Borough of Edgeworth, PA Earned Income Tax

Any interest earnings generated from any monetary accounts or investment instruments of the farming business;

Any gain on the sale of farm machinery;

(3)

Any gain on the sale of livestock held 12 months or more for draft, breeding or dairy purposes; and

(4)

Any gain on the sale of other capital assets of the farm.

NONRESIDENT

A person, partnership, association or other entity domiciled outside the taxing district.

PERSON or INDIVIDUAL

A natural person.

PRECEDING YEAR

The calendar year before the current year.

RESIDENT

A person, partnership, association or other entity domiciled in the Borough.

SUCCEEDING YEAR

The calendar year following the current year.

TAXPAYER

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.

Editor's Note: See 72 P.S. § 7101 et seq.

[2]

Editor's Note: See 72 P.S. § 7101 et seq.

The singular shall include the plural, and the masculine shall include the feminine and the neuter.

§ 117-2 Imposition of tax.

A tax of 1/2 of 1% of all earned income received by residents and of all net proceeds earned by residents from the conduct of businesses, professions and other activities during the calendar year beginning January 1, 1967, and ending December 31, 1967, or during the fiscal year thereof beginning in such calendar year is hereby imposed, and such tax shall continue in force from year to year without annual reenactment unless an ordinance amending or repealing the same is enacted.

§ 117-3 Declaration of estimated net profits; quarterly installments.

Every resident 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 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 and September 15 of the current year and January 15 of the succeeding year, respectively.

Any resident 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, September 15 or December 31 of the current year, whichever of these dates next follows the date on which the resident 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 resident making net profits 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 the net profits earned during the period beginning January 1 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 resident shall pay to the officer the balance of tax due or shall make demand for refund or credit in the case of overpayment.

Any resident making net profits 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 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 resident 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 resident making net profits 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.

§ 117-4 Final return; payment of balance or refund or credit.

Every resident receiving earned income 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 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, if any, of tax due. At the time of filing the final return, the resident shall pay the balance of the tax due or shall make demand for refund or credit in the case of overpayment.

Every resident 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, July 31 and October 31, all of the current year, and January 31 of the succeeding year, setting forth the aggregate amount of earned income not subject to withholding received by him during the three-month periods ending March 31, June 30, September 30 and December 31, all of the current year, respectively, and subject to the tax, together with such other information as the officer may require. Every resident making such return shall, at the time of filing thereof, pay to the officer the amount of tax shown as due thereon.

§ 117-5 Payment and deduction of tax by employer.

Every employer having an office, factory, workshop, branch, warehouse or other place of business within the Borough 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, July 31 and October 31, all 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, June 30, September 30 and December 31, all 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 Borough 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 such employer shall file with the officer:

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 and ending December 31 of the current year.

A return withholding statement for each employee employed during all or any part of the period beginning January 1 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 such period 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.

Every such 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.

Except as otherwise provided in Section 9 of Act No. 511 of 1965,[1] every such 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.

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

The failure or omission of any such 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.

§ 117-6 Collection officer; enforcement; confidentiality.

The Borough Manager is hereby appointed the officer to collect the taxes imposed by this article. 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 the date of such receipt.

Bond.

The officer, before entering upon his official duties, shall give and acknowledge a bond to the Borough and/or any other political subdivisions appointing him. If the Borough and/or any other such political subdivisions shall, by resolution, designate the bond previously given by the officer as adequate, such bond shall be sufficient to satisfy the requirements of this subsection.

The 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)

The bond shall be conditioned upon the faithful discharge by the officer, his clerks, assistants and appointees of all trusts confided in him by virtue of his office, upon the faithful execution of all duties required of him by virtue of his 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 by virtue of his 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 office.

(4)

The bond shall be taken in the name of the Borough and/or any other appointing authority or authorities and shall be for the use of the Borough and/or any other political subdivisions appointing the officer and for the use of such other person or persons for whom money shall be collected or received, or as his 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 Borough and/or any other political subdivisions appointing the officer or any person may sue upon the bond in its or his own name for its or his own use.

(6)

The bond shall contain the name or names of the surety company or companies bound thereon. The Borough and/or any other political subdivisions appointing the officer 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 Borough and/or any other political subdivisions appointing the officer may, at any time, upon cause shown and due notice to the officer and his surety or sureties, require or allow the substitution or the addition of a surety company acceptable to the Borough and/or any other such 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 Borough and/or any other political subdivisions appointing the officer shall designate the custodian of the bond required to be given by the officer.

The officer 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 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 shall be enforceable unless it has been approved by resolution by the Borough. A copy of such rules and regulations currently in force shall be available for public inspection.

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.

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.

Any information gained by the officer, his agents or by any other official or agent of the Borough 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.

The officer is authorized to establish different filing, reporting and payment dates for taxpayers whose fiscal years do not coincide with the calendar year.

§ 117-7 Compensation of officer.

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

§ 117-8 Recovery of taxes due and unpaid; interest and penalties.

The officer may sue in the name of the Borough 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:

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.

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)

No provision of this article shall be construed to limit the Borough from recovering delinquent taxes by any other means provided by Act No. 511 of 1965.[1]

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

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.

§ 117-9 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 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 an 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, 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.

[Amended 3-12-1996 by Ord. No. 455]

Any person who divulges any information which is confidential under the provisions of this article shall, upon conviction thereof before any District Justice, 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.

[Amended 3-12-1996 by Ord. No. 455]

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.

§ 117-10 Applicability of other provisions.

Any provisions of Act No. 511 of 1965[1] which apply or have reference to the tax imposed by this article, or the collection thereof, which are not set forth herein, are specifically made a part hereof.