This article shall be known and may be cited
as the "Hatfield Township Earned Income and Net Profits Tax Ordinance."
The following words and phrases, when used in
this article, shall have the meanings ascribed to them in this section:
ASSOCIATION
A partnership, limited partnership or any other unincorporated
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.
DOMICILE
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 voluntarily 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 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
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent, and whether in cash or in property, not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workmen's compensation acts, occupational disease
acts and similar legislation, or payments commonly recognized as old
age benefits, retirement pay or pensions paid to persons retired from
service after reaching a specific age or after a stated period of
employment or payments commonly known as public assistance, or unemployment
compensation payments 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.
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 the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the taxing district.
RESIDENT
A person, partnership, association or other entity domiciled
in the taxing district.
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.
[Amended 3-22-2000 by Ord. No. 461; 12-8-2004 by Res. No.
04-43; 12-10-2008 by Ord. No. 581; 12-21-2009 by Ord. No.
594]
A. A tax of 0.5% will be imposed for general revenue
purposes upon the following:
(1) Earned
income paid to or received by residents of Hatfield Township.
(2) Earned
income paid to or received by nonresidents of Hatfield Township for
work done or services performed or rendered in Hatfield Township.
(3) Net
profits earned from operation of a business, profession or other activity
carried on by residents of Hatfield Township.
(4) Net
profits earned from operation of a business, profession or other activity
carried on by nonresidents of Hatfield Township in Hatfield Township.
B. The taxes levied under Subsection
A(1) and
(2) herein shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by an employer or on his behalf to a person who is employed by him. The taxes levied under Subsection
A(3) and
(4) herein shall relate to and be imposed upon the net profits of any business, profession or other activity carried on by any person or persons.
C. The tax levied under this article shall be applicable
to earned income received and to net profits earned in the period
beginning January 1, 1997, and ending December 31, 1997, and the tax
shall continue in force each year thereafter beginning January 1 of
said year and ending December 31 of said year without annual reenactment.
In the case of a taxpayer on a fiscal-year basis, the tax levied under
this article shall be applicable to earned income received and to
net profits earned beginning January 1, 1997, and ending at the end
of the taxpayer's fiscal year, and for each year thereafter beginning
on the first day of the taxpayer's fiscal year and ending on the last
day of the taxpayer's fiscal year, without annual reenactment.
A taxpayer who receives less than $5,000 total
income from all sources during the period beginning January 1 of the
current year, and ending December 31 of the current year, shall, upon
the filing of a final return, be exempted from payment of the tax
imposed herein. No taxpayer shall be relieved from the obligation
to file returns and/or to make quarterly tax payments on the basis
that the taxpayer anticipates being exempted from the tax. Upon the
filing of a final return, a taxpayer who is exempted shall make demand
for refund or credit of any tax payments made prior to filing a final
return.
The income tax officer shall receive such compensation
for his services and expenses as determined from time to time by the
Board of Commissioners of Hatfield Township.
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, including reasonable attorney's
fees, and the interest and penalties herein imposed.
[Added 10-23-1997 by Ord. No. 420BB]
The tax imposed on earned income and net profits
by this article is subject to the credit provisions set forth in § 14
of the Local Tax Enabling Act, P.L. 1257, No. 511, December 31, 1965,
53 P.S. § 6914, as hereinafter amended, supplemented, modified
or reenacted.
The income tax officer shall demand, receive
and collect from all corporations, political subdivisions, associations,
companies, firms or individuals employing persons owing delinquent
earned income taxes or whose spouse owes delinquent earned income
taxes, or having in possession unpaid commissions or earnings belonging
to any person or persons owing delinquent earned income taxes, or
whose spouse owes delinquent earned income taxes, upon the presentation
of a written notice and demand certifying that the information contained
therein is true and correct and containing the name of the taxable
or the spouse thereof and the amount of tax due. Upon presentation
of such written notice and demand, it shall be the duty of any such
corporation, political subdivision, association, company, firm or
individual to deduct from the wages, commissions or earnings of such
individual employees then owing, or that shall within 60 days thereafter
come into its or his possession, a sum sufficient to pay the respective
amount of the delinquent earned income taxes and costs, shown upon
the written notice or demand, and to pay the same to the income tax
officer within 60 days after such notice shall have been given. No
more than 10% of the wages, commissions or earnings of the delinquent
taxpayer or spouse thereof may be deducted at any one time for delinquent
earned income taxes and costs. Such corporation, political subdivision,
association, firm or individual shall be entitled to deduct from the
monies collected from each employee the costs incurred from the extra
bookkeeping necessary to record such transactions, not exceeding 2%
of the amount of money so collected and paid over to the income tax
officer. Upon the failure of any such corporation, political subdivision,
association, company, firm or individual to deduct the amount of such
taxes or to pay the same over to the income tax officer, less the
costs of bookkeeping involved in such transaction, as herein provided,
within the time hereby required, such corporation, political subdivision,
association, company, firm or individual shall forfeit and pay the
amount of such tax for each such taxable whose taxes are not withheld
and paid over, or that are withheld and not paid over, together with
a penalty of 10% added thereto, to be recovered by an action of assumpsit
in a suit to be instituted by the income tax officer, or by the proper
authorities of Hatfield Township, as debts of like amount are now
by law recoverable, except that such person shall not have the benefit
of any stay of execution or exemption law. The income tax officer
shall not proceed against a spouse or his employer until he has pursued
the collection remedies against the delinquent taxpayer and his employer
under this article.
Upon presentation of a written notice and demand,
under oath or affirmation, to the State Treasurer or any other fiscal
officer of the Commonwealth of Pennsylvania, or its boards, authorities,
agencies or commissions, it shall be the duty of the Treasurer or
officer to deduct from the wages then owing, or that shall within
60 days thereafter become due to any employee, a sum sufficient to
pay the respective amount of the delinquent earned income taxes and
costs as shown on the written notice. The same shall be paid to the
income tax officer within 60 days after such notice shall have been
given.