[Adopted 5-15-2002 by Ord. No. 514-02[1]]
This article shall be known and may be cited as the "Borough
of Franklin Park Earned Income Tax Ordinance."
All terms defined in the Local Tax Enabling Act[2] shall have the meanings set forth therein. The following
terms shall have the meanings set forth herein:
The person or entity appointed as tax officer pursuant to
the Local Tax Enabling Act to collect the tax.
The date of adoption.
This article.
The Borough Council of the Borough of Franklin Park.
The Local Tax Enabling Act, as set forth in 53 P.S. § 6901
et seq., while such numbering and provisions remain in effect under
Act 32 of 2008, and as set forth in 53 P.S. § 6924.101 et
seq., when such numbering and provisions become effective under Act
32, and as amended in the future.
The tax imposed by this article.
A form prescribed by the Collector for reporting the amount
of tax or other amount owed or required to be withheld, remitted or
reported under this article or the Local Tax Enabling Act.
The period from January 1 to December 31.
The Borough of Franklin Park.
The tax collection committee established to govern and oversee
the collection of earned income tax within the TCD under the Local
Tax Enabling Act.
Any tax collection district to which the taxing authority
or any part of the taxing authority is assigned under the Local Tax
Enabling Act.
A.
A tax for general revenue purposes of 1/2% is hereby
imposed in the Borough on the following:
(1)
Salaries, wages, commissions and other compensation
earned on and after the first day of the year following the enactment
or reenactment of this article by residents of the Borough;
(2)
Salaries, wages, commissions and other compensation
earned on and after the first day of the year following the enactment
or reenactment of this article by nonresidents of the Borough for
work done or services performed or rendered in the Borough of Franklin
Park;
(3)
Net profits earned on and after the first day of the
year following the enactment or reenactment of this article of businesses,
professions and other activities conducted by residents of the Borough;
and
(4)
Net profits earned on and after the first day of the
year following the enactment or reenactment of this article of businesses,
professions and other activities conducted in the Borough by nonresidents.
B.
The tax levied under Subsection A(1) and (2) hereof shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by an employer or on his behalf to any person who is employed by or renders services to him. The tax levied under Subsection A(3) and (4) hereof shall relate to and be imposed on the net profits of any business, profession or enterprise carried on by any person as owner or as proprietor, either individually or in association with some other person or persons.
C.
This article hereby imposes upon all persons designated
herein the duty to pay the tax to the Collector at times designated
and to file the proper returns and declarations in accordance with
the requirements herein, regardless of whether or not there is a duty
upon the employer of the taxpayer to withhold the same from the taxpayer's
salaries, wages, commissions or other compensation. In the event that
an employer fails to withhold moneys of the taxpayer, the taxpayer
is, nevertheless, required to pay the same.
A.
Every taxpayer who anticipates any net profits or any earnings not subject to the provisions of § 189-5, relating to collection at source, shall on or before April 15 of each year make and file with the Collector on a form prescribed by the Collector a declaration of his estimated net profits or earnings during the period beginning January 1 and ending December 31 of each year, setting forth the estimated amount of net profits or earnings anticipated by him during such period and subject to the tax, together with such other information as the Collector may require.
B.
The declaration shall show the estimated amount of tax imposed by this article on such estimated net profits or earnings, the estimated amount of tax which will be collected at source in accordance with § 189-5, and the balance due. The taxpayer making the declaration shall, at the time of filing thereof, pay the Collector the estimated amount of tax shown as due thereon. However, the taxpayer shall have the right to pay the estimated tax or the balance of estimated tax due, as shown on his return, in four quarterly installments as follows: the first installment at the time of filing the declaration on or before April 30, and the other installments on or before July 31, October 31 and January 31, respectively, of the year following the enactment or reenactment of this article.
C.
Any taxpayer who first anticipates any net profits or any earnings not subject to the provisions of § 189-5 relating to collection at source after April 30 of each year shall make and file the declaration hereinabove required on or before July 31, October 31 or January 31 of each year, whichever of these dates next follows the date on which the taxpayer first anticipates such net profits or earnings. The taxpayer making the declaration shall, at the time of filing thereof, pay to the Collector the estimated amount of tax shown as due thereon. However, the taxpayer shall have the right to pay the estimated tax or the balance of the estimated tax due, as shown on his return, in equal installments on or before the quarterly installment payment dates which remain after the filing of the declaration.
D.
On or before April 15 of the year succeeding the taxable year, every taxpayer who receives net profits or any earnings from which no tax was deducted under the provisions of § 189-5 relating to collection at source shall make and file with the Collector on a form prescribed by him a final return showing all of his net profits or earnings for the period beginning January 1 and ending December 31 of each year, the total amount of tax due, the amount of estimated tax paid under the provisions of this section, the amount of tax deducted under the provisions of § 189-5, and the balance due. However, any taxpayer may, in lieu of paying the fourth quarterly installment of his estimated tax, elect to make and file with the Collector on or before December 31 of each year the final return as hereinabove required. At the time of filing the final return, each taxpayer shall pay the balance of the tax due or shall make demand for refund or credit in the case of overpayment.
E.
Every taxpayer who discontinues business prior to
December 31 of each year, within 30 days after the discontinuance
of business, shall file his final return as hereinabove required and
pay the tax due.
F.
The Collector may, upon proper application by the
taxpayer and in accordance with regulations set therefor, grant extensions
of time for payments of tax as provided in this section.
A.
Every person within the Borough who employs one or
more persons on a salary, wage, commission or other compensation basis,
other than domestic servants, shall immediately, or within 15 days
after becoming an employer, register with the Collector his name,
address and such other information as the Collector may require.
B.
Every person within the Borough who employs one or
more persons on a salary, wage, commission or other compensation basis,
other than domestic servants, shall deduct monthly, or more often
than monthly, at the time of payment thereof, the tax imposed by this
article on the salaries, wages, commissions and other compensations
due to his employee or employees and shall, on or before January 15
of each year, and on or before the 15th day of each succeeding calendar
month, file a return of taxes deducted on a form prescribed by the
Collector and pay to the Collector the amount of tax deducted for
the preceding month.
C.
On or before January 31 of the year succeeding the
year this tax was due, every such employer shall file with the Collector,
on forms prescribed by him:
(1)
An annual return showing the total amount of salaries,
wages, commissions and other compensation paid, the total amount of
tax deducted, and the total amount of tax paid to the Collector during
the period beginning January 1 and ending December 31 of the year
following the enactment or reenactment of this article.
(2)
A return for each employee employed during all or
any part of the period beginning January 1 and ending December 31
of the year following the enactment or reenactment of this article,
setting forth the employee's name, address and social security number;
the amount of salaries, wages, commissions or other compensation paid
to the employee during such period; the amount of tax deducted; the
amount of tax paid to the Collector; and such other information as
the Collector may require, and every employer shall furnish a copy
of the individual return to the employee for whom it is filed.
D.
Every employer who discontinues business prior to
December 31 of each year, within 30 days after the discontinuance
of business, shall file the returns hereinabove required and pay the
tax due.
E.
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 this article relating to the filing of declarations and returns.
A.
Council, by resolution, may appoint any person or
agency, so designated, to collect the tax imposed herein, and Council
may set the compensation of such person or agency, who shall be known
as the "Borough of Franklin Park Income Tax Collector" or "Collector."
B.
The Collector shall act in accordance with this article
and regulations adopted pursuant thereto,
(1)
It shall be the duty of the Collector 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 paying the tax and the date of such receipt.
(2)
The Collector is hereby charged with the administration
and enforcement of the provisions of this article. Council 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 provision 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 prescribe forms necessary for the administration
of this article.
(3)
The Collector, and agents designated by him, are hereby
authorized to examine the books, papers and records of any employer
or supposed employer or of any 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 or supposed employer and
every taxpayer or supposed taxpayer is hereby directed and required
to give to the Collector or to any agent designated by him the means,
facilities and opportunity for such examinations and investigations
as are hereby authorized.
(4)
Any information gained by the Collector, his agents
or by any other official or agent of the Borough of Franklin Park
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.
(5)
Any person aggrieved by any action of the Collector
shall have the right to appeal as provided by law.
C.
The Collector is empowered and authorized to require
all owners of rental property which is located within the Borough
to submit the names and addresses of all persons occupying such property.
The Collector shall prepare forms for such purpose and shall advise
all such owners of their duty to report the identity of their tenants
within 15 days of occupancy.
All unpaid taxes imposed by this article together
with interest and penalties shall be recoverable by the Borough Attorney
as other debts of like amount are recoverable, provided that any suit
brought to recover the tax imposed by this article shall be begun
within six years after such tax is due or within six years after a
declaration or return has been filed, whichever date is later. However,
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 under
the provisions of this article.
B.
Where an examination of the declaration or return
in the possession of the Collector reveals a fraudulent evasion of
taxes, including, but not limited to, substantial understatement of
taxes deducted and of actual or estimated net profits or earnings.
C.
Where any person has deducted taxes under the provisions
of this article and has failed to pay the amounts so deducted to the
Collector.
Individuals and employers are subject to interest, penalties,
costs and fines in accordance with the Local Tax Enabling Act, including
costs imposed by the Collector in accordance with the Local Tax Enabling
Act.[2]
The Collector is hereby authorized to accept
payment under protest of the amount of tax claimed by the Borough
in any case where any person disputes the validity or amount of the
Borough's claim for the tax. If it is thereafter judicially determined
by a court of competent jurisdiction that there has been an overpayment
to the Collector, the amount of the overpayment with legal interest
shall be refunded to the person who paid under protest.
A.
The tax imposed by this article shall not apply:
(1)
To any person as to whom it is beyond the legal power
of the Borough to impose the tax herein provided for under the Constitution
of the United States and the Constitution and laws of the Commonwealth
of Pennsylvania.
(2)
To institutions or organizations operated for public,
religious, educational or charitable purposes; to institutions or
organizations not organized or operated for private profit; or to
trusts and foundations established for any of those purposes.
A.
Any person who fails, neglects or refuses to make
any declaration or return or to pay the tax required by this article;
any employer who fails, neglects or refuses to register or to pay
the tax deducted from his employees; any person who refuses to permit
the Collector or any agent designated by him to examine his books,
records and papers; and any person who 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 earnings to
avoid the payment of the whole or any part of the tax imposed by this
article shall be fined not more than $500 for each offense and costs
and, in default of payment, shall be imprisoned for not more than
30 days.
B.
Any failure to file a quarterly return within the
proper time limit and any failure to make quarterly payment within
the proper time limit by those subject to the provisions of this article
shah be deemed a violation of this article, and a violator may be
fined not more than $500 and, in default of payment, be imprisoned
for not more than 30 days.
C.
Any person who divulges any information which is confidential under the provisions of § 189-6B(1) shall be fined not more than $500 for each offense and costs and, in default of payment, shall be imprisoned for not more than 30 days.
D.
The penalties imposed under this section shall be
in addition to any other penalty imposed by any other section of this
article.
E.
The failure of any person to receive or procure the
forms required for making the declarations or returns required by
this article shall not excuse him from making such declaration or
return.
The primary purpose of this article is to conform the earned
income and net profits tax currently imposed 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 enactment imposing a
tax on earned income or net profits of individuals is amended and
restated in its entirety to read as stated in this article. Any other
prior enactment or part of any prior enactment conflicting with the
provisions of this article is rescinded insofar as the conflict exists.
To the extent the same as any enactment in force immediately prior
to adoption of this article, the provisions of this article are intended
as a continuation of such prior enactment and not as a new enactment.
If this article is declared invalid, any prior enactment levying a
similar tax shall remain in full force and effect and shall not be
affected by adoption of this article. If any part of this article
is declared invalid, the similar part of any prior enactment levying
a similar tax shall remain in effect and shall not be affected by
adoption of this article. The provisions of this 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 offense under the authority of any enactment
in force prior to adoption of this article. Subject to the foregoing
provisions of this section, this article shall amend and restate on
the effective date any enactment levying a tax on earned income or
net profits in force immediately prior to the effective date.
