[Adopted 5-31-1972 by Ord. No. 60]
A.
ASSOCIATION
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EARNED INCOME TAX COLLECTOR
EMPLOYER
NET PROFITS
(1)
(2)
(3)
(4)
NONRESIDENT
PERSON or INDIVIDUAL
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
On or after the effective date of this article, unless
otherwise expressly stated, the following terms shall have, for the
purpose of this article, the meanings ascribed to them in this section:
[Amended 8-21-1996 by Ord. No. 150]
A partnership, limited partnership or any other unincorporated
group of two or more persons.
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.
A corporation or joint-stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania or
any other state, territory, foreign county 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 voluntary 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.
[Amended 8-21-1996 by Ord. No. 150]
All salaries, wages, commissions, bonuses and incentive payments, whether based on profits or otherwise, fees, tips and similar remuneration received for services rendered, whether directly or through an agent and whether in cash or in property except income derived from the United States government for active duty outside the Commonwealth of Pennsylvania as a member of its armed forces and other compensation as determined under section 303 of the Tax Reform Code of 1971 and regulations in 61 Pa. Code Pt. I Subpt. B Art. V (relating to personal income tax). Employee business expenses are allowable deductions as determined under Article III of the Tax Reform Code of 1971. The amount of any housing allowance provided to a member of clergy shall not be taxable as earned income. The term "compensation" shall not mean or include periodic payments for sickness and disability other than regular wages received during a period of sickness or disability; or disability, retirement or other payments arising under workmen's compensation acts, occupational disease acts and similar legislation by any government; or payments commonly recognized as old age or retirement benefits 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 actual expenses; or payments made by employers or labor unions, including payments made pursuant to a cafeteria plan qualifying under Section 125 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 125), for employee benefit programs covering hospitalization, sickness, disability or death, supplemental unemployment benefits or strike benefits, provided that the program does not discriminate in favor of highly compensated individuals as to eligibility to participate, payments or program benefits; or any compensation received by United States servicemen serving in a combat zone; or payments received by a foster parent for in-home care of foster children from an agency of the commonwealth or a political subdivision thereof or an organization exempt from federal tax under Section 501(c)(3) of the Internal Revenue Code of 1954 which is licensed by the commonwealth or a political subdivision thereof as a placement agency; or payments made by employers or labor unions for employee benefit programs covering social security or retirement; or personal use of an employer's owned or leased property or of employer-provided services.
[Amended 7-16-2003 by Ord. No. 190]
The person, public employee or private agency designated
by the Supervisors of Worcester Township to collect and administer
the tax on earned income and net profits.
A person, partnership, association, corporation, institution,
governmental body or unit or agency or any other entity employing
one or more persons for salary, wage, commission or other compensation.
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 accepted accounting principles and practices but without deduction of taxes based on income or as otherwise determined under Section 303 of the Tax Reform Code of 1971 and regulations in 61 Pa. Code Pt. I Subpt. B Art. V (relating to personal income tax). The term does not include income which is not paid for services provided and which is in the nature of earnings from an investment. For taxpayers engaged in the business, profession or activity of farming, the term shall not include:
Any interest earnings generated from any monetary
accounts or investment instruments of the farming business;
Any gain on the sale of farm machinery;
Any gain on the sale of livestock held twelve
months or more for draft, breeding or dairy purposes; and
Any gain on the sale of other capital assets
of the farm.
[Amended 7-16-2003 by Ord. No. 190]
A person, partnership, association or other entity domiciled
outside of Worcester Township.
A natural person.
The calendar year before this current year.
A person, partnership, association or other entity domiciled
in Worcester Township.
The calendar year following the current year.
A person, partnership, association or other entity required
hereunder to file a return of earned income or net profits or to any
a tax thereon.
B.
In this article, the singular shall include the plural
and the masculine shall include the feminine and the neuter.
A.
A tax for general purposes imposed on:
(1)
One percent of all earned income earned on and after
July 1, 1972, by residents and nonresidents of Worcester Township.
(2)
One percent of the net profits earned on and after
July 1, 1972 of businesses, professions and other activities conducted
by residents and nonresidents of Worcester Township.
B.
The tax levied under this article shall be applicable
to earned income received and to net profits earned by residents in
the period beginning July 1 of the current year and ending December
31 of the current year or for taxpayers' fiscal year beginning in
the current year, and the tax shall continue in force on a calendar
year basis or taxpayer fiscal year basis without annual reenactment,
unless the rate of the tax is subsequently changed. Worcester Township
may, by resolution, change the rate. Such change shall become effective
on the date specified in the resolution.
A.
Tax on net profits.
(1)
Every taxpayer making net profits shall file on or
before October 31, 1972, a declaration of his estimated net profit
during the period beginning July 1, 1972, and ending December 31,
1972. The Income Tax Collector appointed by Worcester Township shall
supply the required declaration forms and the taxpayer upon filing
the same shall pay to the Tax Collector 1/2 of the tax estimated to
be due in accordance with the estimate which will be paid no later
than October 31, 1972. The balance of any tax due for the above period,
July 1, 1972, to December 31, 1972, shall be paid to the Tax Collector
between January 1, 1973, and April 15, 1973. At the time of making
the final payment, the taxpayer shall file with the Income Tax Collector
on a form prescribed by the Income Tax Collector a final tax return
showing the total amount of the net profits earned during the period
July 1, 1972, and ending December 31, 1972; and the total amount of
the tax due thereon, the total amount of tax paid with the estimate
and the balance of the tax due. At the time of filing the return,
the taxpayer shall pay the balance of any tax due and owing to the
Earned Income Tax Collector or shall make a demand for refund or credit
in the case of any overpayment.
(2)
Beginning with the calendar year January 1, 1973,
every taxpayer who makes any net profits shall, on or before April
30 of the then-current year and each year thereafter, make and file
with the Tax Collector a declaration of his estimated net profits
during the period beginning January 1 and ending December 31 of the
then-current year. The taxpayer shall pay to the Tax Collector the
total amount of tax determined to be due under the estimate as follows:
(3)
If a taxpayer after the calendar year 1972 anticipates
net profits after April 30 of the calendar year, then he shall make
and file a declaration on or before July 31, October 31 and April
15 of the then-current year, whichever of these dates next follows
the date on which the taxpayer first anticipates such net profits.
The taxpayer shall pay to the Tax Collector in equal installments
the amount of tax due thereon or before the quarterly payment dates
which remain after the filing of his first declaration.
(4)
On April 15 of each calendar year, every taxpayer
shall file with the Tax Collector a final income tax return showing
the amount of the net profits earned during the period beginning (after
1972) January 1 of the then-current year and ending December 31 of
the then-current year the total amount of tax due thereon and the
total amount of tax heretofore paid with the estimated return. At
the time of filing a final return, the taxpayer shall pay to the Earned
Income Tax Collector the balance of tax due or shall make demand for
a refund or credit in the case of any overpayment. Any taxpayer may
in lieu of paying the fourth quarterly installment of his estimated
tax elect to make and file with the Tax Collector his final return
on or before January 31 of the succeeding year and to pay the tax
in full at that time.
(5)
Worcester Township shall provide by resolution regulations
for the making and filing of adjusted declarations of estimated net
profits 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.
(6)
Discontinuance of business. If a taxpayer discontinues
his business before September 30 of the current year, he shall within
30 days after the discontinuance of the business file his final return
as hereinabove required and pay the tax due or make demand for the
refund or credit in the case of an overpayment.
B.
Earned income.
(1)
Annual earned income tax return. Every taxpayer shall
on or before April 15 of the succeeding year make and file with the
Earned Income Tax Collector, on a form prescribed, prepared and supplied
by the Earned Income Tax Collector, a final return showing the total
amount of earned income received during the period beginning July
1, 1972, and ending December 31, 1972, for the current year and for
each year thereafter for the period beginning January 1 and ending
December 31, the total amount of tax due thereon, the amount of the
tax paid thereon and the amount of the tax thereon that has been withheld
in the event that the provisions relating to withholding hereinafter
set forth have been invoked by Worcester Township and the balance
of the tax due. At the time of the filing of the final return, the
taxpayer shall pay the balance of the tax due or may make a demand
for refund or credit in the case of an overpayment.
(2)
Earned income not subject to withholding. Every taxpayer
who is employed for a salary, wage, commission or other compensation
and who has received any earned income not subject to the provisions
relating to collection at the source shall make and file with the
Earned Income Tax Collector, on a form prescribed or approved by the
Earned Income Tax Collector, a quarterly return on or before October
31, 1972, setting forth the aggregate amount of earned income not
subject to withholding earned by him during the period July 1, 1972,
to and including September 30, 1972, together with such other information
as shall be required on the form supplied by the Earned Income Tax
Collector. Every taxpayer who files a return at this time shall also
pay to the Earned Income Tax Collector the amount of tax estimated
to be due thereon.
(3)
After the calendar year 1972, every taxpayer who is
employed for salary, wage, commission or other compensation who received
any earned income not subject to the provisions relating to collection
at the source shall make and file with the Earned Income Tax Collector,
on a form prepared, supplied and prescribed by the Earned Income Tax
Collector, 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 during the
three-month periods ending March 31 of the current year, June 30 of
the current year, September 30 of the current year and December 31
of the current year, respectively, and subject to the tax, together
with such other information as the Earned Income Tax Collector shall
require. Every taxpayer who makes such a return shall at the time
of the filing of the return with the Earned Income Tax Collector pay
to the Collector the amount of the tax shown as due thereon.
A.
Every employer, as hereinbefore described and defined,
shall be obligated from July 1, 1972, and thereafter so long as this
article is in effect to withhold from wages of employees subject to
the tax imposed by this article, the amount of tax due in accordance
with the withholding procedure set forth hereinafter.
B.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within Worcester Township
who employs one or more persons other than domestic servants for 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 his employee 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 Earned Income
Tax Collector the amount of taxed deducted during the preceding three-month
periods ending March 31 of the current year, June 30 of the current
year, September 30 of the current year and December 31 of the current
year, respectively.
C.
Such return, unless otherwise agreed upon between
the Earned Income Tax Collector and employer, shall show the name
and social security number or identification number supplied by the
Tax Collector 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, 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.
D.
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 Worcester Township
may be required by the Earned Income Tax Collector to file his return
and pay the tax monthly. In such cases, payments of tax shall be made
to the Earned Income Tax Collector on or before the last day of the
month succeeding the month for which the tax was withheld.
E.
On or before February 28 of the succeeding year, every
employer shall file with the Earned Income Tax Collector:
(1)
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 Earned Income Tax Collector for the period beginning
January 1 of the current year and ending December 31 of the current
year (July 1, 1972, to December 31, 1972, for the first year).
(2)
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 social security number or identification
number supplied by the Tax Collector, 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 employees and
the amount of tax paid to the Earned Income Tax Collector. Every employer
shall furnish two copies of the individual return to the employee
for whom it is filed.
F.
Every employer who discontinues business for any reason
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.
G.
Every employer who willfully or negligently fails
to or omits to make the deductions required by this section shall
be liable for the payments 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 section shall not relieve any employee
from the payment of the tax or from complying with the requirements
of this article to the filing of declarations and returns.
A.
The office of Earned Income Tax Collector is hereby
created by this article, and the Township of Worcester shall from
time to time by separate resolution appoint a person or company to
administer the provisions of this article who will be designated the
"Earned Income Tax Collector."
B.
The Earned Income Tax Collector shall be bonded as
the Supervisors of Worcester Township may determine, said bond to
cover all moneys coming into his hands on behalf of Worcester Township,
the costs of the bond to be paid by Worcester Township. Before entering
upon his official duties, the Earned Income Tax Collector shall give
and acknowledge the bond to the Township appointing him. Said bond
shall be in compliance with Act 511[1] in all respects and subject to the approval of the Township
Solicitor.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
C.
The Earned Income Tax Collector shall collect and
receive all taxes, fines, penalties and interest thereon, shall furnish
a receipt for payment when requested to do so by a taxpayer and shall
keep a record showing the amount received by him for each taxpayer
under this article, together with the date of the receipt of such
payment.
D.
The Earned Income Tax Collector is hereby empowered
to prescribe rules and regulations relating to any matter or thing
pertaining to the administration and enforcement of the provisions
of this article, subject, however, to the approval of the Supervisors
of Worcester Township. Such rules and regulations shall be inscribed
by the Earned Income Tax Collector into a book kept for that purpose
and open to the inspection of the public and thereupon shall have
the same force and effect as if it had been incorporated into this
article.
E.
The Earned Income Tax Collector, or any other person
designated by Worcester Township, is hereby authorized to examine
any of the books, papers and records of any employer, supposed employer,
taxpayer or supposed taxpayer in order to verify the accuracy of any
return made or, if no return is made, to ascertain the amount of tax
due by any person under this article. Every such employer, supposed
employer, taxpayer or supposed taxpayer shall give to the Earned Income
Tax Collector or such other authorized person the means, facilities
and opportunities for such examination and investigations hereby authorized.
F.
The Earned Income Tax Collector is authorized to examine
any person under oath concerning any income which was or should have
been returned for taxation and shall have the power and is hereby
authorized to issue subpoenas to compel the attendance of person whom
he deems necessary to examine as witnesses and to compel the production
of books, records and papers relating to any account being examined.
G.
The Earned Income Tax Collector, or any other official
or agent so designated by Worcester Township, shall have the power
to reexamine returns, correct erroneous returns, consent to make refunds
and authorize the refunding of taxes erroneously or improperly collected
from, or paid by, the taxpayers for any period of time not to exceed
six years subsequent to the date of payment of the sum involved.
H.
The officer shall, at least quarterly, distribute
any information gained by the Earned Income Tax Collector or any other
official or agent of Worcester Township as a result of any return,
investigation, hearing or examination required or authorized by this
article shall become confidential, except for official purposes or
except in accordance with proper judicial order or as otherwise provided
by law. Any disclosure of any such information, contrary to the provisions
of this section, shall constitute a violation of this article.
[Amended 8-21-1996 by Ord. No. 150]
A.
The Earned Income Tax Collector may sue in the name
of Worcester Township 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
the provisions of this article, there shall be no limitation.
(2)
Where an examination of the declaration or return
by any person, or of other evidence relating to such declaration or
return in the possession of the Earned Income Tax Collector, 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 amount so deducted to the
Earned Income Tax Collector or where any person has willfully failed
or omitted to make the deductions required by this article, there
shall be no limitation.
D.
The Earned Income Tax Collector may sue for recovery
if 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.
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 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 all costs of collection and for interest and penalties
herein imposed.
A.
Any person who fails, neglects or refuses to make
any declaration or return by this article, any employer who fails,
neglects or refuses to register or to pay the taxes deducted from
his employees or fails, neglects or refuses to deduct withholding
taxes from his employees, any person who refuses to permit the Earned
Income Tax Collector 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 who does anything whatsoever to avoid
the full disclosure of the amount of his net profits of 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 court of competent jurisdiction, be sentenced
to pay a fine of not more than $500 for each offense and costs and,
in default of payment of such fine and costs, shall be imprisoned
for a period not to exceed 30 days.
B.
Any person who divulges any information which is confidential
under the provisions of this article shall, upon conviction thereof
before any District Justice or court of competent jurisdiction, be
sentenced to pay a fine of not more than $500 for each offense and
costs and, in default of payment of such fine and costs, shall be
imprisoned for a period not exceeding 30 days.
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.
This article shall not apply to personal property
or persons to whom or which is beyond the legal power of the Township
of Worcester to impose the tax herein provided or the net profits
of any institution, organization, trust, association or foundation
operated for public, religious, educational or charitable purposes,
provided that this section shall not operate to relieve or exempt
any such entity from collection at the source of earned income of
its employees and remittance of such collections to the Earned Income
Tax Collector.
