[Adopted 12-14-1993 by Ord. No. 1993-8 (Ch. V, Part 1A, of the 1996 Code
of Ordinances)]
A.
A tax for general revenue purposes of 1/2% is hereby imposed on earned
income and net profits earned by residents of the Borough of Montgomery
beginning on January 1, 1994, and continuing for each taxable year
thereafter.
B.
The tax levied hereunder shall be applicable to earned income and
net profits earned during the taxable year beginning January 1, 1994,
and continuing for each taxable year thereafter without annual reenactment
but shall be paid in accordance with returns to be filed on the basis
of each calendar year. Subsequent changes in rate may be made and
shall become effective on the date specified.
[Amended 11-10-2014 by Ord. No. 2014-01]
The provisions of the Local Tax Enabling Act, P.L. 1257, No.
511, December 31, 1965, as amended by Act 32 of 2008, P.L. 197, No.
32, July 2, 2008,[1] and as hereinafter amended, supplemented, modified or
reenacted by the General Assembly of Pennsylvania, are incorporated
herein by reference.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
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. The
singular shall include the plural, and the masculine shall include
the feminine and the neuter.
A partnership, limited partnership, limited liability company,
limited liability partnership or any other unincorporated group of
two or more persons.
[Amended 11-10-2014 by Ord. No. 2014-01]
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 collected.
[Added 11-10-2014 by Ord.
No. 2014-01]
The place where one lives and has his/her permanent home
and to which he/she has the intention of returning whenever he/she
is absent. Actual residence is not necessarily domicile, for domicile
is the fixed place or 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/her 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 11-10-2014 by Ord. No. 2014-01]
Compensation as determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), 72 P.S. § 7303, known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Part I, Subpart B, Article 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 11-10-2014 by Ord. No. 2014-01]
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 person, public employee or private agency designated
by the governing body to collect and administer the tax on net profits
and earned income.
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), 72 P.S. § 7303, known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Part I, Subpart B, Article V (relating to personal income tax). The term does not include income which is not paid for services provided and which is the nature of earnings from an investment.
[Amended 11-10-2014 by Ord. No. 2014-01]
A person, partnership 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.
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.
Net profits.
(1)
Every taxpayer of the taxing district making any 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 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.
(2)
Any taxpayer who first anticipates any net profit after April 15 of the current year, shall make and file the declaration required in Subsection A hereof 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 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 returns as required in Subsection A hereof.
(4)
The Officer is hereby authorized to provide by regulation for the
making and filing of adjusted declarations of estimated net profits,
and for the payment of estimated tax in cases where a taxpayer who
has filed the declaration hereinabove required anticipates additional
net profits and 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 final return as hereinabove required and pay the
tax due.
B.
Earned income. Earned income not subject to withholding shall be
as follows: 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.[1]
[1]
Editor's Note: Original Section 15, Collection at Source;
Section 16, Powers and Duties of Officers; Section 17, Income Tax
Officer; Deputy and Compensation; and Section 18, Suit for Collection
of Tax, which immediately followed this subsection, were repealed
11-10-2014 by Ord. No. 2014-01.
[Added 11-10-2014 by Ord.
No. 2014-01]
The regulations promulgated by the Municipal and School Income
Tax Office, as amended, are hereby adopted. All subsequent amendments
to the Municipal and School Income Tax Office regulations may be adopted
from time to time by resolution of the Borough Council of the Borough
of Montgomery.
If for any reason the tax is not paid when due, interest at
the rate of 6% per annum on the amount of such 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.
Any person who fails, neglects or refuses to make any declaration
or return required by this article or regulations adopted pursuant
thereto; 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 examination of 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 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 therefor, before any Magisterial District Judge, or
court of competent jurisdiction, be sentenced to pay a fine in the
amount authorized by the relevant provisions of Act 32 of 2008, which
currently are found in 53 P.S. § 6924.509(j), and which
currently provide for a fine of not more than $2,500 for each offense
and reasonable costs. In default of payment of said fine and costs,
the person convicted may be sentenced to imprisonment for the period
authorized by the relevant provisions of Act 32 of 2008, which currently
are found in 53 P.S. § 6924.509(j), and which currently
provides for imprisonment for a period of not more than six months.
All fines and penalties collected by any Magisterial District Judge
or court of competent jurisdiction shall be paid to the Officer of
the Borough of Montgomery, to be credited to the account of the Borough
of Montgomery. If the fine and imprisonment provisions of Act 32 of
2008 are amended, this article shall be deemed amended to reflect
those revisions upon the effective date of the Act 32 amendment.
[Amended 11-10-2014 by Ord. No. 2014-01]
B.
Whoever divulges any information which is confidential under the
provisions of this article shall be fined not more than $500 for each
offense, or imprisoned not more than 30 days, or both.
C.
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section hereof.
D.
The failure of any person to receive or procure forms required for
making the declarations or returns required hereunder shall not excuse
him from making such declaration or return.
