[Adopted 12-29-1980 by Ord. No. 80-19]
An earned income tax for general revenue purposes of 1/2% over
and above the earned income tax imposed by Ord. No. 1337,[1] September 6, 1966, and effective January 1, 1967, is hereby
imposed on all earned income, salaries, wages, commissions and other
compensation earned on or before January 1, 1981, by residents of
the Borough and on the net profits earned on and after January 1,
1981, of businesses, professions or other activities conducted by
such residents of the Borough.
The tax imposed by this article shall be collected by the Income
Tax Officer of the Borough appointed to collect the earned income
tax imposed by Ord. No. 1337.
As used in this article, the following terms shall have the
meanings indicated:
A partnership, limited partnership or any other unincorporated
groups of two or more persons.
A 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 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.
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent, and whether in cash or in property; not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workers' compensation acts, occupational disease
acts and similar legislation, or payments commonly recognized as old-age
benefits, retirement pay or pensions paid to persons retired from
service after reaching a specific age or after a stated period of
employment, or payments commonly known as public assistance or unemployment
compensation payments made by any governmental agency or payments
to reimburse expenses or payments made by employers or labor unions
for wage and salary supplemental programs, including, but not limited
to, programs covering hospitalization, sickness, disability or death,
supplemental unemployment benefits, strike benefits, social security
and retirement.
Any natural person who is a resident of the Borough.
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.
Person, public employee or private agency designated by the
Town Council of the Borough to collect and administer the tax or earned
income and net profits.
The net income from the operation of a business profession
or other activity, except corporations, after provision for all costs
and expenses incurred in the conduct thereof, determined either on
a cash or accrual basis in accordance with the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
A person, partnership, association or other entity domiciled
outside the Borough.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Borough.
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.
A.
Net profits.
(1)
Every taxpayer making net profits shall, on or before April 15, 1967,
and on the same date in each succeeding year, make and file with the
Officer, on a form prescribed or approved by the Officer, a declaration
of his estimated annual net profits during the period beginning January
1, 1981, and ending December 31, 1981, and each succeeding year, and
shall pay to the Officer in four equal quarterly installments the
tax due thereon as follows: 1/4 on April 15, 1981; 1/4 on June 15,
1981; 1/4 on September 15, 1981; and the final 1/4 on January 15,
1982. Similar dates shall be utilized in each year subsequent to the
year 1981.
(2)
Any taxpayer who first anticipates any net profit after April 15,
1981, shall make and file the declaration hereinabove required on
or before the quarterly payment date next following such anticipation,
and pay to the Officer in equal installments the tax due thereon on
or before the succeeding quarterly payment dates which remains after
the filing of the declaration.
(3)
Every taxpayer shall on or before April 15, 1981, and on the same
date of each succeeding year, make and file with the Officer, on a
form prescribed or approved by the Officer, a final return showing
the amount of net profits earned during the period beginning January
1, 1981, and ending December 31, 1981, and for each succeeding year
thereafter, 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 Officer the balance of tax due or shall make demand
for refund or credit in the case of overpayment. Any taxpayer may,
in lieu of paying the fourth quarterly installment of his estimated
tax, elect to make and file with the Officer on or before January
31st of the succeeding year the final return as hereinabove required.
(4)
The Officer is hereby authorized to provide by regulation for the
making and filing of adjusted declarations of estimated net profits
and for the payments of the estimated tax in cases where a taxpayer
who was filed the declaration hereinabove required anticipates additional
net profits not previously declared or finds that he has overestimated
his anticipated net profits.
(5)
Every taxpayer who discontinues business prior to December 31, 1981,
and prior to December 31st of each succeeding year, shall within 30
days after the discontinuance of business file his final return as
hereinabove required and pay the tax due.
B.
Earned income.
(1)
Annual earned income tax return. Every taxpayer shall, on or before
April 15, 1982, and on or before April 15th of each succeeding year,
make and file with the Officer on a form prescribed or approved by
the Officer, a final return showing the amount of earned income received
during the period beginning January 1, 1981, and ending December 31,
1981, and for succeeding years, showing the amount of earned income
received during the period beginning January 1 and ending December
31 of each succeeding 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.
(2)
Earned income not subject to withholding. 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 the collection
at source shall make and file with the Officer, on a form prescribed
or approved by the Officer, a quarterly return on or before April
30, 1981, July 31, 1981, October 31, 1981, and January 31, 1982, and
on the same dates of each succeeding year, setting forth the aggregate
amount of earned income not subject to withholding by him during the
three-month period ending March 31, 1981, June 30, 1981, September
30, 1981, and December 31, 1981, respectively, and on the same dates
of each succeeding year, and subject to the tax, together with such
other information as the Officer may require. Every taxpayer making
such return shall, at the time of filing thereof, pay to the Officer
the amount of tax shown as due thereon.
A.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the Borough who employs one or more
persons, other than domestic servants, for a salary, wage, commission
or other compensation, who has not previously registered, 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.
B.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the Borough who employs 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 article on the earned income due to his employee
or employees, and shall, on or before April 30, 1981, July 31, 1981,
October 31, 1981, and January 31, 1981, and on or before the same
dates of each succeeding year thereafter, file a return and pay to
the Officer the amount of taxes deducted during the preceding three-month
period ending March 31, 1981, June 30, 1981, September 30, 1981, and
December 31, 1981, respectively, and for the corresponding three-month
period of each succeeding year thereafter. Such return, unless otherwise
agreed upon between the Officer and employer, 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 subdivision imposing the tax upon
the employee, the total earned income of all such employees during
the preceding three-month period, and the total tax deducted therefrom
and paid with the return. 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 Borough shall be required by the 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.
C.
On or before February 28, 1982, and on or before February 28th of
each succeeding year thereafter, every employer shall file with the
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 Officer for the period beginning January 1, 1981, and ending
December 31, 1981, and for each succeeding year thereafter.
(2)
A return withholding statement for each employee employed during
all or any part of the period beginning January 1, 1981, and ending
December 31, 1981, and for each succeeding year thereafter, 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, and the amount of tax paid to the Officer.
Every employer shall furnish two copies of the individual return to
the employee for whom it is filed.
D.
Every employer who discontinues business prior to December 31, 1981,
and prior to December 31 of each succeeding year, shall within 30
days after the discontinuance of business file the returns and withholding
statements hereinabove required and pay the tax due.
E.
Except as otherwise provided in § 240-34 hereof, 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.
F.
The failure or omission of any employer to make the deductions required
by this section shall not relieve any employee from the payment of
the tax or from complying with the requirements of this article relating
to the filing of declarations and returns.
A.
It shall be the duty of the Officer to collect and receive the taxes,
fines and penalties imposed by this article. It shall also be his
duty to keep a record showing the amount received by him from each
person or business paying the tax and the date of such receipt.
B.
Each Officer, before entering upon his official duties, shall give
and acknowledge a bond to the Borough. If the Town Council of the
Borough shall by resolution designate any bond previously given by
the Officer as adequate, such bond shall be sufficient to satisfy
the requirements in this section.
(1)
Such bond shall be joint and several with one or more corporate sureties,
which shall be surety companies authorized to do business in the Commonwealth
of Pennsylvania and duly licensed by the Insurance Commissioner of
the Commonwealth of Pennsylvania.
(2)
Such bond shall be conditioned upon the faithful discharge by the
Officer, his clerks, assistants and appointees of all trusts confided
in him by virtue of his office, upon the just and faithful accounting
or payment over, according to law, of all monies and all balances
thereof paid to, received or held by him by virtue of his office,
and upon the delivery to his successor or successors in office of
all books, papers, documents or other official things held in right
of his office.
(3)
Such bond shall be taken in the name of the Borough or jointly in
the names of the Northgate School District and the Borough and shall
be for the use of such political subdivision or subdivisions appointing
the Officer, where the same Officer is appointed by the Northgate
School District and the Borough, and for the use of such other person
or persons for whom money shall be collected or received, or as his
or her interest shall otherwise appear in case of a breach of any
of the conditions thereof by the acts or neglect of the principal
on the bond.
(4)
The Borough or, if a joint bond is provided to the Northgate School
District and the Borough, either political subdivision or any person
may sue upon the said bond in its or his own name for its or his own
use.
(5)
Such bond shall contain the name or names of the surety company or
companies bound thereon. The Borough, or the Northgate School District
and the Borough if a combined bond is provided, shall fix the amount
of the bond at an amount equal to the maximum amount of taxes which
may be in the possession of the Officer at any given time.
(6)
The Borough, or the Northgate School District and the Borough if
a combined bond is provided, ma, at any time, upon cause shown and
due notice to the Officer and his surety or sureties, require or allow
the substitution or the addition of a surety company acceptable to
the Borough or to the Northgate School District and the Borough, as
the case may be, for the purpose of making the bond sufficient in
amount, without releasing the surety or sureties first approved from
any accrued liability or previous action on such bond.
(7)
The Borough or the Northgate School District and the Borough, as
the case may be, shall designate the custodian of the bond required
to be given by the Officer.
(8)
The Officer charged with the administration and enforcement of the
provisions of this article is hereby empowered to prescribe, adopt,
promulgate and enforce rules and regulations relating to any matter
pertaining to the administration and enforcement of this article,
including provisions for the reexamination and correction of declarations
and returns and of payments alleged or found to be incorrect, or as
to which an overpayment is claimed or found to have occurred, and
to 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 article.
No rule or regulation of any kind shall be enforceable until it has
been approved by resolution of the Town Council of the Borough. A
copy of such rules and regulations currently in force shall be available
for public inspection.
C.
With the prior approval of the Town Council of the Borough, the Officer
shall refund, on petition of and proof by the taxpayer, earned income
tax paid on the taxpayer's ordinary and necessary business expenses,
to the extent that such expenses are not paid by the taxpayer's
employer.
D.
The Officer and agents designated by him are hereby authorized to
examine the books, papers and records of any employer or of any taxpayer
or of any person who 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 who 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.
E.
Any information gained by the Officer, his agents or by any other
official or agent of the Borough as a result of any declarations,
returns, investigations, hearings or verifications required or authorized
by this article shall be confidential except for official purposes
and except in accordance with a proper judicial order or as otherwise
provided by law.
F.
The Officer is authorized to establish different filing, reporting
and payment dates for taxpayers whose fiscal years to not coincide
with the calendar year.
The Income Tax Officer shall receive such compensation for his
services and expenses as determined by the Town Council of the Borough
from time to time.
A.
The Officer may sue in the name of the Borough for the recovery of
taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by this article shall
be commenced within three years after such tax is due or within three
years after the declaration or return has been filed, whichever date
is later; provided, however, that this limitation shall not prevent
the institution of a suit for the collection of any tax due or determined
to be due in the following cases:
(1)
Where no declaration or return was filed by any person although a
declaration or return was required to be filed by him under the provisions
of this article, there shall be no limitation.
(2)
Where an examination of the declaration or return filed by any person,
or of other evidence relating to such declaration or return in the
possession of the Officer reveals a fraudulent evasion of taxes, there
shall be no limitation.
(3)
In the case of substantial understatement of tax liability of 25%
or more, and no fraud, suit shall be begun within six years.
(4)
Where any person has deducted taxes under the provisions of this
article and has failed to pay the amounts so deducted to the Officer,
or where any person has willfully failed or omitted to make the deductions
required by this section, there shall be no limitation.
C.
The Officer may sue for recovery of an erroneous refund, provided
such suit is commenced within two years after making such refund,
except that the suit may be brought within five years if it appears
that any part of the refund was induced by fraud or misrepresentation
of material fact.
If for any reason the tax is not paid when due, interest at
the rate of 6% per annum on the amount of said tax and an additional
penalty of 1/2 of 1% of the amount of the unpaid tax for each month
or fraction thereof during which the tax remains unpaid shall be added
and collected. Where suit is brought for the recovery of any such
tax, the person liable therefor shall, in addition, be liable for
the costs of collection and the interest and penalties herein imposed.
A.
Any person who fails, neglects or refuses to make any declaration
or return required by this article, any employer who fails, neglects
or refuses to register or to pay the tax deducted from his employees
or who fails, neglects or refuses to deduct or withhold the tax from
his employees; any person who refuses to permit the Officer or any
agent designated by him to examine his books, records and papers,
any person who knowingly makes any incomplete, false or fraudulent
return, or who attempts to do anything whatsoever to avoid the full
disclosure of the amount of his net profits or earned income in order
to avoid the payment of the whole or any part of the tax imposed by
this article shall, upon conviction thereof, be sentenced to pay a
fine of not more than $1,000 plus costs and, in default of payment
of said fine and costs, to a term of imprisonment not to exceed 30
days. Each day that a violation of this article continues shall constitute
a separate offense.
B.
Any person, firm or corporation who divulges any information which
is confidential under the provisions of the article shall, upon conviction
thereof, be sentenced to pay a fine of not more than $1,000 plus costs
and, in default of payment of said fine and costs, to a term of imprisonment
not to exceed 30 days. Each day that a violation of this article continues
shall constitute a separate offense.
C.
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section of this article.
D.
The failure of any person to receive or procure forms required for
making the declaration or returns required by this article shall not
excuse him from making such declaration or return.
A.
Every Income Tax Officer shall have power, in case of the neglect
or refusal of any person, copartnership, association or corporation
to make payment of the amount of any tax due to him, after two months
from the date of the tax notice, to levy the amount of such tax, any
penalty due thereon, and costs, not exceeding costs and charges allowed
constables for similar services, by distress and sale of the goods
and chattels of such delinquent taxpayer, wherever situate or found,
upon giving at least 10 days' public notice of such sale, by posting
10 written or printed notices and one advertisement in a newspaper
of general circulation published in the County.
B.
No failure to demand or collect any taxes by distress and sale of
goods and chattels shall invalidate any return made or lien filed
for nonpayment of taxes or any tax sale for the collection of taxes.
The Income Tax Officer shall demand, receive and collect from
all corporations, political subdivisions, associations, companies,
firms or individuals employing persons owing delinquent earned income
taxes or whose spouse owes delinquent earned income taxes or having
in possession unpaid commissions or earnings belonging to any person
or persons owing delinquent earned income taxes, or whose spouse owes
delinquent earned income taxes, upon the presentation of a written
notice and demand under oath or affirmation containing the name of
the person or the spouse thereof and the amount of tax due. Upon the
presentation of such written notice and demand, it shall be the duty
of any such corporation, political subdivision, association, company,
firm or individual to deduct from the wages, commissions or earnings
of such individual employees, then owing or that shall within 60 days
thereafter become due, or from any unpaid commissions or earnings
of any such person in its or his possession or that shall within 60
days thereafter come into its or his possession, a sum sufficient
to pay the respective amount of the delinquent earned income taxes
and costs shown upon the written notice or demand, and to pay the
same to the Income Tax Officer of the taxing district in which such
delinquent tax was levied within 60 days after such notice shall have
been given. Such corporation, political subdivision, association,
firm or individual shall be entitled to deduct from the moneys collected
from each employee the costs incurred from the extra bookkeeping necessary
to record such transactions, not exceeding 2% of the amount of money
so collected and paid over to the Income Tax Officer. Upon the failure
of any such corporation, political subdivision, association, company,
firm or individual to deduct the amount of such taxes or to pay the
same over to the Income Tax Officer, less the cost of bookkeeping
involved in such transaction, as herein provided, within the time
hereby required, such corporation, political subdivision, association,
company, firm or individual shall forfeit and pay the amount of such
tax for each such person whose taxes are not withheld and paid over
or that are withheld and not paid over, together with a penalty of
10% added thereto, to be recovered by an action of assumpsit in a
suit to be instituted by the Income Tax Officer or by the proper authorities
of the Borough, as debts of like amount are now by law recoverable,
except that such person shall not have the benefit of any stay of
execution or exemption law.
Upon presentation of a written notice and demand under oath
or affirmation to the State Treasurer or any other fiscal officer
of the state or its boards, authorities, agencies or commissions,
it shall be the duty of the Treasurer or Officer to deduct from the
wages then owing or that shall within 60 days thereafter become due
to any employee, a sum sufficient to pay the respective amount of
the delinquent earned income taxes and costs shown on the written
notice. The same shall be paid to the Income Tax Officer of the taxing
district in which said delinquent tax was levied within 60 days after
such notice shall have been given.
The Borough shall have power to collect unpaid taxes from the
persons owing such taxes by suit in assumpsit or other appropriate
remedy. Upon each such judgment, execution may be issued without any
stay or benefit of any exemption law.
This article and the tax imposed hereunder is adopted under
and by virtue of the authority vested in the Borough by its Home Rule
Charter, the provisions of which were adopted by the Borough in accordance
with Act 62 of the General Assembly, approved April 13, 1972, and
entitled Home Rule Charter and Optional Plans Law.
