[Adopted 11-28-1973 by Ord. No. 73-4[1]]
[1]
Editor's Note: The title of this ordinance stated that it was adopted under the authority of the Local Tax Enabling Act (53 P.S. § 6901 et seq.).
Unless otherwise expressly stated, the following words and phrases shall be construed throughout this article to have the meaning indicated in this section. The singular shall include the plural, and the masculine gender shall include the feminine and neuter.
ASSOCIATION
A partnership, limited partnership or any other group of two or more persons.
BUSINESS
An enterprise, activity, profession or any other undertaking of an unincorporated nature conducted for profit or ordinarily conducted for profit whether by a person, partnership, association or any other entity.
CORPORATION
A corporation or joint-stock association organized under the laws of the United States, the Commonwealth of Pennsylvania or any other state, territory, foreign country or dependency.
CURRENT YEAR
The calendar year for which the tax is levied.
DOMICILE
The place where one lives and has his permanent home and to which he has the intention of returning whenever he is absent. An actual residence is not necessarily a domicile, for a domicile is the fixed place of abode which, in the intention of the taxpayer, is permanent rather than transitory. A 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.
EARNED INCOME
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.[1] 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 workmens' 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 6-19-2003 by Ord. No. 2003-6]
EARNED INCOME TAX COLLECTOR OR OFFICER
A person, public employee or private agency designated by the Supervisors of Lower Salford Township to collect and administer the tax on earned income and net profits.
EMPLOYER
A person, partnership, association, corporation, institution, governmental body or unit or agency or any other entity employing one or more persons for a salary, wage, commission or other compensation.
NET PROFITS
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:
[Amended 6-19-2003 by Ord. No. 2003-6]
A. 
Any interest earnings generated from any monetary accounts or investment instruments of the farming business;
B. 
Any gain on the sale of farm machinery;
C. 
Any gain on the sale of livestock held 12 months or more for draft, breeding or dairy purposes; and
D. 
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled outside of Lower Salford Township.
PERSON or INDIVIDUAL
A natural person.
PRECEDING YEAR
The calendar year before the current year.
RESIDENT
A person, partnership, association or other entity domiciled in Lower Salford Township.
SUCCEEDING YEAR
The calendar year following the current year.
TAXPAYER
A person, partnership, association or any other entity required hereunder to file a return of earned income or net profits, or to pay a tax thereon.
TOWNSHIP
Township of Lower Salford.
[1]
Editor's Note: See 72 P.S. § 7301 et seq.
A tax for general Township revenue purposes of 1% is hereby imposed on the following:
A. 
Salaries, wages, commissions and other compensation earned on and after January 1, 1974, by residents of the Township and nonresidents of the Township within the confines of the Township.
B. 
Net profits, earned on and after August 1, 1974, of businesses, professions and other activities conducted by residents of the Township and by nonresidents of the Township within the confines of the Township.
C. 
The tax levied under this article shall be applicable to earned income received and to net profits earned by residents of the Township and by nonresidents of the Township within the confines of the Township for the period commencing January 1 of the current year and ending December 31 or for the 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. The Township may, by ordinance, change the rate. Such change shall become effective on the date specified in that ordinance.
A. 
Net profits.
(1) 
Beginning with the calendar year January 1, 1974, every taxpayer who makes any net profits shall, on or before April 15 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 determined to be due under the estimate in four equal payments as follows:
(a) 
First payment on or before April 15 with declaration.
(b) 
Second payment on or before June 15.
(c) 
Third payment on or before September 15.
(d) 
Final payment on or before January 15 of the succeeding year.
(2) 
Any taxpayer who first anticipates any net profit after April 15 of the current year shall make and file the declaration hereinabove required on or before June 15, September 15 and December 31 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 on or before the quarterly payment dates which remain after the filing of his first declaration.
(3) 
On or before April 15 of the succeeding year, every taxpayer shall make and file with the Tax Collector on a form prescribed or approved by the Tax Collector a final return showing the amount of 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 and the total amount of tax paid thereon. At the time of filing the final return, the taxpayer shall pay to the officer the balance of tax due or shall make demand for refund or credit in the case of overpayment.
(4) 
The Township shall provide, by resolution, regulations for the making and filing of adjusted declarations of estimated net profits and for the payment 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 profits.
(5) 
Every taxpayer who discontinues business prior to December 31 of the current year shall, within 30 days after the discontinuance of business, file his final return as hereinabove required and pay the tax due.
B. 
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 a final return on a form prescribed, prepared and supplied by the Earned Income Tax Collector, showing the total amount of earned income received 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 relating to the collection at source and the balance of tax due. At the time of filing the final return, the taxpayer shall pay the balance of the tax due or shall make demand for refund or credit in the case of overpayment.
(2) 
Earned income not subject to withholding. Every taxpayer who is employed for salary, wage, commission or other compensation who received any earned income not subject to the provisions of this article 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 filing of the return with the Earned Income Tax Collector, pay to the Collector the amount of tax shown as due thereon.
A. 
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, and who has not previously registered, shall, within 15 days after becoming an employer, register with the officer his name and address and such other information as the officer may require.
B. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business or employment within the 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 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 30 of the current year, respectively. 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 the preceding three-month period, the tax deducted therefrom, the political subdivision imposing such tax, the total earned income of all such employees during the preceding three-month period and the total tax deducted therefrom and paid with the return.
C. 
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 Township of Lower Salford 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.
D. 
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.
(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.
E. 
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.
F. 
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.
G. 
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 pertaining to the filing of declarations and returns.
A. 
The office of Earned Income Tax Collector is hereby created by this article, and the Board of Supervisors 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 may determine, said bond to cover all moneys coming into his hands on behalf of the Township. Before entering upon his official duties, the Earned Income Tax Collector shall give and acknowledge the bond to the taxing district appointing him. Said bond shall be in compliance with Act 511[1] in all respects and subject to the approval of the Taxing District Solicitor.
[1]
Editor's Note: See 53 P.S. § 6901 et seq.
C. 
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 Board of Supervisors of the 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.
D. 
The Earned Income Tax Collector 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 the Earned Income Tax Collector or such other authorized person the means, facilities and opportunities for such examination and investigations hereby authorized.
E. 
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.
F. 
The Earned Income Tax Collector or any other official or agent so designated by the Board of Supervisors 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.
G. 
Any information gained by the Earned Income Tax Collector or any other official or agent of the 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.
H. 
Any person who, except as permitted by the provisions of the foregoing Subsection F of this article, divulges any information which is confidential under the provisions of this article 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 or suffer imprisonment for a period of 30 days, or both.
A. 
The Earned Income Tax Collector may sue in the name of the Township for the recovery of taxes due and unpaid under this article.
B. 
Any suit brought to recover the taxes imposed by this article shall be begun within three years after such tax is due or within three years after the declaration or return has been filed, whichever date is later; provided, however, that this limitation shall not prevent the institution of a suit for the collection of any tax due or determined to be due in the following cases:
(1) 
Where no declaration or return was filed by any person although a declaration or return was required to be filed by him under provisions of this article, there shall be no limitation.
(2) 
Where an examination of the declaration or return filed by any person or 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 there is 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 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 article shall not be construed to limit Lower Salford Township from recovering the delinquent taxes by any other means provided in the Local Tax Enabling Act.[1]
[1]
Editor's Note: See 53 P.S. § 6901 et seq.
C. 
The officer may sue for recovery of an erroneous refund, provided that such suit is begun two years after making such refund, except that the suit may be brought within five years if it appears that any part of the refund was induced by fraud or misrepresentation of material fact.
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 the costs of collection and the 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 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 of any part of the tax imposed by this article shall pay a civil penalty not to exceed $600 per violation. When the penalty imposed for the violation of this article is not voluntarily paid to the Township, the Township shall initiate a civil enforcement proceeding before a District Justice. The civil enforcement proceeding shall be initiated by a complaint or by such other means as may be provided by the Pennsylvania Rules of Civil Procedure. In addition to or in lieu of civil actions before a District Justice, the Township may enforce the ordinance in equity. In any case where a penalty for a violation of this article had not been timely paid and the person upon whom the penalty was imposed is found to have been liable therefor in civil proceedings, a violator shall be liable for the penalty imposed, including additional daily penalties for continuing violations, plus court costs and reasonable attorney's fees incurred by the Township in the enforcement proceedings.
[Amended 9-19-1996 by Ord. No. 96-3; 6-3-1998 by Ord. No. 98-4; 11-18-1999 by Ord. No. 99-16]
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 declarations or returns required by this article shall not excuse him from making such declarations or returns.
This article shall not apply to personal property or persons who or which are beyond the legal power of the Township 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 officer.
This article shall become effective the first day of January 1974, for the period January 1, 1974, to December 31, 1974, and for all calendar years thereafter.