[Adopted 9-5-1989 as Part 3, Ch.
2, Art. C, of the 1989 Code]
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:
A partnership, limited partnership or any other unincorporated
group of two or more persons.
The Board of Commissioners in and for Rostraver Township,
Westmoreland County, Pennsylvania.
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 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.
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.
Person, public employee or private agency designated by the
Board of Commissioners 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 a salary, wage, commission or other compensation.
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.
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.
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,[1] but not in excess of the amount of the tax imposed by
this article for the applicable tax period.
[1]
Editor's Note: See now 53 P.S. § 6924.317.
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.
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 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 Officer
the balance of tax due or shall made demand for refund or credit in
the case of overpayment.
B.
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.
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.
A.
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 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 Officer the amount of tax 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. That return, unless otherwise agreed
upon between the Officer and employer, shall show the name and social
security number of each employee, the earned income of that employee
during such preceding three-month period, the tax deducted therefrom,
the political subdivisions imposing the tax upon that employee, the
total earned income of all such employees during that preceding three-month
period and the total tax deducted therefrom and paid with the return.
B.
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.
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.
A.
The Officer, before entering upon his official duties
under this article, shall give and acknowledge a bond in the principal
amount of $5,000, which bond shall remain in the custody of the Secretary
of the Board of Commissioners, shall be joint and several with one
or more corporate sureties which shall be surety companies authorized
to do business in this commonwealth and duly licensed by the Insurance
Commissioner of this commonwealth; shall be conditioned upon the faithful
discharge by the Officer, his clerks, assistants and appointees of
all trusts confided in him by virtue of his office, upon the just
and faithful accounting or payment over, according to law, of all
moneys and all balances thereof paid to, received or held by him by
virtue of his office and upon the delivery to his successor or successors
in office of all books, papers, documents or other official things
held in right of his office shall be taken in the name of the Board
of Commissioners; and shall be for the use of the Township and for
the use of such other person or persons for whom money shall be collected
or received or as his or her interest shall otherwise appear, in case
of a breach of any of the conditions thereof by the acts or neglect
of the principal of the bond.
B.
The Township or any person may sue upon said bond
in its or his own name for its or his own use; and such bond shall
contain the name or names of the surety company or companies bound
thereon.
C.
The Township shall have the right upon cause shown
and due notice to the Officer and his surety or sureties to require
or allow the substitution or the addition of a surety company acceptable
to the Township for the purpose of making the bond sufficient in amount,
without releasing the surety or sureties first approved from any accrued
liability or previous action on such bond.
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.
A.
Penalty for certain violations. 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 Westmoreland County, Pennsylvania, be sentenced to
pay a fine of not more than $500 dollars 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.
Penalty for divulging confidential information. 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 dollars 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.
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.
