[Adopted 12-16-1985 as Ch. 170,
Art. I, of the 1985 Code[1]]
[1]
Editor's Note: Originally enacted by Ord.
No. 345.
The following words and phrases when used in
this article shall have the meanings ascribed to them in this section,
except where the context clearly indicates or requires a different
meaning.
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 of 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; provided,
however, that as used herein, "current year shall during 1966 refer
only to the period beginning July 1, 1966, and ending December 31,
1966.
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 a "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 an 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 off 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.
The Borough Council of the Borough of Perkasie.
Person, public employee or private agency designated by 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 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 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.
The Borough of Perkasie.
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.
A tax for general revenue purposes is hereby imposed
at the rate of 1% on the following:
(1)
Earned income received in the current year by residents
of the taxing district.
(2)
Earned income received in the current year within
the taxing district by nonresidents thereof.
(3)
Net profits earned during the current year by residents
of the taxing district.
(4)
Net profits earned during the current year within
the taxing district by nonresidents thereof.
B.
The tax levied under this article shall be applicable
to earned income received and to net profits earned in the period
beginning January 1 of the current year and ending December 31 of
the current year or for taxpayer fiscal years beginning in the current
year, except that taxes imposed for 1966 shall become effective July
1, 1966, and the tax shall continue in force on a calendar-year or
taxpayer-fiscal-year basis, without annual reenactment, unless the
rate of tax is subsequently changed. Regardless of the fiscal year
of any taxpayer, such taxpayer, shall be liable for payment of the
tax hereby imposed from July 1, 1966. As used herein, the term "current
year" shall, during 1966, refer only to the period beginning July
1, 1966, and ending December 31, 1966.
A.
Except during 1966, every taxpayer making net profits
shall, on or before April 15 of the current year, make and file with
the Officer on a form prescribed or approved by the 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 at the time of filing the 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, respectively.
B.
Except during 1966, 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 of the current
year, September 15 of the current year or December 31 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 officer
in equal installments the tax due thereon on or before the quarterly
payment dates which remain after the filing of the declaration.
C.
For the year 1966 on or before September 15, every
taxpayer making net profits shall make and file with the officer,
on a form prescribed or approved by the officer, a declaration of
his estimated net profits during the period beginning July 1 and ending
December 31, 1966, and pay the officer in two equal installments the
tax due thereon as follows: the first installment on or before September
15, 1966, and the second installment on or before January 15, 1967.
D.
For the year 1966, any taxpayer who first anticipates
any net profits after September 15, 1966, shall make and file the
declaration hereinabove required on or before January 15, 1967, and
pay to the officer the tax due thereon on or before January 15, 1967.
E.
Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with the officer, on a form prescribed
or approved by the officer, a final return showing the amount of net
profits earned during the period beginning January 1 of the current
year (July 1 in the year 1966) 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.
F.
Any taxpayer may, in lieu of paying the fourth 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.
G.
The officer is hereby authorized to provide, by regulation,
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.
H.
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.
A.
Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with the officer, on a form prescribed
or approved by the officer, a final return showing the amount of earned
income received during the period beginning January 1 of the current
year (July 1 in the year 1966) 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.
B.
Except during 1966, 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 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.
C.
For the short year beginning July 1, 1966 and ending
December 31, 1966, the aforesaid requirements pertaining to the filing
of quarterly returns and to the payment of tax due thereon, the filing
and payment dates shall be October 31, 1966, and January 31, 1967.
A.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the taxing jurisdiction
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 or within
15 days after the effective date of this article, whichever shall
first occur, 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 within the taxing jurisdiction
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
October 31, 1966, January 31, 1967, and thereafter 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 September 30, 1966, December 31, 1966,
and thereafter 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 officer and the 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 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.
C.
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.
D.
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 (July 1 in the year 1966) 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 (July 1 in the year 1966) 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 officer.
Every employer shall furnish two copies of the individual return to
the employee for whom it is filed.
E.
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 hereinabove
required and pay the tax due.
F.
Except as otherwise provided in the Local Tax Enabling
Act of 1965, Act No. 511 of 1965, Section 9, 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.
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 relating to the filing of declarations and returns.
H.
If an employer makes a deduction of tax as required
by this article, the amount deducted shall constitute, in the hands
of such employer, a trust fund held for the account of the governing
body as beneficial owner and the employee from whose earned income
such tax was deducted shall be deemed to have paid such tax.
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, if paid by
such taxpayer or employer in respect of another taxpayer, the name
of such other taxpayer and the date of such receipt.
B.
The officer is hereby charged with the administration
and enforcement of the provisions of this article and is hereby empowered
to prescribe, adopt, promulgate and enforce rules and regulations
relating to any matter pertaining to the administration and enforcement
of the 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 any overpayment is claimed or found to have
occurred, 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 the Article. No rule or regulation of any kind shall be enforceable
unless it has been approved by resolution of the governing body. A
copy of such rules and regulations currently in force shall be available
for public inspection.
C.
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.
D.
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.
E.
Any information gained by the officer, his agents
or by an other official or agent of the taxing district as a result
of any declarations, returns, investigations, hearings or verifications
required or authorized by this chapter shall be confidential, except
for official purposes and except in accordance with a proper judicial
order or as otherwise provided by law.
F.
The officer is authorized to establish different filing,
reporting and payment dates for taxpayers whose fiscal years do not
coincide with the calendar year.
A.
The officer may sue in the name of the taxing district
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 to be filed by him under
the 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 be begun 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 governing
body from recovering delinquent taxes by any other means provided
by this article.
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 one-half of one percent (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 or any part of the tax imposed by this article
shall, upon conviction thereof before any District Justice or court
of competent jurisdiction in the county, 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 be imprisoned for a period not
exceeding 30 days.
B.
Any person who 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 said fines and costs, to be imprisoned
for a period not exceeding 30 days.
C.
The penalties imposed under this section shall be
in addition to any other penalty imposed by any other section of this
article.
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.
The Tax Collector shall demand, receive and
collect all delinquent taxes from all corporations, political subdivisions,
associations, companies, firms or individuals employing persons owing
delinquent earned income taxes or whose wife 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 wife owes delinquent earned income taxes upon the presentation
of a written notice and demand under oath or affirmation, containing
the name of the taxable or the husband thereof and the amount of tax
due. Upon the 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 owning or that shall
within 60 days thereafter become due or from any unpaid commissions
or earnings of any such taxable in its or his possession 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 Tax Collector within 60 days after such notice shall have
been given. Such corporation, political subdivision, association,
firm or individual shall be entitled to deduct from the moneys 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 Tax Collector. 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 Tax Collector, less the cost of bookkeeping involved
in such transaction, as herein provided, within the time 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 Tax Collector or by the proper authorities of the taxing district
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.
A.
Payment of any tax to any other political subdivision
pursuant to an ordinance or resolution passed or adopted prior to
the effective date of the Local Tax Enabling Act of 1965, Act No.
511 of 1965, shall be credited to and allowed as a deduction from
the liability of taxpayers for any tax imposed under this article.
B.
Payment of any tax on salaries, wages, commission,
other compensation or net profits of businesses, professions or other
activities to any other political subdivision by residents thereof
pursuant to any ordinance or resolution passed or adopted under the
authority of the Local Tax Enabling Act of 1965, Act No. 511 of 1965,
shall be credited to and allowed as a deduction from the liability
of such persons for any tax imposed under this article.
C.
Payment of any tax on income to any other political
subdivision by residents thereof pursuant to an ordinance or resolution
passed or adopted under the authority of the Local Tax Enabling Act
of 1965, Act. No. 511 of 1965, shall, to the extent that such income
includes salaries, wages, commissions, other compensation or net profits
of businesses, professions or other activities, but in such proportion
as hereinafter set forth, be credited to and allowed as a deduction
from the liability of such persons for any tax imposed under this
article.
D.
Payment of tax on income to any state or to any other
political subdivision thereof by residents thereof, pursuant to any
state or local law, shall, to the extent that such income includes
salaries, wages, commissions or other compensation or net profits
of businesses, professions or other activities, but in such proportions
as hereinafter set forth, be credited to and allowed as a deduction
from the liability of such person for any tax imposed under this chapter,
if residents of the political subdivision in Pennsylvania 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.
E.
Payment of any tax on income to any state other than
Pennsylvania or to any political subdivision located outside the boundaries
of this Commonwealth by residents of a political subdivision located
in Pennsylvania shall, to the extent that such income includes salaries,
wages, commission or other compensation or net profits of businesses,
professions or other activities, but in such proportions as hereinafter
set forth, be credited to and allowed as a deduction from the liability
of such person for any tax imposed under this article.
F.
Where a credit or a deduction is allowable in any
of the several cases hereinabove provided, 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.
