[Adopted 4-6-1982 as Ch. 193, Art.
I, of the 1981 Code]
[Amended 1-20-1986 by Ord. No. 86-3]
A tax for general borough purposes is imposed
on:
A.
One and six-tenths percent of all income earned by
residents.
[Amended 11-1-1999 by Ord. No. 99-16; 12-1-2002 by Ord. No. 02-18]
B.
One percent of all income earned by nonresidents employed
within the Borough of Norristown.
C.
One and six-tenths percent of the net profits earned
by businesses, professions and other activities conducted by residents.
[1]
Editor's Note: Original 193-1 of the 1981
Code, Definitions, which immediately preceded this section, was deleted
9-1-1992 by Ord. No. 92-19.
A.
Net profits.
(1)
Beginning with the period of January 21, 1971, to
December 31, 1971, and for each year thereafter, every taxpayer who
makes any net profits shall, on or before April 30 of the then-current
year and each year thereafter, make and file with the Income Tax Officer
a declaration of his estimated net profits during the period beginning
January 1 and ending December 31 of the then-current year. The taxpayer
shall pay to the Income Tax Officer the total amount of the tax determined
to be due under the estimate as follows:
(2)
If the taxpayer anticipates net profits after April
30 of the calendar year, then he shall make and file a declaration
on or before July 31 and October 31 of the then-current year, whichever
of these dates next follows the date on which the taxpayer first anticipates
such net profits. The taxpayer shall pay to the Income Tax Officer
in equal installments the amount of tax due thereon on or before the
quarterly payment dates which remain after the filing of his first
declaration.
(3)
On April 15, 1972, and on April 15 of each calendar
year thereafter, every taxpayer shall file with the Income Tax 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
21, 1971, through December 31, 1971, for the current year, and beginning
January 1 of the then-current year and ending December 31 of the then-current
year thereafter, the total amount of tax due thereon and the total
amount of tax heretofore paid with the estimated return. At the time
of filing a final return, the taxpayer shall pay to the Income Tax
Officer the balance of tax due or shall make demand for a refund or
credit in the case of any overpayment. Any taxpayer may, in lieu of
paying the fourth quarterly installment of his estimated tax, elect
to and make and file with the Income Tax Officer his final return
on or before January 31 of the succeeding year and to pay the tax
in full at that time.
(4)
The Income Tax Officer may be authorized to provide
by regulation for the making and filing of adjusted declarations of
estimated net profits and for the payment 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.
(5)
Every taxpayer who discontinues his business before
December 31 of the current year shall, within 30 days after the discontinuance
of the business, file his final return as hereinabove required and
pay the tax due or make demand for the refund or credit in the case
of an overpayment.
B.
Earned income.
(1)
Annual earned income tax return. Every taxpayer shall,
on or before April 15 of the succeeding year, make and file with the
Income Tax Officer, on a form prescribed, prepared and supplied by
the Officer, a final return showing the total amount of earned income
received during the period beginning January 21, 1971, and ending
December 31, 1971, for the current year, and for each year thereafter
for the period beginning January 1 and ending December 31, the total
amount of tax due thereon, the amount of the tax paid thereon, the
amount of the tax thereon that has been withheld in the event that
the provisions relating to withholding hereinafter set forth have
been invoked by the borough and the balance of the 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.
(2)
Earned income not subject to withholding. Every taxpayer
who is employed for salary, wages, commission or other compensation
who received any earned income not subject to the provisions relating
to collection at the source shall make and file with the Income Tax
Officer, on a form prescribed, prepared and supplied 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 April 15
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 Income Tax Officer shall require. Every taxpayer who makes
such return shall, at the time of filing thereof, pay to the Officer
the amount of tax shown as due thereon.
A.
Every employer, as hereinbefore described and defined,
shall be obligated, from January 21, 1971, and thereafter so long
as this Article is in effect, to withhold from 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 the borough 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
Income Tax Officer his name and address and such other information
as the Officer may require.
C.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the borough 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 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, unless
otherwise agreed upon between the Income Tax Officer and the employer,
shall show the name and social security number or identification number
supplied by the Officer of each 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.
Monthly reporting. 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 borough may be required by the Income Tax Officer to
file his return and pay the tax monthly. In such cases, payment of
the tax shall be made to the Income Tax Officer 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 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 (January
21, 1971, to December 31, 1971, for the first 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 Income Tax Officer, 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.
F.
Termination of business. Every employer who discontinues
business for any reason 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.
G.
Every employer who willfully or negligently fails
or omits to make the deductions required by this section shall be
liable for the payment of the taxes which he 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 relating to the filing of declarations and returns.
A.
The office of Income Tax Officer is hereby created
by this Article, and the borough shall, from time to time by separate
resolution, appoint a person or company to administer the provisions
of this Article, who will be designated as the "Income Tax Officer."
B.
The Income Tax Officer shall be bonded as the borough
may determine, said bond to cover all moneys coming into his hands
on behalf of the borough, the cost of the bond to be paid by the borough.
Before entering upon his official duties, the Income Tax Officer shall
give and acknowledge the bond to the borough. Said bond shall be in
compliance with the provisions of the Local Tax Enabling Act[1] in all respects and subject to the approval of the Borough
Solicitor.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
C.
The Income Tax Officer 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 him for each taxpayer under this Article, together with the date
of the receipt of such payment.
D.
The Income Tax Officer 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 Council of the borough. Such
rules and regulations shall be inscribed by the Income Tax Officer
into a book kept for that purpose and open to the inspection of the
public and thereupon shall have the same force and effect as if they
had been incorporated into this Article.
E.
The Income Tax Officer, or any other person designated
by the borough, 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 Income Tax Officer
or such other authorized person the means, facilities and opportunities
for such examination and investigation hereby authorized.
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 and is hereby authorized
to issue subpoenas 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, or any other official or agent
so designated by the borough, 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 Income Tax Officer or
any other official or agent of the borough 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 such information contrary to the provisions
of this section shall constitute a violation of this Article.
I.
Any person who, except as permitted by the provisions of the foregoing Subsection H of this Article, 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 $600 for each offense, and costs, and in default of payment of such fine and costs, to be imprisoned for a period not exceeding 30 days.[2]
The Income Tax Officer shall receive such compensation
for his services and expenses as determined by the borough from time
to time. In the case of a single tax collector established pursuant
to Subsection (f) of Section 10 of Act 511,[1] the borough shall share in the compensation of the expenses
of a single officer according to the proportionate share that the
borough collects from the total annual collections.[2]
[1]
Editor's Note: See now 53 P.S. § 6913,
Subdivision V.
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 dedicated
from his employees or fails, neglects or refuses to deduct withholding
taxes 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 or court of competent jurisdiction of Montgomery
County, be sentenced to pay a fine of not more than $600 for each
offense, and costs, and in default of payment of such fine and costs,
to be imprisoned for a period not exceeding 30 days.[1]
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 return required by this Article
shall not excuse him from making such declaration or return.
This Article shall not apply to personal property
or persons who or which are beyond the legal power of the borough
to impose the tax herein provided or to 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 at the source of earned income of its employees and remittance
of such collections to the Income Tax Officer.
