Borough of Mount Oliver, PA
Allegheny County
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Table of Contents
Table of Contents
[Adopted 11-15-1967 by Ord. No. 548]
A. 
The following words and phrases, when used in this article, shall have the meaning 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 and the Commonwealth of Pennsylvania, or any other state, territory, foreign country or dependency.
CURRENT YEAR
The calendar year for which the 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 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 3-20-1995 by Ord. No. 798]
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
The person, public employee or private agency designated by the 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 provisions 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 Borough of Mount Oliver.
PERSON or INDIVIDUAL
A natural person.
PRECEDING YEAR
The calendar year before the current year.
RESIDENT
A person, partnership, association or other entity domiciled in the Borough of Mount Oliver.
SUCCEEDING YEAR
The calendar year following the current year.
TAXPAYER
A person, partnership, association or any other entity required hereunder to file a return of earned income or net profits or pay tax thereon. The term shall include every person over the age of 16 who resided in the Borough of Mount Oliver for all or any part of the preceding calendar year, regardless of the persons' employment status during that year.
[Amended 3-16-1998 by Ord. No. 828]
B. 
The singular shall include the plural, and the masculine shall include the feminine and the neuter.
[Amended 8-21-1969 by Ord. No. 572]
A. 
A tax for general revenue purposes of 1% is hereby imposed on the following:
(1) 
Earned income on and after January 1, 1968, by residents of the Borough of Mount Oliver, aged 16 years and older.
[Added 12-21-1998 by Ord. No. 833]
(2) 
Earned income received on and after January 1, 1968, by nonresidents of the Borough of Mount Oliver for work done or services performed or rendered in the Borough of Mount Oliver.
(3) 
Net profits earned on and after January 1, 1968, of businesses, professions and other activities conducted by residents of the Borough of Mount Oliver.
(4) 
Net profits on and after January 1, 1968, of businesses, professions and other activities conducted in the Borough of Mount Oliver by nonresidents, to the extent that such nonresidents are not required to pay a similar tax elsewhere.
[Amended 3-16-1998 by L.L. No. 828]
(5) 
[1]Gross rentals or dividends from the rental of residential dwelling units situated in the Borough of Mount Oliver, in excess of and exclusive of one such unit, provided that one such dwelling unit is occupied by the property owner at the end of the tax year.
[Added 12-21-1998 by Ord. No. 833]
[1]
Editor's Note: Former Subsection A(5), added 2-21-1994 by Ord. No. 728, providing for the imposition of tax on gross rentals or dividends from the rental of residential property, was repealed 3-16-1998 by Ord. No. 828.
B. 
The tax levied under Subsection A(1) and (2) herein shall relate to and be imposed on earned income 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) herein shall relate to and be imposed on the net profits of any business, profession or enterprise carried on by any person as owner or proprietor, either individually or in association with some other person or persons.
C. 
The tax levied by this Article shall be applicable to earned income received and to net profits earned during the period beginning January 1, 1994, and ending December 31, 1994, and thereafter for each succeeding year.
[Amended 2-21-1994 by Ord. No. 782]
[Amended 8-21-1969 by Ord. No. 572]
A. 
Net profits.
(1) 
Every taxpayer making net profits shall pay to the officer an annual payment of tax due on or before April 15 of any year, for the period beginning January 1 and ending December 31 of that year; or on or before April 15 of any 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 that year, and to 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 and 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 any year shall make and file the declaration hereinabove required on or before June 15, September 15 or December 31 of that year, whichever of these dates next follows the date on which the taxpayer first anticipates such net profit, and pay 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 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 return as hereinabove required.
(4) 
The officer is 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 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. 
Annual earned income tax return.
(1) 
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 January 1 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 the case of overpayment.
(2) 
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:
(a) 
Make and file with the officer, on a form prescribed or approved by the officer, annual return setting forth the aggregate amount of earned income not subject to withholding from him during the period beginning January 1 and ending December 31 of the current year, and such other information as the officer may require, and pay to the officer the amount of tax shown as due thereon on or before April 15 of the succeeding year; or
(b) 
Make and file with the officer, on a form prescribed or approved by the officer, a quarterly return on or before April 30, July 31 and 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, June 30, September 30 and December 31, respectively, of the current year, 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.
[Amended 8-21-1969 by Ord. No. 572]
A. 
Every employer within the Borough of Mount Oliver having an office, factory, workshop, branch, warehouse or other place of business within the taxing jurisdiction imposing a tax on earned income or net profits within the taxing district 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.
B. 
Responsibility of employer to file return.
(1) 
Every employer within the Borough of Mount Oliver having an office, factory, workshop, branch, warehouse or other place of business within the taxing jurisdiction imposing a tax on earned income or net profits within the Borough of Mount Oliver 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 Article on the earned income due to his employee or employees and shall, on or before April 30, July 31 and 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 three-month periods ending March 31, June 30, September 30 and December 31, respectively, of the current year. Such return 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.
(2) 
Any employer who for two of the preceding four quarterly 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, payments 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.
C. 
On or before February 28 of the succeeding year, every employer shall file with the officer:
(1) 
An annual return showing the total amount of earned income paid, the total amount of tax deducted and the total amount of the tax paid to the officer for the period beginning January 1 and ending December 31 of the current year.
(2) 
A return withholding statement for each employee employed during all or any part of the period beginning January 1 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 and 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.
D. 
Every employer who discontinues business prior to December 31 of any year shall, within 30 days after the discontinuance of business, file the returns and withholding statements hereinabove required and pay the tax due.
E. 
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 was required to withhold to the extent that such taxes have not been recovered from the employee.
A. 
The Council of the Borough of Mount Oliver by ordinance or resolution shall appoint the Income Tax Officer and shall in such ordinance or resolution fix the term of his office and his compensation and shall provide for the payment of the necessary expenses of his office. Before entering upon his duties, the Income Tax Officer shall furnish the Borough of Mount Oliver a surety company bond in an amount fixed by the members of the Council of the Borough of Mount Oliver.
[Amended 3-16-1998 by L.L. No. 828]
B. 
It shall be the duty of the officer to collect and receive the taxes, fines and penalties imposed by the ordinance or resolution. It shall also be his duty to keep a record showing the amount received by him from each person or business paying the tax and the date of such receipt.
C. 
The officer charged with the administration and enforcement of the provisions of the ordinance or resolution is hereby empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of the ordinance or resolution, 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 cases 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 the ordinance or resolution. No rule or regulation of any kind shall be enforceable unless it has been approved by resolution by the governing body.
D. 
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.
E. 
The officer and agents designated by him 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, the means, facilities and opportunity for such examination and investigations, as are hereby authorized.
F. 
Any information gained by the officer, his agents or by any other official or agent of the taxing district, as a result of any declarations, returns, investigations, hearings or verifications required or authorized by the ordinance or resolution, shall be confidential, except for official purposes and except in accordance with a proper judicial order, or as otherwise provided by law.
G. 
The officer is authorized to establish different filing, reporting and payment dates for taxpayers whose fiscal years do not coincide with the calendar year.
A. 
The officer may sue in the name of the Borough of Mount Oliver for the recovery of taxes due and unpaid under this Article.
B. 
Any suit brought to recover the tax imposed by this Article 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:
(1) 
Where no declaration or return was filed by any person although a declaration or return was required to be filed by him under provisions of this Article, there shall be no limitation.
(2) 
Where an examination of the declaration or return filed by any 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.
(3) 
In the case of substantial understatement of tax liability of 25% or more, and no fraud, suit shall be begun within six years.
(4) 
Where any person has deducted taxes under the provisions of this Article 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.
C. 
This section shall not be construed to limit the Borough of Mount Oliver from recovering delinquent taxes by any other means provided by this act.
D. 
The officer may sue for recovery of an erroneous refund, provided that such suit is begun two years after making 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.
[Amended 3-20-1995 by Ord. No. 798]
A. 
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 one-half of one percent (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.
B. 
Notwithstanding the provisions of Subsection A, 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.
C. 
The provisions of Subsection B 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 B if the returns are determined to be substantially true and correct and the taxes are paid in full within the prescribed time.
The officer is hereby authorized to accept payment under protest of the amount of tax claimed by the Borough of Mount Oliver 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 officer, the amount of the overpayment shall be refunded to the person who paid under protest.
A. 
The tax imposed by this Article shall not apply to:
(1) 
Any person as to whom it is beyond the legal power of the Borough of Mount Oliver 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) 
Institutions or charitable purposes, to public, religious, educational or charitable purposes, to institutions or organizations not organized or operated for the private profit or to trusts and foundations established for any of the said purposes.
B. 
This section shall not be construed to exempt any person who is an employer from the duty of collecting the tax at source from his employee and paying the amount collected to the officer under the provisions of § 223-4 of this Article.
A. 
Any person who fails, neglects or refuses to make any declaration or return required by this Article, 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 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 article, shall, upon conviction thereof before any District Justice of the Borough of Mount Oliver or court of competent jurisdiction in Allegheny County, 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 in the Allegheny County Jail for a period not exceeding 30 days.
[Amended 3-20-1995 by Ord. No. 798]
B. 
Any person who divulges any information which is confidential under the provisions of this article shall, upon conviction thereof before any District Justice of the Borough of Mount Oliver or court of competent jurisdiction in Allegheny County, 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 in the Allegheny County Jail for a period not exceeding 30 days.
[Amended 3-20-1995 by Ord. No. 798]
C. 
The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this article.
D. 
The failure of any person to receive or procure forms required for making the declaration or returns required by this article shall not excuse him from making such declaration or return.