[Ord. 156, 12/8/1966]
The following words and phrases, when used in this Part, shall
have the meanings ascribed to them in this Section, except where the
context clearly indicates or requires a different meaning.
ASSOCIATION
A partnership, limited partnership, or any other unincorporated
group of two or more persons.
BUSINESS
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.
CORPORATION
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.
CURRENT YEAR
The current period for which this tax is levied.
DOMICILE
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 a case of businesses or associations, domicile is that place
considered as the center of business affairs and the place where its
functions are discharged.
[Amended by Ord. 303, 9/10/1991]
EARNED INCOME
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.
EMPLOYER
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.
INCOME TAX OFFICER or OFFICER
Person, public employee or private agency designated by governing
body to collect and administer the tax on earned income and net profits.
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.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the taxing district.
RESIDENT
A person, partnership, association or other entity domiciled
in the taxing district.
TAXPAYER
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.
[Ord. 156, 12/8/1966, as amended by Ord. 303, 9/10/1991;
by Ord. 493, 12/8/2015; by Ord. 502, 12/13/2016; by Ord. No. 519, 12/12/2017; by Ord. No. 533, 12/11/2018; and by Ord. No. 543, 12/10/2019]
1. The tax levied by this Part shall be applicable to earned income
received and to net profits earned in the period beginning January
1, 2020 and ending December 31, 2020, and the tax shall continue in
force thereafter, on a calendar-year basis, without annual reenactment,
unless the rate of the tax is subsequently charged by amending ordinance.
Changes in rate shall become effective on the date specified in the
amending ordinance. The taxes are hereby levied and assessed at the
rate of 1.0% for residents of the Borough of Rankin and 1.0% for nonresidents
who are employed within the Borough of Rankin on earned income and
net profits as provided for in the definitions herein of earned income
and net profits.
2. The effective date of the rates of earned income tax as provided in Subsection
1 above is January 1, 2020, and said rates shall remain in effect thereafter unless or until modified by later ordinance.
[Ord. 156, 12/8/1966]
The income tax officer shall receive such compensation for his
services and expenses as determined by the Borough. In the case of
a single collector established pursuant to other sections of this
Act, the taxing jurisdictions shall share in the compensation
and expenses of a single officer according to the proportionate share
that the total annual collections for each jurisdiction bears to the
total annual collection for all political subdivisions in a single
collector district, except that with the agreements of 2/3 of all
participating political subdivisions, a different manner of sharing
may be substituted.
[Ord. 156, 12/8/1966; as amended by Ord. 303, 9/10/1991]
1. 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.
2. Notwithstanding the provisions of Subsection
(1), the governing body may, by ordinance or resolution, establish a one-time period during which interest or interest and penalties that would otherwise be imposed for the nonreporting or underreporting of earned income tax liabilities or for the nonpayment of earned income taxes previously imposed and due shall be waived in total or in part if the taxpayer voluntarily files delinquent returns and pays the taxes in full during the period so established. Each governing body may adopt regulations to implement the provisions of this subsection.
3. The provisions of Subsection
(2) shall not affect or terminate any petitions, investigations, prosecutions or other proceedings pending under the provisions of this Act, or prevent the commencement or further prosecution of any proceedings by the proper authorities for violations of this Act. No proceedings shall, however, be commenced on the basis of delinquent returns filed pursuant to Subsection
(2) if the returns are determined to be substantially true and correct and the taxes are paid in full within the prescribed time.
[Ord. 156, 12/8/1966]
No assessment may be made of any tax imposed under this Act
more than five years after the date on which such tax should have
been paid except where a fraudulent return or no return has been filed.
[Ord. 156, 12/8/1966]
The aggregate amount of all taxes imposed by any political subdivision
under this Part and in effect during any fiscal year shall not exceed
an amount equal to the product obtained by multiplying the latest
total market valuation of real estate in such political subdivision,
as determined by the board for the assessment and revision of taxes
or any similar board established by the assessment laws which determines
market values of real estate within the political subdivision, by
12 mills.
[Ord. 156, 12/8/1966]
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 wife 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 wife owes delinquent
earned income taxes, upon the presentation of a written notice and
demand under oath or affirmation, containing the name of the taxable
or the husband 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 employes, 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. 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.
[Ord. 156, 12/8/1966]
Upon presentation of a written notice and demand under oath
or affirmation, to the State Treasurer or any other fiscal officer
of the state, or its boards, authorities, agencies or commissions,
it shall be the duty of the treasurer or officer to deduct from the
wages then owing, or that shall within 60 days thereafter become due
to any employe, a sum sufficient to pay the respective amount of the
delinquent earned income taxes and costs shown on the written notice.
The same shall be paid to the tax collector of the taxing district
in which said delinquent tax was levied within 60 days after such
notice shall have been given.
[Ord. 156, 12/8/1966]
Each taxing district shall have power to collect unpaid taxes
from the persons owing such taxes by suit in assumpsit or other appropriate
remedy. Upon each such judgment, execution may be issued without any
stay or benefit of any exemption law. The right of each such taxing
district to collect unpaid taxes under the provisions of this Section
shall not be affected by the fact that such taxes have been entered
as liens in the office of the Prothonotary, or the fact that the property
against which they were levied has been returned to the County Commissioners
for taxes for prior years.
[Ord. 156, 12/8/1966]
The provisions of this Part shall be effective for the period
January 1, 1967, through December 31, 1967, and annually thereafter.