[Adopted 5-15-1972]
[1]
Editor's Note: The resolution imposing the
tax on earned income and net profits stated that it was resolved under
the authority of Act No. 511, approved December 31, 1965, P.L. 1257.
The Act referred to is known as the "Local Tax Enabling Act."
A.
ASSOCIATION
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EARNED INCOME TAX COLLECTOR
EMPLOYER
NET PROFITS
NONRESIDENT
PERSON or INDIVIDUAL
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
Unless otherwise expressly stated, the following terms
shall have, for the purpose of this article, the meanings ascribed
to them in this section:
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 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 compensations 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.
Person, public employee or private agency designated by the
Supervisors of Lower Providence 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 the 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, without deduction
of taxes based on income.
A person, partnership, association or other entity domiciled
outside of Lower Providence Township.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in Lower Providence 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 pay
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 is hereby imposed on:
(1)
One percent of all earned income earned on and after
July 1, 1972, by residents and nonresidents of Lower Providence 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 Lower Providence Township.
B.
The tax levied under this article shall be applicable
to earned income received and to net profits earned by residents and
nonresidents in the period beginning July 1 of the current year and
ending December 31 of the current year, or for taxpayer's 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. Lower
Providence Township may, by resolution, change the rate. Such change
shall become effective on the date specified in the resolution.
[Amended 3-14-1983 by Ord. No. 295]
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 Lower Providence Township
shall supply the required declaration forms, and the taxpayers, 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 from 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 beginning July 1, 1972, and ending December 31,
1972, 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. 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.
Taxpayer shall pay to the Tax Collector in equal installments the
amount of tax due thereon on 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 theretofore paid with the estimated return. At
the time of filing a final return, 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 and 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)
Lower Providence Township shall provide, by resolution,
regulations 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.
(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 a 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, during the period beginning January 1 and
ending December 31; the total amount of tax due thereon; the amount
of the tax thereon that has been withheld in the event the provisions
relating to withholding hereinafter set forth have been invoked by
Lower Providence 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 from 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 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 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 the Township
of Lower Providence, 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 Earned Income Tax Collector his name
and address and such other information as the officer may require.
C.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within Lower Providence
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 this article 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 Earned Income Tax Collector 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 return, unless otherwise agreed upon between the Earned Income
Tax Collector and the 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.
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 Lower Providence 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 employee 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.
Termination of business. 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 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 section shall not relieve any employee
from the payment of the tax or from complying with the requirements
of this article in regard 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 Lower Providence shall
from time to time by separate resolution appoint a person or company
to administer the provisions of this tax Article, who will be designated
the "Earned Income Tax Collector."
B.
The Earned Income Tax Collector shall be bonded as
the Supervisors of Lower Providence Township may determine, said bond
to cover all moneys coming into his hands on behalf of Lower Providence
Township, the costs of the bond to be paid by Lower Providence 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 in all respects[1] and subject to the approval of the Township Solicitor.
[1]
Editor's Note: See 53 P.S. § 6901
et seq., particularly 53 P.S. § 6913(V)(b).
C.
The Earned Income Tax Collector shall collect and
receive all such taxes, 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 Lower Providence 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 they had been incorporated
into this article.
E.
The Earned Income Tax Collector or any other person
designated by Lower Providence 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 persons
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 Lower Providence 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.
Any information gained by the Earned Income Tax Collector
or any other official or agent of Lower Providence 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 subsection shall constitute a violation of
this article.
I.
Any person who, except as permitted by the provisions of the foregoing Subsection H of this section, 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, be imprisoned for a period not exceeding 30 days.
A.
The Earned Income Tax Collector may sue in the name
of Lower Providence 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 by him under provisions
of the 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 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,
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.
C.
This article shall not be construed to limit Lower
Providence Township from recovering the delinquent taxes by any other
means provided in The Local Tax Enabling Act.
D.
The Earned Income Tax Collector may sue for the recovery
of an erroneous refund, provided 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.
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 legal costs of collection and for interest and penalties
herein imposed.
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 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 does 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 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, be imprisoned for a
period not exceeding 30 days.
B.
The penalties imposed under this section shall be
in addition to any other penalty imposed by any other section of this
article.
C.
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 on whom or which it is beyond the legal power of the Township
of Lower Providence to impose the tax herein provided; 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 source on earned income of its
employees and remittance of such collections to the Earned Income
Tax Collector.
This article shall become effective the first
day of July 1972 for the period from July 1, 1972, to December 31,
1972, and for all calendar years thereafter.
