[Adopted 5-12-1975 by Ord. No. 603 (Ch. 24, Part 3, of the
1993 Code)]
The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section:
A partnership, limited partnership, or any other unincorporated
group of two or more persons.
The Borough of Irwin, Westmoreland County, Pennsylvania.
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, disability or retirement or
payments arising under workmen's 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.
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.
A person, public employee or private agency designated by
the Borough Council 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 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.
A tax of 1/2 of 1% is hereby imposed for general revenue purposes
on:
(1)
Earned income received by residents of the Borough during the period
beginning January 1, 1975, and ending December 31, 1975, and each
calendar year thereafter.
(2)
Earned income received by nonresidents of the Borough for work done
or services performed or rendered in the Borough during the period
beginning January 1, 1975, and ending December 31, 1975, and each
calendar year thereafter.
(3)
Net profits of residents of the Borough earned during the period
beginning January 1, 1975, and ending December 31, 1975, and each
calendar year thereafter.
(4)
Net profits of nonresidents of the Borough arising out of the operation
of a business, profession or other activity conducted in the Borough
during the period beginning January 1, 1975, and ending December 31,
1975, and each calendar year thereafter.
B.
The taxes levied under Subsection A(1) and (2) shall relate to and be imposed upon compensation paid by an employer or on his behalf to any person who is employed by or renders service to him. The taxes levied under Subsection A(3) and (4) shall relate to and be imposed upon the net profits of any business, profession or enterprise carried on by any person or owner or proprietor, either individually or in association with any other person or persons.
C.
Such taxes shall be levied with respect to the earned income or net
profits derived during the calendar year for which such tax is levied,
provided, where the fiscal year of a business, profession or other
activity differs from the calendar year, the tax shall be applicable
to the net profits of the fiscal year.
A.
Net profits.
(1)
Every taxpayer making net profits shall, on or before April 15 of
the current year, make and file with the Officer, on a form prescribed
or approved by the 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 thereon as follows: the first installment at the time of filing
the declaration, and the other installments on or before June 15 of
the current year, September 15 of the current year and January 15
of the succeeding year, respectively.
(2)
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, whichever of these
dates next follows the date on which the taxpayer first anticipates
such net profit, and pay to the Officer in equal installments the
tax due thereon on or before the quarterly payment dates which remain
after the filing of the declaration.
(3)
Every taxpayer shall, on or before April 15 of the 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 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 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 31 of the succeeding year, the final return as hereinabove
required.
(4)
The Officer is 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 has
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 of
the current year shall, within 30 days after the discontinuance of
business, file his 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 of the 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 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.
(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 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 of the current year, July 31 of the current year, October 31 of
the current year, and January 31 of the succeeding year, setting forth
the aggregate amount of earned income not subject to withholding by
him during the 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, 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, 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 subject to this tax, 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 of the current year, on or before July 31 of the current year,
on or before October 31 of the current year, and on or before 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
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. Each such return filed, unless otherwise agreed
upon between the Income Tax Officer and the employer, shall show the
name and social security number of each such employee, the earned
income of such employee during the preceding three-month period, or
other 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, or other
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 Income Tax Officer of
the Borough, 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.
C.
On or before February 28 of every year after 1975, 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 of the immediate
preceding year and ending December 31 of the immediate preceding year.
(2)
A return withholding statement for each employee employed during
all or part of the period beginning January 1 of the immediate preceding
year and ending December 31 of the immediate preceding year, setting
forth the employee's name, address, and social security number,
the amount of earned income paid to the employee during said period,
and the amount of tax deducted, the political subdivisions 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 employee who discontinues business prior to December 31 of
any current 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 by Section 9 of the Act of General Assembly
of the Commonwealth of Pennsylvania, approved the 31st day of December
1965, P.L. 1257, known as the "Local Tax Enabling Act," 53 P.S. § 6901
et seq.,[1] 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.
[1]
Editor's Note: See also 53 P.S. § 6924.101 et seq.
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.
[Amended 7-7-1993 by Ord. No. 791]
The Borough Council may, from time to time, appoint and designate
a person or entity to serve as Income Tax Officer.
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.
The Income Tax Officer, before entering upon his official duties,
shall give and acknowledge a bond to the Borough in such amount as
may be fixed from time to time by resolution of the Borough Council.
(1)
Each bond shall be joint and several, with one or more corporate
sureties which shall be surety companies authorized to do business
in this commonwealth and duly licensed by the Insurance Commissioner
of this commonwealth.
(2)
Each bond shall be conditioned upon the faithful discharge by the
Income Tax Officer, his clerks, assistants and appointees of all trusts
confided in him by virtue of this office, upon the faithful execution
of all duties required of him by virtue of his office, upon the just
and faithful accounting or payment over, according to law, of all
moneys 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)
Each bond shall be taken in the name of the Borough and shall be
for the use of such 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 any person may sue upon the said bond in its or his
own name for its or his own use.
(5)
Each such bond shall contain the name or names of the surety company
or companies bound thereon. The Borough 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 may, at any time, upon cause shown and due notice to
the Income Tax Officer, and his surety or sureties, require or allow
the substitution or the addition of a surety company acceptable to
said Borough 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 Officer's bond shall be held in the custody of the President
of Council of the Borough, or such other custodian as Council may
from time to time determine.
C.
The Borough Council 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 any 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. Such rules and regulations
shall be inscribed by the Borough Secretary into a book kept for that
purpose and open for the inspection of the public. Such rules and
regulations shall have the same force and effect as if they have been
incorporated into this article.
D.
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.
E.
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 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.
F.
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, or by proper rules and regulations issued thereunder,
shall be confidential, except for official purposes and except in
accordance with proper judicial order, or as otherwise provided by
law.
G.
The Officer is authorized to establish different filing, reporting
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
The Income Tax Officer shall receive such compensation for his
services and expenses as determined from time to time by the Council
of the Borough.
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 begun 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 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 article, there shall be no limitation.
C.
The Officer may sue for recovery of an erroneous refund, provided
such suit is begun 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 imposed
herein.
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 net profits of 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 $500 for each offense, and costs, and, in default of payment
of said fine and costs, to be imprisoned for a period not exceeding
30 days.
B.
Any person who divulges any information which is confidential under
the provisions of this article shall, upon conviction thereof, 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 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 returns required by this article shall not
excuse him from making such declaration or return.
