[Adopted 7-28-2003 by Ord. No. 2003-9]
A. 
The following terms shall have the meanings ascribed to them in this section:
ASSOCIATION
A partnership, limited partnership or any other unincorporated group of two or more persons.
BUSINESS
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.
CORPORATION
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.
CURRENT YEAR
The calendar year for which the tax is levied.
DOMICILE
The place where a taxpayer lives and has his/her permanent home and to which the taxpayer has the intention of returning whenever the taxpayer 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 the taxpayer has voluntarily fixed the habitation of the taxpayer and his/her 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 the taxpayer 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.
EARNED INCOME
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," and regulations in 61 Pa. Code, Part I, Subpart 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.
EARNED INCOME TAX COLLECTOR
The person, public employee or private agency designated by the Commissioners of Upper Gwynedd Township to collect and administer the tax on earned income and net profits.
EMPLOYER
A person, partnership, association, corporation, institution, governmental body or unit or agency, or any other entity employing one or more persons for salary, wage, commission or other compensation.
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," and regulations in 61 Pa. Code, Part I, Subpart 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:
(1) 
Any interest earnings generated from any monetary accounts or investment instruments of the farming business;
(2) 
Any gain on the sale of farm machinery;
(3) 
Any gain on the sale of livestock held twelve months or more for draft, breeding or dairy purposes; and
(4) 
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled outside of Upper Gwynedd Township.
PERSON or INDIVIDUAL
A natural person.
PRECEDING YEAR
The calendar year before the current year.
RESIDENT
A person, partnership, association or other entity domiciled in Upper Gwynedd Township.
SUCCEEDING YEAR
The calendar year following the current year.
TAXPAYER
A person, partnership, association or other entity required hereunder to file a return of earned income or net profits or to pay a tax thereon.
B. 
In this article, the singular shall include the plural and the masculine shall include the feminine and the neuter.
A. 
A tax for general purposes is hereby imposed in the amount of:
(1) 
One percent of all earned income earned on and after January 1, 2004, by residents of Upper Gwynedd Township and by nonresidents of Upper Gwynedd Township within the confines of the Township.
(2) 
One percent of the net profits earned on and after January 1, 2004, by businesses, professions and other activities conducted by residents of Upper Gwynedd Township and by nonresidents of Upper Gwynedd Township within the confines of the Township.
B. 
The tax levied under this article shall be applicable to earned income received and to net profits earned by residents and nonresidents in the period beginning January 1 of the current year and ending December 31 of the current year, or for taxpayer's fiscal year beginning in the current year, and the tax shall continue in force on a calendar-year basis or taxpayer-fiscal-year basis without annual reenactment, unless the rate of the tax is subsequently changed. Upper Gwynedd Township may, by resolution, change the rate. Such change shall become effective on the date specified in the resolution.
A. 
Tax on net profits.
(1) 
Beginning with the calendar year 2004, every taxpayer who makes any net profits shall, on or before April 30 of the succeeding year and each year thereafter, make and file with the Earned Income Tax Collector a declaration, on a form prescribed, prepared and supplied by the Earned Income Tax Collector, a declaration of the taxpayer's estimated net profits during the period beginning January 1 and ending December 31 of the then-current year. The taxpayer shall pay to the Earned Income Tax Collector the total amount of tax determined to be due under the estimate, as follows:
(a) 
First payment on or before April 30 with declaration.
(b) 
Second payment on or before July 31.
(c) 
Third payment on or before October 31.
(d) 
Final payment with final return between January 1 and April 15 of the succeeding year.
(2) 
If a taxpayer after the calendar year 2004 anticipates net profits after April 30 of the calendar year, then the taxpayer shall make and file a declaration on or before July 31 or October 31 of the current year or April 15 of the succeeding year, whichever of these dates next follows the date on which the taxpayer first anticipates such net profits. The taxpayer shall pay to the Earned Income Tax Collector in equal installments the amount of tax due thereon on or before the quarterly payment dates which remain after the filing of the taxpayer's first declaration.
(3) 
On April 15 of each calendar year, every taxpayer shall file with the Earned Income Tax Collector a final income tax return showing the amount of the net profits earned during the period beginning January 1 of the preceding year and ending December 31 of the preceding 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 Earned Income Tax Collector the balance of tax due or shall make demand for a refund or credit in the case of any overpayment.
(4) 
Upper Gwynedd Township shall provide, by resolution, regulations 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 the taxpayer has overestimated the taxpayer's anticipated net profits.
(5) 
If a taxpayer discontinues his/her business before September 30 of the current year, the taxpayer shall, within 30 days after the discontinuance of the business, file a final return as hereinabove required and pay the tax due or make demand for a refund or credit in the case of an overpayment.
B. 
Tax on earned income.
(1) 
Beginning with calendar year 2004, every taxpayer who has any earned income shall, on or before April 15 of the succeeding year, make and file with the Earned Income Tax Collector, on a form prescribed, prepared and supplied by the Earned Income Tax Collector, a final return showing the total amount of earned income received during the current year; the total amount of tax due 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 Upper Gwynedd Township; and the balance of the tax due. At the time of the filing of the final return, the taxpayer shall pay the balance of the tax due or may make a demand for refund or credit in the case of an overpayment.
(2) 
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 Earned Income Tax Collector, on a form prepared, supplied and prescribed by the Earned Income Tax Collector, 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 earned by him/her 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 Earned Income Tax Collector shall require. Every taxpayer who makes such a return shall, at the time of the filing of the return with the Earned Income Tax Collector, pay to the Collector the amount of the tax shown as due thereon.
A. 
Every employer, as hereinbefore described and defined, shall be obligated from January 1, 2004, and thereafter, so long as this article is in effect, to withhold from the wages of employees subject to the tax imposed by this article the amount of tax due, in accordance with the withholding procedure set forth hereinafter.
B. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within Upper Gwynedd Township 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 Earned Income Tax Collector the employer's name and address and such other information as the said Tax Collector may require.
C. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within Upper Gwynedd 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 from his/her 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 Earned Income Tax Collector 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 Earned Income Tax Collector and the employer, shall show the name and social security number or identification number supplied by the Earned Income Tax Collector 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, 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.
D. 
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 Upper Gwynedd Township may be required by the Earned Income Tax Collector to file his/her return and pay the tax monthly. In such cases, payments of tax shall be made to the Earned Income Tax Collector on or before the last day of the month succeeding the month for which the tax was withheld.
E. 
On or before February 28 of the succeeding year, every employer shall file with the Earned Income Tax Collector:
(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 Earned Income Tax Collector 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, social security number or identification number supplied by the Earned Income Tax Collector, 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 Earned Income Tax Collector. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.
F. 
Termination of business. Every employer who discontinues business for any reason prior to December 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.
G. 
Every employer who willfully or negligently fails to or omits to make the deductions required by this section shall be liable for the payment of the taxes which the employer was required to withhold, to the extent that such taxes have not been recovered from the employee.
H. 
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 in regard to the filing of declarations and returns.
A. 
The office of Earned Income Tax Collector is hereby created by this article, and Upper Gwynedd Township shall from time to time by separate resolution appoint a person or company to administer the provisions of this tax article, who or which will be designated the "Earned Income Tax Collector."
B. 
The Earned Income Tax Collector shall be bonded as the Commissioners of Upper Gwynedd Township may determine, said bond to cover all moneys coming into the hands of said Earned Income Tax Collector, the costs of the bond to be paid by Upper Gwynedd Township. Before entering upon his/her official duties, the Earned Income Tax Collector shall give and acknowledge the bond to the Township. Said bond shall be in compliance with Act 511 in all respects and subject to the approval of the Township Solicitor.
C. 
The Earned Income Tax Collector 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 said Tax Collector for each taxpayer under this article, together with the date of the receipt of such payment.
D. 
The Earned Income Tax Collector 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 article; subject, however, to the approval of the Commissioners of Upper Gwynedd Township. Such rules and regulations shall be inscribed by the Earned Income Tax Collector into a book kept for that purpose and open to inspection by the public and thereupon shall have the same force and effect as if they had been incorporated into this article.
E. 
The Earned Income Tax Collector or any other person designated by Upper Gwynedd Township 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 article. Every such employer, supposed employer, taxpayer or supposed taxpayer shall give to the Earned Income Tax Collector or such other authorized person the means, facilities and opportunities for such examinations and investigations hereby authorized.
F. 
The Earned Income Tax Collector 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 said Tax Collector deems necessary to examine as witnesses and to compel the production of books, records and papers relating to any account being examined.
G. 
The Earned Income Tax Collector or any other official or agent so designated by Upper Gwynedd Township 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.
H. 
Any information gained by the Earned Income Tax Collector or any other official or agent of Upper Gwynedd Township as a result of any return, investigation, hearing or examination required or authorized by this article shall become confidential, except for official purposes or except in accordance with proper judicial order or as otherwise provided by law. Any disclosure of any such information contrary to the provisions of this subsection shall constitute a violation of this article.
I. 
Any person who, except as permitted by the provisions of the foregoing Subsection H of this section, divulges any information which is confidential under the provisions of this article shall, upon conviction thereof before any Magisterial District Judge 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 such fine and costs, be imprisoned for a period not exceeding 30 days.
A. 
The Earned Income Tax Collector may sue in the name of Upper Gwynedd Township 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 by him/her 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 Earned Income Tax Collector 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 there is 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 amount so deducted to the Earned Income Tax Collector, or where any person has willfully failed or omitted to make the deductions required by this article, there shall be no limitation.
C. 
This article shall not be construed to limit Upper Gwynedd Township from recovering delinquent taxes by any other means provided in the Local Tax Enabling Act.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
D. 
The Earned Income Tax Collector may sue for the recovery of an erroneous refund, provided such suit is begun within 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.
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 legal costs of collection and for 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 taxes deducted from said employer's employees, or fails, neglects or refuses to deduct withholding taxes from said employer's employees; any person who refuses to permit the Earned Income Tax Collector or any agent designated by him/her to examine said person's books, records and papers; any person who knowingly makes any incomplete, false or fraudulent return or does anything whatsoever to avoid the full disclosure of the amount of said person's 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 Magisterial District Judge 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 such fine and costs, be imprisoned for a period not exceeding 30 days.
B. 
The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this article.
C. 
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/her from making such declaration or return.
This article shall not apply to personal property or persons on whom or which it is beyond the legal power of Upper Gwynedd Township 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 section shall not operate to relieve or exempt any such entity from collection of the tax imposed by this article on the earned income of said entity's employees and remittance of such collections to the Earned Income Tax Collector.
This article shall become effective on the first day of January 2004, and for all calendar years thereafter.