[Adopted 9-12-2011 by Ord. No. 2011-4]
This article shall be known and cited as the Union Township
"Earned Income and Net Profits Tax Ordinance."
The subject matter of this article is the assessing, levying
and imposing of a tax on earned income and net profits for this year
and every following year. The monies collected from this tax are for
general revenue purposes.
A.
ASSOCIATION
BUSINESS
COMPENSATION EARNED or COMPENSATION PAID or EARNINGS
CORPORATION
CURRENT YEAR
EMPLOYER
INCOME TAX COLLECTOR
NET PROFITS
NONRESIDENT
OUT-OF-STATE NONRESIDENT
PERSON
RESIDENT
TAXPAYER
For the purposes of this article, the following terms are defined
as follows and shall have the meanings ascribed to them in this section
unless the context clearly indicates a different meaning:
A partnership, limited partnership, or any other form of
unincorporated enterprise owned by two or more persons.
Any enterprise, activity, profession or undertaking of any
nature conducted for profit or ordinarily conducted for profit, whether
by an individual, copartnership, association or any other entity.
All salaries, wages, commissions, incentive payments and/or
other forms of compensation or remuneration, in cash or in property,
received by an individual and paid, directly or through an agent,
by an employer for services rendered.
Any corporation or joint-stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania, or
any other state, territory or foreign country or dependency.
The calendar year for which the tax is levied.
Any individual, copartnership, association, corporation,
governmental body or unit or agency or any other entity, who or that
employs one or more persons on a salary, wage, commission or other
compensation basis.
The person designated by Union Township to whom reports shall
be made and to whom taxes shall be paid and who shall be charged generally
with the administration and enforcement of the provisions of this
article.
The net gain from the operation of a business, profession
or enterprise, after provision for all costs and expenses incurred
in the conduct thereof, either paid or accrued in accordance with
the accounting system used and without deduction of taxes based on
income.
An individual, copartnership, association or other entity
domiciled outside Union Township.
An individual, copartnership, association or other entity
domiciled outside Union Township and the Commonwealth of Pennsylvania.
Every natural person, copartnership, fiduciary, association,
firm or corporation (except any corporation which, pursuant to the
provisions of the Act of General Assembly approved December 31, 1965,
P.L. 1257, and its amendments, is exempt from the taxes imposed by
this article). Whenever used in any clause prescribing and imposing
a penalty, the term "person," as applied to associations, shall mean
the partners or members thereof and, as applied to corporations, the
officers thereof.
An individual, copartnership, association or other entity
domiciled in Union Township.
A person, whether an individual, copartnership, association
or any other entity, required hereunder to file a return on earnings
or net profits or to pay a tax thereon.
B.
The singular shall include the plural, and the masculine shall include
the feminine and the neuter.
A.
The following annual taxes are hereby assessed, levied and imposed
for general revenue purposes for this year and every following year:
(1)
One percent of all compensation earned on and after January 1 by
residents, nonresidents and out-of-state nonresidents.
(2)
One percent of the net profits earned on and after January 1 of businesses,
professions and other activities conducted in Union Township by residents,
nonresidents and out-of-state nonresidents.
B.
The tax hereby assessed, levied and imposed under Subsection A(1) herein shall relate to and is hereby assessed, levied and imposed upon salaries, wages, commissions and other compensations paid by an employer or on his behalf to any person who is employed by or renders services to him. The tax assessed, levied and imposed under Subsection A(2) herein shall relate to and is hereby assessed, levied and imposed on the net profits of any business, profession or enterprise carried on by any person as owner or proprietor, either individually or in association with some other person or persons.
C.
The tax hereby assessed, levied and imposed under Subsection A(1) and (2) herein shall be on salaries, wages, commissions, compensation and earned income of nonresidents of political subdivision and out-of-state nonresidents as allowed by § 2 of the Local Tax Enabling Act, as amended.[1]
[1]
Editor's Note: See now 53 P.S. § 6924.301.1.
D.
It is not the intent of this article to impose a tax upon the profits
of those corporations which are subject to the payment of tax to the
Commonwealth of Pennsylvania upon net earnings or income.
A.
Every person whose earnings or profits are subject to the tax imposed
by this article shall, on or before April 15 of every year, make and
file a return with the Income Tax Collector. Such return shall be
filed on a form prescribed by Union Township, furnished at the expense
of Union Township and obtainable from the Income Tax Collector. The
information on such return shall include the name and address of the
taxpayer, his place of employment or business, the aggregate amount
of compensation or net profits earned by him during the preceding
year and subject to such tax, the amount of tax due to Union Township
under this article, the amount of tax on salaries, wages, commissions
and other compensation or net profits paid by such taxpayer during
the period covered by such return, together with such other pertinent
information as may be required.
B.
Provided, however, that where the return is made for a fiscal year
or other period different from the calendar year, the return shall
be filed within 105 days from the end of the said fiscal year or period.
C.
Provided also, that every taxpayer who, during the calendar year,
can reasonably expect to earn net profits or earnings which will not
be deducted or withheld at the source shall make and file with the
Income Tax Collector, on a form prescribed by him, a declaration setting
forth the amount of said net profits or earnings anticipated by him
for such calendar year, the amount of the estimated tax imposed thereon
by this article, and such other relevant information as the Income
Tax Collector may require.
D.
Every taxpayer shall pay the estimated tax shown on said declaration
of estimated tax in equal quarterly installments.
Each employer within Union Township who employs one or more
persons on a salary, wage, commission or other compensation basis
shall deduct, monthly or more often than monthly, at the time of the
payment thereof, the tax of 1% of salaries, wages, commissions or
other compensations due by the said employer to the said employee
and shall make a quarterly return to the Income Tax Collector for
each quarter of every calendar year on or before the 30th day of the
month following the termination of the quarter for which the return
is made and shall, on or before said date, pay to the Income Tax Collector
the amount of the tax so deducted. Said quarterly returns shall set
forth the amount of payroll for the period, the amount of the payroll
paid to the nonresidents for work done outside Union Township, the
net amount of payroll subject to the tax, the amount of tax withheld
and the amount of tax paid to the Income Tax Collector. In addition
to said quarterly returns, each said employer shall annually, on or
before January 30 of the calendar year succeeding its tax withholdings,
file a return with the Income Tax Collector, which shall set forth
the names and residences of each employee of said employer during
all or any part of the preceding year; the amount of salaries, wages,
commissions or other compensation earned during such preceding year
by each of such employees, together with such other pertinent information
as may be required. Provided, however, that the failure or omission
by an employer, either residing within or outside Union Township,
to make such return and/or pay such tax shall not relieve the employee
from the payment of such tax and the compliance with such regulations,
with respect to making return and payments thereof, as may be fixed
in this article.
All taxes assessed, levied and imposed by this article remaining
unpaid after they become due shall bear interest in addition to the
amount of the unpaid tax at the rate of 6% per year, and the persons
upon whom said taxes are imposed shall be further liable to a penalty
of 1% of the amount of the unpaid tax for each month or fraction of
a month for the first six months of nonpayment.
A.
The office of the Income Tax Collector is hereby created, the term
of office and salary for which shall be fixed by the Township Board
of Supervisors. It shall be the duty of the Income Tax Collector to
receive, check and file all tax and information returns made by taxpayers
and employers and to receive all taxes and furnish receipts to the
taxpayers and employers for their payments, and shall keep a record
showing amount received by him from each taxpayer and employer and
the date of each such receipt. He shall remit unto the Township Secretary-Treasurer
the amount of taxes received by him monthly.
B.
He shall keep such other books and records as are necessary for the
proper conduct of his commission.
C.
He shall file a bond with approved surety in an amount to be fixed
by the Township Board of Supervisors, conditioned that he shall properly
account for all monies received by him in his capacity as Income Tax
Collector.
D.
To the Income Tax Collector is hereby delegated the power and authority
to examine the books, papers and records of any employer or supposed
employer or of any taxpayer or supposed taxpayer for the purpose of
verifying the accuracy of any return made and, where no return is
made, to ascertain the amount of tax due by any persons referred to
in this article. Every such employer, supposed employer, taxpayer
or supposed taxpayer is hereby directed and required to give to the
Income Tax Collector the means, facilities and opportunities for such
examination and investigations as are hereby authorized. The Income
Tax Collector is hereby authorized to examine any person under oath
concerning any income which was or should have been returned for taxation,
and to this end may compel the production of books, papers and records
and the attendance of all persons before him, whether as parties or
witnesses, whom he believes to have knowledge of such income.
E.
All returns required to be filed under this article shall be upon
forms furnished by Union Township.
F.
Any information gained by the Income Tax Collector or other officials
through his examination and custody of any returns, investigations,
hearings or verifications required or authorized by this article shall
be confidential, except for official purposes and except in accordance
with proper judicial order, or as otherwise provided by law. Any disclosure
of any such information contrary to the provisions of this section
shall constitute a violation of this article.
All taxes assessed, levied and imposed by this article, together
with all interest and penalties, shall be recoverable by the Township
as debts of like amount are by law recoverable.
A.
Any person convicted before any Magisterial District Judge of violating
any of the provisions or requirements of this article or of failing,
neglecting or refusing to pay any tax, penalties or interest imposed
under this article, or refusing to permit the Income Tax Collector
or any other person authorized under this article to examine his books,
records and papers, or of knowingly making any incomplete, false or
fraudulent return or of attempting to do anything whatever to evade
the payment of the whole or any part of the tax imposed under this
article, shall be liable to penalties as prescribed by statute in
53 P.S. § 6924.509(j).[1]
B.
Such fine or penalty shall be in addition to any other penalty imposed
by any other section of this article. The failure of any employer
or taxpayer to receive or procure a return shall not excuse him from
making a return.
This article shall not apply to any person or property as to
whom or which it is beyond the legal power of the Township to assess,
levy and impose the tax or duties herein provided for.
This article shall become effective January 1, 2012, and shall
continue on a calendar-year basis without annual reenactment.
