[HISTORY: Adopted by the Board of Supervisors
of Carroll Township as indicated in article histories. Amendments
noted where applicable.]
[Adopted 5-5-2001 by Ord. No. 45]
This article shall be known as the "Realty Transfer
Tax Ordinance of Carroll Township."
A realty transfer tax for general revenue purposes
is hereby imposed upon the transfer of real estate or interest in
real estate situated within Carroll Township regardless of where the
documents making the transfer are made, executed or delivered, or
where the actual settlements on such transfer took place as authorized
by Article XI-D, "Local Real Estate Transfer Tax," 72 P.S. § 8101-D
et seq., and the "Local Tax Enabling Act," 53 P.S. § 6901
et seq.
As used in this article, the following terms
shall have the meanings indicated:
A partnership, limited partnership, or any other form of
unincorporated enterprise owned or conducted by two or more persons
other than a private trust or decedent's estate.
A corporation, joint-stock association, business trust, or
banking institution which is organized under the laws of this commonwealth,
the United States, or any other state, territory, foreign country
or dependency.
Any deed, instrument or writing which conveys, transfers, demises, vests, confirms or evidences any transfer or demise of title to real estate, but does not include wills, mortgages, deeds or trust or other instruments of like character given as security for a debt and deeds of release thereof to the debtor, land contracts whereby the legal title does not pass to the grantee until the total consideration specified in the contract has been paid or any cancellation thereof unless the consideration is payable over a period of time exceeding 30 years, or instruments which solely grant, vest or confirm a public utility easement. "Document" shall also include a declaration of acquisition required to be presented for recording under § 125-8 of this article.
A corporation of which at least 75% of its assets are devoted
to the business of agriculture and at least 75% of each class of stock
of the corporation is continuously owned by members of the same family.
The business of agriculture shall include the leasing to members of
the same family of property which is directly and principally used
for agricultural purposes. The business of agriculture shall not be
deemed to include:
[Amended 12-2-2003 by Ord. No. 51]
Recreational activities such as, but not limited
to, hunting, fishing, camping, skiing, show competition or racing;
The raising, breeding or training of game animals
or game birds, fish, cats, dogs or pets or animals intended for use
in sporting or recreational activities;
Fur farming;
Stockyard and slaughterhouse operations; or
Manufacturing or processing operations of any
kind.
A partnership of which at least 75% of its assets are devoted
to the business of agriculture and at least 75% of the interests in
the partnership are continuously owned by members of the same family.
The business of agriculture shall include the leasing to members of
the same family of property which is directly and principally used
for agricultural purposes. The business of agriculture shall not be
deemed to include:
[Added 12-2-2003 by Ord.
No. 51]
Recreational activities, such as but not limited
to hunting, fishing, camping, skiing, show competition or racing.
The raising, breeding or training of game animals
or game birds, fish, cats, dogs or pets or animals intended for use
in sporting or recreational activities.
Fur farming.
Stockyard and slaughterhouse operations.
Manufacturing or processing operations of any
kind.
The Board of Supervisors of Carroll Township.
Any trust, other than a business trust, intended as a will
substitute by the settlor which becomes effective during the lifetime
of the settlor, but from which trust distributions cannot be made
to any beneficiaries other than the settlor prior to the death of
the settlor.
[Added 12-2-2003 by Ord.
No. 51]
Any individual, such individual's brothers and sisters, the
brothers and sisters of such individual's parents and grandparents,
the ancestors and lineal descendants of any of the foregoing, a spouse
of any of the foregoing and the estate of any of the foregoing. Individuals
related by the half-blood or legal adoption shall be treated as if
they were related by the whole-blood.
Any trust, other than a business trust or a living trust,
which takes effect during the lifetime of the settlor and for which
the trustees of the trust take title to property primarily for the
purpose of protecting, managing or conserving it until distribution
to the named beneficiaries of the trust. An ordinary trust does not
include a trust that has an objective to carry on business and divide
gains, nor does it either expressly or impliedly have any of the following
features: the treatment of beneficiaries as associates, the treatment
of the interests in the trust as personal property, the free transferability
of beneficial interests in the trust, centralized management by the
trustee or the beneficiaries, or continuity of life.
[Added 12-2-2003 by Ord.
No. 51]
Every natural person, association, or corporation. Whenever
used in any clause prescribing the imposing of a fine or imprisonment,
or both, the term "person" as applied to associations shall include
the responsible members or general partners thereof, and as applied
to corporations, the officers thereof.
All lands, tenements or hereditaments within
Carroll Township including without limitation buildings, structures,
fixtures, mines, minerals, oil, gas, quarries, spaces with or without
upper or lower boundaries, trees, and other improvements, immovables
or interests which by custom, usage or law pass with a conveyance
of land, but excluding permanently attached machinery and equipment
in an industrial plant.
A condominium unit.
A tenant-stockholder's interest in a cooperative
housing cooperation, trust or association under a proprietary lease
or occupancy agreement.
A corporation or association which is primarily engaged in
the business of holding, selling or leasing real estate, 90% or more
of the value of its entire tangible asset holdings exclusive of tangible
assets which are freely transferable and actively traded on an established
market.
Derives 60% or more of its annual gross receipts
from the ownership or disposition of real estate; or
Holds real estate, the value of which comprises
90% or more of the value of its entire tangible asset holdings exclusive
of tangible assets which are freely transferable and actively traded
on an established market.
Any interest in real estate which endures for
a period of time, the termination of which is not fixed or ascertained
by a specific number of years, including without limitation an estate
in fee simple, life estate, or perpetual leasehold; or
Any interest in real estate enduring for a fixed
period of years but which, either by reason of the length of the term
or the grant of a right to extend the term by renewal or otherwise,
consists of a group of rights approximating those of an estate in
fee simple, life estate or perpetual leasehold, including without
limitation a leasehold interest or possessory interest under a lease
or occupancy agreement for a term of 30 years or more or a leasehold
interest or possessory interest in real estate in which the lessee
has equity.
The making, executing, delivering, accepting, or presenting
for recording of a document.
In the case of any bona fide sale of real estate
at arm's length for actual monetary worth, the amount of the actual
consideration therefore, paid or to be paid, including liens or other
encumbrances thereon existing before the transfer and not removed
thereby, whether or not the underlying indebtedness is assumed, and
ground rents, or a commensurate part thereof where such liens or other
encumbrances and ground rents also encumber or are charged against
other real estate; provided that where such documents shall set forth
a nominal consideration, the "value" thereof shall be determined from
the price set forth in actual consideration for the contract of sale;
In the case of a gift, sale by execution upon
a judgment or upon the foreclosure of a mortgage by a judicial officer,
transactions without consideration or for consideration less than
the actual monetary worth of the real estate, a taxable lease, an
occupancy agreement, a leasehold or possessory interest, any exchange
of properties, or the real estate of an acquired company, the actual
monetary worth of the real estate determined by adjusting the assessed
value of the real estate for local real estate tax purposes for the
common level ratio factor developed by the Pennsylvania Department
of Revenue for Pennsylvania realty transfer tax base calculations;
The actual consideration for or actual monetary
worth of any executory agreement for the construction of buildings,
structures or other permanent improvements to real estate between
the grantor and other persons existing before the transfer and not
removed thereby or between the grantor, the agent or principal of
the grantor or a related corporation, association or partnership and
the grantee existing before or effective with the transfer.
[Amended 12-2-2003 by Ord. No. 51]
A.
Every person who makes, executes, delivers, accepts
or presents for recording any document or in whose behalf any document
is made, executed, delivered, accepted or presented for recording,
shall be subject to pay for and in respect to the transaction or any
part thereof, a tax at the rate of 1% of the value of the real estate
represented by such document, which tax shall be payable at the earlier
of the time the document is presented for recording or within 30 days
of acceptance of such document or within 30 days of becoming an acquired
company.
B.
The payment of the tax imposed herein shall be evidenced
by the affixing of an official stamp or writing by the Recorder of
Deeds whereon the date of the payment of the tax, amount of the tax
and the signature of the collecting agent shall be set forth.
C.
It is the intent of this article that the entire burden
of the tax imposed herein on a person or transfer shall not exceed
the limitations prescribed in the Local Tax Enabling Act, Act of December
31, 1965, P.L. 1257, 53 P.S. § 6901 et seq., so that if
any other political subdivision shall impose or hereafter shall impose
such tax on the same person or transfer then the tax levied by Carroll
Township under the authority of that Act shall during the time such
duplication of the tax exists, except as hereinafter otherwise provided,
be 1/2 of the rate and such 1/2 rate shall become effective without
any action on the part of Carroll Township, provided, however, that
Carroll Township and any other political subdivision which impose
such tax on the same person or transfer may agree that, instead of
limiting their respective rates to 1/2 of the rate herein provided,
they will impose respectively different rates, the total of which
shall not exceed the maximum rate permitted under the Local Tax Enabling
Act.
D.
If for any reason the tax is not paid when due, interest
at the rate in effect at the time the tax is due shall be added and
collected.
The United States, the commonwealth, or any
of their instrumentalities, agencies or political subdivisions shall
be exempt from payment of the tax imposed by this article. The exemption
of such governmental bodies shall not, however, relieve any other
party of a transaction from liability for the tax.
A.
The tax imposed by § 125-4 shall not be imposed upon:
(1)
A transfer to the commonwealth, or to any of its instrumentalities,
agencies or political subdivisions, by gift, dedication or deed in
lieu of condemnation or deed of confirmation in connection with condemnation
proceedings, or a reconveyance by the condemning body of the property
condemned to the owner of record at the time of condemnation which
reconveyance may include property line adjustments provided said reconveyance
is made within one year from the date of condemnation.
(2)
A document which Carroll Township is prohibited from
taxing under the Constitution or statutes of the United States.
(3)
A conveyance to a municipality, township, school district
or county pursuant to acquisition by the municipality, township, school
district or county of a tax delinquent property at sheriff sale or
Tax Claim Bureau sale.
(4)
A transfer for no or nominal actual consideration
which corrects or confirms a transfer previously recorded, but which
does not extend or limit existing record legal title or interest.
(5)
A transfer or division in kind for no or nominal actual
consideration of property passed by testate or intestate succession
and held by co-tenants; however, if any other parties take shares
greater in value than their undivided interest, tax is due on the
excess.
(6)
A transfer between husband and wife, between persons
who were previously husband and wife who have since been divorced,
provided the property or interest therein subject to such transfer
was acquired by the husband or wife prior to the granting of the final
decree in divorce, between parent and child or the spouse of such
child, between brother or sister or spouse of a brother or sister
and brother or sister or the spouse of such a brother or sister, and
between a grandparent and grandchild or the spouse of such grandchild,
except that a subsequent transfer by the grantee within one year shall
be subject to tax as if the grantor were making such transfer.
(7)
A transfer for no or nominal actual consideration
of property passing a testate or intestate succession from a personal
representative of a decedent's devisee or heir.
(8)
A transfer for no or nominal actual consideration
to a trustee of an ordinary trust where the transfer of the same property
would be exempt if the transfer was made directly from the grantor
to all of the possible beneficiaries that are entitled to receive
the property or proceeds from the sale of the property under the trust,
whether or not such beneficiaries are contingent or specifically named.
A trust clause which identifies the contingent beneficiaries by reference
to the heirs of the trust settlor as determined by the laws of the
intestate succession shall not disqualify a transfer from the exclusion
provided by this clause. No such exemption shall be granted unless
the Recorder of Deeds is presented with a copy of the trust instrument
that clearly identifies the grantor and all possible beneficiaries.
[Amended 12-2-2003 by Ord. No. 51]
(9)
A transfer for no or nominal actual consideration
to a trustee of a living trust from the settlor of the living trust.
No such exemption shall be granted unless the Recorder of Deeds is
presented with a copy of the living trust instrument.
[Added 12-2-2003 by Ord.
No. 51]
(10)
A transfer for no or nominal actual consideration
from a trustee of an ordinary trust to a specifically named beneficiary
that is entitled to receive the property under the recorded trust
instrument or to a contingent beneficiary where the transfer of the
same property would be exempt if the transfer was made by the grantor
of the property into the trust to that beneficiary. However, any transfer
of real estate from a living trust during the settlors lifetime shall
be considered for the purposes of this article as if such transfer
were made directly from the settlor to the grantee.
[Amended 12-2-2003 by Ord. No. 51]
(11)
A transfer for no or nominal actual consideration
from a trustee of a living trust after the death of the settlor of
the trust or from a trustee of a trust created pursuant to the will
of a decedent to a beneficiary to whom the property is devised or
bequeathed.
[Added 12-2-2003 by Ord.
No. 51]
(12)
A transfer for no or nominal actual consideration
from the trustee of a living trust to the settlor of the living trust
if such property was originally conveyed to the trustee by the settlor.
[Added 12-2-2003 by Ord.
No. 51]
(13)
A transfer for no or nominal actual consideration
from trustee or successor trustee.
(14)
A transfer for no or nominal actual consideration
between principal and agent or straw party; or from or to an agent
or straw party where, if the agent or straw party were his principal,
no tax would be imposed under this section. Where the documents by
which title is acquired by a grantee or statement of value fails to
set forth that the property was acquired by the grantee from, or for
the benefit of, his principal, there is a rebuttable presumption that
the property is the property of the grantee in his individual capacity
if the grantee claims an exemption from taxation under this clause.
(15)
A transfer made pursuant to the statutory merger
or consolidation of a corporation or statutory division of a nonprofit
corporation, except where the department reasonably determines that
the primary intent of such merger, consolidation or division is avoidance
of the tax imposed by this article.
(16)
A transfer from a corporation or association
of real estate held of record in the name of the corporation or association
where the grantee owns stock of the corporation or an interest in
the association in the same proportion as his interest in or ownership
of the real estate being conveyed and where the stock of the corporation
or the interest in the association has been held by the grantee for
more than two years.
(17)
A transfer from a nonprofit industrial development
agency or authority to a grantee of property conveyed by the grantee
to that agency or authority as security for a debt of the grantee
or a transfer to a nonprofit industrial development agency or authority.
(18)
A transfer from a nonprofit industrial development
agency or authority to a grantee purchasing directly from it, but
only if the grantee shall directly use real estate for the primary
purpose of manufacturing, fabricating, compounding, processing, publishing,
research and development, transportation, energy conversion, energy
production, pollution control, warehousing or agriculture, and the
agency or authority has the full ownership interest in the real estate
transferred.
(19)
A transfer by a mortgagor to the holder of a
bona fide mortgage in default in lieu of a foreclosure or a transfer
pursuant to a judicial sale in which the successful bidder is a bona
fide holder of a mortgage, unless the holder assigns the bid to another
person.
(20)
Any transfer between religious organizations
or other bodies or persons holding title for a religious organization
if such real estate is not being or has not been used by such transferor
for commercial purposes.
(21)
A transfer to a conservancy which possesses
tax exempt status pursuant to Section 501(c)(3) of the Internal Revenue
Code of 1954 [68A Stat. 3, 26 U.S.C. § 50l(c)(3)] and which
has as its primary purpose preservation of land for historic, recreational,
scenic, agricultural or open space opportunities or a transfer from
such a conservancy to the United States, the commonwealth or to any
of their instrumentalities, agencies or political subdivisions; or
any transfer from such a conservancy where the real estate is encumbered
by a perpetual agricultural conservation easement as defined by the
act of June 30, 1981 (P.L. 128, No. 43), known as the Agricultural
Area Security Law, and such conservancy has owned the real estate
for at least two years immediately prior to the transfer.
[Amended 12-2-2003 by Ord. No. 51]
(22)
A transfer of real estate devoted to the business
of agriculture to a family farm corporation by a member of the same
family which directly owns at least 75% of each class of the stock
thereof
(23)
A transfer of real estate devoted to the business
of agriculture to a family farm partnership by a member of the same
family, which family directly owns at least 75% of the interests in
the partnership.
[Added 12-2-2003 by Ord.
No. 51]
(24)
A transfer between members of the same family
of an ownership interest in a real estate company, family farm corporation
or family farm partnership which owns real estate.
[Amended 12-2-2003 by Ord. No. 51]
(25)
A transaction wherein the tax due is $1 or less.
(26)
Leases for the production or extraction of coal,
oil, natural gas or minerals and assignments thereof
B.
In order to exercise any exclusion provided in this
section, the true, full and complete value of the transfer shall be
shown on the statement of value. A copy of the Pennsylvania Realty
Transfer Tax Statement of Value may be submitted for this purpose.
For leases of coal, oil, natural gas or minerals, the Statement of
Value may be limited to an explanation of the reason such document
is not subject to tax under this article.
Except as otherwise provided in § 125-6 hereof, documents which make, confirm or evidence any transfer or demise of title to real estate between associations or corporations and the members, partners, shareholders or stockholders thereof are fully taxable. For the purpose of this section, corporations and associations are entities separate from their members, partners, stockholders or shareholders.
A.
A real estate company is an acquired company upon
a change in the ownership interest in the company, however effected,
if the change does not affect the continuity of the company; and of
itself or together with prior changes has the effect of transferring,
directly or indirectly, 90% or more of the total ownership interest
in the company within a period of three years.
B.
With respect to real estate acquired after February
16, 1986, a family farm corporation is an acquired company when, because
of voluntary or involuntary dissolution, it ceases to be a family
farm corporation or when, because of issuance or transfer of stock
or because of acquisition or transfer of assets that are devoted to
the business of agriculture, it fails to meet the minimum requirements
of a family farm corporation under this article.
C.
A family farm partnership is an acquired company when,
because of voluntary or involuntary dissolution, it ceases to be a
family farm partnership or when, because of transfer of partnership
interests or because of acquisition or transfer of assets that are
devoted to the business of agriculture, it fails to meet the minimum
requirements of a family farm partnership under this article.
[Added 12-2-2003 by Ord.
No. 51]
D.
Within 30 days after becoming an acquired company,
the company shall present a declaration of acquisition with the Recorder
of Deeds of each county in which it holds real estate for the affixation
of documentary stamps and recording. Such declaration shall set for
the value of real estate holdings of the acquired property in such
county. A copy of the Pennsylvania Transfer Tax Declaration of Acquisition
may be submitted for this purpose.
A.
Where there is a transfer of a residential property
by a licensed real estate broker which property was transferred to
him within the preceding year as a consideration for the purchase
of other residential property, a credit for the amount of the tax
paid at the time of the transfer to him shall be given to him toward
the amount of the tax due upon the transfer.
B.
Where there is a transfer by a builder of residential
property which was transferred to the builder within the preceding
year as a consideration for the purchase of new, previously unoccupied
residential property, a credit for the amount of the tax paid at the
time of the transfer to the builder shall be given to the builder
toward the amount of the tax due upon the transfer.
C.
Where there is a transfer of real estate which is
leased by the grantor, a credit for the amount of tax due paid at
the time of the lease shall be given the grantor toward the tax due
upon the transfer.
D.
Where there is a conveyance by deed of real estate
which was previously sold under a land contract by the grantor, a
credit for the amount of tax paid at the time of the sale shall be
given the grantor toward the tax due upon the deed.
E.
If the tax due upon the transfer is greater than the
credit given under this section, the difference shall be paid. If
the credit allowed is greater than the amount of tax due, no refund
or carryover credit shall be allowed.
In determining the term of a lease, it shall
be presumed that a right or option to renew or extend a lease will
be exercised if the rental charge to the lessee is fixed or if a method
for calculating the rental charge is established.
A.
As provided in 16 P.S. § 11011-6, as amended
by Act of July 7, 1983 (P.L. 40, No. 21), the Recorder of Deeds shall
be the collection agent for the local realty transfer tax, including
any amount payable to Carroll Township based on a redetermination
of the amount of tax due by the Commonwealth of Pennsylvania of the
Pennsylvania realty transfer tax, without compensation from Carroll
Township.
B.
In order to ascertain the amount of taxes due when
the property is located in more than one political subdivision, the
Recorder shall not accept for recording such a deed unless it is accompanied
by a Statement of Value which taxes are due each municipality.
C.
On or before the 10th of each month, the Recorder
shall pay over to Carroll Township all local realty transfer taxes
collected, less 2% for the use of the county, together with a report
containing the information as is required by the Commonwealth of Pennsylvania
in reporting collections of the Pennsylvania realty transfer tax.
The two-percent commission shall be paid to the county.
D.
Upon a redetermination of the amount of realty transfer
tax due by the Commonwealth of Pennsylvania, the Recorder shall rerecord
the deed or record the additional realty transfer tax form only when
both the state and local amounts and a rerecording fee have been tendered.
Every document lodged with or presented to the
Recorder for recording shall set forth therein and as a part of such
document the true, full and complete value thereof, or shall be accompanied
by a Statement of Value executed by a responsible person connected
with the transaction showing such connection and setting forth the
true, full and complete value thereof or the reason, if any, why such
document is not subject to tax under this section. A copy of the Pennsylvania
Realty Transfer Tax Statement of Value may be submitted for this purpose.
The provisions of this section shall not apply to any excludable real
estate transfer which are exempt from taxation based on family relationship.
Other documents presented for affixation of stamps shall be accompanied
by a certified copy of the document and Statement of Value executed
by a responsible person connected with the transaction showing such
connection and setting forth the true, full and complete value thereof
or the reason, if any, why such document is not subject to tax under
this article.
A.
If any part of any underpayment of tax imposed by
this article is due to fraud, there shall be added to the tax amount
equal to 50% of the underpayment.
B.
In the case of failure to record a declaration required
under this section on the date prescribed therefor, unless it is shown
that such failure is due to reasonable cause, there shall be added
to the tax 5% of the amount of such tax if the failure is for not
more than one month, with an additional 5% for each additional month
or fraction thereof during which such failure continues, not exceeding
50% in the aggregate.
The tax imposed by this article shall become
a lien upon the lands, tenements, or hereditaments, or any interest
thereof, lying, being situated, wholly or in part within the boundaries
of Carroll Township, which lands, tenements, hereditaments or interest
therein, are described in or conveyed by or transferred by the deed
which is the subject of the tax imposed, assessed and levied by this
article, said lien to begin at the time when the tax under this article
is due and payable, and continue until discharged by payment, or in
accordance with the law, and the Solicitor is authorized to file a
municipal tax claim in the Court of Common Pleas of the 41st Judicial
District of Pennsylvania, Perry County Branch, in accordance with
the provisions of the Municipal Claims and Liens Act of 1923, 53 P.S.
§ 7101 et seq., its supplements and amendments.
All taxes imposed by this article, together
with interest and penalties prescribed herein, shall be recoverable
as other debts of like character are recovered.
The Secretary/Treasurer of Carroll Township
is charged with enforcement and collection of tax and is empowered
to promulgate and enforce reasonable regulations for enforcement and
collection of the tax. The regulations which have been promulgated
by the Pennsylvania Department of Revenue under 72 P.S. § 8101-C
et seq. are incorporated into and made a part of this article.
[Adopted 12-2-2003 by Ord. No. 51]
This article is enacted under the authority
of the Local Tax Enabling Act, 53 P.S. § 6901 et seq.
This article shall be known and may be cited
as the "Carroll Township Earned Income Tax Ordinance."
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 nonprofit institution that people regularly attend to participate
in or hold religious services, religious meetings or similar activities.
[Added 3-2-2004 by Ord. No. 54]
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 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 voluntary fixed
place of habitation of a person, 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 in 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.
That person, public employee, private agency or other entity
designated by Board of Supervisors to collect and administer the tax
on earned income and net profits. The elected (or appointed) Township
Real Property Tax Collector shall be and shall serve as the Earned
Income and Net Profits Tax Officer of the Township.
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 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 Township.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Township.
The calendar year following the current year.
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.
The following taxes are hereby imposed, for
general Township purposes, under the authority of Act No. 511 of 1965,
the Local Tax Enabling Act:[1]
A.
One percent of all earned income earned during the
current year by residents.
B.
One percent of all earned income earned during the
current year by nonresidents for work done or services rendered in
the Township of Carroll.
C.
One percent of all net profits earned during the current
year by businesses, professions and other activities conducted by
residents.
D.
One percent of the net profits earned during the current
year by businesses, professions and other activities conducted in
the Township of Carroll by nonresidents.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
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 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 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 pay
the tax due.
B.
Earned income.
(1)
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.
(2)
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 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 earned 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 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.
B.
Every employer having an office, factory, workshop,
branch warehouse or other place of business within the 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 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 the Officer and employer shall show the name and social
security number of each such employee, the earned income of such employee
during said 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.
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 Township,
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:
(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.
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 pay the tax due.
F.
Except as otherwise provided in Section 9 of Act 511
of 1965,[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 was 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.
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 the date of
such receipt.
B.
The Officer, before entering upon his official duties,
shall give and acknowledge a bond to the Township in such amount and
with such surety as designated from time to time by Township Board
of Supervisors.
C.
The Officer 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 of Board of Supervisors. A copy of such
rules and regulations currently in force shall be available for public
inspection.
D.
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 taxpayer's employer.
E.
The Officer and 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.
F.
Any information gained by the Officer, his agents
or by any other official or agent of the 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.
G.
The Officer is authorized to establish different filing,
reporting and payment dates for taxpayers whose fiscal years do not
coincide with the calendar year.
H.
The Officer shall, at least quarterly, distribute
earned income taxes to the appropriate political subdivisions. The
political subdivisions shall not be required to request the Officer
to distribute the funds collected but 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
in which the tax was collected. Within 120 days of the passage of
this act, any present accumulated funds that are unclaimed shall be
distributed on the same basis.
The Officer shall receive such compensation
for his services and expenses as determined by Board of Supervisors.
A.
The Officer may sue in the name of the Township 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
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.
C.
This section shall not be construed to limit the Board
of Supervisors from recovering delinquent taxes by any other means
provided by law.
D.
The Officer may sue for recovery of an erroneous refund
provided 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 one-half of one percent (1/2 of 1%) of the
amount of the said 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 and 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, 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.
This article shall not apply to any person or
property as to whom or which it is beyond the legal power of the Township
to impose the tax or duties herein provided for.
