Borough of Milton, PA
Northumberland County
By using eCode360 you agree to be legally bound by the Terms of Use. If you do not agree to the Terms of Use, please do not use eCode360.
Table of Contents
Table of Contents
[Adopted 4-12-1960 by Ord. No. 449]
[1]
Editor's Note: The tax heretofore enacted by ordinance was levied for the calendar year 2011 at the same rates and under the same term applicable on 12-31-2010 by Ord. No. 1168, adopted 12-8-2010. Further reenactments are on file in the Borough offices.
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:
ASSOCIATION
A partnership, limited partnership or any other unincorporated group of two or more persons.
BUSINESS
An enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association or any other entity.
CORPORATION
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.
EARNINGS
Salaries, wages, commissions and other compensation as defined in this article.
EMPLOYER
An individual, partnership, association, corporation, governmental body or unit or agency or any other entity, employing one or more persons on a salary, wage, commission or other compensation basis.
INCOME TAX ADMINISTRATOR
The person designated by the Borough Council of Milton to administer the provisions of this article.
NET PROFITS
The net income from the operation of a business, profession or other activity, after provision for all costs and expenses incurred in the conduct thereof, either paid or accrued in accordance with the accounting system used in such business, profession or other activity, but without deduction of taxes based on income.
NONRESIDENT
An individual, partnership, association or other entity domiciled outside the Borough of Milton.
PERSON
A natural person, partnership, corporation, fiduciary or association. Whenever used in any section prescribing and imposing a penalty, the term "person," as applied to associations, shall mean the partners or members thereof and, as applied to corporations, the officers thereof.
RESIDENT
An individual, partnership, association or other entity domiciled in the Borough of Milton.
SALARIES, WAGES, COMMISSIONS AND OTHER COMPENSATION
Salaries, wages, commissions, bonuses, incentive payments, fees and tips that may accrue or be received by an individual for services rendered, whether directly or through an agent and whether in cash or in property, not including periodic payments for sick or disability benefits and those 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 public assistance or unemployment compensation payments made by any governmental agency or any wages or compensation paid by the United States to any person for active service in the Army, Navy or Air Force of the United States or any bonus or additional compensation paid by the United States or the Commonwealth of Pennsylvania or any other state for such service.
TAXABLE
Subject to the tax imposed by this article.
TAXPAYER
A person, whether an individual, partnership, association or any other entity, required hereunder to file a return of earnings or net profits or to pay a tax thereon.
[1]
Editor's Note: Per Ord. No. 1194, adopted 2-25-2015, the definitions contained in this section have been superseded by those in Ch. 2, Definitions.
A. 
A tax for general revenue purposes of 1% is hereby imposed on the following:
(1) 
Salaries, wages, commissions and other compensation earned on and after July 1, 1960, by individual residents of the Borough of Milton.
(2) 
Salaries, wages, commissions and other compensation earned on and after July 1, 1960, by individual nonresidents of the Borough of Milton in the Borough of Milton.
(3) 
Net profits, earned on and after July 1, 1960, by residents of the Borough of Milton.
(4) 
Net profits, earned on and after July 1, 1960, in the Borough of Milton by nonresidents of the Borough of Milton.
B. 
The tax levied under Subsection A(1) and (2) herein shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by an employer or on his behalf to a person who is employed by him. The tax levied under Subsection A(3) and (4) herein shall relate to and be imposed on the net profits of any business, profession or other activity carried on by any person or persons.
C. 
Every corporation which is subject to the Pennsylvania corporate net income tax or exempt from the Pennsylvania corporate net income tax and every foreign corporation which is subject to the Pennsylvania franchise tax or exempt from the Pennsylvania franchise tax shall be exempt from the tax imposed by this article.
D. 
The tax levied by this article shall be applicable to salaries, wages, commissions and other compensation and to net profits earned in the period beginning January 1 and ending December 31 of each year.
[Amended 10-28-1998 by Ord. No. 1103]
[Amended 8-8-1961 by Ord. No. 461; 10-28-1998 by Ord. No. 1103]
A. 
Net profits.
(1) 
Every person hereinafter called "taxpayer," who reasonably expects that he will earn any taxable net profits during the period between January 1 and December 31 of each year shall, on or before April 15 of each year, make and file with the Income Tax Administrator, on a form prescribed by the Income Tax Administrator, a declaration of his estimated net profits for the period beginning January 1 and ending December 31 of each year, setting forth the estimated tax imposed by this article on such estimated net profits and such other relevant information as the Income Tax Administrator may require. The taxpayer making the declaration shall, at the time of filing thereof, pay the Borough of Milton 1/4 of the estimated tax shown as due thereon, and such taxpayer shall thereafter pay the remainder of such estimated tax as follows: 1/4 on or before June 15, 1/4 on or before September 15 and 1/4 on or before January 15.
(2) 
A person who on April 15 of each year did not reasonably expect that he would earn any taxable net profits during the period between January 1 and December 31 of that year and who subsequent to October 15 reasonably expects that he will earn taxable profits on or before December 31 of that year shall make and file, on or before January 15, a declaration similar to that required under the foregoing Subsection A(1). The taxpayer making the declaration shall, at the time of filing thereof, pay to the Borough of Milton the estimated tax shown as due thereon.
(3) 
The Income Tax Administrator 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 shall thereafter either reasonably expect additional net profits not previously declared or find that he has overestimated his net profits.
(4) 
On or before April 15 of each year, every taxpayer who has earned taxable net profits shall make and file with the Income Tax Administrator, on a form prescribed by him, a final return showing all of such net profits for the period beginning January 1 and ending December 31 of the previous year the total amount of tax due, the amount of estimated tax paid under the provisions of this section and the balance due. When the return is made for a fiscal year different from the calendar year, the return shall be made within 105 days from the end of said fiscal year. The percentage of the total net profits of any calendar or fiscal year of a taxpayer beginning or ending within the period beginning January 1 and ending December 31 to which the tax imposed by this article shall be applicable shall be equal to the same percentage of such total net profits as the number of days in any such year within such period bears to the total number of days in any such year. 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.
(5) 
Every taxpayer who discontinues business prior to December 31 of any year shall, within 30 days after the discontinuance of business, file his final return as hereinabove required and pay the tax due or demand refund or credit, in the case of overpayment.
B. 
Salaries, wages, commissions and other compensation.
(1) 
Every taxpayer who is employed on a salary, wage, commission or other compensation basis and who reasonably expects to earn any taxable earnings not subject to the provisions of § 219-13 of this article relating to the collection at source shall, on or before April 15 of each year, make and file with the Income Tax Administrator a declaration of his estimated total amount of taxable salaries, wages, commissions and other compensation for the period beginning January 1 and ending December 31 of that year, the estimated amount of the tax thereon that will be deducted therefrom pursuant to § 219-13 of this article, the estimated amount of tax imposed by this article that will not be deducted therefrom pursuant to § 219-13 and such other relevant information as the Income Tax Administrator may require. In preparing his declaration of estimated taxable salaries, wages, commissions and other compensation taxable under this article, the taxpayer shall use the same amounts with respect to such items as he shall have used in preparing his declaration of estimated tax for that year for federal income tax purposes, if such taxpayer shall be required to file any such last-mentioned declaration.
(2) 
A person who on April 15 did not reasonably expect that he would earn any salaries, wages, commissions and other compensation not subject to the provisions of § 219-13 of this article relating to the collection at source, during the period between January 1 and December 31 of that year, and who subsequent to April 15 reasonably expects that he will earn salaries, wages, commissions and other compensation not subject to the provisions of § 219-13 of this article on or before December 31 shall make and file on or before January 15 a declaration similar to that required under the immediately foregoing Subsection B(1). The taxpayer making the declarations shall at the time of filing thereof pay to the Borough of Milton the estimated tax shown as due thereon.
(3) 
The Income Tax Administrator is hereby authorized to provide by regulation for the making and filing of adjusted declarations of estimated salaries, wages, commissions and other compensation and for the payments of the estimated tax in cases where a taxpayer who has filed the declaration hereinabove required shall thereafter either reasonably expect additional salaries, wages, commissions and other compensation not previously declared or find that he has overestimated his salaries, wages, commissions and other compensation.
(4) 
On or before April 15 of each year, every taxpayer who has received taxable salaries, wages, commissions and other compensation shall make and file with the Income Tax Administrator on a form prescribed by him a final return showing all such salaries, wages, commissions and other compensation earned during the period beginning January 1 and ending December 31 of the previous year, the total amount of tax due thereon, the amount of estimated tax thereon paid under the provisions of this section, if any, and the amount, if any, of tax thereon that has been withheld pursuant to the provisions of § 219-13 of this article 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.
[Amended 10-28-1998 by Ord. No. 1103]
A. 
Every person within the Borough of Milton who employs one or more persons on a salary, wage, commission or other compensation basis, other than domestic servants, shall deduct, at the time of the payment thereof, the tax imposed by this article on the salaries, wages, commissions and other compensation due to his employee or employees and shall, on or before the 30th day of the months of April, July, October and January next following such deductions, respectively, make and file with the Income Tax Administrator on a form prescribed by the Income Tax Administrator a return, setting forth the taxes so deducted and pay to the Borough of Milton the amount of taxes deducted for the preceding quarterly periods.
B. 
On or before April 15 of each year, every such employer shall file with the Income Tax Administrator on forms prescribed by him:
(1) 
An annual return showing the total amount of salaries, wages, commissions and other compensation earned by his employee or employees on which a tax is imposed by this article, the total amount of tax deducted and the total amount of tax paid to the Borough of Milton in respect of salaries, wages, commissions and other compensation earned by his employee or employees during the period beginning January 1 and ending December 31 of each year.
(2) 
A return in respect of each person who was an employee during all or any part of the period beginning January 1 and ending December 31 of each year, and who earned during such period any salaries, wages, commissions or other compensation subject to the tax imposed by this article, setting forth the employee's name, address and social security number, the amount of such salaries, wages, commissions or other compensation earned by the employee during said period, the amount of tax deducted therefrom and such other relevant information as the Income Tax Administrator may require. Every employer shall furnish a copy of the individual return to the employee in respect of whom it was filed.
C. 
Every employer who discontinues business prior to December 31 of any year shall, within 30 days after the discontinuance of business, file the returns hereinabove required and pay the tax due.
D. 
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.
E. 
If an employer makes a deduction of tax as required by this section, the amount deducted shall constitute in the hands of such employer a trust fund held for the account of the Borough of Milton as beneficial owner thereof, and the employee from whose salaries, wages, commissions or other compensation such tax was deducted shall be deemed to have paid such tax.
A. 
It shall be the duty of the Income Tax Administrator 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 paying the tax and, if paid by such person in respect of another person, the name of such other person and the date of such receipt.
B. 
The Income Tax Administrator 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 have occurred and to prescribe forms necessary for the administration of this article.
C. 
The Income Tax Administrator and agents designated, in writing, by him are hereby authorized to examine the books, papers and records of any person 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 person is hereby directed and required to give to the Income Tax Administrator or to any agent so designated by him the opportunity for such examinations and investigations as are hereby authorized.
D. 
Any information gained by the Income Tax Administrator, his agents or by any other official, agent or employee of the Borough of Milton as a result of any declarations, returns, investigations, hearings or verifications required or authorized by this article shall be confidential and shall not be disclosed to any person except for official use in connection with the administration or enforcement of this article or as otherwise provided by law.
E. 
Any person aggrieved by any action of the Income Tax Administrator shall have the right of appeal as provided by law.
A. 
The Income Tax Administrator may sue in the name of the Borough of Milton 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 six years after such tax is due or within six years after a 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.
(2) 
In the case of a false or fraudulent declaration or return with the intent to evade tax.
(3) 
Where any person has deducted taxes under the provisions of this article and has failed to pay the amounts so deducted to the Borough of Milton.
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 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.
The Income Tax Administrator is hereby authorized to accept payment of the amount of tax claimed by the borough in any case where any person disputes the validity or amount of the borough's claim for the tax. If it is thereafter judicially determined by a court of competent jurisdiction that there has been an overpayment to the Income Tax Administrator, the amount of the overpayment shall be refunded to the person who paid.
A. 
The tax imposed by this article shall not apply to:
(1) 
Any person as to whom it is beyond the legal power of the Borough of Milton to impose the tax herein provided for under the Constitution of the United States and the Constitution of the Commonwealth of Pennsylvania.
(2) 
The net profits of any institution or organization operated for public, religious, educational or charitable purposes, to an institution or organization not organized or operated for private profit or to a trust or a foundation established for any of said purposes.
B. 
This section shall not be constructed to exempt any person who is an employer from the duty of collecting the tax at source from his employees and paying the amount collected to the Borough of Milton under the provisions of § 219-13 of this article.
[Amended 8-8-1961 by Ord. No. 461]
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 pay the tax deducted from his employees; any person who refuses to permit the Income Tax Administrator or any agent properly designated by him to examine his books, records and papers; and any person who makes any incomplete, false or fraudulent return 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 and costs of prosecution and, in default of payment of such fine and costs, to be imprisoned in the Northumberland County Jail for a period not exceeding 30 days.
[Amended 10-28-1998 by Ord. No. 1103]
B. 
Any person who, except as permitted by the provisions of § 219-14D of this article, divulges any information which is confidential under the provisions of said subsection shall, upon conviction thereof before any District Justice, be sentenced to pay a fine of not more than $500 for each offense and costs of prosecution and, in default of payment of such fine and costs, to be imprisoned in the Northumberland Jail for a period not exceeding 30 days.
[Amended 10-28-1998 by Ord. No. 1103]
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 the forms required for making any declaration or return required by this article shall not excuse him from making such declaration or return.