[Adopted 11-12-2003 by Ord. No. 858]
This article shall be known and may be cited
as the "Springfield Township Earned Income Tax Ordinance."
As used in this article, unless the context
clearly indicates a different meaning, the following definitions shall
apply:
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 persons, 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 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 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, until some event occurs
to induce him to adopt some other permanent home. In the case of a
business or association, 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 property; not including, however,
wages or compensation paid to persons on active military service;
periodic payments for sickness, disability of 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; compensation payments by any governmental agency; 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 retirements.
The person, public employee or private agency designated
by the governing body 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 a salary, or any other entity employing one
or more persons for a 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 the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
A person, partnership, association or other entity domiciled
outside the taxing district.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the taxing district.
The calendar year following the current year.
A person, partnership, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
A tax at the rate of 1% on each dollar is hereby
imposed on all earned income and net profits, as defined herein, earned
by residents of the Township and on all earned income and net profits
earned by nonresidents of the Township for work done or services performed
or rendered in said Township. This tax shall become effective January
1, 2004, and shall remain in effect thereafter on a calendar year
basis without annual reenactment unless the rate of tax is subsequently
changed.
A.
Net profits.
(1)
Every taxpayer making net profits shall, on or before
April 30 of each year, make and file with the officer a declaration
of his estimated net profits during the period beginning January 1
and ending December 31 of the current year and pay to the officer
four equal quarterly installments of tax due thereon as follows: the
first installment on or before April 30 of the current year, the second
installment on or before July 31 of the current year, the third installment
on or before October 31 of the current year and the fourth installment
on or before January 31 of the succeeding year.
(2)
On or before April 15 of the succeeding year, every
taxpayer shall make and file a final return on a form prescribed by
the officer showing the amount of net profits earned, the total amount
of tax due and the total amount of tax paid thereon. At the time of
filing the final return, the taxpayer shall make payment to the officer
of the balance of the tax due or shall make demand for refund or credit
in the case of lower payment. An incomplete or improperly completed
tax return shall be considered as not having been filed. Each final
return shall have been substantiated and supported by such United
States federal income tax return forms as shall be required by the
officer, which shall at least include a copy of the federal W-2 form
in the case of an earned income taxable and Schedule C of the federal
return as net profits taxable.
B.
Earned income tax; earned income not subject to withholding.
Every taxpayer who is employed for a salary, wage, commission or other
compensation and who received any earned income not subject to the
provisions relating to collection at the source shall make and file
with the officer on a form prescribed or approved by the officer,
a quarterly return, on or before April 30 of the current year, July
31 of the current year, October 31 of the current year and January
31 of the succeeding year, setting forth the aggregate amount of earned
income not subject to withholding by him during the three-month periods
ending March 31 of the current year, June 30 of the current year,
April 30 of the current year and December 31 of the current year,
respectively, and subject to the tax, together with such other information
as the officer may require. Every taxpayer making such return shall,
at the time of filing thereof, pay to the officer the amount of tax
shown as due thereon.
C.
Earned income tax; exemption for taxpayers earning
a gross salary of $5,000 or less. Retroactive to the tax year beginning
January 1, 2003, any taxpayer whose gross income is equal to or less
than $5,000 shall be exempt from paying earned income tax. In order
to claim this exemption, the taxpayer must make and file with the
officer, on a form prescribed or approved by the officer, quarterly
information returns as indicated in this subsection. Such form shall
set forth the aggregate of earned income and shall detail the taxpayer's
exempt status.
A.
Duties of employer. Every employer having an office,
factory, workshop, branch, warehouse or other place of business within
the Township 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 the Township
on the earned income due to his employee or employees and shall, on
or before April 30 of the current year, July 31 of the current year,
October 31 of the current year and January 31 of the succeeding year,
file a return and pay to the officer the amount of taxes deducted
during the preceding 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. Such returns, unless
otherwise agreed upon between the officer and employer, shall show
the name and social security number of each such employee, the earned
income of such employee during such preceding three-month period,
the tax deducted therefrom, the political subdivision imposing the
tax upon such employee and the political subdivision in which the
employee resides, 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.
B.
Possible requirement of monthly reporting. 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.
Annual return of employer. 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 tax paid to the officer for the period beginning January 1 of the
current year and ending December 31 of the current year.
(2)
A return showing withholding statements for each employee
employed during all or 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 and social security number, the amount of earned
income paid to the employee during said period, the amount of tax
deducted, the political subdivision 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.
Termination of business. Every employer who discontinues
business prior to December 31 of the current year shall, within 30
days after the discontinuance of business, file the returns and withholding
statements herein above required and pay the tax due.
E.
Liability of employer. Except as otherwise provided,
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.
F.
Nondeduction by employer does not release employee.
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 requirement of the article relating
to the filing of declarations and returns.
G.
Duty to file return. No taxpayer who is otherwise
obliged to file a tax return pursuant to this article shall be relieved
or excused from the responsibility of filing a tax return where no
earned income or net profits are earned unless specifically exonerated
from such filing by the Commissioners of Springfield Township or the
earned income tax officers. Without such exoneration, the taxpayer
shall file an informational return with the earned income tax officer
stating the reasons why no income was earned or net profits retained.
A.
Collection of taxes and keeping of records. It shall
be the duty of the officer to collect and receive the taxes, fines
and penalties imposed by the ordinance. 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.
B.
Bond required.
(1)
Each officer, before entering upon his official duties,
shall give and acknowledge a bond to Springfield Township. If the
Board of Commissioners of Springfield Township shall by ordinance
designate any bond previously given by the officer as adequate, such
bond shall be sufficient to satisfy the requirements of this subsection.
(2)
Each such bond shall be joint and several, with one
or more corporate sureties which shall be surety companies authorized
to do business in this Commonwealth and duly licensed by the Insurance
Commission of this Commonwealth.
(3)
Each bond shall be conditioned upon the faithful discharge
by the officer, his clerks, assistants and appointees of all trusts
confided in him by virtue of his office, upon the faithful execution
of all duties required by him according to law, of all monies and
all balances thereof paid to, received or held by him by virtue of
this office and upon the delivery to his successor or successors in
office of all books, papers, documents or other official things held
in right of his office.
(4)
Each such bond shall be taken in the name of the appointing
authority or authorities and shall be for the use of the political
subdivision or political subdivisions appointing the officer and for
the use of such other person or persons for whom money shall otherwise
appear, in case of a breach of any of the conditions thereof by the
acts or neglect of the principal on the bond.
C.
Development of rules and regulations. The officer
charged with the administration and enforcement of the provisions
of the ordinance 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 including provisions
for the reexamination and correction of declarations and returns and
of payments alleged or found to be incorrect, or as to which an overpayment
is claimed or found to have occurred, and to make refunds in case
of overpayment for any period of time not to exceed six years subsequent
to the date of payments of the sum involved and to prescribe forms
necessary from the administration of the ordinance. No rule or regulation
of any kind shall be enforceable unless it has been approved by the
Board of Commissioners. A copy of such rules and regulations currently
in force shall be available for public inspection.
D.
Refund of unreimbursed expenses. 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.
Right to examine records. 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.
Confidentiality. 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 shall be
confidential, except for official purposes and except in accordance
with a proper judicial order, or as otherwise provided by law.
A.
Suit in the name of the Township. The officer may
sue in the name of Springfield Township for recovery of taxes due
and unpaid under this article.
B.
Time of suit/limitation of actions. Any suit brought
to recover the tax imposed by the ordinance shall begin 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 the ordinance, 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 begin within six years.
(4)
Where any person has deducted taxes under the provisions
of the ordinance 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.
(5)
This section shall not be construed to limit the Township
from recovering delinquent taxes by any other means provided by law.
C.
Suit to recover erroneous refund. The officer may
sue for recovery of an erroneous refund, provided that such suit is
begun within 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.
This article shall not apply to personal property
or persons on whom or which it is beyond the legal power of the Township
of Springfield to impose the tax herein specified, provided that this
section shall not operate to relieve or exempt any such entity from
collection at the source of the earned income of its employees and
remittance of such collections to the earned income tax collector.
A.
Every owner of a residential or commercial rental
unit or units must file a list of all tenants and their addresses
with the Tax Collector's office on or before April 15, 2004, and thereafter
file a letter of notification within 30 days of any changes occurring
in occupancy from the initial lists submitted.
B.
Each owner or manager of a residential or commercial rental unit or units who fails to submit such a list or lists set forth in Subsection A above shall, upon conviction in a summary proceeding, be liable for a fine not exceeding $100 for each day that such lists have not been filed in a timely manner as required by this section. Failure to file as required shall constitute a continuing violation, and the fine provided for herein shall be chargeable for each day of violation that such a person is in violation of providing such a list on the date it is due, it being the intent of this article that such failure to file such list on its due date be a continuing violation that will not end until the day when such lists are ultimately filed.
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 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 therefore shall, in addition, be liable for
the costs of collection and the interest and penalties herein imposed.
B.
All final reports/reconciliations filed after April 15 will be assessed penalty and interest charges. (Penalty and interest as in Subsection A.) Additionally, penalty and interest charges will be assessed for residents who fail to make quarterly payments which, at a minimum, total 90% of the final, annual tax liability. Final returns filed after April 15 will also be assessed a late charge of $10.
[Added 7-13-2005 by Ord. No. 872]
A.
All taxes due and unpaid under this article shall
be recoverable by the Township Solicitor or designated collector as
other debts due the Township are now by law recoverable. Any unpaid
tax at the end of the calendar year, together with interest penalties
to the extent permitted by law and all delinquent costs, shall be
a lien on the property served, which may be collected by action in
assumpsit, by distress and/or by a lien filed in the nature of a municipal
claim and/or by termination of services as and to the extent provided
by law. In addition, any costs and/or attorney's fees incurred by
Springfield Township shall be added to the unpaid tax along with the
penalties and interest as set forth above, and the aggregate of the
same shall be entered as a lien on the property served. Said costs
and/or attorney's fees shall be established by ordinance of the Board
of Commissioners.
B.
The following fee schedule shall be set to pay legal
counsel for representation in proceedings to recover any delinquent
municipal claim. Township approves these fees and finds them fair
and reasonable for the services to be rendered and shall impose them
upon the property owner in proceedings to recover delinquent municipal
claims, together with any additional expenses.
|
Action
|
Legal Fee
|
|---|---|
|
Open file and send demand letter
|
$135
|
|
File lien and send second letter
|
$125
|
|
Prepare and file writ of scire facias
|
$125
|
|
Reissue writ
|
$25
|
|
Prepare and mail correspondence per Pa. RCP
§ 237.1
|
$25
|
|
Motion for alternate service
|
$175
|
|
Motion for summary judgment
|
$175
|
|
Prepare and file default judgment
|
$125
|
|
Prepare and file writ of execution for Sheriff
sale
|
$600
|
|
With sale
|
$400
|
|
Charge for check which does not clear
|
$25
|
|
Miscellaneous litigation
|
Hourly rate not to exceed $135/hour
|
C.
Adjudication. The taxpayer may petition the Court
of Common Pleas of Montgomery County, being the county in which the
property subject to the municipal claim and lien is located, to adjudicate
the reasonableness of the attorney's fees imposed.
D.
Notices. At least 30 days prior to assessing or imposing
attorney fees in connection with the collection of a delinquent account,
the Township shall, by United States certified mail, return receipt
requested, postage prepaid, mail to the owner the notices as set forth
hereafter.
E.
Refusal of mail. If within 30 days of mailing the
notice in accordance with the foregoing subsection, the certified
mail is refused or unclaimed, or the return receipt is not received,
then at least 10 days prior to assessing or imposing attorney's fees
in connection with the collection of a delinquent account, the Township
shall, by United States first class mail, mail to the owner the notice
required hereafter.
F.
Contents of notice. This notice shall be mailed to the taxpayer's last known post office address; shall state that it is the intention of this Township to impose or assess attorney's fees within 30 days of mailing the notice pursuant to Subsection D, hereof, or within 10 days of the mailing and the notice pursuant to Subsection E, hereof, for services rendered in connection with the collection of the delinquent accounts due to the Township and providing for notices and opportunity for hearing, together with a statement setting forth the manner in which the imposition or assessment of attorney's fees may be avoided by payment of the delinquent account.
A.
Fines and penalties. Any person who fails, neglects
or refuses to make any declaration or return required by the ordinance;
any employer who 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 the ordinance
shall, upon conviction thereof before any Justice of the Peace, Alderman
or Magistrate, or court of competent jurisdiction in the 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
for a period not exceeding 30 days. Each violation shall constitute
a separate offense, punishable by a like fine or imprisonment for
each day of continued violation.
B.
Penalty for breach of confidentiality. Any person
who divulges any information which is confidential under the provisions
of the ordinance shall, upon conviction thereof before any Justice
of the Peace, Alderman or Magistrate, 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 said fines and costs, to
be imprisoned for a period not exceeding 30 days.
C.
Penalties cumulative. The penalties imposed under
this section shall be in addition to any other penalty imposed by
any other section of the ordinance.
D.
Failure to receive or obtain forms no excuse. The
failure of any person to receive or procure forms required for making
the declaration or returns required by the ordinance shall not excuse
him from making such declaration or return.
