[Adopted 11-14-1989 by Ord. No. 196]
This article shall be known as the "Earned Income Tax Ordinance" of
the Township of Doylestown, Bucks County, Pennsylvania, hereinafter called
"Township."
This article is enacted and adopted under and by virtue of the authority
of the Act of December 31, 1965, P.L 1257, effective January 1, 1966, the
Local Tax Enabling Act, and all the other provisions or sections thereof,
(53 P.S. § 6901 et seq.), its supplements and amendments, which
are incorporated herein by reference, except that where options are provided,
this article designates the options selected.
As used in this article, the following terms shall have the meanings
indicated:
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 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 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 compensation paid to
persons on active military service, periodic payments for sickness, disability
other than regular wages received during a period of sickness, disability
or retirement or payments arising under workmens' 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 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.
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.
A person, public employee or private agency designated by the governing
body to collect and administer the tax on earned income and net profits.
The net income from the operation of a business, profession or other
activity, except corporations, after provisions 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 for general revenue purposes in the amount of 1% is hereby imposed
on earned income, including, inter alia, salaries, wages, commissions, bonuses,
incentive payments, fees, tips and other compensation received by residents
of the Township, and on earned income, including, inter alia, salaries, wages,
commissions, bonuses, incentive payments, fees, tips and other compensation
received by nonresidents of the Township, for work done or services performed
or rendered in the Township and on the net profits received from businesses,
professions or other activities conducted by residents of the Township and
the net profits received from businesses, professions or other activities
conducted in the Township by nonresidents of the Township, beginning January
1, 1990, and continuing for each succeeding year without annual reenactment.
A.
Net profits.
(1)
For 1990. Every taxpayer making net profits shall, on
or before April 15, 1990, make and file with the officer on a form prescribed
or approved by the officer a declaration of his or her estimated net profits
during the period beginning January 1, 1990, and ending December 31, 1990,
and pay to the officer in four equal quarterly installments the tax due thereon
as follows: The first installment at the time of filing of declaration and
the other installments on or before June 15 of the current year, September
15 of the current year, and January 15 of the succeeding year, and on or before
April 15, 1991, shall file a final return showing the amount of net profits
received from the period beginning January 1, 1990, and ending December 31,
1990, 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 the tax due or shall make demand for refund or
credit in the case of overpayment.
(2)
After 1990. Every taxpayer making net profits in any
year succeeding 1990 shall, on or before April 15 of each year, make and file
with the officer a declaration of his estimated net profits for the current
year and pay to the officer the tax due thereon in four equal quarterly installments,
all as provided in Section 13(III)(A)(l)(ii) of the Local Tax Enabling Act,
as amended, and Subsections 13(III)(A)(2) and (3), where applicable. On or
before April 15 of the year following every current year, every taxpayer shall
file a final return showing the amount of net profits received during the
current year, the total tax due thereon and the total tax paid. 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.
An incomplete or improperly completed tax return shall be considered as not
having been filed. Each final return shall be substantiated and supported
by such United States income tax forms as 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 to a net profits taxable.
B.
Earned income.
(1)
For 1990. Every taxpayer shall, on or before April 15,
1991, make and file with the officer a final return showing the amount of
earned income including, inter alia, salaries, wages, commissions, bonuses,
incentive payments, fees, tips and compensation (other than net profits) received
during the period beginning January 1, 1990, and ending December 31, 1990,
the total tax due thereon, the amount of tax paid thereon that has been withheld
pursuant to the provisions relating to collection at the source and the balance
of the tax due. At the time of filing said 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. An incomplete or improperly completed tax return
shall be considered as not having been filed. Each final return shall be substantiated
and supported by such United States federal income tax return forms as required
by the officer, which shall include at least a copy of the federal W-2 form
in the case of taxable earned income and Schedule C of the federal return
as to net profits taxable.
(2)
After 1990. For the years succeeding the year 1990, every
taxpayer shall make and file final returns and pay the taxes due as provided
in Section 13(III)(B)(1) of the Local Tax Enabling Act, as amended.
(3)
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 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,
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 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.
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 shall deduct at the time of payment thereof the tax
imposed by the Board of Supervisors of Doylestown 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.
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.
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 a withholding statement 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, address, social security number, 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 officer. Every employer shall furnish two copies of the individual
return to the employee for whom it is filed.
D.
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.
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.
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 relating to
the filing of declarations and returns.
The income tax officer shall be selected from time to time by resolution
of the Board of Supervisors and shall receive such compensation for his services
and expenses as determined from time to time by the Township Supervisors.
Such officer shall have the powers and duties and be subject to the penalties
provided in the Local Tax Enabling Act, its supplements and amendments. The
officer shall have the following duties in addition to or in furtherance of
the duties authorized by the Local Tax Enabling Act.
A.
It shall be the duty of the officer to collect and receive
the taxes, fines and penalties imposed by this article. 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.
(1)
Each officer, before entering upon his official duties,
shall give and acknowledge a bond to the Township of Doylestown. The Board
of Supervisors shall by resolution fix the amount of the bond which 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 Commissioner 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 moneys and all balances thereof paid
to, received or held by him by virtue of his 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.
The officer charged with the administration and enforcement
of the provisions of this article is hereby empowered to prescribe, adopt,
promulgate and enforce rules and regulations relating to any matter pertaining
to the administration and enforcement of this article, 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 payment
of the sum involved and to prescribe forms necessary for the administration
of this article. No rule or regulation of any kind shall be enforceable unless
it has been approved by the Board of Supervisors of the Township of Doylestown.
A copy of such rules and regulations currently in force shall be available
for public inspection; the index to general rules and regulations and general
provisions are attached herewith.[1]
[1]
Editor's Note: Copies of the rules and regulations are on file
in the Township offices.
D.
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.
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.
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 this article shall be confidential, except for official purposes and except
in accordance with a proper judicial order or as otherwise provided by law.
G.
The officer is authorized to establish different filing,
reporting and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
The tax imposed in § 158-22 of this article shall not be levied on the net profits of any person, institution or organization as to whom it is beyond the power of the Township Supervisors to impose said tax under the Constitution of the United States of America or the Constitution and laws of the Commonwealth of Pennsylvania.
A.
Payments of any tax on income to any state other than
Pennsylvania or to any political subdivision thereof by residents thereof
pursuant to any state or local law, to the extent that such income includes
salaries, wages, commissions, bonuses, incentive payments, fees, tips and
other compensation or net profits of businesses, professions or other activities
but in such proportions as hereinafter set forth, shall be credited to and
allowed as a deduction from the liability of such person for the tax imposed
by this article on salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation or net profits of businesses, professions
or other activities if residents or the Township receive credits and deductions
of a similar kind to a like degree from the tax on income imposed by the other
state or political subdivision thereof.
B.
Where a credit or a deduction is allowable, it shall
be allowed in proportion to the concurrent periods for which taxes are imposed
by the other state or respective political subdivisions, but not in excess
of the amount previously paid for a concurrent period.
A.
The officer may sue in the name of the Township for recovery
of taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by this article
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 this 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 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 this article 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.
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, including reasonable attorney's fees.
Enforcement and penalties for the nonpayment of any tax imposed hereunder
may be pursued and imposed by the Township as authorized in the Local Tax
Enabling Act, Section 13(VII), (VIII) and (IX). 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.
