Township of Straban, PA Earned Income Tax

A tax for general revenue purposes, at the rate of 1%, is hereby imposed on net profits and earned income, as defined by the Local Tax Enabling Act[1] (as amended from time to time) earned by residents of Straban Township (with the exception of domestic servants and with the exception of Maryland residents during such time as Maryland and Pennsylvania maintain an agreement exempting Maryland residents) on and after July 1, 1978, and thereafter. A tax for general revenue purposes, at the rate of 1%, is hereby imposed on net profits and earned income, as defined by the Local Tax Enabling Act (as amended from time to time) earned by nonresidents of Straban Township (with the exception of domestic servants and with the exception of Maryland residents during such time as Maryland and Pennsylvania maintain an agreement exempting Maryland residents) on and after January 1, 2012. These levies shall continue in force and effect from year to year without annual reenactment.

[1]

Editor’s Note: See 53 P.S. § 6924.101 et seq.

§ 121-14 Net profits.

Every taxpayer making net profits shall either:

(1)

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.

(2)

Make and file on or before April 15 of the current year, with the 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 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.

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.

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 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.

The officer is hereby 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 overestimated his anticipated net profits.

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.

§ 121-15 Earned income.

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.

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 either:

(1)

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 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.

(2)

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 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.

§ 121-16 Collection at source.

Every employer, having an office, factory, workshop, branch, warehouse or other place of business within Straban 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 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 Straban 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 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 employee 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 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.

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 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, for purposes of this article.

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.

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.

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.

§ 121-17 Powers and duties of officer.

The officer shall:

(1)

Collect and receive the terms, 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.

(2)

Before entering upon his official duties, give and acknowledge a bond to Straban Township in such amount and form as will comply with the provisions of Section 13(V)(b) of Act No. 511 supra.[1]

[1]

Editor's Note: See 53 P.S. § 6913, Subsection 121-V(b).

(3)

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 which is prescribed after the effective date of this article shall be enforceable unless it has been approved by resolution by Straban Township. A copy of such rules and regulations currently in force shall be available for public inspection by the officer.

(4)

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.

(5)

Along with agents designated by him, 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 of 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 examination and investigations as are hereby authorized.

(6)

Establish different filing, reporting and payment dates for taxpayers whose fiscal years do not coincide with the calendar year.

(7)

Distribute, at least quarterly, earned income taxes to Straban Township, which shall not be required to request the officer to distribute the funds collected, but Straban Township 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 shall make payment to the municipality from which the tax was collected.

Any information gained by the officer, his agents or by any other official or agent of Straban 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 a proper judicial order, or as otherwise provided by law.

§ 121-18 Compensation of income tax officer.

The income tax officer shall receive such compensation for his services and expenses as determined by agreement.

§ 121-19 Suit for collection.

The officer may sue in the name of Straban Township for the recovery of taxes due and unpaid under this article.

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 to be filed by him 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, there shall be no limitation.

(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.

This section shall not be construed to limit Straban Township from recovering delinquent taxes by any other means provided by this article.

The officer may sue for recovery of an erroneous refund, provided that 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.

§ 121-20 Interest and penalty

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 one-half of one percent (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.

§ 121-21 Violations and penalties.

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 employee or fails, neglects or refuses to deduct or withhold the tax from his employee, any person who refuses to permit the 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 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 fine and costs, to be imprisoned for a period not exceeding 30 days, or both.

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, or both.

The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this article.

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 from making such declaration or return.

§ 121-22 Deduction.

Taxpayers under this article shall be allowed such credit or deduction from their liability for the tax imposed by this article for taxes paid to other taxing authorities as is provided by § 14 of Act No. 511 supra.[1]

[1]

Editor's Note: See 53 P.S. § 6914.

§ 121-23 Administration; enforcement.

The Board of Supervisors, Straban Township, shall from time to time appoint by resolution an officer to collect and receive all taxes imposed by this article and to do all things needful for the efficient administration and enforcement of all the provisions herein and to set the rate of compensation for such services.

§ 121-23.1 Collection at the source.

[Added 12-5-2005 by Ord. No. 2005-06]

Every employer having an office, factory, workshop, branch, warehouse or other place of business within the taxing jurisdiction imposing a tax on earned income or net profits within the taxing district 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 York Adams Tax Bureau or other designated tax officer his name and address and such other information as the Township may require.

Every employer having an office, factory, workshop, branch, warehouse or other place of business, within the taxing jurisdiction imposing a tax on earned income or net profits within the taxing district 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 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 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 who has failed to pay over the proper amount of tax to the taxing authority may be required by the York Adams Tax Bureau or designated tax officer to file his return and pay the tax monthly. In such cases, payments of tax bill be made to the York Adams Tax Bureau or designated tax officer on or before the last day of the month succeeding the month for which the tax was withheld.

Every employer shall deduct or withhold from employees, exclusive of domestic servants and Maryland residents, at the following rates:

(1)

Resident taxpayers at the applicable rates imposed by the Township and applicable school district on the resident taxpayer's earned income and net profits.

(2)

Nonresident taxpayers at the rate of no less than one 1% of the nonresident taxpayer's earned income and net profits.

On or before February 28 of the succeeding year, every employer shall file with the officer:

(1)

(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 York Adams Tax Bureau or designated tax officer. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.

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 is required to withhold to the extent that such taxes have not been recovered from the employee.

No employer shall be required to register, deduct or withhold taxes, file returns or pay taxes with regard to domestic servants or residents of Maryland.

§ 121-23.2 Costs and fees for collection of delinquent earned income taxes.

[Added 12-5-2005 by Ord. No. 2005-06]

The Township hereby approves and adopts the cost of collection schedule, as provided in a resolution of the Township adopted from time to time, to be imposed by the York Adams Tax Bureau, or such other tax collection entity hereafter designated by the Township for the collection of local taxes, upon any taxpayer whose taxes are or become delinquent and/or remain due and unpaid.

The York Adams Tax Bureau, or such other tax collection entity designated by the Township, is authorized to retain such costs of collection as set forth in the attached schedule in recovering delinquent taxes and as permitted to be assessed to delinquent taxpayers pursuant to law.

§ 121-23.3 Adoption of Adams County Tax Collection Committee provisions.

[Added 11-28-2011 by Ord. No. 2011-05]

From on and after January 1, 2012, the policies, procedures, rules, requirements, and regulations for the administration and collection of the earned income and net profits tax levied by the Township shall be in accord with those policies, procedures, rules, requirements, and regulations adopted by the Adams County Tax Collection Committee. The policies, procedures, rules, requirements, and regulations of the Adams County Tax Collection Committee, as they may be promulgated, adopted, repealed, interpreted by the judicial branch, and/or amended from time to time shall control the administration and collection of the earned income and net profits tax levied by the Township thereafter.

§ 121-23.4 Collectors designated.

[Added 11-28-2011 by Ord. No. 2011-05]

The selection of the York Adams Tax Bureau, as formed by the joint action of the Adams County Tax Collection Committee and the York County Tax Collection Committee, is confirmed as the designated collector of earned income and net profits tax levied on or after January 1, 2011, and on or before December 31, 2011, but uncollected as of January 1, 2012. CENTAX is hereby confirmed as the designated collector of earned income and net profits tax levied by the Township on or after January 1, 2008, and before January 1, 2011, but uncollected as of January 1, 2012.