[Adopted 7-28-2003 by Ord. No. 2003-9]
A.
ASSOCIATION
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EARNED INCOME TAX COLLECTOR
EMPLOYER
NET PROFITS
(1)
(2)
(3)
(4)
NONRESIDENT
PERSON or INDIVIDUAL
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
The following terms shall have 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 a taxpayer lives and has his/her permanent
home and to which the taxpayer has the intention of returning whenever
the taxpayer 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 the taxpayer has voluntarily fixed the habitation of
the taxpayer and his/her 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 the taxpayer 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.
Compensation as determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code, Part I, Subpart 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." The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
The person, public employee or private agency designated
by the Commissioners of Upper Gwynedd Township to collect and administer
the tax on earned income and net profits.
A person, partnership, association, corporation, institution,
governmental body or unit or agency, or any other entity employing
one or more persons for salary, wage, commission or other compensation.
The net income from the operation of a business, profession or other activity, except corporations, determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code, Part I, Subpart 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:
Any interest earnings generated from any monetary
accounts or investment instruments of the farming business;
Any gain on the sale of farm machinery;
Any gain on the sale of livestock held twelve
months or more for draft, breeding or dairy purposes; and
Any gain on the sale of other capital assets
of the farm.
A person, partnership, association or other entity domiciled
outside of Upper Gwynedd Township.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in Upper Gwynedd Township.
The calendar year following the current year.
A person, partnership, association or 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.
A tax for general purposes is hereby imposed in the
amount of:
(1)
One percent of all earned income earned on and after
January 1, 2004, by residents of Upper Gwynedd Township and by nonresidents
of Upper Gwynedd Township within the confines of the Township.
(2)
One percent of the net profits earned on and after
January 1, 2004, by businesses, professions and other activities conducted
by residents of Upper Gwynedd Township and by nonresidents of Upper
Gwynedd Township within the confines of the Township.
B.
The tax levied under this article shall be applicable
to earned income received and to net profits earned by residents and
nonresidents in the period beginning January 1 of the current year
and ending December 31 of the current year, or for 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.
Upper Gwynedd Township may, by resolution, change the rate. Such change
shall become effective on the date specified in the resolution.
A.
Tax on net profits.
(1)
Beginning with the calendar year 2004, every taxpayer
who makes any net profits shall, on or before April 30 of the succeeding
year and each year thereafter, make and file with the Earned Income
Tax Collector a declaration, on a form prescribed, prepared and supplied
by the Earned Income Tax Collector, a declaration of the taxpayer's
estimated net profits during the period beginning January 1 and ending
December 31 of the then-current year. The taxpayer shall pay to the
Earned Income Tax Collector the total amount of tax determined to
be due under the estimate, as follows:
(2)
If a taxpayer after the calendar year 2004 anticipates
net profits after April 30 of the calendar year, then the taxpayer
shall make and file a declaration on or before July 31 or October
31 of the current year or April 15 of the succeeding year, whichever
of these dates next follows the date on which the taxpayer first anticipates
such net profits. The taxpayer shall pay to the Earned Income Tax
Collector in equal installments the amount of tax due thereon on or
before the quarterly payment dates which remain after the filing of
the taxpayer's first declaration.
(3)
On April 15 of each calendar year, every taxpayer
shall file with the Earned Income Tax Collector a final income tax
return showing the amount of the net profits earned during the period
beginning January 1 of the preceding year and ending December 31 of
the preceding year, the total amount of tax due thereon and the total
amount of tax theretofore paid with the estimated return. At the time
of filing a final return, the taxpayer shall pay to the Earned Income
Tax Collector the balance of tax due or shall make demand for a refund
or credit in the case of any overpayment.
(4)
Upper Gwynedd Township shall provide, by resolution,
regulations 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 the taxpayer has overestimated the taxpayer's anticipated net
profits.
(5)
If a taxpayer discontinues his/her business before
September 30 of the current year, the taxpayer shall, within 30 days
after the discontinuance of the business, file a final return as hereinabove
required and pay the tax due or make demand for a refund or credit
in the case of an overpayment.
B.
Tax on earned income.
(1)
Beginning with calendar year 2004, every taxpayer
who has any earned income shall, on or before April 15 of the succeeding
year, make and file with the Earned Income Tax Collector, on a form
prescribed, prepared and supplied by the Earned Income Tax Collector,
a final return showing the total amount of earned income received
during the current year; the total amount of tax due thereon; the
amount of the tax thereon that has been withheld in the event the
provisions relating to withholding hereinafter set forth have been
invoked by Upper Gwynedd Township; and the balance of the tax due.
At the time of the filing of the final return, the taxpayer shall
pay the balance of the tax due or may make a demand for refund or
credit in the case of an overpayment.
(2)
Every taxpayer who is employed for a salary, wage,
commission or other compensation and who has received any earned income
not subject to the provisions 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 earned by him/her 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 time of the filing
of the return with the Earned Income Tax Collector, pay to the Collector
the amount of the tax shown as due thereon.
A.
Every employer, as hereinbefore described and defined,
shall be obligated from January 1, 2004, and thereafter, so long as
this article is in effect, to withhold from the wages of employees
subject to the tax imposed by this article the amount of tax due,
in accordance with the withholding procedure set forth hereinafter.
B.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within Upper Gwynedd
Township who employs one or more persons, other than domestic servants,
for a salary, wage, commission or other compensation, who has not
previously registered, shall, within 15 days after becoming an employer,
register with the Earned Income Tax Collector the employer's name
and address and such other information as the said Tax Collector may
require.
C.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within Upper Gwynedd
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 this article on
the earned income due from his/her 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 31 of the current year,
respectively. Such return, unless otherwise agreed upon between the
Earned Income Tax Collector and the employer, shall show the name
and social security number or identification number supplied by the
Earned Income Tax Collector 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, 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.
D.
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 Upper Gwynedd Township
may be required by the Earned Income Tax Collector to file his/her
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.
E.
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 Earned Income 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.
F.
Termination of business. Every employer who discontinues
business for any reason prior to December 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.
G.
Every employer who willfully or negligently fails
to or omits to make the deductions required by this section shall
be liable for the payment of the taxes which the employer was required
to withhold, to the extent that such taxes have not been recovered
from the employee.
H.
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 in regard to the filing of declarations and returns.
A.
The office of Earned Income Tax Collector is hereby
created by this article, and Upper Gwynedd Township shall from time
to time by separate resolution appoint a person or company to administer
the provisions of this tax article, who or which will be designated
the "Earned Income Tax Collector."
B.
The Earned Income Tax Collector shall be bonded as
the Commissioners of Upper Gwynedd Township may determine, said bond
to cover all moneys coming into the hands of said Earned Income Tax
Collector, the costs of the bond to be paid by Upper Gwynedd Township.
Before entering upon his/her official duties, the Earned Income Tax
Collector shall give and acknowledge the bond to the Township. Said
bond shall be in compliance with Act 511 in all respects and subject
to the approval of the Township Solicitor.
C.
The Earned Income Tax Collector shall collect and
receive all such taxes, shall furnish a receipt for payment when requested
to do so by a taxpayer and shall keep a record showing the amount
received by said Tax Collector for each taxpayer under this article,
together with the date of the receipt of such payment.
D.
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 Commissioners
of Upper Gwynedd Township. Such rules and regulations shall be inscribed
by the Earned Income Tax Collector into a book kept for that purpose
and open to inspection by the public and thereupon shall have the
same force and effect as if they had been incorporated into this article.
E.
The Earned Income Tax Collector or any other person
designated by Upper Gwynedd Township 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 to the Earned Income
Tax Collector or such other authorized person the means, facilities
and opportunities for such examinations and investigations hereby
authorized.
F.
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
said Tax Collector deems necessary to examine as witnesses and to
compel the production of books, records and papers relating to any
account being examined.
G.
The Earned Income Tax Collector or any other official
or agent so designated by Upper Gwynedd Township 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.
H.
Any information gained by the Earned Income Tax Collector
or any other official or agent of Upper Gwynedd 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 subsection shall constitute a violation of
this article.
I.
Any person who, except as permitted by the provisions of the foregoing Subsection H of this section, divulges any information which is confidential under the provisions of this article shall, upon conviction thereof before any Magisterial District Judge 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 such fine and costs, be imprisoned for a period not exceeding 30 days.
A.
The Earned Income Tax Collector may sue in the name
of Upper Gwynedd Township 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 by him/her 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 Earned Income Tax Collector 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
Earned Income Tax Collector, or where any person has willfully failed
or omitted to make the deductions required by this article, there
shall be no limitation.
D.
The Earned Income Tax Collector may sue for the recovery
of an erroneous refund, provided such suit is begun within 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 legal costs of collection and for 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 taxes deducted
from said employer's employees, or fails, neglects or refuses to deduct
withholding taxes from said employer's employees; any person who refuses
to permit the Earned Income Tax Collector or any agent designated
by him/her to examine said person's books, records and papers; any
person who knowingly makes any incomplete, false or fraudulent return
or does anything whatsoever to avoid the full disclosure of the amount
of said person's 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 Magisterial District Judge
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 such fine and costs, be imprisoned for a period not exceeding 30
days.
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 declaration or returns required by this article
shall not excuse him/her from making such declaration or return.
This article shall not apply to personal property
or persons on whom or which it is beyond the legal power of Upper
Gwynedd Township to impose the tax herein provided; 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 of the tax imposed by this article
on the earned income of said entity's employees and remittance of
such collections to the Earned Income Tax Collector.
This article shall become effective on the first
day of January 2004, and for all calendar years thereafter.
