[Adopted 11-27-1972 by Ord. No. 6-72 (Ch.
24, Part 2, of the 1985 Code)]
This article shall be known and may be cited
as "Earned Income Tax Ordinance." The provisions hereof shall first
become effective on January 1, 1973, and shall remain in effect on
a calendar-year basis without annual reenactment.
A.
ASSOCIATION
BOROUGH or BOROUGH OF GREENCASTLE
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EMPLOYEE
EMPLOYER
INCOME TAX OFFICER or OFFICER
NET PROFITS
NONRESIDENT
PERSON or INDIVIDUAL
POLITICAL SUBDIVISION
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
Unless otherwise expressly stated, the following terms
shall have, for the purpose of this article, the meanings indicated
in this section:
A partnership, limited partnership, joint venture or any
other form of unincorporated group of two or more persons.
The political subdivision or municipality within the corporate
limits of the Borough of Greencastle, which was incorporated by the
Commonwealth of Pennsylvania as the Mayor and Borough Council of the
Borough of Greencastle.
An enterprise, activity, profession or any other undertaking
of an unincorporated nature conducted for profit, or ordinarily conducted
for profit, whether by an individual, 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, or foreign country or dependency.
The calendar year for which the tax is levied.
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 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 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.
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.
Any person who renders services to another for a financial
consideration of its equivalent, under an express or implied contract,
and who is under the control and direction of said other person, and
shall include persons employed on a temporary, provisional, casual
or part-time basis.
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, official, public employee, private agency or
firm designated by resolution or ordinance of the Mayor and Borough
Council of the Borough of Greencastle, Franklin County, Pennsylvania,
to collect and administer the tax on earned income received and net
profits earned, or any successor, or agent so appointed.
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.
An individual, partnership, association, or other entity,
domiciled outside of the Borough of Greencastle, Franklin County,
Pennsylvania.
Every natural person. Whenever used in any clause prescribing
and imposing a penalty, the term "person," as applied to an association,
shall mean the partners or members thereof, and as applied to corporations,
the officers thereof.
Any city, borough, town, township or school district existing
under the laws of the Commonwealth of Pennsylvania as they shall be
deemed subject to this article by the laws of the Commonwealth of
Pennsylvania.
The calendar year before the current year.
An individual, partnership, association or other entity,
domiciled in the Borough of Greencastle, Franklin County, Pennsylvania.
The calendar year following the current year.
A person, whether an individual, partnership, association
or any other entity, required hereunder to file a return of earned
income or net profits, or to pay a tax thereon.
B.
The singular shall include the plural, and the masculine
shall include the feminine and the neuter.
[Amended 5-26-1981 by Ord. No. 1-81]
A.
A tax for general revenue purposes at the rate of
1/2% per year is hereby imposed on the following:
(1)
Earned income received on and after January 1, 1973,
by residents of the Borough of Greencastle.
(2)
Net profits earned on and after January 1, 1973, by
residents of the Borough of Greencastle.
(3)
Earned income received on and after January 1, 1973,
in the Borough of Greencastle by nonresidents of the Borough of Greencastle.
(4)
Net profits earned on and after January 1, 1973, in
the Borough of Greencastle by nonresidents of the Borough of Greencastle.
B.
The tax levied under Subsection A(1) and (3) herein shall relate to, but is not limited to, and is imposed upon earned income paid by an employer or on his behalf to a person who is employed by him. The tax levied under Subsection A(2) and (4) herein shall relate to and be imposed on the net profits of any business, profession or other activity carried on by any person or persons.
D.
Every corporation which is subject to the Pennsylvania
Corporate Net Income Tax or exempt from the Pennsylvania Corporate
Net Income Tax and every foreign corporation which is subject to the
Pennsylvania Franchise Tax or exempt from the Pennsylvania Franchise
Tax shall be exempt from the tax imposed by this article.
E.
The tax levied by this article shall be applicable
to earned income received and to net profits earned beginning January
1, 1973, which are subject to this tax, and shall continue on a calendar-year
basis. The first year shall end December 31, 1973; however, the tax
shall remain effective for each full calendar year thereafter until
the same is repealed.
A.
Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with the Income Tax Officer, on a form
prescribed or approved by the Mayor and Borough Council of the Borough
of Greencastle, Franklin County, Pennsylvania, a final return showing
the amount of aggregate earned income received (before any deductions)
or 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, the amount of tax paid thereon, the amount
of tax thereon that has been withheld pursuant to the provisions hereof
relating to collection at the 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 a refund or credit
in the event that the amount of tax withheld is greater than the amount
of tax due.
B.
Every taxpayer who discontinues business prior to
December 31 of a current year shall, within 30 days after the discontinuance
of business, file a final return as hereinabove required and pay the
tax due.
[Amended 5-7-1973 by Ord. No. 3-73; 7-11-1977
by Ord. No. 4-77; 5-26-1981 by Ord. No. 1-81]
A.
Every employer having an office, factory, workshop,
branch, warehouse, or other place of business within the Borough of
Greencastle who employs one or more residents or nonresidents of the
Borough of Greencastle, other than employees performing domestic services
in the employer's home, for a salary, wage, commission or other compensation
shall, within 15 days after the effective date of this article or
within 15 days after becoming an employer, register with the Income
Tax Officer his name, address, number of employees, and such other
information as the Officer may require.
B.
Deduction and remittance.
(1)
Every employer described in Subsection A above shall deduct from each employee's salary, wage, commission or other compensation, at the time of payment thereof, the tax imposed thereon by this article and shall remit the same to the Income Tax Officer, accompanied by returns on forms prescribed and approved by the Mayor and Borough Council of the Borough of Greencastle, Franklin County, Pennsylvania, at the following times:
|
For Quarter Comprising the Following Months
in Which Wages are Paid
|
Payment Due On or Before
| |
|---|---|---|
|
January, February, March
|
April 30
| |
|
April, May, June
|
July 31
| |
|
July, August, September
|
October 31
| |
|
October, November, December
|
January 31
|
(2)
Effective December 31, 1980, employers shall not deduct
the tax imposed by this article from the salary, wage, commission
or other compensation of employees who are nonresidents of the Commonwealth
of Pennsylvania.
(3)
Employers' returns for each quarter shall state, with
respect to that quarter, the aggregate wages from which, and number
of employees from whom, reported tax was withheld, the aggregate amount
of tax withheld, the commission (if any) which the employer is entitled
to deduct, the net amount of tax remitted and any other pertinent
information which may be required by the Officer.
C.
Returns and statements.
(1)
On or before February 28 of each succeeding year,
every employer shall file with the Income Tax 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 January
1, of the current year and ending December 31 of the current year;
and
(b)
A return withholding statement 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 employee's name, address and social security or account
number, the amount of tax deducted, the political subdivision or 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.
(2)
Any employer who discontinues business (or his legal
representatives) shall file a final quarterly return and annual return,
and pay tax, covering periods not previously reported, within 30 days
following such discontinuance.
D.
Any taxpayer subject to the tax imposed by this article
may report and pay said tax through a qualified and approved bulk
reporter, that is, a qualified and approved natural person, partnership,
association, corporation, governmental body or unit or agency, or
any other entity reporting and/or paying tax for persons subject to
the tax, who shall, on behalf of the Borough and the Income Tax Officer,
issue a receipt therefor. Bulk reporters shall register with the Officer
such bulk reporter's name and address and such other information as
the Officer may require, on or before April 30, 1973, or within 15
days after becoming a bulk reporter and shall maintain complete records
of the taxpayers for whom reporting is made for a period of six years,
in such form as to enable the Income Tax Officer to determine the
liability of the taxpayers for whom bulk reporting is being made,
the actual amount transmitted to the Officer and such other information
available to such bulk reporters as will enable the Officer to carry
out his responsibilities. Bulk reporters shall file with the Income
Tax Officer quarterly reports and annual returns on the same dates
and for the same periods as are provided for with respect to employers
in subsections 2 and 3 of this section. Annual returns filed by bulk
reporters shall show the full name and address of the employer and
the employee for whom bulk reporting and payment is being made, said
employees' social security numbers and/or account numbers and the
total wages paid to all employees during the preceding calendar year
for whom bulk reporting and payment is being made, together with such
other information and reconciliations of quarterly reports as the
Officer may require. At the time bulk reporters register with the
Income Tax Officer they shall sign a form or agreement indicating
that they are willing to pay for an annual audit of their bulk reports
by an auditor approved by the Borough.
E.
Any nonresident employer beyond the limits of this
Borough who desires, for the convenience and with the consent of his
employees residing in this Borough, to deduct tax hereunder from such
employees' wages, shall be entitled to the commission hereafter allowed,
and shall become subject to all obligations of timely filing of returns,
reports and remittances, and of maintaining and disclosing records,
and to all interest and penalties, with respect to such tax as he
may actually deduct, in all respects, and with the same incidents,
as though he were a resident employer; but no such deduction shall
obligate such employer to continue to make future deductions.
F.
Tax deducted from wages by any employer shall at all
times be and remain the property of this Borough, and shall constitute
a trust fund in the employer's hands until remitted to the Officer;
and deduction of tax from wages shall, as between the employee and
this Borough, constitute payment of the tax by the employee, regardless
of any insolvency or failure to remit on the employer's part.
G.
Every employer who willfully or negligently fails
or omits to make the deductions required by this article 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.
H.
The failure or omission of any employer to make the
deductions required by this article shall not relieve any employee
from liability for payment of the tax or from the duty to comply with
the requirements of this article relating to the filing of returns.
Any taxpayer, for his convenience, and subject to any adjustments required by the Officer for previous or future returns made on the basis of a calendar year or different fiscal year, may elect to report and pay tax hereunder on the taxpayer's fiscal-year basis instead of on the calendar-year basis provided for in §§ 185-14 and 185-15. Such election shall be filed with the Officer and shall contain a written agreement by the taxpayer that his earned income for such fiscal year shall be deemed in all respects to constitute, and shall be a substitute for, earned income of the calendar year which is subjected to tax by this article. Such election shall be at the risk of the taxpayer with respect to any adjustments of tax paid to or claimed by other taxing districts with respect to the same income. A fiscal-year taxpayer shall report and pay tax in full, in one payment, on or before the 105th day after the close of his fiscal year.
Failure of a taxpayer or employer to receive
forms or returns shall not excuse any failure to file any reports
or returns which may be required, or to pay any tax due, hereunder.
A.
It shall be the duty of the Income Tax Officer 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 or business paying the tax and, if
paid by such person in respect of another person, the name of such
person and the date of such receipt.
B.
Each Officer, before entering his official duties,
shall give and acknowledge a bond to the Mayor and Borough Council
of the Borough of Greencastle, Franklin County, Pennsylvania, which
shall be conditioned and shall provide for all rights and obligations
on the respective parties as set forth in The Local Tax Enabling Act,
1965, December 31, P.L. 1257, as amended. Said bond shall be delivered
to the Secretary of the Mayor and Borough Council of the Borough of
Greencastle, Franklin County, Pennsylvania, maintained with its records,
or at such place as is required by law.
C.
The Income Tax Officer is hereby charged with the
administration and enforcement of the provisions of this article and
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 provisions for the reexamination
and correction of 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 this article. No rule or regulation of any kind shall be enforceable
unless it has been approved by resolution or ordinance of the Borough
of Greencastle, Franklin County, Pennsylvania. A copy of such rules
and regulations currently in force shall be available for public inspection.
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 return, or if no 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 employees,
agents, or by any other official or agent of the Borough, as a result
of any 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.
G.
Any person aggrieved by any action of the Income Tax
Officer shall have the right of appeal as provided by law.
The Income Tax Officer shall receive such compensation
for his services and expenses as shall be determined and fixed by
the Mayor and Borough Council of the Borough of Greencastle, Franklin
County, Pennsylvania, and as shall be permitted by law. In fixing
such compensation, said municipality may, pursuant to a resolution
or ordinance, enter into such written agreements for such compensations
as shall be deemed necessary.
A.
The Income Tax Officer may sue in the name of the
Mayor and Borough Council of the Borough of Greencastle, Franklin
County, Pennsylvania, 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 return was filed by any person although a
return was required to be filed by him under provisions of this article,
there shall be no limitation.
(2)
Where an examination of the return filed by any person,
or of other evidence relating to such 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 article, there shall be no limitation.
(5)
This section shall not be construed to limit the governing
body from recovering delinquent taxes by any other means provided
by this article.
C.
The Officer may sue for recovery of an erroneous refund
provided 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.
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 1/2% 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.
[Amended 7-1-1985]
A.
Any person who fails, neglects or refuses to make
any 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, or the
Franklin County Court in event of appeal, be sentenced to pay a fine
of not more than $500 for each offense, and costs, and/or to be imprisoned
for a period not exceeding 30 days in the Franklin County Prison.
B.
Any person who divulges or permits to be divulged
any information which is confidential under the provisions of this
article shall, upon conviction thereof before any District Justice,
or the Franklin County Court in the event of appeal, be sentenced
to pay a fine of not more than $500 for each offense, and costs, and/or
to be imprisoned for a period not exceeding 30 days in the Franklin
County Prison.
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 returns required by this article shall not
excuse him from making such return.
The Income Tax Officer is hereby authorized
to accept payments 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 Income Tax Officer, the amount of the overpayment shall be
refunded to the person who paid.
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 Mayor and Borough Council of the Borough of Greencastle, Franklin
County, Pennsylvania, to impose the tax provided for under the Constitution
of the United States and the Constitution and laws of the Commonwealth
of Pennsylvania.
(2)
To the net profits of any institution or organization
operated for public, religious, educational or charitable purposes,
to an institution or organization not organized or operated for private
profit, or to a trust of a foundation 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 the
source from his employees and paying the amount collected to the Mayor
and Borough Council of the Borough of Greencastle, Franklin County,
Pennsylvania, under the provisions of this article.
