[Adopted 11-14-1966 by Ord. No. 851 (Ch. 24, Part 2A, of the
1997 Code of Ordinances)]
[Amended 12-12-1988 by Ord. No. 1491]
This article shall be known as the "City of Warren Income Tax
Ordinance." The provisions of this article shall first become effective
January 1, 1967.
[Amended 12-12-1988 by Ord. No. 1491]
A.
ASSOCIATION
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EMPLOYER
INCOME TAX OFFICER OR OFFICERS
NET PROFITS
NONRESIDENT
PERSON or INDIVIDUAL
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
The following words and phrases, when used in this article, shall
have the meanings ascribed to them in this section except where the
context clearly indicates or requires a different meaning.
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.
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 and disability or retirement
or payment 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 unemployment, or payments commonly known as public assistance,
or unemployment compensation payments made by a 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.
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
City of Warren 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, 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 City of Warren, Pennsylvania.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the City of Warren, Pennsylvania.
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.
B.
In this article, the singular shall include the plural, and the masculine
shall include the feminine and the neuter gender.
[Amended 2-20-1978 by Ord. No. 1150; 12-19-2005 by Ord. No. 1724]
A.
A tax for general revenue purposes of 1% is hereby imposed upon the
following:
(1)
All of the salaries, wages, commissions and other forms of earned
income and compensation earned by residents.
(2)
The net profits earned by residents from businesses, professions
and other activities conducted by them.
(3)
All of the salaries, wages, commissions and other forms of earned
income and compensation earned by nonresidents of the City of Warren
for work done or services performed or rendered in the City of Warren
on or after January 1, 2006.
(4)
The net profits earned by nonresidents of the City of Warren from
businesses, professions and other activities conducted by them in
the City of Warren on or after January 1, 2006.
B.
The tax levied under Subsection A(1) and (3) above of this section shall be imposed upon salaries, wages, commissions and other compensation paid by an employer or on his behalf to any person who is employed by him. The tax levied under Subsection A(2) and (4) above of this section shall be imposed upon the net profits of any business, profession or other activity carried on by any person or persons.
C.
Every corporation which is subject to the Pennsylvania Corporate
Net Income Tax or exempt from the Pennsylvania Corporate Net Income
Tax and every corporation which is subject to the Pennsylvania Franchise
Tax or exempt from the Pennsylvania Franchise Tax shall be exempt
from the tax imposed by this article.
D.
The tax levied by this article shall be imposed on salaries, wages,
commissions and other forms of earned income and compensation and
on net profits earned in the period beginning March 6, 1978, and ending
December 31, 1978, and annually thereafter from January 1 to December
31 for residents, and in the period beginning January 1, 2006, and
ending December 31, 2006, and annually thereafter, for nonresidents.
[Amended 12-12-1988 by Ord. No. 1491]
A.
Net profits.
(1)
Every taxpayer who reasonably expects that he will earn any taxable
net profits during the current year shall, on or before April 15 of
the current year, make and file with the Income Tax Officer, on a
form prescribed by the Income Tax Officer, a declaration of his estimated
net profits for the current year, setting forth the estimated amount
of net profits reasonably expected by him for the said period and
subject to the tax; the amount of estimated tax imposed by this article
on such estimated profits; and such other relevant information as
the Income Tax Officer may require. The taxpayer making the declaration
shall, at the time of filing thereof, pay the City of Warren 1/4 of
the estimated tax shown as due thereon, and such taxpayer shall thereafter
pay 1/4 of the estimated tax in each of three installments as follows:
one installment on or before June 15 of the current year; one installment
on or before September 15 of the current year; and the last installment
on or before January 15 of the succeeding year.
(2)
A taxpayer who on April 15 of the current year did not reasonably expect that he would earn any taxable net profits during the current year and who subsequent to April 15 of the current year reasonably expects that he will earn taxable net profits or before December 31 of the current year shall make and file on or before June 15 of the current year, September 15 of the current year or January 15 of the succeeding year, whichever of these dates next follows the date on which the taxpayer first reasonably expects such taxable net profits, a declaration similar to that required under the foregoing Subsection A(1) of this section. A taxpayer making the declaration shall, at the time of filing thereof, pay to the City of Warren the estimated tax shown as due thereon; provided, however, that the taxpayer shall have the right to pay the estimated tax in equal installments on or before the quarterly installment dates which remain after the filing of the declaration.
(3)
The Income Tax Officer is hereby authorized to provide by regulation
for the making and filing of adjusted declarations of estimated net
profits and for the payment of the estimated tax in cases where a
taxpayer who has filed the declaration hereinabove required shall
thereafter either reasonably expect additional net profits not previously
declared or find that he has overestimated his net profits.
(4)
On or before April 15 of the succeeding year, every taxpayer who
has earned taxable net profits shall make and file with the Income
Tax Officer on a form prescribed by said officer a final return showing
all of such net profits for the current year; the total amount of
tax due; the amount of estimated tax paid under the provisions of
this section; and the balance of tax due. When the return is made
for a fiscal year different from the calendar year, the return shall
be made within 105 days from the end of the fiscal year. At the time
of filing the final return, the taxpayer shall pay the balance of
the tax due or shall make demand for refund or credit in the case
of overpayment. On or before January 31 of the succeeding year, a
taxpayer may, in lieu of paying his fourth quarterly installment of
his estimated tax, elect to file his return with the Income Tax Officer
and make final payment or claim refund, as the case may be.
(5)
Every taxpayer who discontinues business before December 31 of the
current year shall, within 30 days after discontinuance of the business,
file his final return as hereinabove required and pay the tax due
or demand refund or credit in the case of overpayment.
B.
Salaries, wages, commission and other forms of earned income and
compensation.
(1)
Every taxpayer who is employed on a salary, wage, commission or other compensation basis and who reasonably expects to earn any taxable earnings not subject to the provisions of § 424-5 of this article relating to collection at the source shall, on or before April 1 of the current year, make and file with the Income Tax Officer a declaration of his estimated total amount of taxable salaries, wages, commissions and other compensation for the current year; the estimated amount of tax thereon that will be deducted therefrom pursuant to § 424-5 of this article, the estimated amount of tax imposed by this article that will not be deducted therefrom pursuant to § 424-5 of this article; and such other relevant information as the Income Tax Officer may require. In preparing his declaration of estimated taxable salaries, wages, commissions and other compensation taxable under this article, the taxpayer shall use the same amounts with respect to such items as he shall have used in preparing his declaration of estimated tax for the current year for federal income tax purposes if such taxpayer shall be required to file any such last-mentioned declaration.
(2)
A taxpayer who on April 15 of the current year did not reasonably expect that he would earn any salaries, wages, commissions or other compensation not subject to the provisions of § 424-5 of this article relating to the collection at source during the current year and who subsequent to April 15 of the current year reasonably expects that he will earn salaries, wages, commissions and other compensation not subject to the provisions of § 424-5 of this article shall make and file on or before June 15 of the current year, September 15 of the current year or January 15 of the succeeding year, whichever of these dates next follows the date on which the taxpayer first reasonably expects that he will earn such taxable salaries, wages, commissions and other compensation, a declaration similar to that required under Subsection B(1) of this section.
(3)
The taxpayer making the declaration shall at the time of filing thereof
pay to the City of Warren the estimated tax shown as due; provided,
however, that the taxpayer shall have the right to pay the estimated
tax in equal installments on or before the quarterly installment payment
dates which remain after the filing of the declaration.
(4)
The Income Tax Officer is hereby authorized to provide by regulation
for the making and filing of adjusted declarations of estimated salaries,
wages, commissions and other compensation and for the payment of the
estimated tax in cases where a taxpayer who has filed the declaration
hereinabove required shall thereafter either reasonably expect additional
salaries, wages, commissions and other compensation not previously
declared or finds that he has overestimated his salaries, wages, commissions
and other compensation.
(5)
On or before April 15 of the succeeding year, every taxpayer who has received taxable salaries, wages, commissions and other compensation shall make and file with the Income Tax Officer on a form prescribed by the officer a final return, showing all such salaries, wages, commissions and other compensation earned during the current year; the total amount of tax due thereon; the amount of estimated tax thereon paid under the provisions of this section, if any; and the amount, if any, of tax thereon that has been withheld pursuant to the provisions of § 424-5 of this article; and the balance of the tax due. On or before January 31 of the succeeding year, a taxpayer may, in lieu of paying a fourth quarterly installment of his estimated tax, elect to file his final return with the Income Tax Officer and make final payment or claim refund, as the case may be. 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.
[Amended 12-12-1988 by Ord. No. 1491]
A.
Every employer within the City of Warren who employees one or more
persons on a salary, wage, commission or other compensation basis,
other than domestic servants, shall deduct at the time of payment
thereof the tax imposed by this article on salaries, wages, commissions
and other compensation due to his employee or employees, and shall,
on or before April 30 of the current year, July 31 of the current
year, October 31 of the current year and January 31 of the succeeding
year, respectively, make and file with the Income Tax Officer on a
form prescribed by the Income Tax Officer, a return setting forth
the taxes so deducted for the preceding quarterly periods ending March
31 of the current year, June 30 of the current year, September 30
of the current year and December 31 of the current year, respectively.
B.
On or before February 28 of the succeeding year, every such employer
shall file with the Income Tax Officer on forms prescribed by him
the following returns:
(1)
An annual return showing the total amount of salaries, wages, commissions
and other compensation earned by his employee or employees on which
tax is imposed by this article; the total amount of tax deducted;
and the total amount of tax paid to the City of Warren in respect
to salaries, wages, commissions and other compensation earned by his
employee or employees during the current year; and
(2)
A return in respect to each person who was an employee during all or part of the current year and who earned during the current year any taxable salaries, wages, commissions or other compensation subject to the tax imposed by this article, setting forth the employee's name, address and social security number; the amount of such salaries, wages, commissions or other compensation earned by the employee during the current year; the amount of tax deducted therefrom; and such other relevant information as the Income Tax Officer may require. Every employer shall furnish a copy of the individual return required by Subsection B(2) of this section to the employee in respect to whom it was filed.
C.
Every employer who discontinues business prior to December 31 of
the current year shall, within 30 days after discontinuance of business,
file the returns required by this section and pay the tax due.
D.
The failure or omission of any employer to make the deduction required
by this section shall not relieve any employee from the payment of
the tax due or from complying with the requirements of this article
relating to the filing of declarations and returns.
E.
If any employer makes a deduction of tax as required by this section,
the amount deducted shall constitute in the hands of such employer
a trust fund held for the account of the City of Warren as beneficial
owner thereof, and the employee from whose salaries, wages, commissions
or other compensation such tax was deducted shall be deemed to have
paid such tax.
[Amended 12-12-1988 by Ord. No. 1491]
A.
It shall be the duty of the Income Tax Officer to collect and receive
the taxes, fines and penalties imposed by this article. It shall also
be his duty to keep the record showing the amount received by him
and from each taxpayer or employer paying the tax and, if paid by
such taxpayer or employer in respect to another taxpayer, the name
of such other taxpayer and the date of such receipt.
B.
The Income Tax Officer is hereby charged with the administration
and enforcement of the provisions of this article and is hereby empowered
to prescribe, adopt, promulgate and enforce rules and regulations
relating to any matter pertaining to the administration and enforcement
of this article, including provisions for the reexamination and correction
of declarations and returns and of payments alleged or found to be
incorrect, or as to which an overpayment is claimed and found to have
been made, and to prescribe forms necessary for the administration
of this article.
C.
The Income Tax Officer and the agents designated in writing by him
are hereby authorized to examine the books, papers and records of
any taxpayer or employer 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 taxpayer and employer is hereby directed and required
to give to the Income Tax Officer or to any agent so designated by
him the opportunity for such examinations and investigations as are
hereby authorized.
D.
Any information gained by the Income Tax Officer, his agents, or
any other official, agent or employee of the City of Warren as a result
of any declaration, return, investigation, hearing or verification
required or authorized by this article shall be confidential and shall
not be disclosed to any person except for official purposes and except
in accordance with proper judicial order, or as otherwise provided
by law.
E.
Any taxpayer or employer aggrieved by any action of the Income Tax
Officer shall have the right to appeal as provided by law.
[Amended 12-12-1988 by Ord. No. 1491]
A.
The Income Tax Officer may sue in the name of the City of Warren
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 begun within three years after such tax is due or within three
years after the declaration or return has been filed, whichever 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 amount so deducted to the Income
Tax Officer or where any person has willfully failed or omitted to
make the deductions required by this article, there shall be no limitation.
(5)
This section of this article shall not be construed to limit the
City of Warren from recovering delinquent taxes by any other means
provided by the Local Tax Enabling Act.
C.
The Income Tax Officer may sue for recovery of an erroneous refund,
provided such suit is begun 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 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 recovery of any such tax,
the taxpayer or employer liable therefor shall, in addition, be liable
for the costs of collection and the interest and penalties herein
imposed.
[Amended 12-12-1988 by Ord. No. 1491]
The Income Tax Officer is hereby authorized to accept payment
of the amount of tax claimed by the City of Warren in any case where
any person disputes the validity or amount of the City of Warren's
claim for the tax. If it is thereafter judicially determine by a court
of competent jurisdiction that there has been an overpayment to the
Income Tax Officer, the amount of the overpayment shall be refunded
or credited to the taxpayer or employer who paid the tax.
[Amended 12-12-1988 by Ord. No. 1491]
The City of Warren shall, by resolution hereafter to be adopted,
appoint a person, public employee, or private agency as Income Tax
Officer, whose term shall expire at the end of the year for which
appointed. The Income Tax Officer shall receive such compensation
for his services and expenses as determined by the City of Warren.
The Income Tax Officer shall have the powers and duties prescribed
in this article and as prescribed by the Local Tax Enabling Act.
[Amended 12-12-1988 by Ord. No. 1491]
The tax imposed by this article shall not apply:
A.
To any person as to whom it is beyond the legal power of the City
of Warren to impose the tax herein provided for under the Constitution
of the United States and the Constitution and laws of the Commonwealth
of Pennsylvania.
B.
To the net profits of any institution or organization operated for public, religious, educational or charitable purposes; to an institution or organization not organized or operated for private profit; or to a trust or a foundation established for any of the said purposes. This section shall not be construed to exempt any employer from the duty of collecting the tax at source from his employees and paying the amount collected to the City of Warren under the provisions of § 424-5 of this article.
[Amended 12-8-1997 by Ord. No. 1622]
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 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, and any
person who knowingly makes any incomplete, false or fraudulent return,
or attempts to do anything whatsoever to avoid the full disclosure
of the amount of his earned income in order to avoid the payment of
the whole or part of the tax imposed by this article shall, upon conviction
thereof before a Magisterial District Judge or court of competent
jurisdiction, be sentenced to pay a fine of not more than $500 for
each offense plus costs and, in default of payment of said fine and
costs, to a term of imprisonment not to exceed 30 days.
B.
Any person who divulges any information which is confidential under
the provisions of this article shall, upon conviction thereof before
any Magisterial District Judge or court of competent jurisdiction,
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 a
term of imprisonment not to exceed 30 days.
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 return required by this article shall not
excuse him from making such declaration or return.
The authority under which this tax is levied or imposed is the
Act of December 31, 1965, Act 511 of the General Session of 1965 known
as "The Local Tax Enabling Act."[1]
[1]
Editor's Note: See 53 P.S. § 6901 et seq. and 53 P.S.
§ 6924.101 et seq.
The tax imposed by this article is a recurring tax from year
to year.
