[Adopted 2-13-1967 by Ord. No. 4-67]
A.
ASSOCIATION
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EMPLOYER
INCOME TAX OFFICER OR OFFICER
NET PROFITS
NONRESIDENT
PERSON OR INDIVIDUAL
POLITICAL SUBDIVISION
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. However, "earned income"
shall not include 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 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.
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.
Any person, public employee or private agency designated
by the political subdivision 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 by 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 political subdivision.
A natural person.
The Borough of East Greenville, the Borough of Green Lane,
the Borough of Red Hill, the Township of Marlborough and the Township
of Upper Hanover.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the political subdivision.
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.
B.
In this article, the singular shall include the plural,
and the masculine shall include the feminine and the neuter.
A tax for general revenue purposes in the amount
of 1% is hereby imposed on earned income and net profits earned by
residents and nonresidents of the political subdivision during the
taxable year beginning on the first day of April 1967 and continuing
for each taxable year thereafter.
A.
Net profits.
(1)
For 1967. Every taxpayer making net profits shall,
on or before June 15, 1967, make and file with the Income Tax Officer
on a form prescribed by the Income Tax Officer, a declaration of his
estimated net profits during the period beginning April 1, 1967 and
ending December 31, 1967, and pay to the Income Tax Officer in three
equal installments the tax due thereon as follows: the first installment
at the time of filing the declaration, the second installment on or
before September 15, 1967 and the third installment on or before January
15, 1968. And on or before April 15, 1968, the taxpayer shall file
a final return showing the amount of net profits earned during the
period April 1, 1967 and ending December 31, 1967, the total amount
of tax due thereon and the amount of tax paid thereon. At the time
of filing the final return, the taxpayer shall pay to the Income Tax
Officer the balance of tax due or shall make demand for refund or
credit in the case of overpayment.
(2)
After 1967.
(a)
Every taxpayer making net profits shall, on
or before April 15 of the current year, make and file with the Income
Tax Officer on a form prescribed by the Income Tax 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
in four equal quarterly installments the tax due thereon as follows:
the first installment on or before April 15 of the current year, the
second installment on or before June 15 of the current year, the third
installment on or before September 15 of the current year and the
fourth installment on or before January 15 of the succeeding year.
(b)
Any taxpayer who first anticipates any net profits
after April 15 of the current year shall make and file the declaration
hereinabove required on or before June 15 of the current year, September
15 of the current year or December 15 of the current year, whichever
of these dates next follows the date on which the taxpayer first anticipates
such net profit, and pay to the Income Tax Officer in equal installments
the tax due thereon on or before the quarterly payment dates which
remain after the filing of the declaration.
(c)
Every taxpayer shall, on or before April 15
of the succeeding year, make and file with the Income Tax Officer
on a form prescribed by the Income Tax Officer, 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 Income Tax Officer the balance of tax due or shall make
demand for refund or credit in the case of overpayment.
(d)
Any taxpayer may, in lieu of paying the last
quarterly installment of his estimated tax, elect to make and file
with the Officer on or before January 31 of the succeeding year, the
final return as hereinabove required.
(e)
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)
For 1967. Every taxpayer shall, on or before April
15, 1968, make and file with the Income Tax Officer a final return
showing the amount of earned income (other than net profit) received
during the period beginning April 1, 1967 and ending December 31,
1967, the total tax due thereon, the amount of the tax paid thereon,
the amount of tax paid thereon that has been withheld pursuant to
the provisions relating to collection at 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.
(2)
After 1967. Every taxpayer shall, on or before April
15 of the succeeding year, make and file with the Income Tax Officer
on a form prescribed by the Income Tax Officer, a final return showing
the 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 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.
(3)
Quarterly return. Every taxpayer who is employed for
a salary, wage, commission or other compensation and who receives
any earned income not subject to the provisions relating to collection
at source shall make and file with the Income Tax Officer on a form
prescribed by the Income Tax 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
and earned by him during the three month period 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.
(4)
Where the taxpayer has filed a declaration required
hereinabove and shall thereafter reasonably expect to earn during
the taxable period additional earnings not subject to collection at
source, or finds that he has overestimated his earnings, he may file
an amended declaration with the Income Tax Officer, setting forth
such relevant information as the Income Tax Officer may require.
C.
Fiscal year.
(1)
Where the taxpayer is on a fiscal year basis different from the taxable period, he may file a declaration on a fiscal year basis, setting forth his estimated net profits or earnings for a period included in the taxable period; then, in lieu of filing his declaration and making payments thereon at the times set forth in Subsections A and B, he may pay the quarterly installments of the estimated tax according to the declaration filed for the portion of the taxable period included in said fiscal year, and on or before the 105th day after the close of the fiscal year, file a declaration of the estimated tax for the portion of the taxable period included in said succeeding fiscal year and pay said tax in equal quarterly installments, beginning with the due date of the filing and ending with the first quarterly installment due after the close of the taxable period.
(2)
The taxpayer shall file a final return on or before
the 105th day after the close of the fiscal year.
A.
Registration by employers. Every employer having an
office, factory, workshop, branch, warehouse or other place of business
within the political subdivision who, on April 1, 1967, employs one
or more persons, other than domestic servants, for a salary, wage,
commission or other compensation, shall, on or before April 1, 1967,
register with the Income Tax Officer his name and address and such
other information as the Officer may require. Every employer having
an office, factory, workshop, branch, warehouse or other place of
business within the political subdivision who, after April 1, 1967,
employs for the first time after that date one or more persons, other
than domestic servants, for a salary, wage, commission or other compensation,
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.
Duty to withhold. Every employer having an office,
factory, workshop, branch, warehouse or other place of business within
the political subdivision 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.
C.
Withholding procedure.
(1)
For 1967.
(a)
For the period from April 1, 1967, to December
31, 1967, every employer shall, on or before July 31, 1967, and on
or before July 31, 1967, and on or before October 31, 1967, and on
or before January 31, 1968, file a return and pay to the Income Tax
Officer the taxes deducted during the preceding three-month periods
ending June 30, 1967, September 30, 1967, and December 31, 1967, respectively.
(b)
On or before February 28, 1968, every employer
shall file with the Income Tax 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 Income Tax Officer for the period beginning
April 1, 1967, and ending December 31, 1967.
[2]
A return withholding statement for each employee
employed during all or any part of the period beginning April 1, 1967,
and ending December 31, 1967, setting forth the employee's name, address
and 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 Income Tax Officer. Every employer shall furnish two
copies of the individual return to the employee for whom it is filed.
(2)
After 1967.
(a)
Every employer 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 Income Tax 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 return 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 subdivisions imposing the
tax upon such employee, 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)
On or before February 28 of the succeeding year,
every employer shall file with the Income Tax 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 Income Tax Officer 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 and 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 Income Tax 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 discontinuance
of business, file the returns and withholding statements hereinabove
required and pay the tax due.
E.
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 with respect to making returns and payment thereof.
G.
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 Income Tax
Officer may be required by such 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.
H.
No employer shall be required to register, deduct
taxes, file returns or pay taxes in the cases of domestic servants.
A.
The office of Income Tax Officer is hereby created
and the person designated as such by the political subdivision shall
administer the provisions of this article. Such person shall be bonded
as the political subdivision may determine at all times for all money
coming into his hands under this article, and the cost of such bond
shall be paid as determined by the political subdivision.
B.
The Income Tax Officer shall collect and receive the
taxes, fines and penalties imposed by this article, 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 from each taxpayer
under this article, together with the date of the receipt of such
payment.
C.
The Income Tax Officer 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 cases 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 resolution of the political subdivision. A copy of
such rules and regulations currently in force shall be available for
public inspection.
D.
The Income Tax Officer or any other person so designated
by him is 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.
E.
The Income Tax Officer is authorized to establish
different filing, reporting and payment dates for taxpayers whose
fiscal years do not coincide with the calendar year.
F.
The Income Tax Officer 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 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 Income Tax Officer shall have the power to reexamine
returns and correct erroneous returns, and on petition and proof by
the taxpayer, to make refunds and authorize the refunding of taxes
erroneously or improperly collected from or paid by the taxpayer.
H.
Any information gained by the Income Tax Officer or
any other official or agent of this political subdivision 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.
A.
All taxes imposed under this article remaining unpaid
after they become due shall bear interest, in addition to the amount
of unpaid tax, at the rate of 6% per annum, and the person against
whom such tax is imposed shall pay a penalty of 1/2 of 1% of the amount
of the unpaid tax for each month or fraction of a month during which
the tax remains unpaid.
B.
All taxes imposed by this article, together with all
penalties, interest and costs, shall be collectible by the Income
Tax Officer as taxes are by law recoverable under the appropriate
provisions, not inconsistent with this article, of The Local Tax Enabling
Act of 1965, approved December 31, 1965, P.L. 1257,[1] provided that the amount of any tax imposed by this article
shall be assessed within three years after the return was filed or
within three years after the tax became due, whichever is later, and
no proceeding in court without assessment for the collection of such
tax shall be commenced after the expiration of such period, except
as follows:
(1)
In the case of a false or fraudulent return with the
intent to evade tax, the tax may be assessed or a proceeding in court
for collection may be commenced without assessment at any time.
(2)
In the case of a willful attempt to defeat or evade
tax, the tax may be assessed or a proceeding in court for collection
may be commenced without assessment at any time.
(3)
In the case of failure to file a return, the tax may
be assessed or a proceeding in court for collection may be commenced
without assessment at any time.
(4)
In the case where a taxpayer omits from his earned
income an amount which is in excess of 25% of the amount stated in
the return, the tax may be assessed or a proceeding in court may be
commenced without assessment at any time within six years after the
return was filed or within six years after the tax became due, whichever
is later.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
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 Income
Tax 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 this article, shall, upon conviction thereof before any
District Justice, 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 imprisonment for a period not exceeding 30 days.
B.
Any person who, except as permitted by the provisions of § 88-25H of this article, divulges any information which is confidential under the provisions of this article, shall, upon conviction thereof before any District Justice, be sentenced to pay a fine of not less than $50 nor more than $500 for each offense, together with costs, and in default of payment of such fine and costs, shall be imprisoned for a period not exceeding 30 days.
The political subdivision reserves the privilege
of providing for the creation of bureaus or the compensation of officers,
clerks and employees either under existing departments or otherwise,
as may be deemed expedient or necessary for the assessment and collection
of taxes imposed under this article, and also the right to make joint
agreements for the collection, including the cost thereof, with other
municipalities and school districts imposing like or similar taxes.
This article shall knot apply to personal property
or to persons as to whom it is beyond the legal power of the political
subdivision to impose the tax herein provided for.