[Ord. 2011-06, 10/17/2011, § 1]
For purposes of this Part, all terms defined in the Local Tax
Enabling Act, 53 P.S. § 6924.101 et seq., shall have the
meanings set forth therein. In addition, the following terms shall
have the meanings set forth herein, unless the context shall clearly
indicate otherwise:
The Department of Community and Economic Development of the
Commonwealth.
January 1, 2012.
The Local Tax Enabling Act, 53 P.S. § 6924.101
et seq., as it may be amended in the future, including any regulations
adopted by the Department thereunder.
The income tax on earned income and net profits imposed by
this Part.
A form or forms prescribed by the Department, or by the Tax
Officer with the approval of the TCC, for reporting the amount of
tax or other amount owed or required to be withheld, remitted or reported
under this Part or the Local Tax Enabling Act.
The period from January 1, to December 31, in a single calendar
year.
The tax collection committee established to govern and oversee
the collection of income tax within the TCD under the Local Tax Enabling
Act.
The Northampton Tax Collection District, or any future tax
collection district, to which the Township or any part of the Township
is assigned under the Local Tax Enabling Act.
[Ord. 2011-06, 10/17/2011, § 2]
1.
The tax levied under this Part 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
and the tax shall continue in force on a calendar year or taxpayer
fiscal year basis, without annual reenactment, unless the rate of
tax is subsequently changed. Changes in the rate shall become effective
on the date specified in the Part.
A.
Resident Tax.
(1)
General Purpose Resident Tax. The Township hereby reenacts,
restates and imposes a tax for general revenue purposes at the rate
of 1% on earned income and net profits of residents of the Township.
(2)
Open Space Resident Tax. In addition to the tax levied for general revenue purposes set forth in Subsection 1A(1) of this section, the Township hereby restates and imposes a tax for expenses related to open space lands under 32 P.S. § 5007.1 at the rate of 0.25% on earned income and net profits of residents of the Township. The money collected as a result of this additional tax shall be used to retire indebtedness of the Township incurred in purchasing interests in real property or in making additional acquisitions of real property for the purpose of securing an open space benefit or benefits under the provisions of the Open Space Lands Act, 32 P.S. § 5001 et seq., or the Agricultural Security Area Law, 3 P.S. § 901 et seq. The money collected as a result of this additional tax may also be used for any and all related and/or incidental costs incurred in retiring indebtedness of the Township incurred in purchasing interests in real property or in making additional acquisitions of real property for the purpose of securing an open space benefit or benefits under the provisions of the Open Space Lands Act or the Agricultural Security Area Law, including, but not limited to, any and all costs associated with preparation of a comprehensive open space plan, attorneys fees, closing costs, surveying expenses, engineering fees, financing costs, environmental cleanup costs, insurance premiums and fees of other consultants and professionals. Revenue from the additional tax shall be used in accordance with the procedures established by the Township's Board of Supervisors in compliance with the Open Space Lands Act. The additional tax was previously authorized by voter referendum on or about May 16, 2006.
B.
Nonresident Tax.
(1)
General Purpose Nonresident Tax. The Township also imposes a
tax for general revenue purposes at the rate of 1% on earned income
and net profits derived by a nonresident from any work, business,
profession or activity of any kind engaged in within the boundaries
of Township.
C.
Local Tax Enabling Act Applicable. The tax is imposed under authority
of the Local Tax Enabling Act, and all provisions thereof that relate
to a tax on earned income or net profits are incorporated into this
Part. Any future amendments to the Local Tax Enabling Act that are
required to be applied to the tax will automatically become part of
this Part upon the effective date of such amendment, without the need
for formal amendment of this Part, to the maximum extent allowed by
1 Pa.C.S.A. § 1937.
D.
Applicable Laws, Regulations, Policies and Procedures. The tax shall
be collected and administered in accordance with (1) all applicable
laws and regulations; and (2) rules, regulations, policies and procedures
adopted by the TCC or by the Tax Officer in conformity with the Local
Tax Enabling Act. This includes any regulations, policies, and procedures
adopted in the future to the maximum extent allowed by 1 Pa.C.S.A.
§ 1937.
[Ord. 2011-06, 10/17/2011, § 3]
Although credits and deductions against tax are permitted under
certain circumstances as provided in applicable law and regulations,
no individuals are exempt from Tax based on age, income, or other
factors.
[Ord. 2011-06, 10/17/2011, § 4]
1.
Declaration and Payment. Except as provided in Subsection 2, taxpayers shall declare and pay income taxes as follows:
A.
Every taxpayer shall, on or before April 15, of the succeeding year,
make and file with the Tax Officer, a final tax return showing the
amount of taxable 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 on the taxable income, the amount of tax
paid, the amount of tax that has been withheld under § 512
of the Local Tax Enabling Act, and the balance of tax due. All amounts
reported shall be rounded to the nearest whole dollar. At the time
of filing the final tax return, the taxpayer shall pay the Tax Officer
the balance of the tax due or shall make demand for refund or credit
in the case of overpayment.
B.
Every taxpayer making net profits shall, by April 15, of the current
year, make and file with the Tax Officer a declaration of the taxpayer's
estimated net profits during the period beginning January 1, and ending
December 31, of the current year, and shall pay to the Tax Officer
in four equal quarterly installments the tax due on the estimated
net profits. The first installment shall be paid at the time of filing
the declaration, and the other installments shall be paid on or before
June 15, of the current year, September 15, of the current year and
January 15, of the succeeding year, respectively.
C.
Any taxpayer who first anticipates any net profit after April 15,
of the current year shall make and file the declaration required on
or before June 15, of the current year, September 15, of the current
year or December 31, of the current year, whichever date next follows
the date on which the taxpayer first anticipates such net profit,
and shall pay to the Tax Officer in equal installments the tax due
on or before the quarterly payment dates that remain after the filing
of the declaration.
D.
Every taxpayer shall, on or before April 15, of the succeeding year,
make and file with the Tax Officer a final tax return showing the
amount of net profits earned or received based on the method of accounting
used by the taxpayer during the period beginning January 1, of the
current year, and ending December 31, of the current year, the total
amount of tax due on the net profits and the total amount of tax paid.
At the time of filing the final tax return, the taxpayer shall pay
to the Tax 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 the estimated tax,
elect to make and file with the Tax Officer on or before January 31,
of the succeeding year, the final tax return.
E.
The Department, in consultation with the Department of Revenue, shall
provide by regulation for the 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 required under this subsection
anticipates additional net profits not previously declared or has
overestimated anticipated net profits.
F.
Every taxpayer who discontinues business prior to December 31, of
the current year, shall, within 30 days after the discontinuance of
business, file a final tax return as required under this paragraph
and pay the tax due.
G.
Every taxpayer who receives any other taxable income not subject
to withholding under § 512(3) of the Local Tax Enabling
Act shall make and file with the Tax Officer a quarterly tax return
on or before April 15, of the current year, June 15, of the current
year, September 15, of the current year, and January 15, of the succeeding
year, setting forth the aggregate amount of taxable income not subject
to withholding by the taxpayer 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 income tax, together with such other information as
may required by applicable law, rule or regulation. Every taxpayer
filing a tax return shall, at the time of filing the tax return, pay
to the Tax Officer the amount of income tax due. The Tax Officer may
waive the quarterly tax return and payment of the income tax and permit
a taxpayer to file the receipt of taxable income on the taxpayer's
annual return and pay the income tax due on or before April 15, of
the succeeding year.
2.
Non-calendar Year Taxpayers. For a taxpayer whose fiscal year is
not a calendar year, the Tax Officer shall establish deadlines for
filing, reporting and payment of taxes which provide time periods
equivalent to those provided for a calendar year taxpayer.
3.
Partial Domicile. The taxable income subject to tax of a taxpayer
who is domiciled in the Township for only a portion of the tax year
shall be an amount equal to the taxpayer's taxable income multiplied
by a fraction, the numerator of which is the number of calendar months
during the tax year that the individual is domiciled in the Township
and the denominator of which is 12. A taxpayer shall include in the
numerator any calendar month during which the taxpayer is domiciled
for more than half the calendar month. A day that a taxpayer's
domicile changes shall be included as a day the individual is in the
new domicile and not the old domicile. If the number of days in the
calendar month in which the individual lived in the old and new domiciles
are equal, the calendar month shall be included in calculating the
number of months in the new domicile.
[Ord. 2011-06, 10/17/2011, § 5]
1.
For taxable years commencing on and after the effective date of this
Part, income taxes shall be withheld, remitted and reported as follows:
A.
Registration. Every employer having an office, factory, workshop,
branch, warehouse, or other place of business within the TCD which
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
Tax Officer the name and address of the employer and such other information
as the officer may require.
B.
Certificate of Residency. An employer shall require each new employee
to complete a certificate of residency form, which shall be an addendum
to the Federal Employee's Withholding Allowance Certificate (Form
W-4). An employer shall also require any employee who changes their
address or domicile to complete a certificate of residency form. The
certificate of residency form shall provide information to help identify
the political subdivision where an employee lives and works. Forms
of certificate of residency may be obtained by an employer from the
Department upon request by an employer.
C.
Withholding of Tax. Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the TCD that employs
one or more persons, other than domestic servants, for a salary, wage,
commission or other compensation, shall, at the time of payment, deduct
from the compensation due each employee employed at such place of
business the greater of the employee's resident tax or the employee's
nonresident tax as released in the official register under § 511
of the Local Tax Enabling Act.
D.
Filing of Quarterly Tax Returns and Remitting Withheld Tax. Except as set forth in Subsection 1D(1), within 30 days following the end of each calendar quarter, every employer shall file a quarterly tax return and pay the amount of income taxes deducted during the preceding calendar quarter to the Tax Officer for the place of employment of each employee. The form shall show the name, address and Social Security number of each employee, the compensation of the employee during the preceding three-month period, the income tax deducted from the employee, the political subdivision imposing the income tax upon the employee, the total compensation of all employees during the preceding calendar quarter, the total income tax deducted from the employees and paid with the tax return and any other information prescribed by the Department.
(1)
Notwithstanding Subsection 1D, the provisions of this paragraph
shall apply if an employer has more than one place of employment in
more than one tax collection district. Within 30 days following the
last day of each month, the employer may file the tax return required
by Subsection 1D and pay the total amount of income taxes deducted
from employees in all work locations during the preceding month to
the Tax Officer for either the tax collection district in which the
employer's payroll operations are located or as determined by
the Department. The tax return and income taxes deducted shall be
filed and paid electronically. The employer must file a notice of
intention to file combined tax returns and make combined payments
with the Tax Officer for each place of employment at least one month
before filing its first combined return or making its first combined
payment. This paragraph shall not be construed to change the location
of an employee's place of employment for purposes of nonresident
tax liability.
E.
Failure to File Quarterly Tax Returns and Remit Withheld Taxes. Any
employer who, for two of the preceding four quarterly periods, has
failed to deduct the proper income tax, or any part of the income
tax, or has failed to pay over the proper amount of income tax as
required by this section to the TCD may be required by the Tax Officer
to file tax returns and pay the income tax monthly. In such cases,
payments of income tax shall be made to the Tax Officer on or before
the last day of the month succeeding the month for which the income
tax was withheld.
F.
Filing of Annual Tax Returns. On or before February 28, of the succeeding
year, every employer shall file with the Tax Officer where income
taxes have been deducted and remitted pursuant to this section:
(1)
An annual return showing, for the period beginning January 1,
of the current year and ending December 31, of the current year, the
total amount of compensation paid, the total amount of income tax
deducted, the total amount of income tax paid to the Tax Officer and
any other information prescribed by the Department.
(2)
An individual withholding statement, which may be integrated
with the Federal Wage and Tax Statement (Form W-2), 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 address and Social Security number, the amount of compensation
paid to the employee during the period, the amount of income tax deducted,
the amount of income tax paid to the Tax Officer, the numerical code
prescribed by the Department representing the tax collection district
where the required payments were remitted and any other information
required by the Department. Every employer shall furnish one copy
of the individual withholding statement to the employee for whom it
is filed.
G.
Discontinuance of Business. Any employer who discontinues business
prior to December 31, of the current year shall, within 30 days after
the discontinuance of business, file returns and withholding statements
required under this section and pay the income tax due.
H.
Willful or Negligent Failure to Deduct Taxes. Except as otherwise
provided in § 511 of the Local Tax Enabling Act, an employer
who willfully or negligently fails or omits to make the deductions
required by this section shall be liable for payment of income taxes
which the employer was required to withhold to the extent that the
income taxes have not been recovered from the employee. 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 income
tax or from complying with the requirements for filing of declaration
and tax returns.
[Ord. 2011-06, 10/17/2011, § 6]
1.
In addition to any other power or duty conferred upon a Tax Officer
by the Local Tax Enabling Act, it shall be the duty of the Tax Officer:
A.
Collection of Tax. The tax will be collected from taxpayers and employers
by the Tax Officer. The Tax Officer is authorized to file an action
in the name of the Township for the recovery of the tax due to the
Township and unpaid. Nothing in this section shall affect the authority
of the Township to file an action in its own name for collection of
the tax under the Local Tax Enabling Act.
B.
Criminal Complaints for Violations. The Tax Officer is authorized
to file criminal complaints on behalf of the Township for violation
of this Part or the Local Tax Enabling Act. Nothing in this section
shall affect the authority of the Township to file a criminal complaint
on it own behalf for violation of this Part or the Local Tax Enabling
Act.
[Ord. 2011-06, 10/17/2011, § 7]
In the event of violation of this Part or the Local Tax Enabling
Act, or non-payment of tax, taxpayers and employers are subject to
interest, penalties, costs and fines in accordance with the Local
Tax Enabling Act, including costs of collection imposed by the Tax
Officer in accordance with authorization by the TCC. The Tax Officer
may retain reasonable costs of collection in accordance with Local
Tax Enabling Act and as approved by the TCC.
[Ord. 2011-06, 10/17/2011, § 9]
The primary purpose of this Part is to conform the Township's
currently existing earned income and net profits tax as outlined in
the existing EIT ordinance to the Local Tax Enabling Act, as amended
and restated by Act 32 of 2008, and to do so within the time frame
required by Act 32. Any prior ordinance or part of any prior ordinance
conflicting with the provisions of this Part is rescinded insofar
as the conflict exists. To the extent the provisions of this Part
are the same as any ordinance in force immediately prior to adoption
of this Part, the provisions of this Part are intended as a continuation
of such prior ordinance and not as a new ordinance, including, but
not limited to, the prior Property Acquisition Tax Ordinance. If this
Part is declared invalid, any prior ordinance levying a similar tax
shall remain in full force and effect and shall not be affected in
any manner by adoption of this Part. The provisions of this Part shall
not affect any act done or liability incurred, nor shall such provisions
affect any suit or prosecution pending or to be initiated to enforce
any right or penalty or to punish any offense under the authority
of any ordinance in force prior to adoption of this Part. Subject
to the foregoing provisions of this section, this Part shall supersede
and repeal on the effective date any ordinance levying a tax on earned
income or net profits in force immediately prior to the effective
date. The tax imposed by this Part shall not apply to any person as
to whom it is beyond the legal power of the Township to impose the
tax herein provided under the Constitution of the United States and
the Constitution and laws of the Commonwealth of Pennsylvania.
[Ord. 2011-06, 10/17/2011, § 10]
This Part is intended to be consistent with the Local Tax Enabling
Act. This Part is intended to include all necessary authorizations
to permit the Tax Officer to take all actions for the collection,
administration, disbursement and enforcement of the tax and all other
actions on behalf of the political subdivisions of the TCD as authorized
by the Local Tax Enabling Act, subject to the policies and procedures
of the TCC. To give full force and effect to this Part, the authority
of the Tax Officer shall be interpreted in the broadest permissible
sense for the benefit of the Tax Officer's ability to perform
its duties.
[Ord. 2011-06, 10/17/2011, § 11]
The provisions of this Part shall become effective on January
1, 2012, and shall apply to earned income received or earned and net
profits earned or made by a taxpayer during calendar year 2012 and
each year thereafter without annual re-enactment unless the rate of
tax is subsequently changed.
