[Adopted 6-6-1982 by Ord.
No. 39 as Ch. 2, Sub. A, Sections 2.1 through 2.14,
of the 1982 Code]
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 incorporated
group of two or more persons.
An enterprise, activity, profession or any other undertaking
of an incorporated 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 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 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.
Person, public employee or private agency designated by the
governing body to collect and administer the tax on earned income
and net profits.
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.
The Board of Commissioners of the Township of Pocono, Monroe
County, Pennsylvania.
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 taxing district.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the taxing district.
The calendar year following the current year.
The Township of Pocono, Monroe County, Pennsylvania.
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.Â
A tax for general revenue purposes is hereby imposed at the rate
of 1% on the following:
(1)Â
Earned income received in the current year by residents of the taxing
district.
(2)Â
Earned income received in the current year within the taxing district
by nonresidents thereof.
(3)Â
Net profits earned during the current year by residents of the taxing
district.
(4)Â
Net profits earned during the current year within the taxing district
by nonresidents thereof.
B.Â
The tax levied under this article shall be applicable to earned income
received and to net profits earned in the period beginning January
1 of the current year and ending December 31 of the current year,
or for taxpayer fiscal years beginning in the current year, and the
tax shall continue in force on a calendar-year or taxpayer-fiscal-year
basis, without annual reenactment, unless the rate of the tax is subsequently
changed. Regardless of the fiscal year of any taxpayer, such taxpayer
shall be liable for payment of the tax hereby imposed from January
1, 1969.
A.Â
Net profits. 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 monthly
installments the tax due 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.
B.Â
Any taxpayer who first anticipates any net profit 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 31 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 thereof on or before the quarterly payment dates which remain
after the filing of the declaration.
C.Â
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 amount of tax due thereon and
the total amount of the 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.
D.Â
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.
E.Â
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 has filed the declaration hereinabove required anticipates additional
net profits not previously declared or finds that he has overestimated
his anticipated net profits.
F.Â
Every taxpayer who discontinues business prior to December 31 of
the current year shall within 30 days after the discontinuance of
business file his final return as hereinabove required and pay the
tax due.
G.Â
Earned income. 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.
H.Â
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.Â
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the taxing jurisdiction 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 or within 15 days
after the effective date of this article, whichever shall first occur,
register with the Officer his name and address and such other information
as the Officer may require.
B.Â
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the taxing jurisdiction 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 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 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 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
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.
C.Â
Any employer who for two of the succeeding 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 taxing authority may be
required by the Officer on or before the last day of the month succeeding
the month for which the tax was withheld.
D.Â
On or before February 28 of the succeeding year, every employer shall
file with the Officer:
(1)Â
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 current year
and ending December 31 of the current year.
(2)Â
A return withholding statement for each employee employed during
all or any 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 income paid
to the employee during said period, 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.
E.Â
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.
F.Â
Except as otherwise provided in 53 P.S. § 6924.101 et seq.,
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]
G.Â
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.
H.Â
If an employer makes a deduction of tax as required by this article,
the amount deducted shall constitute in the hands of such employer
a trust fund held for the account of the governing body as beneficial
owner, and the employee from whose earned income such tax was deducted
shall be deemed to have paid such tax.
A.Â
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, if paid by such taxpayer or
employer in respect of another taxpayer, the name of such other taxpayer
and the date of such receipt.
B.Â
The 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 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 unless it has
been approved by resolution by the governing body. A copy of such
rules and regulations currently in force shall be available for public
inspection.
C.Â
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.Â
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.
E.Â
Any information gained by the Officer, his agents or by any other
official or agent of the taxing district 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.Â
The Officer is authorized to establish different filing, reporting
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
A.Â
The Officer may sue in the name of the taxing district for the recovery
of taxes due and unpaid under this article.
B.Â
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)Â
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)Â
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)Â
In the case of substantial understatement or tax liability of 25%
or more and no fraud, suit shall be begun within six years.
(4)Â
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.
(5)Â
This section shall not be construed to limit the governing body from
recovering delinquent taxes by any other means provided by this article.
C.Â
The Officer may sue for recovery of an erroneous refund, provided
that 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 herein
imposed.
A.Â
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,
any person who 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 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 before any Magisterial District Judge or court
of competent jurisdiction in the county, 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.Â
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 fines and costs, to be
imprisoned for a period not exceeding 30 days.
C.Â
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section of this article.
D.Â
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.
The Officer shall have power, in case of the neglect or refusal
of any person, copartnership or association to make payment of the
amount of any tax due by 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, wherever situated or found, upon giving at least
10 days' public notice of such sale, by posting 10 written or printed
notices and by one advertisement in a newspaper of general circulation
published in the county. 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 Tax Collector 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 certifying that the information contained therein
is true and correct and containing the name of the taxable 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 taxable
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 Tax Collector
of the taxing district in which such delinquent tax was levied within
60 days after such notice shall have been given. No more than 10%
of the wages, commissions or earnings of the delinquent taxpayer or
spouse thereof may be deducted at any one time for delinquent earned
income taxes and costs. 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 Tax Collector. 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 Tax Collector, 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 taxable 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 Tax Collector or by the proper authorities of the taxing district
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. The Tax Collector shall not proceed against a spouse or his employer
until he has pursued collection remedies against the delinquent taxpayer
and his employer under this section.
A.Â
Payment of any tax to any political subdivision pursuant to an ordinance
or resolution passed or adopted prior to the effective date of the
Act[2] shall be credited to and allowed as a deduction from the
liability of taxpayers for any like tax respectively on salaries,
wages, commissions, other compensation or on net profits of businesses,
professions or other activities and for any income tax imposed by
any other political subdivision of this commonwealth under the authority
of the Act.
[2]
Editor's Note: See the Local Tax Enabling Act, 53 P.S. § 6924.101
et seq.
B.Â
Payment of any tax on salaries, wages, commissions, other compensation
or on net profits of business, professions or other activities to
a political subdivision by residents thereof pursuant to an ordinance
or resolution passed or adopted under the authority of the Act shall
be credited to and allowed as a deduction from the liability of such
persons for any other like tax respectively on salaries, wages, commissions,
other compensation or on net profits of businesses, professions or
other activities imposed by any other political subdivision of this
commonwealth under the authority of the Act.
C.Â
Payment of any tax on income to any political subdivision by residents
thereof pursuant to an ordinance or resolution passed or adopted under
the authority of the Act shall, to the extent that such income includes
salaries, wages, commissions, other compensation or net profits of
businesses, professions or other activities, but in such proportion
as hereinafter set forth, be credited to and allowed as a deduction
from the liability of such persons for any other tax on salaries,
wages, commissions, other compensation or on net profits of businesses,
professions or other activities imposed by any other political subdivision
of this commonwealth under the authority of the Act.
D.Â
Payment of any tax on income to any state or to any political subdivision
thereof by residents thereof, pursuant to any state or local law may,
at the discretion of the Pennsylvania political subdivision imposing
such tax, to the extent that such income includes salaries, wages,
commissions or other compensation or net profits of businesses, professions
or other activities but in such proportions as hereinafter set forth,
be credited to and allowed as a deduction from the liability of such
person for any other tax on salaries, wages, commissions, other compensation
or net profits of businesses, professions or other activities imposed
by any political subdivision of this commonwealth under the authority
of the Act, if residents of the political subdivision in Pennsylvania
receive credits and deductions of a similar kind to a like degree
from the tax on income imposed by the other state or political subdivision
thereof.
E.Â
Payment of any tax on income to any state other than Pennsylvania
or to any political subdivision located outside the boundaries of
this commonwealth by residents of a political subdivision located
in Pennsylvania shall, to the extent that such income includes salaries,
wages, commissions or other compensation or net profits of businesses,
professions or other activities, but in such proportions as hereinafter
set forth, be credited to and allowed as a deduction from the liability
of such person for any other tax on salaries, wages, commissions,
other compensation or net profits of businesses, professions or other
activities imposed by any political subdivision of this commonwealth
under the authority of the Act.
F.Â
Where a credit or a deduction is allowable in any of the several
cases hereinabove provided, it shall be allowed in proportion to the
concurrent periods for which taxes are imposed by the other state
or respective political subdivisions, but not in excess of the amount
previously paid for a concurrent period.
G.Â
No credit or deduction shall be allowed against any tax on earned
income imposed under authority of the Act to the extent of the amount
of credit or deduction taken for the same period by the taxpayer against
any income tax imposed by the Commonwealth of Pennsylvania under Section
314 of the Act of March 4, 1971 (P.L. 6), known as the "Tax Reform
Code of 1971,"[3] on account of taxes imposed on income by other states
or by their political subdivisions.
[3]
Editor's Note: See 72 P.S. § 7101 et seq.
All provisions of the Act are incorporated herein by reference.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.