[Adopted 11-28-1961 by Ord. No. 648; amended in its entirety 4-14-2003 by Ord. No. 1865]
The definitions contained in this section shall
be exclusive for any tax upon earned income and net profits levied
and assessed by the City of Greensburg pursuant to Act 511, the Local
Tax Enabling Act, as set forth at 53 P.S. § 6913, as amended:
The determination by a local taxing authority of the amount
of underpayment by a taxpayer.
[Added 2-9-2004 by Ord. No. 1884]
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.
See "earned income."
[Added 2-9-2004 by Ord. No. 1884]
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.
An agreement whereby one party promises to compensate another
to refrain from working in a certain profession or business, within
a limited geographical region, for a certain period of time. It is
a positive absence of activity in the form of an affirmative restraint
and is therefore taxable. It is not comparable to income from the
sale of good will, nor can the compensation received be considered
investment income, for the payment is directly dependent upon the
conduct of the person receiving the compensation.
[Added 2-9-2004 by Ord. No. 1884]
The calendar year for which the tax is levied.
The place where one lives and has his/her permanent home
and to which he/she has the intention of returning whenever he/she
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/her 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.
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 contained in 61 Pa. Code Pt. I Subpt. 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/compensation.
[Amended 2-9-2004 by Ord. No. 1884]
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(s), public employee(s) and/or a private agency designated
by City Council to collect and administer the tax on earned income
and net profits.
A person who, while performing services for another person,
is not subject to the direction and control of the other as to the
details, methods and means by which a result directed by the other
is accomplished. Where the independent contractor is in the permanent
or part-time employment of an employer, however, that contractor will
be considered an employee of said employer for the purpose of the
tax due under the ordinances and resolutions.
[Added 2-9-2004 by Ord. No. 1884]
A political subdivision levying an eligible tax. The term
shall include any officer, agent, agency, clerk, income tax officer,
collector, employee or other person to whom the governing body has
assigned responsibility for the audit, assessment, determination or
administration of an eligible tax. The term shall not include a tax
collector or collection agency who has no authority to audit a taxpayer
or determine the amount of eligible tax or whose only responsibility
is to collect all eligible tax on behalf of the governing body.
[Added 2-9-2004 by Ord. No. 1884]
When the costs and expenses incurred in the operation of
a business, profession or other activity (except corporations) are
greater than its income or profits, as hereinafter defined.
[Added 2-9-2004 by Ord. No. 1884]
The net income from the operation of a business, profession, or other activity, except corporations, as determined under Section 303 of the Act of March 4, 1971 (P.L. No. 2), known as the "Tax Reform Code or 1971” and regulations contained in 61 Pa. Code Pt. I Subpt. B Art. V (relating to personal income tax).
[Amended 2-9-2004 by Ord. No. 1884]
A person, partnership, association or other entity domiciled
outside the City of Greensburg.
Person(s), public employee(s) and/or a private agency designated
by City Council to collect and administer the tax on earned income
and net profits.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the City of Greensburg.
Legislation adopted by the taxing district levying and/or
assessing an earned income/compensation and net profits tax.
[Added 2-9-2004 by Ord. No. 1884]
The calendar year following the current year.
The earned income/compensation tax and/or net profits tax
enacted under Act 511, P.L. 1257 known as "The Local Tax Enabling
Act," as amended by Act 166 of 2002 and Act 222 of 2004. Tax shall
include interest, penalties and additions to tax and shall further
include the tax required to be withheld by an employer on earned income/compensation
paid, unless a more limited meaning is disclosed by the context.
[Added 2-9-2004 by Ord. No. 1884; amended 12-30-2004 by Ord. No.
1903]
The political subdivisions, including school districts, levying
and assessing an earned income/compensation and net profits tax, which
have appointed or commissioned the Officer to collect and administer
the tax on earned income/compensation and not profits.
[Added 2-9-2004 by Ord. No. 1884]
A person, partnership, association, or any other entity,
required hereunder to file a return of earned income/compensation
or net profits, or to pay a tax hereon.
[Amended 2-9-2004 by Ord. No. 1884]
The amount or portion of any tax determined to be legally
due in the manner provided by law for which payment or remittance
has not been made.
[Added 2-9-2004 by Ord. No. 1884]
A payment of an eligible tax made pursuant to the free will
of the taxpayer. The term does not include a payment made as a result
of distraint or levy or pursuant to a legal proceeding in which the
local taxing authority is seeking to collect its delinquent taxes
or file a claim therefor.
[Added 2-9-2004 by Ord. No. 1884]
A.
An annual tax for general revenue purposes of 1 3/20%
imposed by the Council of the City of Greensburg and a tax of 1/2
of 1% collected by the City of Greensburg is imposed on:
[Amended 12-30-2004 by Ord. No. 1903[1]]
(1)
Salaries, wages, commissions and other compensation
earned by residents of the City of Greensburg during the taxable period.
(2)
The net profits of businesses, professions or other
activities conducted by residents of the City of Greensburg during
the taxable period.
[1]
Editor's Note: Former Subsection A(2) and
(4) were deleted by this ordinance and remaining section renumbered
appropriately.
B.
The tax 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 any person who is employed by or renders services to him. The tax levied under Subsection A(3) and (4) herein shall relate to and be imposed upon the net profits of any business, profession or enterprise carried on by any person, as owner or proprietor, either individually or in association with some other person or persons.
C.
The tax levied under this section 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, and the tax shall continue in force on a calendar
year, without annual reenactment, unless the rate of the tax is subsequently
changed.
A.
Net profits.
(1)
Every taxpayer making net profits shall pay to the
officer an annual payment of tax due on or before April 15, of the
succeeding year for the period beginning January 1, and ending December
31, of the current year, or, 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/her 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.
(2)
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.
(3)
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, 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. Any taxpayer may, in lieu of paying the fourth
quarterly installment of his/her 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.
(4)
Every taxpayer who discontinues business prior to
December 31, of the current year, shall, within 30 days after the
discontinuance of business, file his/her final return as hereinabove
required and pay the tax due.
B.
Earned income.
(1)
Annual earned income tax return. 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, 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 the collection at 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)
Earned income not subject to withholding. 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:
(a)
Make and file with the officer on a form prescribed
or approved by the officer, an annual return setting forth the aggregate
amount of earned income not subject to withholding from him/her during
the period beginning January 1, and ending December 31, of the current
year, and such other information as the officer may require, and pay
to the officer the amount of tax shown as due thereon on or before
April 15, of the succeeding year, or
(b)
Make and file with the 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/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 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.
A.
Every employer having an office, factory, workshop,
branch, warehouse, or other place of business within the City of Greensburg
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 officer his/her 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 the City of Greensburg 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 in § 240-2A on the earned income due to 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 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 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 subdivisions 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. 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 City of Greensburg, may be required by the officer to file his/her return and pay the tax monthly. In such eases, 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.
C.
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 beginning
and separation dates of anyone whose employment commenced or terminated
during said period, the amount of tax deducted, the political subdivisions
imposing the tax upon such employee, the amount of tax paid to the
officer, and the name and address of the employer. Every employer
shall furnish two copies of the individual return to the employee
for whom it is filed.
D.
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.
E.
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 the employer was required to
withhold to the extent that such taxes have not been recovered from
the employee.
F.
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.
A.
It shall be the duty of the officer(s) to collect
and receive the taxes, fines and penalties imposed by this article.
It shall also be the officer(s) duty to keep a record showing the
amount received by him/her from each person or business paying the
tax and the date of such receipt.
B.
Bond.
(1)
Each officer, before entering upon his/her official
duties, shall give and acknowledge a bond to the City of Greensburg.
(2)
Each such bond shall be joint and several, with one
or more corporate sureties which shall be surety companies authorized
to do business in this commonwealth and duly licensed by the Insurance
Commissioner of this commonwealth.
(3)
Each bond shall be conditioned upon the faithful discharge
by the officer, his/her clerks, assistants and appointees of all trusts
confided in him/her by virtue of his/her office, upon the faithful
execution of all duties required of him/her by virtue of his/her office,
upon the just and faithful accounting or payment over, according to
law, of all moneys and all balances thereof paid to, received or held
by him/her by virtue of his/her 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/her office.
(4)
Each such bond shall be taken in the name of the City
of Greensburg, and shall be for the use of the Council of the City
of Greensburg appointing the officer(s) and for the use of such other
person or persons for whom money shall be collected or received, or
as his or her interest shall otherwise appear, in case of a breach
of any of the conditions thereof by the acts or neglect of the principal
on the bond.
(5)
The Council of the City of Greensburg appointing the
officer(s) or any person may sue upon said bond in its or his/her
own name for its or his/her own use.
(6)
Each such bond shall contain the name or names of
the surety company or companies bound thereon. The Council of the
City of Greensburg appointing the officer(s) shall fix the amount
of the bond at an amount equal to the maximum amount of taxes which
may be in the possession of the officer at any given time.
(7)
The Council of the City of Greensburg appointing the
officer may, at any time, upon cause shown and due notice to the officer,
and his/her surety or sureties, require or allow the substitution
or the addition of a surety company acceptable to such political subdivision
or political subdivisions 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)
The Council of the City of Greensburg appointing the
officer shall designate the custodian of the bond required to be given
by the officer.
C.
The officer(s) charged with the administration and
enforcement of the provisions of this article is hereby empowered
to prescribe, adopt, promulgate and enforce rules and regulations
relating to any matter pertaining to the administration and enforcement
of the provision 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 the provisions of this article.
D.
The 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.
E.
The officer and agents designated by him/her 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/her, the means, facilities and opportunity
for such examination and investigations as are hereby authorized.
F.
Any information gained by the officer, his/her agents,
or by any other official or agent of the City of Greensburg, 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 a proper judicial
order, or as otherwise provided by law.
G.
The officer is authorized to establish different filing,
reporting and payment dates for taxpayers whose fiscal years do not
coincide with the calendar year.
H.
The officer shall, at least quarterly, distribute
earned income taxes to the appropriate political subdivisions. The
political subdivisions shall not be required to request the officer
to distribute the funds collected but shall at least annually reconcile
their receipts with the records of the officer and return to or credit
the officer with any overpayment. If the officer, within one year
after receiving a tax payment, cannot identify the taxing jurisdiction
entitled to a tax payment, he/she shall make payment to the municipality
in which the tax was collected. Within 120 days of the passage of
this act, any present accumulated funds that are unclaimed shall be
distributed on the same basis.
The income tax officer(s) shall receive such
compensation for services and expenses as determined by the Council
of the City of Greensburg.
A.
The officer may sue in the name of the City of Greensburg
for the recovery of taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by the
provisions of 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 to be filed 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 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 begun within six years.
(4)
Where any person has deducted taxes under the provisions
of this article, and has failed to pay the amounts so deducted to
the officer, or where any person has willfully failed or omitted to
make the deductions required by this section, there shall be no limitation.
(5)
This section shall not be construed to limit the governing
body from recovering delinquent taxes by any other means provided
by this act.
C.
The 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.
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 and the interest and penalties
herein imposed.
A.
Any person who fails, neglects, or refuses to make
any declaration or return required by the provisions of 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 officer or any agent designated by him to examine his/her
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 the provisions of this article, shall,
upon conviction thereof before any justice of the peace, alderman
or magistrate, or court of competent jurisdiction in Westmoreland
County, 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 justice of the peace, alderman or magistrate, 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 returns required by the provisions
of this article shall not excuse him/her from making such declaration
or return.
A.
The following paragraphs of 53 P.S. § 6913,
the Local Tax Enabling Act, Act No. 511 of 1965, as amended through
February 2003, are incorporated hereinabove by reference thereto,
as set forth at length therein:
|
Section
|
Title
| |
|---|---|---|
|
I
|
Definitions
| |
|
II
|
Imposition of Tax
| |
|
III
|
Declaration and Payment of Tax
| |
|
IV
|
Collection at Source
| |
|
V
|
Powers and Duties of Officer
| |
|
VI
|
Compensation of Income Tax Officer
| |
|
VII
|
Suit for Collection of Tax
| |
|
VIII
|
Interest and Penalties
| |
|
IX
|
Fines and Penalties for Violations of Ordinances
or Resolutions
|
B.
All mandates, revisions and amendments state taxation
law dictates shall supersede this article or parts of this article
conflicting with any provisions of the state law.
