4)
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.
(5)
The income tax officer may provide 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 a declaration hereinabove required anticipates additional net
profits not previously declared, or finds that he has overestimated
his anticipated net profits.
(6)
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.
B.
Earned income.
(1)
Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with the income tax 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, 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 collection at the source and the balance 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.
(2)
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 the source
shall make and file with the income tax officer on a form 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 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, and subject
to the tax, together with such other information as the officer may
require. Every taxpayer making such returns shall, at the time of
filing thereof, pay to the officer the amount of tax shown as due
thereon.
A taxpayer who receives less than $5,000 total
income from all sources during the period beginning January 1 of the
current year, and ending December 31 of the current year, shall, upon
the filing of a final return, be exempted from payment of the tax
imposed herein. No taxpayer shall be relieved from the obligation
to file returns and/or to make quarterly tax payments on the basis
that the taxpayer anticipates being exempted from the tax. Upon the
filing of a final return, a taxpayer who is exempted shall make demand
for refund or credit of any tax payments made prior to filing a final
return.
A.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within Hatfield Township
who, on January 1, 1997, employs one or more persons, other than domestic
servants, for a salary, wage, commission or other compensation shall,
on or before February 1, 1997, register with the income tax officer
his name and address and such other information as the officer may
require. Every employer having an office, factory, workshop, branch,
warehouse or other place of business within Hatfield Township who
after January 1, 1997, employs for the first time after that date
one or more persons, other than domestic servants, for a salary, wage,
commission or other compensation shall within 15 days after becoming
an employer register with the officer his name and address and such
other information as the officer may require.
B.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within Hatfield Township
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 of the current year, July 31 of the succeeding year, file
a return and pay to the income tax officer the amount of tax 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 by the officer and employer shall show the name
and Social Security number of each such employee, the earned income
of such employee during the 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 three-month period, and the total tax deducted therefrom and
paid with the return.
C.
Any employer who for the two 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 income tax
officer, 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.
D.
On or before February 28 of the succeeding year every
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 of the
current year, 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 of the current
year, 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 subdivision imposing the tax upon such
employee, and the amount of tax paid to the income tax officer. Every
employer shall furnish two copies of the individual return to the
employee for whom it is filed.
E.
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 withholdings statements hereinabove
required and pay the tax due.
F.
Except as otherwise provided by § 9 of the
Local Tax Enabling Act, P.L. 1257, No. 511, December 31, 1965, 53
P.S. § 6909, every 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.
G.
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 article relating to the filing of declarations and returns.
A.
It shall be the duty of the income tax 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.
Upon the filing of a final return for any year and
its acceptance as true and correct by the income tax officer, said
officer shall promptly refund any overpayment of the tax demanded
therein to the taxpayer.
C.
The income tax officer shall pay all taxes, fines
and penalties collected by him, less refunds made to taxpayers for
overpayment of tax, and a reasonable reserve for refunds which must
be made therefrom, to the designee of Hatfield Township within one
month after receipt of same.
D.
Bond.
(1)
The income tax officer, before entering upon his official
duties, shall give and acknowledge a bond to Hatfield Township in
such amount as may be fixed from time to time by resolution of the
Hatfield Township Board of Commissioners, which amount shall be equal
to the maximum amount of taxes of which such officer may be in possession
at any given time. If the Board of Commissioners shall by resolution
designate any bond previously given by the officer as adequate, such
bond shall satisfy the requirements of this subsection.
(2)
The bond of the income tax officer shall be joint
and several, with one or more corporate sureties which shall be surety
companies authorized to do business in the Commonwealth of Pennsylvania
and duly licensed by the Insurance Commissioner of said commonwealth.
(3)
Each bond shall be conditioned upon the faithful discharge
by the income tax 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 monies and 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)
Each such bond shall be taken in the name of Hatfield
Township and its Board of Commissioners, and shall be for the use
of Hatfield Township and for the use of such other person or persons
for whom monies shall be collected or received, or as his interest
shall otherwise appear, in case of a breach of any of the conditions
of said bond by the acts or neglect of the principal on the bond.
(5)
Hatfield Township or any person may sue upon said
bond it its or his own name for its or his own use.
(6)
The bond shall contain the name or names of the surety
companies bound thereon.
(7)
Hatfield Township may, at any time, upon cause shown
and due notice to the income tax officer, and his surety or sureties,
require or allow the substitution or addition of a surety company
acceptable to Hatfield Township 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)
Hatfield Township shall designate the custodian of
the bond required to be given by the income tax officer.
E.
The income tax officer 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 of the Board of Commissioners of Hatfield
Township. A copy of all such rules and regulations currently in force
shall be available for public inspection at the Hatfield Township
municipal offices.
F.
The income tax 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.
G.
The income tax officer and 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 examinations and investigations as are hereby
authorized.
H.
Any information gained by the income tax officer,
his agents or by any other official or agent of Hatfield Township,
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 proper judicial order, or as otherwise provided by law.
I.
The income tax officer is hereby authorized to establish
different filing, reporting and payment dates for taxpayers who fiscal
years do not coincide with the calendar year.
J.
Hatfield Township shall, at least annually, reconcile
its receipts with the records of the officer and return to or credit
the officer with any overpayment.
The income tax officer shall receive such compensation
for his services and expenses as determined from time to time by the
Board of Commissioners of Hatfield Township.
A.
Hatfield Township, in accordance with the authority
granted to it by the Local Tax Enabling Act, P.L. 1257, No. 511, December
31, 1965, 53 P.S. § 6901 et seq., shall have the power to
collect taxes due and unpaid under this article from the persons owing
such taxes by suit in assumpsit or other appropriate remedy. The income
tax officer is hereby granted the authority to sue in the name of
Hatfield Township for the recovery of taxes due and unpaid under this
article. Upon each such judgment, execution may be issued without
any stay or benefit of any exemption law.
B.
Any suit brought to recover the tax imposed by this
article shall be commenced 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:
(1)
Where no declaration or return was filed by any person
although a declaration or return was required to be filed by him under
the 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 income tax 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 commenced within six years.
(4)
Where any person has deducted taxes under the provisions
of this article and has failed to pay the amount so deducted to the
income tax officer, or where any person has willfully failed or omitted
to make the deductions required by this article, there shall be no
limitation.
(5)
This section shall not be construed to limit Hatfield
Township from recovering delinquent taxes by any other means provided
by this article, the Local Tax Enabling Act, P.L. 1257, No. 511, December
31, 1965, 53 P.S. § 6901 et seq., or by other appropriate
law.
C.
The income tax officer may sue for recovery of an
erroneous refund provided such suit is commenced two years after making
such refund, except 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.
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, including reasonable attorney's
fees, 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 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 article, shall, upon conviction thereof before any
District Justice or court of competent jurisdiction, 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.
B.
Any person who divulges any information which is confidential
under the provisions of this article shall, upon conviction thereof
before any District Justice or court of competent jurisdiction, 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.
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 return as required by this
article shall not excuse him from making such declaration or return.
[Added 10-23-1997 by Ord. No. 420BB]
The tax imposed on earned income and net profits
by this article is subject to the credit provisions set forth in § 14
of the Local Tax Enabling Act, P.L. 1257, No. 511, December 31, 1965,
53 P.S. § 6914, as hereinafter amended, supplemented, modified
or reenacted.
The income tax officer shall demand, receive
and collect from all corporations, political subdivisions, associations,
companies, firms or individuals employing persons owing delinquent
earned income taxes or whose spouse owes delinquent earned income
taxes, or having in possession unpaid commissions or earnings belonging
to any person or persons owing delinquent earned income taxes, or
whose spouse owes delinquent earned income taxes, upon the presentation
of a written notice and demand certifying that the information contained
therein is true and correct and containing the name of the taxable
or the spouse thereof and the amount of tax due. Upon presentation
of such written notice and demand, it shall be the duty of any such
corporation, political subdivision, association, company, firm or
individual to deduct from the wages, commissions or earnings of such
individual employees then owing, or that shall within 60 days thereafter
come into its or his possession, a sum sufficient to pay the respective
amount of the delinquent earned income taxes and costs, shown upon
the written notice or demand, and to pay the same to the income tax
officer within 60 days after such notice shall have been given. No
more than 10% of the wages, commissions or earnings of the delinquent
taxpayer or spouse thereof may be deducted at any one time for delinquent
earned income taxes and costs. Such corporation, political subdivision,
association, firm or individual shall be entitled to deduct from the
monies collected from each employee the costs incurred from the extra
bookkeeping necessary to record such transactions, not exceeding 2%
of the amount of money so collected and paid over to the income tax
officer. Upon the failure of any such corporation, political subdivision,
association, company, firm or individual to deduct the amount of such
taxes or to pay the same over to the income tax officer, less the
costs of bookkeeping involved in such transaction, as herein provided,
within the time hereby required, such corporation, political subdivision,
association, company, firm or individual shall forfeit and pay the
amount of such tax for each such taxable whose taxes are not withheld
and paid over, or that are withheld and not paid over, together with
a penalty of 10% added thereto, to be recovered by an action of assumpsit
in a suit to be instituted by the income tax officer, or by the proper
authorities of Hatfield Township, as debts of like amount are now
by law recoverable, except that such person shall not have the benefit
of any stay of execution or exemption law. The income tax officer
shall not proceed against a spouse or his employer until he has pursued
the collection remedies against the delinquent taxpayer and his employer
under this article.
Upon presentation of a written notice and demand,
under oath or affirmation, to the State Treasurer or any other fiscal
officer of the Commonwealth of Pennsylvania, or its boards, authorities,
agencies or commissions, it shall be the duty of the Treasurer or
officer to deduct from the wages then owing, or that shall within
60 days thereafter become due to any employee, a sum sufficient to
pay the respective amount of the delinquent earned income taxes and
costs as shown on the written notice. The same shall be paid to the
income tax officer within 60 days after such notice shall have been
given.
