City of Monessen, PA Earned Income Tax

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.

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.

CURRENT YEAR

The calendar year for which the tax is levied.

DOMICILE

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 voluntarily 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.

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.

INCOME TAX OFFICER OR OFFICER

A person, public employee or private agency designated by the governing body to collect and administer the tax on earned income and net profits.

EMPLOYER

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.

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.

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 taxing district.

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.

[1]

Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).

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

§ 350-2 Imposition of tax.

An annual tax for general revenue purposes of 1% is hereby imposed on:

(1)

Salaries, wages, commissions and other compensation earned after January 1 of the current year, until and including December 31 of the current year, by residents of the City of Monessen; and on

(2)

Salaries, wages, commissions and other compensation earned after January 1 of the current year, until and including December 31 of the current year, by nonresidents of the City of Monessen for work done or services performed or rendered in the City of Monessen; and on

(3)

The net profits earned after January 1 of the current year, until and including December 31 of the current year, of businesses, professions or other activities conducted by such residents; and on

(4)

The net profits earned after January 1 of the current year, until and including December 31 of the current year, of businesses, professions or other activities conducted in the City of Monessen by nonresidents.

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 any person who is employed by or renders services to 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 enterprise carried on by any person as owner-proprietor, either individually or in association with some other person or persons.

Said tax shall first 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 during the calendar year of the current year, to wit: January 1 of the current year until and including December 31 of the current year.

§ 350-3 Returns and payment of tax.

Each person whose earnings or profits are subject to the tax imposed by this article shall, on or before March 15 of the current year, make and file with the City Tax Collector or Wage Tax Enforcement Officer an estimate of net income on a form furnished by or obtainable from the City Tax Collector or Wage Tax Enforcement Officer setting forth the estimated amount of salaries, wages, commissions and other compensation or net profits expected to be earned by him during the year and subject to said tax, together with such other pertinent information as the City Tax Collector or Wage Tax Enforcement Officer may require.

Such return shall also show the estimated amount of the tax imposed by this article on such estimated earnings and profits. The person making said return shall, at the time of filing thereof, pay to the City Tax Collector the estimated amount of tax shown as due thereon; provided, however, that the taxpayer shall have the right to pay the estimated tax or the balance of the estimated tax as shown on the return in four quarterly installments, the first installment thereof at the time of the return on or before March 15 and the other installments thereof on or before June 15, September 15 and December 15, respectively, of the current year. On or before March 15 of the succeeding year, the taxpayer shall file a complete return of his net income and pay the balance of the tax or make demand for a refund for overpayment, as the case may be. Any taxpayer filing said estimate of net income shall use as his estimate his preceding year's net income. Provided further, that where any portion of the tax due shall have been deducted at source and shall have been paid to the City Tax Collector by the person making the deduction, credit for the amount so paid shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable at the time of the filing of said return, or as hereinabove provided. Provided further, that the City Tax Collector or Wage Tax Enforcement Officer is authorized to provide by regulation that the return of an employer or employers showing the amount of tax deducted by him or them from the salary, wages or commissions of an employee and paid by him or them to the City Tax Collector or Wage Tax Enforcement Officer shall be accepted as the return required of any employee whose sole income subject to the tax under this article is such salary, wages or commissions.

§ 350-4 Collection at source.

Each employer within the City of Monessen 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 1% of salaries, wages, commissions or other compensation due by said employer to said employee and shall, on or before the 15th day of the month next following said deduction, make a return and pay to the City Tax Collector the amount of tax so deducted. Said return shall be on a form or forms furnished by or obtainable from the City Tax Collector or Wage Tax Enforcement Officer and shall set forth the names and residents of each employee of said employer during all or any part of the preceding month, the amount of salaries, wages, commissions or other compensation earned during such preceding month by each of such employees, together with such other pertinent information as the City Tax Collector or Wage Tax Enforcement Officer may require. Provided, however, that the failure or omission by any employer, either residing within or outside of the City, 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 fixed in this article or established by the City Tax Collector or Wage Tax Enforcement Officer.

§ 350-5 Duties of City Tax Collector and Wage Tax Enforcement Officer.

It shall be the duty of the City Tax Collector to collect and receive the tax imposed by this article. It shall be the duty of the City Tax Collector or Wage Tax Enforcement Officer, in addition to keeping the records now required by law or ordinance, to keep a record showing the amount received by him from each taxpayer and the date of such receipt.

§ 350-6 Enforcement; rules and regulations; inquisitorial powers of City Tax Collector or Wage Tax Enforcement Officer.

The City Tax Collector or the Wage Tax Enforcement Officer is hereby charged with the enforcement of the provisions of this article and is hereby empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter or thing 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 City Tax Collector or any agent or employees authorized in writing by him or the Wage Tax Enforcement Officer 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 or supposed taxpayer is hereby directed and required to give to said City Tax Collector or his duly authorized agent or employee or the Wage Tax Enforcement Officer the means, facilities and opportunity for such examinations and investigations as are hereby authorized. The City Tax Collector or the Wage Tax Enforcement Officer is hereby authorized to examine any person under oath 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 City Tax Collector or the Wage Tax Enforcement Officer or any other official or agent of the City, 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 or agent divulging such information shall be subject to a fine or penalty of $100 and costs for each offense or to undergo imprisonment for not more than 30 days for the nonpayment of such fine or penalty and costs within 10 days from the imposition thereof.

The Wage Tax Enforcement Officer is to submit to City Council on or before the first day of July of each year a complete list of all persons, companies, partnerships or corporations in violation of this article.

The City Tax Collector or the Wage Tax Enforcement Officer is hereby authorized to prosecute in the corporate name of the City of Monessen any persons violating any of the provisions or requirements of this article or its amendments; provided, however, that the City Tax Collector or the Wage Tax Enforcement Officer shall not initiate any prosecution of persons violating this article or its amendments unless the City Tax Collector or Wage Tax Enforcement Officer shall first submit to City Council a written report concerning the person or persons in violation of this article, together with a brief report as to the complete administrative history of the case and the specific legal action contemplated; and provided further, that the City Tax Collector or the Wage Tax Enforcement Officer shall not initiate the contemplated legal action until 30 days have elapsed following the submission of the report to City Council. At the end of said thirty-day period, the City Tax Collector or the Wage Tax Enforcement Officer shall proceed with the contemplated legal action as prescribed by this article unless City Council shall have authorized a different course of action during the aforementioned thirty-day period.

§ 350-7 Interest and penalties.

All taxes imposed by this article remaining unpaid after they come 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 on 1% of the amount of the unpaid tax for each month or fraction of a month for the first six months of nonpayment.

§ 350-8 Collection of unpaid taxes.

All taxes imposed by this article, together with all interest and penalties, shall be recoverable by the City Solicitor as other debts of like amount are recoverable.

§ 350-9 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 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, Magistrate or court of competent jurisdiction in the county or counties in which the political subdivision imposing the tax is located, 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.

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

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.

§ 350-10 Applicability.

This article shall not apply to any person or property as to whom or which it is beyond the legal power of Council to impose the tax or duties herein provided for.

§ 350-11 Computation of tax.

The tax paid under this article for the current year shall be that portion of the salaries, wages, commissions and other compensation earned, made and received from January 1 of the current year to and including December 31 of the current year.

§ 350-12 Exclusion.

The tax imposed under this article shall not include corporations that pay a tax to the Commonwealth of Pennsylvania.