[Adopted 10-14-1966 by Ord. No. 1019]
The following words and phrases, when used in this article,
shall have the meaning 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 corporation of joint stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania, or
any other state, territory, foreign country or dependency.
[Added 3-18-2003 by Ord.
No. 1280]
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 voluntarily fixed place of
habitation of a person, 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.
[Amended 3-18-2003 by Ord. No. 1280]
Compensation as determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code, Part. 1, Subpart B, Art. V (relating to personal income tax). Employee business expenses are allowable deductions as determined under Article III of the Tax Reform Code of 1971. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
[Amended 3-18-2003 by Ord. No. 1280]
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
Borough of Avalon 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, determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Part 1, Subpart B, Art. V (relating to personal income tax). The term does not include income which is not paid for services provided and which is in the nature of earnings from an investment. For taxpayers engaged in the business, profession or activity of farming, the term shall not include:
[Amended 3-18-2003 by Ord. No. 1280]
Any interest earnings generated from any monetary accounts or
investment instruments of the family business;
Any gain on the sale of farm machinery;
Any gain on the sale of livestock held 12 months or more for
draft, breeding or diary purposes; and
Any gain on the sale of other capital assets of the farm.
A person, partnership, association or other entity domiciled
outside the Borough of Avalon.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Borough of Avalon.
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 tax of 1% is hereby imposed on:
A.
Earned income received and on net profits earned by residents of
the Borough of Avalon; and
B.
Earned income received and net profits earned by nonresidents for
work done or service performed or rendered in the Borough of Avalon
in the period beginning January 1, 1967, and ending December 31, 1967,
which tax thereafter shall continue in force on a calendar-year basis
without annual re-enactment until such time as the Borough Council
of the Borough of Avalon shall change the rate of tax or by appropriate
ordinance repeal such tax.
A.
Net profits.
(1)
Every taxpayer making net profits shall on or before April 15, 1967,
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, 1967, and ending December 31, 1967, and pay to the Officer
in four equal quarterly 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, 1967, September 15, 1967,
and January 15, 1965, and on the same dates of the succeeding years,
respectively.
(2)
Every taxpayer shall on or before April 15, 1968, 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, 1967 and ending December 31, 1967, 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 returns, 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.
(a)
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.
(3)
The Officer any be 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.
(4)
Every taxpayer who discontinues business prior to December 31, 1967,
and prior to December 31 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 based income tax return. Every taxpayer shall on or before
April 15, 1967, and on or before April 15 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, 1967, and ending December 31,
1967, 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
withhold pursuant to the provisions relating to the collection at
course 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,
1967, July 31, 1967, October 31, 1967 and January 31, 1968 and on
the same dates of each succeeding year, setting forth the aggregate
amount of earned income not subject to withholding by his during the
three-month periods ending March 31, 1967, June 30, 1967, and September
30, 1967, and December 31, 1967, 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 asking
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 of Avalon, 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 each 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 of Avalon who employs
one or more persons other than domestic servants for 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, 1967,
July 31, 1967, October 31, 1967, and January 31, 1968, 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, 1967, June 30, 1967, September
30, 1967, and December 31, 1967, respectively, and for the corresponding
three-month periods 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 proceeding three-month
period, the tax deducted therefrom, the political subdivision imposing
the tax upon the employee, the total earned income of all such employee
during such proceeding three-month period and the total tax deducted
therefrom and paid with the return.
(1)
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 of Avalon 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, 1967, and on or before February 28 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, 1967, and ending
December 31, 1967, 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, 1967, and ending
December 31, 1967, 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, 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, 1967,
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 § 367-9 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 employing 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 of Avalon. If the Council of
the Borough of Avalon shall, by ordinance or resolution, designate
any bond previously given by the Officer as adequate, such bond shall
be sufficient to satisfy the requirements of this subsection.
(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 faithful execution of all
duties required of him by virtue of his office, upon the just and
faithful accounting or payment of, according to law, of all monies
and all balances thereof paid to, received 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 of Avalon or
in the name of the School District of the Borough of Avalon and the
Borough of Avalon and shall be for the use of such political subdivision
or subdivisions appointing the Officer, where the same Officer is
appointed by the Borough of Avalon, 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 of Avalon or, if a joint bond is provided to the School
District and the Borough of Avalon, 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)
Each bond shall contain the name or names of the surety company or
companies bound thereon. The Borough of Avalon or the School District
of the Borough of Avalon and the Borough of Avalon, 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 gives time.
(6)
The Borough of Avalon or the School District of the Borough of Avalon
and the Borough of Avalon, if a combined bond is provided, may, 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 of Avalon or to the
School District of the Borough of Avalon and the Borough of Avalon,
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 of Avalon or the School District of the Borough of Avalon
and the Borough of Avalon, as the case may be, shall designate the
custodian of the bond required to be given by the Officer.
C.
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 own 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 ordinance or resolution of the Borough Council of
the Borough of Avalon. A copy of such rules and regulations currently
in force shall be available for public inspection.
D.
With the prior approval of the Town Council of the Borough of Avalon,
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 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 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 of Avalon, 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.
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 by the Town Council of the Borough
of Avalon from time to time.
A.
The Officer may sue in the name of the Borough of Avalon 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 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.
(5)
This section shall not be construed to limit the governing body from
recovering delinquent taxes by any other means provided by this Act.
(6)
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% 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 repaid 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,
and 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 before any Magisterial
District Judge, or court of competent jurisdiction in Allegheny 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 in the Allegheny County
Jail.
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 fines and costs, to
be imprisoned for a period not exceeding 30 days in the Allegheny
County Jail.
C.
The penalties imposed under this section shall be in addition to
any other penalties imposed by any other section of this article.
This article and the tax imposed hereunder is adopted under
and by virtue of the authority contained in the Act of the General
Assembly of the Commonwealth of Pennsylvania, No. 511, approved the
31st day of December, 1965, entitled the "Local Tax Enabling Act of
1965," its supplements and amendments,[1] the provisions of which are hereby accepted and adopted
by the Town Council of the Borough of Avalon, and where the interpretation
or terms or provisions of this article are not in accord with or in
compliance with the provisions of said Act, the provisions of said
Act are intended to be adopted and resolved by this article as fully
as though incorporated, set forth and made part of this article.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
The provisions of this article shall become effective January
1, 1967.
