§ 168-57Imposition of tax.
§ 168-58Returns and payment.
§ 168-61Duties of Income Tax Officer.
§ 168-62Enforcement and administration.
§ 168-64Collection of unpaid taxes.
§ 168-65Violations and penalties.
Pursuant to the authority granted under an Act of the General Assembly of the Commonwealth of Pennsylvania approved December 31, 1965, P.L. 1257, Act No. 511, as amended, known as the Local Tax Enabling Act, be it enacted and ordained by the Council of the Borough of Baden, County of Beaver and Commonwealth of Pennsylvania, and it is hereby enacted and ordained by the authority of same.
As used in this article, the following terms shall have the meanings indicated:
- 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 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 above 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.
- EARNED INCOME
- 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.
- INCOME TAX OFFICER
- The person designated by the Council of the Borough of Baden to collect and administer the tax on earned income and net profits levied and assessed herein.
- 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 Borough of Baden.
- A natural person, partnership, association, corporation or fiduciary. Whenever used in any clause prescribing and imposing a penalty, the term "person," as applied to association, shall mean the partners or members thereof and, as applied to corporations, shall mean the officers thereof.
- A person, partnership, association or other entity domiciled in the Borough of Baden.
- 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.
An annual tax for general revenue purposes of 5/10 of 1% is hereby imposed on the following; provided, however, that this tax shall not apply to any person or property which, under the provisions of Section 2 (53 P.S. § 6902) of the Local Tax Enabling Act, is excluded from taxation by local authorities:
Salaries, wages, commissions and other compensation earned by or paid annually to residents of the Borough of Baden.
Salaries, wages, commissions and other compensation earned by or paid annually to nonresidents of the Borough of Baden for work done or services performed or rendered in the Borough of Baden.
The net profits earned annually of businesses, professions or other activities conducted by such residents.
The net profits earned annually of businesses, professions or other activities conducted in the Borough of Baden by nonresidents.
The tax levied under Subsections A(1) and (2) of this section shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by an employer or on his behalf to any person who is employed by or renders services to him. The tax levied under Subsections A(3) and (4) of this section shall relate to and be imposed on the net profits of any business, profession or enterprise carried on by any person as owner or proprietor, either individually or in association with some other person or persons.
Said tax shall be levied, collected and paid with respect to the salaries, wages, commissions and other compensation and the net profits of business, professions or other activities earned each calendar year annually; provided, however, that where the fiscal year of the business, profession or other activity differs from the calendar year, the tax shall be applied to that part of the net profits for the fiscal year as shall be earned from and after the effective date of this article.
Each taxpayer whose earnings or profits are subject to the tax imposed by this article shall, on or before April 15, make and file a return with the Income Tax Officer on a form furnished by or obtainable from him, setting forth the aggregate amount of salary, wages and other compensation or net profits earned by him during the preceding year and subject to the said tax, together with such other pertinent information as the Income Tax Officer may require; provided, however, that when the return is made for the fiscal year or other period different from the calendar year, the return shall be made within 75 days from the end of the said fiscal year or other period.
The return shall also show the amount of the tax imposed by this article on such earnings and profits. The taxpayer making the said return shall, at the time of the filing thereof, pay to the Income Tax Officer the amount of taxes shown as due thereon; provided further, however, that where any portion of the tax so due shall have been deducted at the source and shall have been paid to the Income Tax Officer by the person making such deduction pursuant to the provisions of § 168-59 of this article, or where any portion of said tax shall have been paid by such taxpayer pursuant to the provisions of § 168-60 of this article, credit for the amount so paid shall be deducted from the amount due and only the balance, if any, shall be due and payable at the time of filing said return.
The Income Tax Officer is hereby authorized to provide by regulation, subject to the approval of the Borough Solicitor, that the return of an employer or employers, showing the amount of tax deducted by said employer or employers from the salary, wages or commissions of an employee and paid by him or them to the Income Tax Officer, shall be accepted as the return required of any employee whose sole income subject to the tax or taxes under this article is such salary, wages or commissions.
Each employer within the Borough of Baden who employs one or more persons on a salary, wage, commission or other compensation basis shall deduct, monthly or more often than monthly, at the time of the payment thereof, the tax of 5/10 of 1% of the salary, wages, commissions or other compensation due by the said employer to the said employee and shall file with the Income Tax Officer, on a form or forms furnished by or obtainable from him, a quarterly return on dates specified herein and pay to him the amount of taxes deducted during said quarters. The quarterly returns shall be made on or before April 30 for all taxes deducted during the quarter beginning January 1 and ending March 31; on or before July 31 for the quarter beginning April 1 and ending June 30; on or before October 31 for the quarter beginning July 1 and ending September 30; and on or before January 31 for the quarter beginning October 1 and ending December 31 of the preceding year.
On or before February 15 of each year, each employer shall file a return on a form or forms prescribed by the Income Tax Officer, setting forth the name and residence of each employee of said employer during all or any part of the preceding year, the amount of salary, wages, commissions or other compensation earned during such preceding year by each of such employees, the amount of taxes deducted and paid to the Income Tax Officer, together with such other pertinent information as the Income Tax Officer may require; provided, however, that the failure or omission by any employer residing either within or outside the Borough to make such return and/or pay such tax shall not relieve the employee from the payment of such tax and the compliance with such regulations with respect to making returns and payment thereof as may be prescribed in this article or established by the Income Tax Officer.
Every taxpayer who anticipates any income which is not subject to the provisions of § 168-59 hereof shall file a declaration of the estimated tax for the applicable calendar year. Such declaration shall be filed on or before April 15 by all such taxpayers. Such declaration shall be filed upon a form furnished by the Income Tax Officer of this tax, which form may simply state that the figures used in making such declaration are the figures used in making the declaration of the estimate for the federal income tax, provided that it is understood that such figures may be modified according to the provisions of this article so that the declaration required by this section shall set forth only such income as is taxable under the provisions of this article.
Such declaration of the estimated tax to be paid to the Borough of Baden shall be accompanied by a payment of at least 1/4 of the estimated annual tax and at least a similar amount for such year shall be paid on or before June 30, September 30 and December 31 of such year; provided, however, that such estimate may be amended at the time of the making of any quarterly payments, and further provided that on or before April 15 of the year following that for which such declaration was filed any final return shall be filed and any balance which may be due the Borough of Baden shall be paid therewith. Should it then appear that such taxpayer has paid more than the amount of tax to which the Borough of Baden would be entitled under the provisions of this article, a refund of the amount of overpayment shall be made.
It shall be the duty of the Income Tax Officer to collect and receive the taxes and penalties imposed by this article, for payment over to the Borough Treasurer, and to enforce the provisions of this article. It shall also be his duty, in addition to keeping such records as are now required by law or ordinance, to keep a record showing the amount received by him for each taxpayer and the date of such receipts.
The Council may prescribe, adopt, promulgate and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of the provisions of this article, including provision for the reexamination and correction of returns and payments alleged or found to be incorrect or as to which an overpayment or underpayment is claimed or found to have occurred.
The Income Tax Officer or any agent or employee designated in writing by Council is hereby authorized to examine the books, papers and records of any employer or supposed employer or of any taxpayer or supposed taxpayer in order to verify the accuracy of any return made or, if no return was made, to ascertain the tax imposed by this article. Every such employer or supposed employer or taxpayer is hereby directed and required to give to the said Income Tax Officer or any other person designated by Council the means, facilities and opportunity for such examinations and investigations as are hereby authorized. The Income Tax Officer is hereby authorized to examine any person concerning any income which was or should have been returned for taxation, and to this end may compel the production of books, papers and records and the attendance of all persons before him, whether as parties or witnesses, whom he believes to have knowledge of such income.
Any information gained by the Income Tax Officer or any other official or agent designated by Council as a result of any returns, investigations, hearings or verifications required or authorized by this article shall be confidential, except for official purposes and except in accordance with proper judicial order or as otherwise provided by law, and any person, official or agent divulging such information shall 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 imprisonment for a period not exceeding 30 days.
All taxes imposed by this article remaining unpaid after they become due shall bear interest in addition to the amount of the unpaid tax, at the rate of 6% per year, and the persons upon whom said taxes are imposed shall be further liable to a penalty of 1/2 of 1% of the amount of the unpaid tax for each month or fraction of a month for the first six months of nonpayment.
All taxes imposed by this article, together with all interest and penalties, shall be recoverable by the Income Tax Officer or the Borough Solicitor as other debts of like amount are recoverable.
Any person who shall violate any provision of this article shall, upon conviction thereof, be punishable by a fine of not more than $300 and costs of such proceedings or, upon default of payment of such fine and costs, by imprisonment in the county jail for a term of not more than 30 days.