[Ord. 72-4, 1/26/1972, § 1]
The following words and phrases, when used in this Part, shall
have the meanings ascribed to them in this section, except as and
if 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 or Pennsylvania, or
any other state, territory, foreign country or dependency.
DOMICILE
The place where one lives and has his 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 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/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.
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 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 Borough
Council 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. 72-4, 1/26/1972, § 2]
1. A tax for general revenue purposes of 1/2% is hereby imposed on:
A. Earned income received by residents of the Borough.
B. Earned income received by nonresidents of the Borough for work done
or services performed or rendered in the Borough.
C. The net profits of businesses, professions or other activities conducted
in the Borough by residents.
D. The net profits of businesses, professions or other activities conducted
in the Borough by nonresidents of said Borough.
2. In the period beginning March 1, 1972, and ending December 31, 1972,
which said tax so imposed shall be regarded as a continuing tax and
shall continue in force thereafter on a calendar-year basis, without
annual reenactment, unless the rate of tax is subsequently changed.
[Ord. 72-4, 1/26/1972, § 3]
1. Net Profits.
A. 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 March 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 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. Any taxpayer who first anticipates any net profits 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 profits, 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.
C. 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 March 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 or
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 1 of the succeeding year the final return as hereinabove
required.
D. 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/she has overestimated
his anticipated net profits.
E. Every taxpayer who discontinues business prior to December 1 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.
2. Annual Earned Income Tax Return. 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 March
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 case of
overpayment.
3. 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 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/her during the 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.
[Ord. 72-4, 1/26/1972, § 4]
1. Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the Borough 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 such other information as the officer may require.
2. Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the Borough 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 Part 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 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 returns, 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. Any employer who
for two of the preceding four 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 to file
his return and pay the tax monthly. In such cases, payment 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.
3. On or before February 23 of the succeeding year, every employer shall
file with the officer:
A. 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 March 1 of the current year
and ending December 31 of the current year.
B. A return withholding statement for each employee employed during
all or any part of the period beginning March 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 earned 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.
4. 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.
5. Except as otherwise provided in Section 9 of "The Local Tax Enabling
Act of 1965," Act 511, 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/she was required to withhold to the
extent that such taxes have not been recovered from the employee.
6. 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 the Part relating
to the filing of declarations and returns.
[Ord. 72-4, 1/26/1972, § 5]
1. It shall be the duty of the officer to collect and receive the taxes,
fines and penalties imposed by this Part. It shall also be his duty
to keep a record showing the amount received by him/her from each
person or business paying the tax and the date of such receipt.
2. Each officer, before entering upon his official duties, shall give
and acknowledge a bond or bonds to the Borough. If the Borough shall
by ordinance designate any bond or bonds previously given by the officer
as adequate, such bond or bonds shall be sufficient to satisfy the
requirements of this subsection.
A. Each such bond shall be joint and several, with one or more corporate
sureties which shall be surety companies authorized to do business
in this commonwealth and duly licensed by the Insurance Commissioner
of this commonwealth.
B. Each bond shall be conditioned upon the faithful discharge by the
officer, his clerks, assistants and appointees of all trust confided
in him/her by virtue of his office, upon the faithful execution of
all duties required of him/her by virtue of his office, upon the just
and faithful accounting or payment over, according to law, of all
moneys and all balances thereof paid to, received or held by him/her
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.
C. Each such bond shall be taken in the name of the Borough, and shall
be for the use of the Borough, 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
of the bond.
D. The Borough or any person may sue upon the said bond in its or his
own name for its or his own use.
E. Each such bond shall contain the name or names of the surety company
or companies bound thereon. The Borough 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 given time.
F. The Borough 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 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.
G. The Borough shall designate the custodian of the bond or bonds required
to be given by the officer.
3. The officer charged with the administration and enforcement of the
provisions of this Part is hereby empowered to prescribe, adopt, promulgate
and enforce rules and regulations relating to any matter pertaining
to the administration and enforcement of this Part, 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 case 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 Part. No rule or regulation
of any kind shall be enforceable unless it has been approved by ordinance
of the Borough. A copy of such rules and regulations currently in
force shall be available for public inspection.
4. 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.
5. The officer and agents designated by him/her 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/her, the means, facilities and opportunity
for such examination and investigations as are hereby authorized.
6. Any information gained by the officer, his agents, or by any other
official or agent of the Borough of New Stanton, as a result of any
declarations, returns, investigations, hearings or verifications required
or authorized by this Part, shall be confidential, except for official
purposes and except in accordance with a proper judicial order, or
as otherwise provided by law.
7. The officer is authorized to establish different filing, reporting
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
[Ord. 72-4, 1/26/1972, § 6]
The Income Tax Officer shall receive such compensation for his
services and expenses as determined by the Council of the Borough.
[Ord. 72-4, 1/26/1972, § 7]
1. The officer may sue in the name of the Borough for the recovery of
taxes, penalties and interest, due and unpaid under this Part.
2. Any suit brought to recover the tax imposed by this Part 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:
A. Where no declaration or return was filed by any person although a
declaration or return was required to be filed by him/her under provisions
of this Part, there shall be no limitation.
B. Where an examination of the declaration or return filed by a 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.
C. In the case of substantial understatement of tax liability of 25%
or more and no fraud, suit shall be begun within six years.
D. Where any person has deducted taxes under the provisions of this
Part, 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.
E. This section shall not be construed to limit the Borough from recovering
delinquent taxes by any other means provided by the "Local Tax Enabling
Act of 1965," Act 511.
3. The officer may sue for recovery of an erroneous refund, provided
such suit is begun two years after mailing 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.
[Ord. 72-4, 1/26/1972, § 8]
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 .5% 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.
[Ord. 72-4, 1/26/1972, § 9; as amended by Ord. 97-173, 2/6/1997]
1. Any person who fails, neglects, or refuses to make any declaration
or return required by this Part, 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 the officer or any agent
designated by him/her 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 Part
shall, upon conviction thereof, 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.
2. Any person who divulges any information which is confidential under
the provisions of this Part shall, upon conviction thereof, 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.
3. The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section of this Part.
4. The failure of any person to receive or procure forms required for
making the declarations or returns required by this Part shall not
excuse him/her from making such declaration or return.
[Ord. 72-4, 1/26/1972, § 10]
1. In addition to other methods of collection provided by this Part
and the laws of the Commonwealth of Pennsylvania, the officer shall
have the power, in case of the neglect or refusal of any person, copartnership,
association or corporation to make payment of the amount of any tax
due him/her, after two months from the date of the tax notice, to
levy the amount of such tax, and 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 situate 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 Westmoreland
County.
2. 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.
[Ord. 72-4, 1/26/1972, § 11; as amended by Ord. 97-173, 2/6/1997]
The officer 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 wife owes delinquent earned income taxes
upon the presentation of a written notice and demand certifying that
the information contained herein is true and correct and 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 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 officer of the Borough 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 transaction, 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 officer, 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 officer, or by the proper authorities of the Borough, 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. 72-4, 1/26/1972, § 12]
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 employee a sum sufficient to pay the amount of the delinquent
earned income taxes and costs shown on the written notice. The same
shall be paid to the officer of the Borough within 60 days after such
notice shall have been given.
[Ord. 72-4, 1/26/1972, § 13; as amended by Ord. 82-103, 7/1/1982, § 1]
1. The officer for the collection of taxes, both current and delinquent
under this Part, shall be that person or entity as appointed by resolution
of the Borough Council.
2. Such officer shall be compensated for the collection of current and
delinquent earned income taxes as provided by resolution of the Borough
Council.
3. The Borough Council shall have the right to appoint, by resolution,
different officers for the collection of current and delinquent earned
income taxes.
[Ord. 72-4, 1/26/1972; as added by Ord. 74-44, 12/12/1974]
1. It shall be the duty of any property owner, landlord, manager or
custodian of any property wholly or partially located within the Borough,
which property is used for rental purposes, to inform the Tax Collector
of the Borough on a form provided by said Tax Collector of the names
and addresses of any and all tenants of such property owner, landlord,
manager or custodian, who are residing within the Borough and of the
date that such person or persons first became a tenant of said property
owner, landlord, manager or custodian.
2. Any property owner, landlord, manager or custodian of rental property
located wholly or partially within the Borough, and which is subject
to this Part, shall provide the information required by this Part
within 30 days of the effective date of this Part, and thereafter
on yearly basis on or before February 1 each and every succeeding
year.
[Ord. 72-4, 1/26/1972, § 16]
This Part is enacted under the authority granted to boroughs
of the Commonwealth by Act No. 511 of the General Assembly of the
Commonwealth of Pennsylvania, approved December 31, 1965, P.L. 1257,
known as the "Local Tax Enabling Act," and this Part shall become effective March 1, 1972, and
shall continue in effect until December 31, 1972, and shall be regarded
as a continuing tax and shall continue in force thereafter on a calendar
year basis without annual reenactment.