This article shall be known as the "Net Profits
and Earned Income Tax Ordinance," and the provisions of this article
shall become effective January 1, 1972.
The following words and phrases, for the purpose
of this article, shall have the meanings ascribed to them in this
section, except where the context clearly indicates a different meaning:
ASSOCIATION
A partnership, limited partnership or any other unincorporated
group of two or more persons.
BOARD OF COMMISSIONERS
The Board of Commissioners in and for Rostraver Township,
Westmoreland County, Pennsylvania.
BUSINESS
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.
CORPORATION
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.
DOMICILE
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 case of businesses or association, the domicile is that place
considered as the center of business affairs and the place where its
functions are discharged.
EARNED INCOME
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 and disability other than regular wages
received during a period of sickness, disability 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
supplemental salary programs, including but not limited to programs
covering hospitalization, sickness, disability or death, supplemental
unemployment benefits, strike benefits, social security and retirement.
INCOME TAX OFFICER or OFFICER
Person, public employee or private agency designated by the
Board of Commissioners to collect and administer the tax on earned
income and net profits.
EMPLOYER
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.
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.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the taxing district.
RESIDENT
A person, partnership, association or other entity domiciled
in the taxing district.
TAXPAYER
A person, partnership, association or any other entity required
under this article to file a return of earned income or net profits
or to pay a tax thereon.
TOWNSHIP
The Township of Rostraver, Westmoreland County, Pennsylvania.
The singular shall include the plural, and the
masculine shall include the feminine and the neuter.
A tax for general revenue purposes of 1% is
hereby imposed upon the earned income and net profits of each resident
and of each nonresident who or which receives the principal part of
such income and/or profits from employment, a business or other activity
conducted within the Township or having its base of operations within
the Township.
There shall be allowed as a credit or deduction from the tax imposed by §
182-16 upon a nonresident the amount of any like tax, respectively, on earned income and net profits imposed by any other political subdivision to the extent that such credit or deduction is required as provided in Section 14 of the Local Tax Enabling Act, but not in excess of the amount of the tax imposed by
this article for the applicable tax period.
The tax levied under this article shall be applicable
to earned income received and to net profits earned during the period
beginning January 1, 1972, and thereafter on a calendar-year or taxpayer-fiscal-year
basis.
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.
Any taxpayer who first anticipates any net profit after April 15 of the current year shall make and file the declaration required by §
182-19 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 profits, 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.
The Officer shall 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 required in §
182-21 anticipates additional net profits not previously declared or finds that he has overestimated his anticipated net profits.
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 required in §
182-21 and pay the tax due.
Every taxpayer who is employed for a salary, wage, commission or other compensation and who receives any earned income not subject to the provisions of §§
182-27 through
182-31 relative 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 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.
Every taxpayer shall, on or before April 15, 1973, 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, 1972, and ending December 31, 1972, 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 of §§
182-27 through
182-31 relative to collection at source and the balance of the tax due; and thereafter, every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Officer a similar final return with respect to the period beginning January 1 of the current year and ending December 31 of the current year; provided, however, that no such final return shall be required to be filed by a taxpayer who receives no earned income other than income subject to the provisions of this article relating to the collection at source. 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.
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, who has not previously
registered 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.
On or before February 28 of the succeeding year,
every employer shall file with the Officer:
A. A final or 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.
B. 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 employees 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.
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 required by §
182-28 and pay the tax due.
Every employer who willfully or negligently fails to make the deductions required by §
182-27 shall be liable for payment of the taxes which he was required to withhold to the extent that those taxes have not been recovered from the employee.
The failure or omission of any employer to make the deductions required by §
182-27 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.
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.
The Officer charged with the administration
and enforcement of the provisions of this article is 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 the article. No rule or regulation of any kind shall be enforceable
unless it has been approved by ordinance of the Board of Commissioners.
A copy of such rules and regulations currently in force shall be available
for public inspection.
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.
The Officer and agents designated by him are
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 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.
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.
The Officer is authorized to establish different
filing, reporting and payment dates for taxpayers whose fiscal years
do not coincide with the calendar year.
Until the further action of the Board of Commissioners,
Don Wilkinson Agency (Note: Central Tax of Pennsylvania, Inc. is now
the Income Tax Officer.) is appointed as the Officer to collect and
administer the tax levied by this article, and the Officer's compensation
for services rendered and expenses incurred hereunder shall be an
amount equal to 1% of the net amount of taxes levied by this article
which are collected and paid over to the Township.
The Officer may sue in the name of the Township
for the recovery of taxes due and unpaid under this article.
Any suit brought to recover the tax imposed
by this article shall be begun within three years after the 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:
A. Where no declaration or return was filed, although
a declaration or return was required to be filed under provisions
of this article, there shall be no limitation.
B. Where an examination of the declaration or return
filed 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.
C. In the case of substantial understatement of tax liability
of 25% or more and no fraud, suit shall be begun within six years.
D. Where any employer has deducted taxes under the provisions
of this article and has failed to pay the amounts so deducted to the
Officer or where any employer has willfully failed or omitted to make
the deductions required by this article, there shall be no limitation.
E. This section shall not be construed to limit the Township
from recovering delinquent taxes by any other means provided by law.
The Officer may sue for recovery of an erroneous
refund provided that suit is begun two years after making the 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.
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 that declaration or return.