[Adopted 12-12-2002 by L.L. No. 763]
[1]
Editor's Note: Former Art. VII, Parking Tax,
adopted 5-22-1975 by Ord. No. 295, as amended, was repealed 1-14-1999
by Ord. No. 717.
As used in this article, the following terms
shall have the meanings indicated:
A partnership or 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/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 place in which
a man has voluntarily fixed the habitation of him/herself 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
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.
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his/her
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 worker'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 made 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 retirements.
Person, public employee or private agency designated by the
Board of Supervisors of Whitemarsh Township to collect and administer
the tax on earned income and net profits.
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.
The net income from the operation of the 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, without deduction
of taxes based on income.
A person, partnership, association or other entity domiciled
outside of the Township of Whitemarsh.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Township of Whitemarsh.
The calendar year following the current year.
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.
A.
Tax. A tax for general Township purposes is imposed
on all earned income and net profits, as defined herein, of residents
and nonresidents of the Township of Whitemarsh for income earned,
or net profits retained, on and after February 1, 2003.
B.
Tax rate. The tax rate on all earned income or net
profits earned by residents of Whitemarsh Township shall be 0.75%
of such earned income or net profits retained. The tax rate on all
earned income or net profits earned by nonresidents of Whitemarsh
Township shall be 1.0% of such earned income or net profits retained.
[1]
Editor’s Note: This ordinance also provided that this
amendment is merely clerical in nature, corrects an error in codification,
and in no way alters the application of the earned income tax. A complete
copy of the ordinance is on file in the Township offices.
[2]
Editor’s Note: This ordinance also provided
that the revenue generated by the earned income tax increase shall
be allocated to retiring the indebtedness in purchasing interests
in real property and for making additional acquisitions of real property
for the purpose of securing open space.
C.
Continuing tax. The tax levied under this article
shall be applicable to earned income and net profits received by residents
and nonresidents for the period beginning January 1 of the current
year and ending December 31 of the current year, or for the taxpayer's
fiscal year which extends in the current year, and the tax shall continue
in force on a calendar-year basis without annual reenactment, unless
the rate of the tax is subsequently changed. The Board of Supervisors
of Whitemarsh Township may, by ordinance, change the rate. Such change
shall become effective on the date specified in the ordinance.
The declaration and payment of any tax due shall
be pursuant to the following procedures.
A.
Net profits.
(1)
Every taxpayer making net profits shall on or before
April 15 of each year make and file with the Earned Income Tax Collector
on a form prescribed by the Income Tax Collector 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 Collector
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.
(2)
On or before April 15 of the succeeding year, every
taxpayer shall make and file a final return on a form prescribed by
the Collector, showing the amount of net profits earned, the total
amount of tax due and the total amount of tax paid thereon. At the
time of filing the final return, the taxpayer shall pay to the Earned
Income Tax Collector the balance of the tax due or shall make demand
for refund or credit in the case of overpayment. An incomplete or
improperly completed tax return shall be considered as not having
been filed. Each final return shall be substantiated and supported
by such United States federal income tax return forms as required
by the Collector, which shall at least include a copy of the federal
W-2 Form in the case of an earned income taxable and Schedule C of
the federal return as to net profits taxable.
B.
Earned income. Every taxpayer shall, on or before
April 15 of the succeeding year, make and file with the Collector
a final return showing the amount of earned income received during
the period beginning January 1 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. An incomplete or improperly completed tax return shall
be considered as not having been filed. Each final return shall be
substantiated and supported by such United States federal income tax
return forms as required by the Collector, which shall include a copy
of the federal W-2 Form in the case of an earned income taxable and
Schedule C of the federal return as to net profits taxable.
C.
Quarterly returns. Beginning with the calendar year 2003, every taxpayer who is employed for salary, wage, commission or other compensation, who received any earned income not subject to provisions relating to collection at the source (§ 107-78 hereinafter), 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 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.
D.
Registration with Earned Income Tax Collector. Every
individual resident 18 years of age or over who has not previously
registered shall, within 15 days of attaining such age, register with
the Earned Income Tax Collector his/her name, address and other such
information as the Earned Income Tax Collector may require.
Withholding procedures shall be as follows:
A.
Duty of employer. Every employer, as hereinbefore
described and defined, shall be obligated, from February 1, 2003,
and thereafter so long as this article is in effect, to withhold from
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.
Registration of employer. Every employer having an
office, factory, workshop, branch, warehouse or other place of business
within the Township of Whitemarsh, who employs one or more persons
other than domestic servants for 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 his/her name and address and such other information as the
officer may require.
C.
Withholding procedures. Every employer having an office,
factory, workshop, branch, warehouse or other place of business within
the Township of Whitemarsh, who employs one or more persons other
than domestic servants for 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/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 period
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 an
Earned Income Tax Collector and employer, shall show the name, address,
and social security number or identification number, supplied by the
Tax Collector, of each such employee; the earned income of such employee
during such preceding three-month period; the tax deducted therefrom;
the political subdivision 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.
Monthly reporting.
(1)
Any employer who has withholding of $2,000 or more
per month 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.
(2)
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 Township
of Whitemarsh, 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.
Annual return of employer. 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)
An annual return including 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 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 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.
G.
Liability of employer. Every employer who willfully
or negligently fails or omits to make the deductions required by this
section shall be liable for the payments of the taxes which he was
required to withhold to the extent that such taxes have not been recovered
from the employee.
H.
Employer's nondeduction. 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 to the filing of declarations
and returns.
I.
Landlord/owner's duties to report. The owner of any
rental unit or units, whether residential or nonresidential, situate
within the territorial boundaries of Whitemarsh Township, shall submit
to the Township or Earned Income Tax Collector a list of the occupants,
consisting of the names and designations, of all persons 18 years
of age and older residing in the apartment house or rental unit and
who are not transient occupants. The list shall be submitted within
60 days from December 31, 2002, and shall be updated quarterly thereafter,
every April 1, July 1, October 1 and January 1.
J.
Duty to file return. No taxpayer who is otherwise
obliged to file a tax return pursuant to this article shall be relieved
or excused from the responsibility of filing a tax return where no
earned income or net profits are earned unless specifically exonerated
from so filing by the Supervisors of Whitemarsh Township. In such
event, the taxpayer shall file a return with the Earned Income Tax
Collector stating the reasons why no income was earned or net profits
retained.
The Earned Income Tax Collector for Whitemarsh
Township is created by this article, and the Board of Supervisors
of Whitemarsh Township shall, from time to time, by resolution, appoint
such person, company, agency or institution to administer the provisions
of this article, which entity shall be designated the "Earned Income
Tax Collector of Whitemarsh Township" and who or which shall have
the following powers, duties, obligations and responsibilities:
A.
Bond of Earned Income Tax Collector. The Earned Income
Tax Collector shall post a bond as the Board of Supervisors of Whitemarsh
Township may determine, said bond to cover all moneys coming into
his/her hands on behalf of the Township of Whitemarsh, the costs of
the bond to be paid by the Whitemarsh Township. Before entering upon
his/her official duties, the Earned Income Tax Collector shall give
and acknowledge the bond to the Township appointing him/her. Said
bond shall be in compliances with Act 511 in all respects and subject
to the approval of the Township Solicitor.
B.
Collection of taxes. The Earned Income Tax Collector
shall collect and receive all such taxes, fines and penalties which
may become due hereunder and shall furnish a receipt for payment when
requested to do so by a taxpayer and shall keep a record showing the
amount received by him/her for each taxpayer under this article, together
with the date of the receipt of such payment.
C.
Development of rules and regulations. 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 Board of Supervisors of Whitemarsh Township. Such
rules and regulations shall be inscribed by the Earned Income Tax
Collector into a book kept for that purpose and open to the inspection
of the public and thereupon shall have the same force and effect as
if it had been incorporated into this article.
D.
Right to examine records. The Earned Income Tax Collector
or any other person designated by the Board of Supervisors of Whitemarsh
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 examination and investigations hereby authorized.
E.
Right to commence proceedings. The Earned Income Tax
Collector is authorized to examine any person under oath concerning
any income which has 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 whom he deems necessary to examine
as witnesses and to compel the production of books, records and papers
relating to any account being examined.
F.
Power to make refunds. The Earned income Tax Collector
or agent so designated by the Board of Supervisors of Whitemarsh 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.
G.
Confidentiality of information. Any information gained
by the Earned Income Tax Collector or any other official or agent
of Whitemarsh 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 section,
shall constitute a violation of this article.
H.
Violation of confidentiality of information. Any person who, except as permitted by the provisions of Subsection G of this section, 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 thereof, to be imprisoned for a period not exceeding 30 days.
Suits, if any, necessitated due to violation
of any of the provisions of this article may be commenced by the Earned
income Tax Collector in the name of the Township of Whitemarsh for
the recovery of any taxes due, or due and underpaid, pursuant to this
article.
A.
Time of suit/limitation of actions. Any suit brought
to recover the tax imposed by this article shall have commenced within
three years after such tax is due or within three years after the
declaration or return has been filed, whichever 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 the article, there shall be no limitations.
(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,
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 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.
(5)
This article shall not be construed to limit the Township
of Whitemarsh from recovering the delinquent taxes by any other means
provided in the Local Tax Enabling Act.
B.
Suit to recover erroneous refund. The Earned Income
Tax Collector 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.
If for any reason the tax is not paid when due,
interest at the rate of 6% per annum on the amount of 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
attorneys fees and legal costs of collection and for interest and
penalties herein imposed.
Penalties for violations of this article shall
be as follows:
A.
Fines. Any person who fails, neglects or refuses to
make any declaration or return required by this article; or any employer
who fails, neglects or refuses to register or pay the taxes deducted
from his/her employees, or fails, neglects or refuses to deduct withholding
taxes from his/her employees; or any landlord or owner of rental properties
who fails to provide the names and addresses of all tenants in their
premises; or any person who refuses to permit the Earned Income Tax
Collector or any agent designated by him/her to examine his/her books,
records and papers; or any person who knowingly makes any incomplete,
false or fraudulent return, or does anything whatsoever to avoid the
full disclosure of the amount of his/her 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 such fine and cost, be imprisoned for a period
not exceeding 30 days.
B.
Cumulative penalties. The penalties imposed under
this section shall be in addition to any other penalty imposed by
any other section of this article.
C.
Failure to receive or procure forms/no excuse. The
failure of any person to receive or procure forms required for making
the declaration or returns required by this ordinance shall not excuse
him/her from making such declaration or return.
This article shall not apply to personal property
or person on whom or which it is beyond the legal power of the Township
of Whitemarsh to impose the tax herein provided, provided that this
section shall not operate to relieve or exempt any such entity from
collection at the source of the earned income of its employees and
remittance of such collections to the Earned Income Tax Collector.
In the event that any section, sentence, clause,
phrase or word of this article shall be declared illegal, invalid
or unconstitutional by any court of competent jurisdiction, such declaration
shall not prevent, preclude or otherwise foreclose enforcement of
any of the remaining portions of this article.
