[Adopted 5-7-1968 by Ord.
No. 629, approved 5-7-1968]
The following words and phrases when used in this article shall have
the meanings ascribed to them in this section, except where the context clearly
indicates or requires a different meaning:
A partnership, limited partnership or any other unincorporated group
of two or more persons.
An enterprise, activity, profession or any other undertaking of an
unincorporated nature conducted for profit or ordinarily conducted for profit,
whether by a person, partnership, association or any other entity.
A corporation or joint stock association organized under the laws
of the United States, the Commonwealth of Pennsylvania or any other state,
territory, foreign country or dependency.
The calendar year for which the tax is levied; provided, however,
that as used herein, "current year" shall during 1968 refer only to the period
beginning July 1, 1968, and ending December 31, 1968.
The place where one lives and has his permanent home and to which
he has the intention of returning whenever he is absent. Actual residence
is not necessarily "domicile," for "domicile" is the fixed place of abode
which, in the intention of the taxpayer, is permanent rather than transitory.
"Domicile" is the place in which a man has voluntarily fixed the habitation
of himself and his 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 to adopt some other permanent home. In the case of businesses
or associations, the "domicile" is that place considered as the center of
business affairs and the place where its functions are discharged.
Salaries, wages, commissions, bonuses, incentive payments, fees,
tips and other compensation received by a person or his personal representative
for services rendered, whether directly or through an agent, and whether in
cash or in property; not including, however, wages or compensation paid to
persons on active military service, periodic payments for sickness and disability
other than regular wages received during a period of sickness, disability
or retirement or payments arising under workmen's compensation acts, occupational
disease acts and similar legislation or payments commonly recognized as old
age benefits, retirement pay or pensions paid to persons retired from service
after reaching a specific age or after a stated period of employment or payments
commonly known as "public assistance," or unemployment compensation payments
by any governmental agency or payments to reimburse expenses or payments made
by employers or labor unions for wage and salary supplemental programs, including
but not limited to programs covering hospitalization, sickness, disability
or death; supplemental unemployment benefits; strike benefits; social security;
and retirement.
A person, partnership, association, corporation, institution, governmental
body or unit or agency or any other entity employing one or more persons for
a salary, wage, commission or other compensation.
The Borough Council of the Borough of East Stroudsburg, Monroe County,
Pennsylvania.
Person, public employee or private agency designated by the governing
body to collect and administer the tax on earned income and net profits.
The net income from the operation of a business, profession or other
activity, except corporations, after provision for all costs and expenses
incurred in the conduct thereof, determined either on a cash or accrual basis
in accordance with the accounting system used in such business, profession
or other activity but without deduction of taxes based on income.
A person, partnership, association or other entity domiciled outside
the taxing district.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled in the
taxing district.
The calendar year following the current year.
The Borough of East Stroudsburg, Monroe County, Pennsylvania.
A person, partnership, association or any other entity required hereunder
to file a return of earned income or net profits or to pay a tax thereon.
A.
A tax for general revenue purposes is hereby imposed
at the rate of 1% on the following:
(1)
Earned income received in the current year by residents
of the taxing district.
(2)
Earned income received in the current year within the
taxing district by nonresidents thereof.
(3)
Net profits earned during the current year by residents
of the taxing district.
(4)
Net profits earned during the current year within the
taxing district by nonresidents thereof.
B.
The tax levied under this article 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 or
for taxpayer fiscal years beginning in the current year, and the tax shall
continue in force on a calendar-year or taxpayer-fiscal-year basis, without
annual reenactment, unless the rate of the tax is subsequently changed.
[Amended 1-19-1988 by Ord.
No. 878, approved 1-19-1988]
[Amended 1-19-1988 by Ord.
No. 878, approved 1-19-1988]
A.
Net profits.
(1)
Every taxpayer making net profits shall, 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 estimated net profits during
the period beginning January 1 and ending December 31 of the current year
and shall 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 shall
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.
(4)
Any taxpayer may, in lieu of paying the fourth quarterly
installment of his estimated tax, elect to make and file with the officer,
on or before January 31 of the succeeding year, the final return as hereinabove
required.
(5)
The 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.
(6)
Every taxpayer who discontinues business prior to December
31 of the current year, shall, within 30 days after the discontinuance of
business, file his final return as hereinabove required and shall pay the
tax due.
B.
Earned income.
(1)
Every taxpayer shall, on or before April 15 of the succeeding
year, make and file with the 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)
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 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.
A.
Every employer having an office, factory, workshop, branch,
warehouse or other place of business within the taxing jurisdiction 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, or within 15 days after the effective date of
this article, whichever shall first occur, register with the officer his name
and address and such other information as the officer may require.
B.
Every employer having an office, factory, workshop, branch,
warehouse or other place of business within the taxing jurisdiction 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.
[Amended 1-19-1988 by Ord.
No. 878, approved 1-19-1988]
C.
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 taxing authority, may be
required by the officer to file his return and pay the tax monthly. In such
cases, payments of tax shall be made to the officer on or before the last
day of the month succeeding the month for which the tax was withheld.
D.
On or before February 28 of the succeeding year, every
employer shall file with the officer:
[Amended 1-19-1988 by Ord.
No. 878, approved 1-19-1988]
(1)
An annual return showing the total amount of earned income
paid, the total amount of tax deducted and the total amount of the 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 statements 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.
E.
Every employer who discontinues business prior to December
31 of the current year, shall, within 30 days after the discontinuance of
business, file the returns and withholding statements hereinabove required
and shall pay the tax due.
F.
Except as otherwise provided in Section 9 of the Act,[1] 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 has required to withhold to the extent that such taxes
have not been recovered from the employee.
[1]
Editor's Note: See 53 P.S. § 6909.
G.
The failure or omission of any employer to make the deductions
required by this section shall not relieve any employee from the payment of
the tax or from complying with the requirements of this article relating to
the filing of declarations and returns.
H.
If an employer makes a deduction of tax as required by
this article, the amount deducted shall constitute, in the hands of such employer,
a trust fund held for the account of the governing body as beneficial owner,
and the employee from whose earned income such tax was deducted shall be deemed
to have paid such tax.
I.
Other reporting provisions.
[Added 3-19-1991 by Ord.
No. 951, approved 3-19-1991; amended 7-2-1996
by Ord. No. 1047, approved 7-2-1996]
(1)
Annual registration of residential tenants required.
Commencing on or before October 1, 1996, and annually thereafter, any person,
firm or corporation owning or managing property located in the Borough of
East Stroudsburg, which property at the present time is rented, leased, subleased
or otherwise occupied for a period of greater than 14 days a year, shall furnish
to the Borough the name, address, occupation, social security number and place
of employment of the tenant or tenants 18 years or older residing there. Such
report shall be on a form(s) as prescribed by the Borough of East Stroudsburg.
(2)
Registration of residential tenants required upon occupancy.
Any person, firm or corporation owning or managing property located in the
Borough of East Stroudsburg, upon leasing or renting such property, shall
furnish to the Borough Code Enforcement Officer the name and address of the
tenant or 10 days from the date of execution of the lease or, in the event
no written lease is executed, then within 10 days from the date of occupancy
of said property by the tenant or tenants.
(3)
Enforcement. The Code Enforcement officer or his authorized
assistant shall be the enforcement agent for this section.
(4)
Penalties. Any person, the principal of any firm or the
Chief Executive Officer of any corporation violating the provisions of this
section shall, upon conviction thereof before any District Magistrate or Justice
of the Peace, be fined in the amount of not more than $600 for any one offense,
recoverable with the costs of prosecution. Upon default of payment of said
fine and/or costs, such person shall be committed to the Monroe County jail
for a period not to exceed 30 days.
[Amended 2-4-1997 by Ord.
No. 1055, approved 2-4-1997]
A.
It shall be the duty of the officer to collect and receive
the taxes, fines and penalties imposed by this article. It shall also be his
duty to keep a record showing the amount received by him from each person
or business paying the tax, and if paid by such taxpayer or employer in respect
of another taxpayer, the name of such other taxpayer and the date of such
receipt.
B.
The officer is hereby charged with the administration
and enforcement of the provisions of this article and is hereby empowered
to prescribe, adopt, promulgate and enforce rules and regulations relating
to any matter pertaining to the administration and enforcement of this article,
including provisions for the reexamination and correction of declarations
and returns and of payments alleged or found to be incorrect, or as to which
an overpayment is claimed or found to be incorrect, or as to which an overpayment
is claimed or found to have occurred, and to make refunds in cases of overpayment
for any period of time not to exceed six years subsequent to the date of payment
of the sum involved, and to prescribe forms necessary for the administration
of this article. No rule or regulation of any kind shall be enforceable unless
it has been approved by resolution by the governing body. A copy of such rules
and regulations currently in force shall be available for public inspection.
C.
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.
D.
The officer and the agents designated by him are hereby
authorized to examine the books, papers and records of any employer or of
any taxpayer or of any person whom the officer reasonably believes to be an
employer or taxpayer, in order to verify the accuracy of any declaration or
return or, if no declaration or return was filed, to ascertain the tax due.
Every employer and every taxpayer and every person whom the officer reasonably
believes to be an employer, or taxpayer, is hereby directed and required to
give to the officer, or to any agent designated by him, the means, facilities
and opportunity for such examination and investigations as are hereby authorized.
E.
Any information gained by the officer, his agents or
by any other official or agent of the taxing district 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.
F.
The officer is authorized to establish different filing,
reporting and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
A.
The officer may sue in the name of the taxing district
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 to be filed by him under the
provisions of this article, there shall be no limitation.
(2)
Where an examination of the declaration or return filed
by any person, or of other evidence relating to such declaration or return
in the possession of the 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
article.
C.
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.
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 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 books, records and papers and any person who knowingly makes any
incomplete, false or fraudulent return, or attempts to do anything whatsoever
to avoid the full disclosure of the amount of his net profits or earned income
in order to avoid the payment of the whole or any part of the tax imposed
by this article, shall, upon conviction thereof before any District Justice
or court of competent jurisdiction in the 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 District Justice or court of competent jurisdiction, be sentenced to pay
a fine of not more than $500 for each offense and costs and, in default of
payment of said fines and costs, to be imprisoned for a period not exceeding
30 days.
C.
The penalties imposed under this section shall be in
addition to any other penalty imposed by any other section of this article.
D.
The failure of any person to receive or procure forms
required for making the declaration or returns required by this article shall
not excuse him from making such declaration or return.
The officer shall have power, in case of the neglect or refusal of any
person, copartnership or association, to make payment of the amount of any
tax due by him, after two months from the date of the tax notice, to levy
the amount of such tax, any penalty due thereon and costs, not exceeding costs
and charges allowed constables for similar services, by distress and sale
of the goods and chattels of such delinquent, wherever situate or found, upon
giving at least 10 days' public notice of such sale by posting 10 written
or printed notices and by one advertisement in a newspaper of general circulation
published in the county. No failure to demand or collect any taxes by distress
and sale of goods and chattels shall invalidate any return made, or lien filed,
for nonpayment of taxes or any tax sale for the collection of taxes.
The officer shall demand, receive and collect from all corporations,
political subdivisions, associations, companies, firms or individuals employing
persons owing delinquent earned income taxes, or whose spouse owes delinquent
earned income taxes, or having in possession unpaid commissions or earnings
belonging to any person or persons owing delinquent earned income taxes, or
whose spouse owes delinquent earned income taxes, upon the presentation of
a written notice and demand certifying that the information contained therein
is true and correct and containing the name of the taxpayer or the spouse
thereof and the amount of tax due. Upon the presentation of such written notice
and demand, it shall be the duty of any such corporation, political subdivision,
association, company, firm or individual to deduct from the wages, commissions
or earnings of such individual employees then owing or that shall within 60
days thereafter become due, or from any unpaid commissions or earnings of
any such taxpayer in its or his possession, or that shall within 60 days thereafter
come into its or his possession, a sum sufficient to pay the amount of the
delinquent earned income taxes and costs shown upon the written notice or
demand and to pay the same to the officer within 60 days after such notice
shall have been given. Such corporation, political subdivision, association,
firm or individual shall be entitled to deduct from the moneys collected from
each employee the costs incurred from the extra bookkeeping necessary to record
such transactions, not exceeding 2% of the amount of money so collected and
paid over to the officer. Upon the failure of any such corporation, political
subdivision, association, company, firm or individual to deduct the amount
of such taxes or to pay the same over to the officer, less the cost of bookkeeping
involved in such transaction, as herein provided, within the time required,
such corporation, political subdivision, association, company, firm or individual
shall forfeit and pay the amount of such tax for each such taxpayer whose
taxes are not withheld and paid over or that are withheld and not paid over,
together with a penalty of 10% added thereto, to be recovered by an action
of assumpsit in a suit to be instituted by the officer or by the proper authorities
of the taxing district, as debts of like amount are now by law recoverable,
except that such person shall not have the benefit of any stay of execution
or exemption law.
A.
Payment of any tax to any other political subdivision
pursuant to an ordinance or resolution passed or adopted prior to the effective
date of the Act[1] shall be credited to and allowed as a deduction from the liability
of taxpayers for any tax imposed under this article.
[1]
Editor's Note: See the Local Tax Enabling Act, 53 P.S. § 6901
et seq.
B.
Payment of any tax on salaries, wages, commission, other
compensation or net profits of business, professions or other activities to
any other political subdivision by residents thereof pursuant to any ordinance
or resolution passed or adopted under the authority of the Act shall be credited
to and allowed as a deduction from the liability of such persons for any tax
imposed under this article.
C.
Payment of any tax on income to any other political subdivision
by residents thereof pursuant to an ordinance or resolution passed or adopted
under the authority of the Act shall, to the extent that such income includes
salaries, wages, commissions, other compensation or net profits of businesses,
professions or other activities but in such proportion as hereinafter set
forth, be credited to and allowed as a deduction from the liability of such
persons for any tax imposed under this article.
D.
Payment of any tax on income to any state or to any other
political subdivision thereof by residents thereof, pursuant to any state
or local law, shall, to the extent that such income includes salaries, wages,
commissions or other compensation or net profits of businesses, professions
or other activities but in such proportions as hereinafter set forth, be credited
to and allowed as a deduction from the liability of such person for any tax
imposed under this article, if residents of the political subdivision in Pennsylvania
receive credits and deductions of a similar kind to a like degree from the
tax on income imposed by the other state or political subdivisions thereof.
E.
Payment of any tax on income to any state other than
Pennsylvania or to any political subdivision located outside the boundaries
of this Commonwealth by residents of a political subdivision located in Pennsylvania
shall, to the extent that such income includes salaries, wages, commissions
or other compensation, or net profits of businesses, professions or other
activities, but in such proportions as hereinafter set forth, be credited
to and allowed as a deduction from the liability of such person for any tax
imposed under this article.
F.
Where a credit or a deduction is allowable in any of
the several cases hereinabove provided, it shall be allowed in proportion
to the concurrent periods for which taxes are imposed by the other state or
respective political subdivisions but not in excess of the amount previously
paid for a concurrent period.