[Adopted 2-4-1957]
[1]
Editor's Note: Adopted in accordance with the Act of June 25, 1947, P.L. 1145 of the General Assembly of the Commonwealth of Pennsylvania as amended by the Act of May 9, 1949; reenacted without change for the year 1977, 12-27-1976 by Ord. No. 13-1976.
A. 
The following words, when used in this article, shall have the meaning ascribed to them in this section, except as and if the context clearly indicates or requires a different meaning:
BUSINESS
An enterprise, activity, profession or undertaking of any nature conducted for profit, or ordinarily conducted for profit.
COMMISSIONER
The Commissioner of Income Tax of the Borough of Towanda, Pennsylvania, or the person executing the duties of the aforesaid Commissioner.
EMPLOYER
An individual, partnership, association, joint venture, corporation, estate, trust, governmental body or unit or agency, or any other entity, who or that employs one or more persons on a salary, wage, commission or other compensation basis.
NONRESIDENT
An individual whose income is subject to the tax herein imposed who does not reside or is not domiciled in the Borough of Towanda, Pennsylvania.
[Added 2-9-2004 by Ord. No. 2-2004]
PERSON
Every natural person, partnership, association, corporation, estate, trust, or other form of organization. Whenever used in any clause prescribing and imposing a penalty, the term "person" as applied to a partnership shall mean the partners thereof, as applied to an association shall mean the members thereof, as applied to an estate or trust shall mean the fiduciary thereof, and as applied to a corporation shall mean the officers thereof.
RESIDENT
An individual whose income is subject to the tax herein imposed, who resides or is domiciled in the Borough of Towanda, Pennsylvania.
TAXABLE PERIOD
The calendar year, a fiscal year, or period of less than 12 months for which a return is required to be filed by a taxpayer.
TAXPAYER
A natural person whose income is subject to the tax herein imposed.
B. 
The singular shall include the plural, and the masculine shall include the feminine and the neuter.
[Amended 2-9-2004 by Ord. No. 2-2004]
A. 
There shall be levied, collected and paid for each taxable period a tax of 1% of the earned income of residents of the Borough of Towanda.
B. 
There shall also be levied, collected and paid for each taxable period a tax for general Borough purposes of 1% on net profits earned on and after February 2, 2004, from businesses, professions and other activities conducted within the Borough of Towanda by nonresidents of said Borough on salaries, wages, commissions and other compensations earned for activities or services performed or rendered on or after February 2, 2004, within said Borough by nonresidents of said Borough.
The term "net income" means the gross income computed under § 271-4 hereof, less the deductions allowed by § 271-5 hereof.
A. 
The term "gross income" includes profits and income derived from salaries, wages or compensation for personal services (including personal service as an officer or employee of the federal government, a state or commonwealth, or any political subdivision thereof, or any agency or instrumentality of any one or more of the foregoing) of whatever kind and in whatever form paid, or from profession, vocations, trades, businesses, commerce or sales, or the transaction of any business carried on for profit.
B. 
Inventories. Whenever in the opinion of the Commissioner, the use of inventories is necessary in order clearly to determine the income of any taxpayer, inventories shall be taken by such taxpayer upon such basis as the Commissioner may prescribe as conforming as nearly as may be to the best accounting practice in the trade or business and as most clearly reflecting the income.
In computing net income there shall be allowed as deductions:
A. 
Trade and business expenses as defined and allowed by the federal government as deductions for income tax purposes.
B. 
Losses. Losses sustained during the taxable period and not compensated for by insurance or otherwise, if incurred in trade, business or profession.
C. 
Debts. Such debts, whether business or nonbusiness, may be deducted as the same are deductible under federal income tax laws, regulations and rulings.
D. 
Depreciation. A reasonable allowance for depreciation and obsolescence shall be allowed to the same extent as they are allowed by federal laws, regulations and rulings in connection with the federal income taxes.
E. 
Depletion. Deductions for depletion shall be allowed to the same extent as are provided for under the federal income tax laws, regulations and rules.
F. 
Contributions of an employer made for the benefit of employees shall be deductible from gross income to the extent provided in federal income tax laws, regulations and rules.
G. 
Net operating loss deduction. Net operating loss deductions from gross income shall be allowed to the extent that the same is allowed by federal income tax laws, regulations and rules, so far as the same are applicable to taxes collected under this article.
In computing net income, no deduction shall in any case be allowed in respect of:
A. 
General rule.
(1) 
Personal living or family expenses.
(2) 
Medical, dental, surgical or nursing expenses.
(3) 
Premiums on personal life, health or accident insurance.
(4) 
Contributions or gifts of any kind, regardless of character or purposes of recipient or donee.
(5) 
Interest other than interest on business indebtedness or on indebtedness incurred to provide funds to finance the production of taxable income.
(6) 
Personal taxes, including taxes on real estate occupied as taxpayer's residence, personal property taxes, and per capita, occupation and poll taxes.
(7) 
Income, gift, inheritance and estate taxes.
(8) 
Any amount paid out for new buildings or for permanent improvements or betterments made to increase the value of any property or estate.
(9) 
Any amount expended in restoring property or in making good the exhaustion thereof for which an allowance is or has been made.
(10) 
Premiums paid on any life insurance policy covering the life of any employee or of any person financially interested in any trade or business carried on by the taxpayer, when the taxpayer is directly or indirectly a beneficiary under such policy.
(11) 
Any amount otherwise allowable as a deduction which is allocatable to one or more classes of income other than interest wholly exempt from the tax imposed herein, or any amount otherwise allowable under § 271-5A hereof which is allocatable to interest wholly exempt from the tax imposed herein.
(12) 
Amounts paid or accrued for such taxes and carrying charges as, under regulations prescribed by the Commissioner, are chargeable capital account with respect to property, if the taxpayer elects, in accordance with such regulations to treat such taxes or charges as so chargeable.
B. 
Losses from sales or exchange of property. In computing net income, no deduction shall in any case be allowed in respect of losses from sales or exchanges of property, directly or indirectly, under circumstances described in Section 24(b) of the Federal Internal Revenue Code.
C. 
Unpaid expenses and interest. In computing net income no deduction shall be allowed under § 271-5A hereof:
(1) 
If such expenses or interest are not paid within the taxable period or within 3 1/2 months after the close thereof;
(2) 
If, by reason of the method of accounting of the person to whom the payment is to be made, the amount thereof is not, unless paid, includible in the gross income of such person for the taxable period in which or with which the taxable period of the taxpayer ends; and
(3) 
If, at the close of the taxable period of the taxpayer or at any time within 3 1/2 months thereafter both the taxpayer and the person to whom the payment is made are persons between whom losses would be disallowed under § 271-6B hereof.
A. 
Taxpayers, employers and others required to file returns and declarations under the provisions of this article shall keep such records as will permit the filing of true and accurate returns and declarations; and such records shall be preserved for a period of not less than six years.
B. 
The net income shall be computed upon the basis of the taxpayer's annual accounting period (fiscal year or calendar year, as the case may be) in accordance with the method of accounting regularly employed in keeping the books of such taxpayer; but if no such method of accounting has been so employed, or if the method does not clearly reflect the net income, the computation shall be made in accordance with such method as in the opinion of the Commissioner does clearly reflect the net income. If the taxpayer's annual accounting period is other than a fiscal year ending on the last day of any month other than December, or if the taxpayer has no annual accounting period or does not keep books, the net income shall be computed on the basis of the calendar year.
The amount of all items of gross income shall be included in the gross income for the taxable period in which received by the taxpayer unless, under methods of accounting permitted under § 271-7 hereof, any such amounts are to be properly accounted for as of a different period. In the case of the death of a taxpayer whose net income is computed upon the basis of the accrual method of accounting, amounts (except amounts representing his share of a partnership's taxable period ending with its dissolution on account of his death) accrued only by reason of the death of the taxpayer shall not be included in computing net income for the period in which falls the date of the taxpayer's death.
The deductions and credits provided for in this article shall be taken for the taxable period in which "paid or accrued" or "paid and incurred," dependent upon the method of accounting upon the basis of which the net income is computed, unless in order to clearly reflect the net income the deductions or credits should be taken as of a different period. In the case of the death of a taxpayer whose net income is computed upon the basis of the accrual method of accounting, amounts (except amounts representing his share of a partnership's net loss for the partnership's taxable period ending with its dissolution on account of his death) accrued as deductions and credits only by reason of the death of the taxpayer shall not be allowed in computing net income for the period in which falls the date of the taxpayer's death.
A person who regularly sells or otherwise disposes of personal property on the installment plan may return his income on the installment basis of accounting provided in Section 44 of the Federal Internal Revenue Code, provided the consent of the Commissioner to do so is first obtained. In the case of a casual sale or other casual disposition of personal property (other than property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of the taxable year) for a price exceeding $1,000, or of a sale or other disposition of real property, if in either case the initial payments do not exceed 30% of the selling price, the income may be returned on the basis and in the manner prescribed in Section 44 of the Federal Internal Revenue Code. The gain or loss upon the disposition of installment obligations at prices in excess of or less than face amount shall be computed and recognized as provided in Section 44 of the Federal Internal Revenue Code.
If a taxpayer changes his accounting period from fiscal year to calendar year, from calendar year to fiscal year, or from fiscal year to another, the net income of such taxpayer shall, with the approval of the Commissioner, be computed on the basis of such new accounting period.
A. 
How taxed. Individuals carrying on business in partnership shall be liable for the tax herein imposed only in their individual capacity. The net income of the partners as such shall not be taxed to the partnership.
B. 
Computation of partnership net income. The net income of the partnership shall be computed in the same manner and on the same basis as provided by §§ 271-3 through 271-10 hereof, inclusive.
C. 
Different taxable periods of partner and partnership. If the taxable period of a partner is different from that of the partnership, the inclusions with respect to the net income of the partnership, in computing the net income of the partner for his taxable period, shall be based upon the net income of the partnership for any taxable period of the partnership ending within or with the taxable period of the partner.
D. 
Net operating losses of partnerships. The benefit of the deductions for net operating losses allowed by § 271-5G hereof shall not be allowed to a partnership, but shall be allowed to the members of the partnership under regulations prescribed by the Commissioner.
E. 
Unincorporated associations, joint ventures, and common trust funds. Unincorporated associations, joint ventures, and common trust funds, whose earnings are distributed or distributable to its members, shall be treated as partnerships for the purpose of the tax imposed by this article.
A. 
The net income of the following entities shall be exempt from the tax imposed by this article:
(1) 
Every corporation which is subject to the Pennsylvania corporate net income tax.
(2) 
Every corporation which is exempt from the Pennsylvania corporate net income tax.
(3) 
Every eleemosynary corporation created and existing for purely religious, educational, literary, scientific or charitable purposes.
(4) 
Fraternal and religious organizations, business leagues, chambers of commerce, real estate boards, boards of trade, civic leagues and social service, and recreational clubs and community chests, funds, or foundations, and cemetery companies whether such organization is incorporated or unincorporated, if no part of the net earnings thereof inures to the benefit of any private shareholder, individual, estate, or trust.
B. 
The corporations and organizations which are specifically exempted in Subsection A of this section from the tax herein imposed shall, however, be required to withhold the tax from compensation paid to their employees as provided in § 271-19 hereof, and to furnish returns of information as provided in § 271-14A hereof concerning income payments made to persons whose net income is subject to the tax hereunder.
The following returns shall be filed with the Commissioner:
A. 
Individual returns. Every individual resident of the Borough of Towanda, any part of whose net income is subject to the tax imposed by this article, having for the taxable period a gross income, shall make a return to the Commissioner, which shall contain or be verified by a written declaration that it is made under the penalties of perjury. Such return shall set forth in such cases, and to such extent and in such details as the Commissioner may by regulations prescribe, the items of gross income, and the deductions and credits allowed, and such other information for the purpose of carrying out the provisions of this article as may be prescribed by such regulations. A husband and wife may make a single return jointly, provided their taxable periods are the same. Such a return may be made even though one of the spouses has neither gross income nor deductions. If a joint return is made, the tax shall be computed on the aggregate income and the liability with respect to the tax shall be joint and several. In the event that a taxpayer's taxable net income consists solely of salary, wages or other compensation from which the tax has been withheld by his employer and paid to the Commissioner, such taxpayer shall be relieved of the necessity of filing a return. If the taxpayer is unable to make his own return, the return shall be made by a duly authorized agent or by the guardian or other person charged with the care of the person or property of such taxpayer. The fact that an individual's name is signed to a filed return shall be prima facie evidence for all purposes that the return was actually signed by him.
Returns shall be filed with the Commissioner of Income Tax in the Borough as follows:
A. 
General rule. Returns made on the basis of the calendar year shall be made on or before the 15th day of April following the close of the calendar year. Returns made on the basis of a fiscal year shall be made on or before the 15th day of the fourth month following the close of the fiscal year. Returns made on the basis of a taxable period of less than 12 months shall be made on or before the 15th day of the fourth month following the close of the taxable period.
B. 
Extension of time. The Commissioner may grant a reasonable extension of time for filing returns, under such rules and regulations as he may prescribe.
Payment of tax shall be made as follows:
A. 
Time of payment. The total amount of tax imposed by this article shall be paid to the Commissioner on or before the 15th day of April following the close of the taxable period; or if the return should be made on the basis of a fiscal year or a taxable period of less than 12 months ending on the last day of the month other than December, then the total amount of tax shall be paid on or before the 15th of the fourth month following the close of the taxable period.
B. 
Credits against tax. The following credits shall be allowed against the tax:
(1) 
Tax withheld. The amount deducted and withheld as tax under § 271-19 hereof during any calendar year upon wages of any individual, shall be allowed as a credit to the recipient of the income against the tax imposed by this article for the taxable period beginning in such calendar year. If more than one taxable period begins in any such calendar year, such amount shall be allowed as a credit against the tax for the last taxable period so beginning.
(2) 
Estimated tax on declaration. The aggregate amount paid on account of the estimated tax appearing on a declaration of estimated tax filed for the taxable period under the provisions of §§ 271-17 and 271-18 hereof shall be allowed as a credit against the tax imposed by this article for the taxable period.
C. 
Extension of time for payment. At the request of the taxpayer, the Commissioner may extend the time for payment of the amount determined as the tax by the taxpayer, for a period not to exceed three months from the date prescribed for the payment of the tax, with interest at 1/2 of 1% per month.
D. 
Fractional parts of cent. In payment of any tax under this article, a fractional part of a cent shall be disregarded unless it amounts to $0.50 or more, in which case it shall be increased to $0.01.
The provisions relating to declarations of estimated tax are as follows:
A. 
Requirement of declaration. Every taxpayer who anticipates taxable income which is not subject to the provisions of § 271-19 hereof, and every employee of a governmental unit, whose net income is subject to the tax, but from whose salary, wages or other compensation the tax will not be deducted by his employer, shall at the time prescribed by Subsection D of this section make a declaration of his estimated tax for the taxable period.
B. 
Contents of declaration.
(1) 
In the declaration required under Subsection A, the taxpayer shall state:
(a) 
The amount which he estimates as the amount of tax under this article for the taxable period without regard to any credits under § 271-16B(1) hereof.
(b) 
The amount which he estimates as a credit under § 271-16B(1) hereof.
(c) 
The excess of the amount estimated under Subsection B(1)(a), above, over the amount estimated under Subsection B(1)(b), above, which excess for the purposes of this article shall be considered the estimated tax for the taxable period.
(2) 
The declaration shall also contain such other information as the Commissioner may by regulations prescribe and shall contain or be verified by a written statement that is made under the penalties of perjury.
C. 
Joint declaration.
(1) 
In the case of a husband and wife, a single declaration under this section may be filed by them jointly, in which case the liability with respect to the estimated tax shall be joint and several.
(2) 
If a joint declaration is made but a joint return is not made for the taxable period, the estimated tax for such year may be treated as the estimated tax of either the husband or the wife, or may be divided between them.
D. 
Time and place for filing. The declaration required under Subsection A of this section shall be filed with the Commissioner on or before the 15th day of the fourth month of the taxable period, except that if the requirements of Subsection A of this section are first met:
(1) 
After the first day of the third month and before the second day of the sixth month of the taxable period, the declaration shall be filed on or before the 15th day of the sixth month of the taxable period;
(2) 
After the first day of the sixth month and before the second day of the ninth month of the taxable period, the declaration shall be filed on or before the 15th day of the ninth month of the taxable period; or
(3) 
After the first day of the ninth month and before the second day of the 12th month of the taxable period, the declaration shall be filed on or before the 15th day of the twelfth month of the taxable period.
E. 
Amendment of declaration. A taxpayer shall file an amendment of his original declaration for the taxable period, at any time such amendment may become necessary due to an unexpected increase or decrease in his estimated taxable net income.
F. 
Extension of time. The Commissioner may grant a reasonable extension of time for filing declarations and paying the estimated tax, under such rules and regulations as he shall prescribe. The tax due shall bear interest at the rate of 1/2 of 1% per month during the extension.
G. 
Persons under disability. If a taxpayer is unable to make his own declaration, the declaration shall be made by a duly authorized agent or by the guardian or other person charged with the care of the person or property of such taxpayer.
H. 
Signatures presumed correct. The fact that an individual's name is signed to a file declaration shall be prima facie evidence for all purposes that the declaration was actually signed by him.
The following provisions shall govern payment of the estimated tax provided by § 271-17 hereof.
A. 
In general. The estimated tax shall be paid as follows:
(1) 
If the declaration is required to be filed on or before the 15th day of the fourth month of the taxable period, the estimated tax shall be paid in four equal installments. The first installment shall be paid at the time of the filing of the declaration; the second installment on the 15th day of the sixth month of the taxable period; the third installment on the 15th day of the ninth month of the taxable period; and the fourth installment on the 15th day of the 12th month of the taxable period.
(2) 
If the declaration is required to be filed after the 15th day of the third month and not later than the 15th day of the sixth month of the taxable period, the estimated tax shall be paid in three equal installments. The first installment shall be paid at the time of the filing of the declaration, the second installment on the 15th day of the ninth month of the taxable period and the third payment on the 15th day of the 12th month of the taxable period.
(3) 
If the declaration is required to be filed after the 15th day of the sixth month and not later than the 15th day of the ninth month of the taxable period, the estimated tax shall be paid in two equal installments. The first installment shall be paid at the time for the filing of the declaration; and the second installment on the 15th day of the 12th month of the taxable period.
(4) 
If the declaration is required to be filed after the 15th day of the ninth month of the taxable period, the estimated tax shall be paid in full at the time of the filing of the declaration.
(5) 
If the declaration is filed after the time prescribed in § 271-17D hereof, including cases in which an extension of time for filing the declaration has been granted under § 271-17F hereof, Subsections A(2), A(3) and A(4) of this subsection shall not apply, and there shall be paid at the time of such filing all installments of estimated tax which have been payable on or before such time if the declaration had been filed within the time prescribed in § 271-17D, and the remaining installments shall be paid at the time at which, and in the amounts in which, they would have been payable if the declaration had been so filed.
B. 
Amendments of declaration. If any amendment of a declaration is filed, the remaining installments, if any, shall be ratably increased or decreased, as the case may be, to reflect the increase or decrease, as the case may be, in the estimated tax by reason of such amendment, and if any amendment is made after the 15th day of the ninth month of the taxable period, an increase in the estimated tax by reason thereof shall be paid at the time of making such amendment.
C. 
Installments paid in advance. At the election of the taxpayer, any installment of the estimated tax may be paid prior to the date prescribed for its payment.
D. 
Payment as part of tax for taxable period. Payment of the estimated tax or any installment thereof, shall be considered payment of account of the tax for the taxable period.
The following provisions shall govern the withholding of tax at the source:
A. 
Requirements of withholding. Every employer who maintains a place of business in or resides in the Borough and employs one or more persons on a salary, wage, commission or other compensation basis, shall deduct and withhold from payments of all such salaries, wages, commissions or other compensation made to residents of the Borough regardless of where their services were rendered and nonresidents who are subject to Article I of this chapter, the tax of 1% of such payments.
[Amended 2-9-2004 by Ord. No. 2-2004]
B. 
Employers quarterly withholding returns. Every employer required under Subsection A of this section to deduct and withhold the tax from salaries, wages, commissions, and other compensation paid to his employees shall make a return quarterly, which shall contain or be verified by a written declaration that it is made under penalties of perjury. Such return shall set forth the aggregate amount of the tax withheld by the employer during the quarter of the calendar year for which the return is made, and such other information as the Commissioner may by regulations prescribe. The return shall be signed by the employer, and the fact that the employer's name is signed to a file return shall be prima facie evidence for all purposes that the return was actually signed by him.
C. 
Time and place for filing withholding returns. Employers' quarterly withholding returns shall be filed with the Commissioner of Income Tax of the Borough on or before the last day of the month following the quarter for which the return is made.
D. 
Payment of tax. The total amount of the tax withheld during a quarter shall be paid to the Commissioner at the time of the employer's quarterly withholding return is filed, viz.: on or before the last day of the month following the quarter during which the tax was withheld.
E. 
Failure of employer to file a return and pay the tax. The failure or omission of any employer to make a return and pay the tax to the Commissioner shall not relieve the employee from payment of the tax.
F. 
Tax withheld as part of tax for taxable period. The tax withheld by an employer shall be considered payment on account of the employee's tax for the taxable period.
G. 
Employers annual withholding returns. Every employer required to deduct and withhold a tax in respect of the salary, wages, commission or other compensation of an employee shall furnish to each such employee in respect of his employment during the calendar year, on or before January 31 of the succeeding year or, if his employment is terminated before the close of such calendar year, on the day on which the last payment of compensation is made, a written statement showing the compensation paid by the employer to such employee during such calendar year, and the amount of tax deducted and withheld under this section with respect to such compensation. An annual return containing a summary by quarters of the compensation paid to employees and the tax withheld therefrom during the calendar year and such other information as the Commissioner by rules and regulations may prescribe. With the last return of each year, the employer shall attach duplicate copies of the statement furnished to employees as provided in this subsection, which return shall be filed on or before January 31 of the succeeding year by every employer required to deduct and withhold tax under the provisions of this section.
If the amount of the net income, as returned by any taxpayer under this article to the federal government for any period ending after January 1, 1956, is finally changed or corrected by the Federal Commissioner of Internal Revenue, or by any other agency or court of the United States, such taxpayer, within 30 days after receipt of notice of such final change or correction, shall make report under penalties of perjury of such change or correction to the Commissioner in such form as the Commissioner may by regulations prescribe.
The term deficiency and "overpayment" shall mean for the purpose of this article the following excesses, respectfully:
DEFICIENCY
The amount by which the tax imposed by this article exceeds the sum of the amount shown as tax by the taxpayer, on his return, plus the amount previously assessed or collected as deficiencies.
OVERPAYMENT
The amount by which the amount shown as tax by the taxpayer on his return, plus the amounts previously assessed or collected as deficiencies, over the tax imposed by this article.
A. 
In the event that the Commissioner shall determine that a deficiency exists in the tax of any taxpayer, he shall notify such taxpayer by registered mail of such deficiency and the taxpayer shall have the privilege of making a protest in writing against the findings of the Commissioner within 30 days of the date upon which the notice was mailed by the Commissioner. If requested by the taxpayer, the Commissioner shall grant the taxpayer an oral hearing at which the taxpayer may be represented by an attorney or agent, provided a power of attorney authorizing such representation is filed with the Commissioner. In the event the taxpayer does not protest the findings of the Commissioner within the required time, the deficiency together with interest and penalties, if any, thereon shall be immediately collected.
B. 
In the event that after the filing of a protest by the taxpayer, the findings of the Commissioner are unchanged or not changed sufficiently to eliminate the entire deficiency and the taxpayer is so notified by the Commissioner by registered mail, the taxpayer shall have the privilege of appealing the decision of the Commissioner to the Board of Appeal and Review within 30 days of the date upon which the second notice was mailed by the Commissioner. If requested by the taxpayer, the Board of Appeals and Review shall grant the taxpayer an oral hearing, at which the taxpayer may be represented by an attorney or agent, provided a power of attorney authorizing such representation is filed with the Board. In the event the taxpayer does not appeal the findings of the Commissioner to the Board of Appeal and Review, or in the event the Board does not, after appeal, change the Commissioner's findings sufficiently to eliminate the entire deficiency, the deficiency remaining, together with interest and penalties, if any thereon, shall be immediately collected.
Provisions relating to the determination of overpayments refundable shall be as follows:
A. 
Overpayment. Where there has been an overpayment of any tax imposed by this article, the amount of such overpayment shall be credited against any other taxes then due from the taxpayer to the school district and any balance shall be refunded immediately to the taxpayer.
B. 
Excessive withholding. When the amount of the tax withheld at the source under § 271-19 hereof exceeds the tax imposed by this article against which the tax so withheld may be credited under § 271-16B(1) hereof, the amount of such excess shall be considered an overpayment.
C. 
Excessive estimated tax. When the aggregate amount of estimated tax paid under §§ 271-17 and 271-18 hereof exceeds the tax imposed by this article against which the estimated tax so paid may be credited under § 271-16B(2) hereof, the amount of such excess shall be considered an overpayment.
A. 
In the case of a false or fraudulent return with intent to evade tax, or failure to file a return, or of a wilful attempt to defeat or evade tax, the tax may be assessed or a proceeding in court for collection without assessment may be begun at any time.
B. 
Overpayments of taxes imposed by this article shall not be refunded unless a proper claim for refund is filed by the taxpayer within three years from the date of filing the return on which the overpayment was made, or two years from the date of payment of the tax, whichever period expires later, except that if the return was filed before the due date, the three-year refund period shall begin on the last day prescribed for filing the return.
All taxes imposed by this article remaining unpaid after they become due shall bear interest at the rate of 6% per year.
Any taxpayer, employer or person who shall fail, neglect or refuse to make any return or declaration required by this article; or any employer who shall refuse to deduct and withhold the tax; or any taxpayer or employer who shall refuse to pay the tax, penalties and interest imposed by this article; or any person who shall refuse to permit the Commissioner or any duly authorized agent or employee to examine his books, records and papers, or who shall knowingly make any incomplete, false or fraudulent return, or who shall attempt to do anything whatever to avoid payment of the whole or any part of the tax; shall be liable to prosecution before any Magisterial District Judge in and for the Borough of Towanda, and upon conviction of a violation of this article shall be liable to a fine of not more than $500 and costs unpaid, and in default of payment, be subject to maximum imprisonment not to exceed 30 days.
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
A. 
The Commissioner of Income Tax of the Borough of Towanda may sue for the recovery of taxes due and unpaid under this article together with interest, at the rate of 6% per annum from the period when the taxes become due, and costs.
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 a 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 of return was required to be filed by him under the provisions of this article.
(2) 
Where an examination of the declaration or return in the possession of the Commissioner of Income Tax reveals a fraudulent evasion of taxes, including, but not limited to, substantial understatement of taxes deducted and the actual or estimated net profits or earnings.
(3) 
Where any person has deducted taxes under the provisions of this article and has failed to pay the amount so deducted to the Commissioner of Income Tax.
A. 
A Commissioner of Income Tax shall be elected annually by the Borough Council to serve during the ensuing fiscal year ending December 31, who shall receive such compensation for his services as the Borough Council shall determine.
B. 
It shall be the duty of the Commissioner of Income Tax to collect and receive the tax imposed by this article in the manner prescribed herein. It shall also be his duty to keep an accurate record showing the amount of tax assessed to each taxpayer and the amount received by him from each taxpayer or employer, and the dates of such assessments and payments.
C. 
The Commissioner of Income Tax is hereby charged with the enforcements of the provisions of this article, and is hereby empowered, subject to the approval of the Board of Appeal and Review and the Borough Council, to adopt and promulgate and to enforce rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this article, including provisions for the examination and correction of returns.
The Commissioner, or any agent or employee authorized by him in writing, 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 employer or supposed employer, or taxpayer or supposed taxpayer, is hereby directed and required to give to the Commissioner, or his duly authorized agent or employee, the means, facilities and opportunity for such examinations and investigations as are hereby authorized. The Commissioner 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 Commissioner, or any employee, agent or other official of the Borough, as a result of any returns, examinations, 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 divulging such information, whether or not at the time of divulging it a Commissioner, employer, agent or other official as aforesaid, shall be guilty of a misdemeanor and upon conviction shall be fined not more than $1,000 and costs for each offense, or be imprisoned for not more than one year or both, and if the offender be an officer or employee of the Borough, he shall be dismissed from office or discharged from employment.
A. 
A Board of Appeal and Review consisting of three members shall be elected annually by the Borough Council to serve during the ensuing fiscal year ending December 31. The members of the Board of Appeal and Review shall receive such compensation for their services as the Borough Council shall determine. If a member of the Borough Council is elected to serve as a member of the Board of Appeal and Review, he shall serve without compensation.
B. 
All rules, regulations and amendments or changes thereto which are adopted by the Commissioner under the authority conferred by this article must be approved by the Borough Council before the same become effective. After such approval, said rules, regulations, amendments and changes shall be filed with the Secretary of the Borough, and shall be open to public inspection.
C. 
Any person dissatisfied with any ruling of the Commissioner which is made under authority conferred by this article, may appeal therefrom to the Board of Appeal and Review within 30 days from the announcement of such ruling or decision by the Commissioner, and the Board of Appeal and Review shall, on hearing, have jurisdiction and authority by the vote of a majority of said Board to affirm, reverse or modify any such ruling or decision or any part thereof.
D. 
A majority of the members of the Board of Appeal and Review shall constitute a quorum. The Board of Appeal and Review shall adopt its own procedural rules and shall keep a record of its transactions. All hearings of the Board shall be conducted privately and the provisions of § 271-30 hereof with reference to the confidential character of information shall apply to such matters as may be heard before the Board of Appeal and Review on appeal.
This article shall not apply to any person or property as to whom or which it is beyond the legal power of the Borough to impose the tax herein provided for.