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.
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.