§ 190-1Definitions.
§ 190-2Imposition of tax.
§ 190-3Declaration and payment of tax.
§ 190-4Collection at source.
§ 190-5Powers and duties of Income Tax Officer.
§ 190-6Suit for recovery of tax.
§ 190-7Interest and penalties.
§ 190-8Payment of amounts in dispute; refunds.
§ 190-9Applicability.
§ 190-10Violations and penalties.
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 compensations 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 OFFICER
- Person or agency designated by Duncannon Borough Council 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 Duncannon.
- 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 Duncannon.
- 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 services.
- 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.
A tax of 1% is hereby imposed on the following:
Salaries, wages, commissions, and other compensation earned on and after March 1 of the current year by individual residents of the Borough of Duncannon;
Salaries, wages, commissions, and other compensation earned in the Borough of Duncannon on and after March 1 of the current year by individual nonresidents of the Borough of Duncannon;
Net profits earned on and after March 1 of the current year by residents of the Borough of Duncannon; and
Net profits earned in the Borough of Duncannon on and after March 1 of the current year by nonresidents of the Borough of Duncannon.
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.
Every corporation which is subject to the Pennsylvania corporate net income tax or exempt from the Pennsylvania corporation net income tax and every foreign corporation which is subject to the Pennsylvania franchise tax shall be exempt from the tax imposed by this article.
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 March 1 of the current year and ending December 31 of the current year.
Net profits.
Every person, hereafter called "taxpayer," who reasonably expects that he will earn any taxable net profits during the period between March 1 of the current year and December 31 of the current year shall, on or before April 15 of the current year, make and file with the Income Tax Officer, on a form prescribed by the Income Tax Officer, a declaration of his estimated net profits for the period beginning March 1 of the current year and ending December 31 of the current year, setting forth the estimated amount of net profits reasonably expected by him for the said period and subject to the tax, the amount of estimated tax imposed by this article on such estimated net profits, and such other relevant information as the Income Tax Officer may require. The taxpayer making the declaration shall, at the time of filing thereof, pay the Borough of Duncannon 1/4 of the estimated tax shown as due thereon, and such taxpayer shall thereafter pay 1/4 of the estimated tax in each of three installments as follows: one installment on or before June 15 of the current year; one installment on or before September 15 of the current year; and the last installment on or before January 15 of the succeeding year.
A person who, on April 15 of the current year, did not reasonably expect that he would earn any taxable net profits during the period between March 1 of the current year and December 31 of the current year and who, subsequent to April 15 of the current year, reasonably expects he will earn taxable net profits on or before December 31 of the current year shall make and file on or before June 15 of the current year, September 15 of the current year, or January 15 of the succeeding year, whichever of these dates next follows the date on which the taxpayer first reasonably expects such net profits, 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 Duncannon the estimated tax shown as due thereon; provided, however, that the taxpayer shall have the right to pay the estimated tax in equal installments on or before the quarterly installment payment dates which remain after the filing of the declaration.
The Income Tax 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 shall thereafter either reasonably expect additional net profits not previously declared or find that he has overestimated his net profits.
On or before April 15 of the succeeding year, every taxpayer who has earned taxable net profits shall make and file with the Income Tax Officer, on a form prescribed by him, a final return showing all of such net profits for the period beginning March 1 of the current year and ending December 31 of the current 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 the 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 March 1 of the current year and ending December 31 of the current year 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.
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 or demand refund or credit in the case of overpayment.
Salaries, wages, commissions and other compensation.
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 § 190-4 of this article relating to the collection at source shall, on or before April 15 of the current year, make and file with the Income Tax Officer a declaration of his estimated total amount of taxable salaries, wages, commissions and other compensation for the period beginning March 1 of the current year and ending December 31 of the current year, the estimated amount of the tax thereon that will be deducted therefrom pursuant to § 190-4 of this article, the estimated amount of tax imposed by this article that will not be deducted therefrom pursuant to § 190-4, and such other relevant information as the Income Tax Officer 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 the year for federal income tax purposes, if such taxpayer shall be required to file any such last-mentioned declaration.
A person who, on April 15 of the current year, did not reasonably expect that he would earn any salaries, wages, commissions and other compensation not subject to the provisions of § 190-4 of this article relating to the collection at source, during the period between March 1 of the current year and December 31 of the current year, and who, subsequent to April 15 of the current year, reasonably expects that he will earn salaries, wages, commissions and other compensation, not subject to the provisions of § 190-4 of this article, on or before December 31 of the current year shall make and file on or before June 15 of the current year, September 15 of the current year, or January 15 of the succeeding year, whichever of these dates next follows the date on which the taxpayer first reasonably expects that he will earn such salaries, wages, commissions and other compensation, a declaration similar to that required under the immediately foregoing Subsection B(1). The taxpayer making the declaration shall at the time of filing thereof pay to the Borough of Duncannon the estimated tax shown as due thereon; provided, however, that the taxpayer shall have the right to pay the estimated tax in equal installments on or before the quarterly installment payment dates which remain after the filing of the declaration.
The Income Tax Officer 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 finds that he has overestimated his salaries, wages, commissions and other compensation.
On or before April 15 of the succeeding year, every taxpayer who has received taxable salaries, wages, commissions and other compensation shall make and file with the Income Tax Officer, on a form prescribed by him, a final return showing all such salaries, wages, commissions and other compensation earned during the period beginning March 1 of the current year and ending December 31 of the current 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 § 190-4 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.
Every person within the Borough of Duncannon 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 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, respectively, make and file with the Income Tax Officer, on a form prescribed by the Income Tax Officer, a return, setting forth the taxes deducted for the preceding quarterly 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.
On or before March 15 of the succeeding year, every such employer shall file with the Income Tax Officer on forms prescribed by him:
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 Duncannon in respect to salaries, wages, commissions and other compensation earned by his employee or employees during the period beginning March 1 of the current year and ending December 31 of the current year; and
A return in respect to each person who was an employee during all or any part of the period beginning March 1 of the current year and ending December 31 of the current 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 Officer may require. Every employer shall furnish a copy of the individual return to the employee in respect of whom it was filed.
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 hereinabove required and pay the tax due.
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.
If an employer makes a deduction of tax as required by this § 190-4, the amount deducted shall constitute in the hands of such employer a trust fund held for the account of the Borough of Duncannon 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.
It shall be the duty of the Income Tax 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 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.
The Income Tax Officer 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.
The Income Tax Officer 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 Officer, or to any agent so designated by him, the opportunity for such examination and investigations as are hereby authorized.
Any information gained by the Income Tax Officer, his agents, or by any other official, agent, or employee of the Borough of Duncannon 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.
Any person aggrieved by any action of the Income Tax Officer shall have the right of appeal as provided by law.
The Income Tax Officer may sue in the name of the Borough of Duncannon for the recovery of taxes due and unpaid under this article.
Any suit brought to recover the tax imposed by this article shall be begun within 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:
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.
In the case of a false or fraudulent declaration or return with the intent to evade tax.
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 Duncannon.
If for any reason the tax is not paid when due, interest at the rate of 6% per annum on the amount of said tax, and an additional penalty of 1/2 of 1% of the amount of the unpaid tax for each month or fraction thereof during which the tax remains unpaid, shall be added and collected. Where suit is brought for the recovery of any such tax, the person liable therefor shall, in addition, be liable for the costs of collection and the interest and penalties herein imposed.
The Income Tax Officer is hereby authorized to accept payments of the amount of tax claimed by the Borough of Duncannon 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 Officer, the amount of the overpayment shall be refunded to the person who paid.
The tax imposed by this article shall not apply:
To any person as to whom it is beyond the legal power of the Borough of Duncannon to impose the tax herein provided for under the Constitution of the United States and the Constitution and laws of the Commonwealth of Pennsylvania.
To 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 the said purposes.
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 Officer 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 Magisterial District Judge, 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 in the Perry County Prison for a period not exceeding 30 days.
Any person who, except as permitted by the provisions of § 190-5D of this article, divulges any information which is confidential under the provisions of said subsection shall, upon conviction thereof before any Magisterial District Judge, be sentenced to pay a fine of not more than $300 for each offense, and costs, and, in default of payment of said fine and costs, to be imprisoned in the Perry County Prison for a period not exceeding 90 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 the forms required for making any declaration or return required by this article shall not excuse him from making such declaration or return.
