[Ord. 137, 2/6/1967, § 1; as amended by Ord. 416,
6/4/2003, § I; and by Ord. 424, 5/12/2004, § 1]
1.
ASSOCIATION
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EMPLOYER
INCOME TAX OFFICER
NET PROFITS
A.
B.
C.
D.
NONRESIDENT
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
Unless otherwise expressly stated, the following terms shall have,
for the purpose of this Part, the meanings ascribed to them in this
Section:
A partnership, limited partnership or any other unincorporated
group of two or more persons.
An enterprise, activity, profession or any other undertaking
of an unincorporated nature conducted for profit or ordinarily conducted
for profit whether by a person, partnership, association or any other
entity.
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.
The calendar year for which the tax is levied.
The place where one lives and has his permanent home and
to which he has the intention of returning whenever he is absent.
Actual residence is not necessarily "domicile," for "domicile" is
the fixed place of abode which, in the intention of the taxpayer,
is permanent rather than transitory. "Domicile" is the place in which
a man has voluntarily fixed the habitation of himself and his family,
not for a mere special or limited purpose, but with the present intention
of making a permanent home, until some event occurs to induce him
to adopt some other permanent home. In the case of businesses or associations,
the domicile is that place considered as the center of business affairs
and the place where its functions are discharged.
Compensation as determined under § 303 of the Act
of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of
1971," and regulations in 61 Pa. Code Pt. I Subpt. B Art. V (relating
to personal income tax). Employee business expenses are allowable
deductions as determined under Article III of the "Tax Reform Code
of 1971." The amount of housing allowance provided to a member of
the clergy shall not be taxable as earned income.
A person, partnership, association, corporation, institution,
governmental body or unit or agency, or any other entity employing
one or more persons for a salary, wage, commission or other compensation.
Any person, public employee or private agency designated
by the political subdivision to collect and administer the tax on
earned income and net profits.
The net income from the operation of a business, profession
or other activity, except corporations, determined under § 303
of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform
Code of 1971," and regulations in 61 Pa. Code Pt. I Subpt. B Art.
V (relating to personal income tax). The term does not include income
which is not paid for services provided and which is in the nature
of earnings from an investment. For taxpayers engaged in the business,
profession or activity of farming, the term shall not include:
Any interest earnings generated from any monetary accounts or
investment instruments of the farming.
Any gain on the sale of farm machinery.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes.
Any gain on the sale of other capital assets of the farm.
A person, partnership, association or other entity domiciled
outside the political subdivision.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the political subdivision.
The calendar year following the current year.
A person, partnership, association or any other entity, required
hereunder to file a return of earned income or net profits, or to
pay a tax thereon.
2.
In this Part, the singular shall include the plural and the masculine
shall include the feminine.
3.
For the purpose of this Part, the "political subdivision" shall mean
the Borough of Red Hill.
[Ord. 137, 2/6/1967, § 2]
A tax for general revenue purposes in the amount of 1% is hereby
imposed on earned income and net profits earned by residents and nonresidents
of the political subdivision during the taxable year beginning on
April 1, 1967, and continuing for each taxable year thereafter.
[Ord. 137, 2/6/1967, § 3]
1.
The office of Income Tax Officer is hereby created and the person
designated as such by the political subdivision shall administer the
provisions of this Part. Such person shall be bonded as the political
subdivision may determine at all times for all money coming into his
hands under this Part and the cost of such bond shall be paid, as
determined by the political subdivision.
2.
The Income Tax Officer shall collect and receive the taxes, fines
and penalties imposed by this Part, shall furnish a receipt for payment
when requested to do so by a taxpayer and shall keep a record showing
the amount received by him for each taxpayer under this Part, together
with the date of the receipt of such payment.
3.
The Income Tax Officer is hereby empowered to prescribe, adopt, promulgate
and enforce rules and regulations relating to any matter pertaining
to the administration and enforcement of this Part, including provisions
for the re-examination and correction of declarations and returns
and of payments alleged or found to have occurred and to make refunds
in cases of overpayment, for any period of time not to exceed six
years subsequent to the date of payment of the sum involved and to
prescribe forms necessary for the administration of this Part. No
rule or regulation of any kind shall be enforceable unless it has
been approved by resolution of the political subdivision. A copy of
such rules and regulations currently in force shall be available for
public inspection.
4.
The Income Tax Officer, or any other person so designated by him
are hereby authorized to examine the books, papers and records of
any employer or of any taxpayer or of any person whom the Officer
reasonably believes to be an employer or taxpayer, 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 employer and every
taxpayer and every person whom the Officer reasonably believes to
be an employer or taxpayer is hereby directed and required to give
to the Officer, or to any agent designated by him, the means, facilities
and opportunity for such examination and investigations, as are hereby
authorized.
5.
The Income Tax Officer is authorized to establish different filing,
reporting and payment dates for taxpayers whose fiscal years do not
coincide with the calendar year.
6.
The Income Tax Officer is authorized to examine any person under
oath concerning any income which was or should have been returned
for taxation, shall have the power to compel the attendance of persons
whom he deems necessary to examine as witnesses, and to compel the
production of books, records and papers relating to any account being
examined.
7.
The Income Tax Officer shall have the power to re-examine returns,
correct erroneous returns and on petition and proof by the taxpayer
to make refunds and authorize the refunding of taxes erroneously or
improperly collected from or paid by the taxpayer.
8.
Any information gained by the Income Tax Officer or any other official
or agent of this political subdivision as a result of any return,
investigation, hearing or examination required or authorized by this
Part shall become confidential, except for official purposes, or except
in accordance with proper judicial order or as otherwise provided
by law. Any disclosure of any such information, contrary to the provisions
of this Section shall constitute a violation of this Part.
9.
Any person who, except as permitted by the provisions of subsection (8) of this Part, divulges any information which is confidential under the provisions of this Part shall, upon conviction thereof before any district justice, be sentenced to pay a fine of not less than $50 nor more than $500 for each offense together with costs, and, in default of payment of such fine and costs shall be imprisoned for a period not exceeding 60 days.
[Ord. 137, 2/6/1967, § 4; as amended by Ord. 340,
12/6/1988]
1.
Net Profits.
A.
Every taxpayer making net profits 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 during the period beginning January 1 and ending December
31 of the current year, and pay to the Officer in four equal quarterly
installments the tax due thereon as follows: the first installment
on or before April 15 of the current year; the second installment
on or before June 15 of the current year; the third installment on
or before September 15 of the current year; and the fourth installment
on or before January 15 of the succeeding year.
B.
Any taxpayer who first anticipates any net profits after April 15
of the current year shall make and file the declaration hereinabove
required on or before June 15 of the current year, September 15 of
the current year or December 15 of the current year, whichever of
these dates next follows the date on which the taxpayer first anticipates
such net profit, and pay to the Income Tax Officer in equal installments
the tax due thereon on or before the quarterly payment dates which
remain after the filing of the declaration.
C.
Every taxpayer shall, on or before April 15 of the succeeding year,
make and file with the Income Tax Officer, a final return showing
the amount of new profits earned during the period beginning January
1 of the current year and ending December 31 of the current year,
the total amount of tax due thereon and the total amount of tax paid
thereon. At the time of filing the final return, the taxpayer shall
pay to the Income Tax Officer the balance of tax due or shall make
demand for refund or credit in the case of overpayment.
D.
Any taxpayer may, in lieu of paying the last quarterly installment
of his estimated tax, elect to make and file with the Officer on or
before January 31 of the succeeding year the final return as hereinabove
required.
E.
Every taxpayer who discontinues business prior to December 31 of
the current year shall, within 30 days after discontinuance of business,
file his final return as hereinabove required and pay the tax due.
2.
Earned Income.
A.
Every taxpayer shall, on or before April 15 of the succeeding year,
make and file with the Income Tax Officer, on a form prescribed by
the Income Tax Officer, a final return showing the amount of earned
income received during the period beginning January 1 of the current
year and ending December 31 of the current year, the total amount
of tax due thereon, the amount of tax paid thereon, the amount of
tax thereon that has been withheld pursuant to the provisions relating
to the collection at source 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.
B.
Quarterly Return.
(1)
Every taxpayer who is employed for a salary, wage, commission
or other compensation and who received any earned income not subject
to the provisions relating to collection at source shall make and
file with the Income Tax Officer, on a form prescribed by the Income
Tax Officer, a quarterly return on or before April 30 of the current
year, July 31 of the current year, October 31 of the current year,
January 31 of the succeeding year, setting forth the aggregate amount
of earned income not subject to withholding by him during the three-month
period 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, and subject to the tax, together with such other
information as the Officer may required. Every taxpayer making such
return shall, at the time of filing thereof, pay to the Officer the
amount of tax shown as due thereon.
(2)
Where the taxpayer has filed a declaration required hereinabove
shall thereafter reasonably be expected to earn during the taxable
period additional earnings not subject to collection at source, or
finds that he has overestimated his earnings, he may file an amended
declaration with the Income Tax Officer setting forth such relevant
information as the Income Tax Officer may require.
3.
Fiscal Year. Where the taxpayer is on a fiscal-year basis different from the taxable period, he may file a declaration on a fiscal-year basis setting forth his estimated net profits or earnings for a period included in the taxable period, then, in lieu of filing his declaration and making payments thereon at the times set forth in subsections (1) an (2):
A.
Pay the quarterly installments of the estimated tax according to
the declaration filed for the portion of the taxable period included
in said fiscal year.
B.
On or before the 105th day after the close of the fiscal year, file
a declaration of the estimated tax for the portion of the taxable
period included in said succeeding fiscal year and pay said tax in
equal quarterly installments, beginning with the due date of the filing
and ending with the first quarterly installment due after the close
of the taxable period.
|
The taxpayer shall file a final return on or before the 105th
day after the close of the fiscal year.
|
[Ord. 137, 2/6/1967, § 5; as amended by Ord. 340,
12/6/1988]
1.
Registration by Employers. Every employer having an office, factory,
workshop, branch, warehouse or other place of business within the
political subdivision who on April 1 employs one or more persons,
other than domestic servants, for a salary, wage, commission or other
compensation, shall on or before April 1 register with the Income
Tax Officer his name and address and such other information as the
Officer may require. Every employer having an office, factory, workshop,
branch, warehouse or other place of business with the political subdivision
who, after April 1, employs for the first time after that date one
or more persons, other than domestic servants, for a salary, wage,
commission or other compensation, shall within 15 days after becoming
an employer, register with the Officer his name and address and such
other information as the Officer may require.
2.
Duty to Withhold. Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the political
subdivision who employees one or more persons, other than domestic
servants, for a salary, wage, commission or other compensation, shall
deduct at the time of payment thereof the tax imposed by this Part
on the earned income due to his employee or employees.
3.
Withholding Procedure.
A.
Every employer 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, file a return and pay to the Income Tax
Officer the amount of taxes deducted during the preceding three-month
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. Such return shall show the name and Social Security
number of each such employee, the earned income of such employee during
such preceding three-month period, the tax deducted therefrom, the
political subdivisions imposing the tax upon such employee, the total
earned income of all such employees during such preceding three-month
period and the total tax deducted therefrom and paid with the return.
B.
On or before February 28 of the succeeding year, every employer shall
file with the Income Tax Officer:
(1)
An annual return showing the total amount of earned income paid,
the total amount of tax deducted and the total amount of tax paid
to the Income Tax Officer for the period beginning January 1 of the
current year and ending December 31 of the current year.
(2)
A return withholding statement for each employee employed during
all or part of the period beginning January 1 of the current year
and ending December 31 of the current year setting forth the employee's
name, address and Social Security number, the amount of earned income
paid to the employee during said period, the amount of tax deducted,
the political subdivision imposing the tax upon such employee, the
amount of tax paid to the Income Tax Officer.
C.
Every employer shall furnish two copies of the individual return
to the employee for whom it is filed.
4.
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 and withholding statements hereinabove
required and pay the tax due.
5.
Every employer who willfully or negligently fails or omits to make
the deductions required by this Section shall be liable for payment
of the taxes which he was required to withhold to the extent that
such taxes have not been recovered from the employee.
6.
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 Part with
respect to making returns and payment thereof.
7.
Any employer who for two of the preceding four quarterly periods
has failed to deduct the proper tax, or any part thereof, or has failed
to pay over the proper amount of tax to the Income Tax Officer may
be required by such Officer to file his return and pay the tax monthly.
In such cases, payments of tax shall be made to the Officer on or
before the last day of the month succeeding the month for which the
tax was withheld.
8.
No employer shall be required to register, deduct taxes, file returns
or pay taxes in the cases of domestic servants.
[Ord. 137, 2/6/1967, § 6; as amended by Ord. 340,
12/6/1988]
1.
All taxes imposed under this Part remaining unpaid after they shall
have become due, shall bear interest in addition to the amount of
unpaid tax at the rate of 6% per annum, and the person against whom
such tax is imposed shall pay a penalty of 1% of the amount of the
unpaid tax for each month or fraction of a month during which the
tax remains unpaid.
2.
All taxes imposed by this Part, together with all penalties, interests
and costs, shall be collectable by the Income Tax Officer, as taxes
are by law recoverable under the appropriate provisions, not inconsistent
with this Part, of the Local Tax Enabling Act of 1965, approved December
31, 1965, P.L. 1257. Provided, that the amount of any tax imposed
by this Part shall be assessed within three years after the return
was filed or within three years after the tax became due, whichever
is later, and no proceeding in court without assessment for the collection
of such tax shall be commenced after the expiration of such period;
except
A.
In the case of a false or fraudulent return with the intent to evade
tax, the tax may be assessed, or a proceeding in court for collection
may be commenced without assessment, at any time.
B.
In the case of a willful attempt to defeat or evade tax, the tax
may be assessed, or a proceeding in court for collection may be commenced
without assessment, at any time.
C.
In the case of failure to file a return, the tax may be assessed,
or a proceeding in court for collection may be commenced without assessment,
at any time.
D.
In the case where a taxpayer omits from his earned income an amount
which is in excess of 25% of the amount stated in the return, the
tax may be assessed, or a proceeding in court may be commenced without
assessment at any time within six years after the return was filed
or within six years after the tax became due, whichever is later.
3.
Any person who fails, neglects or refuses to make any declaration
or return required by this Part, any employer who fails, neglects
or refuses to register or to pay the tax deducted from his employees
or fails, neglects or refuses to deduct or withhold the tax from his
employees, any person who refuses to permit the Income Tax Officer
or any agent designated by him to examine his books, records and papers,
and any person who knowingly makes any incomplete, false, fraudulent
return or attempts to do anything whatsoever to avoid the full disclosure
of the amount of his net profits or earned income in order to avoid
the payment of the whole or any part of the tax imposed by this Part
shall, upon conviction thereof before any district justice, be sentenced
to pay a fine of not more than $500 for each offense and costs, and,
in default of payment of said fine and costs to be imprisoned for
a period not exceeding 60 days.
4.
The penalties imposed under this Section shall be in addition to
any other penalty imposed by any other Section of this Part or of
the Local Tax Enabling Act of 1965, P.L. 1257.
[Ord. 137, 2/6/1967, § 7]
The political subdivision reserves the privilege of providing
for the creation of bureaus or the compensation of officers, clerks
and employees either under existing departments, or otherwise, as
may be deemed expedient or necessary for the assessment and collection
of taxes imposed under this Part and also the right to make joint
agreements for the collection, including the cost thereof, with other
municipalities and school districts imposing like or similar taxes.
[Ord. 137, 2/6/1967, § 8]
This Part shall not apply to personal property or persons as
to whom it is beyond the legal power of the political subdivision
to impose the tax herein provided for.
