[Adopted 12-29-1969 by Ord. No. 199]
[Amended 10-10-2011 by Ord. No. 432]
The following words and phrase when used in this article, shall have the meanings ascribed to them in this section:
ASSOCIATION
A partnership, limited partnership or any other unincorporated group of two or more persons.
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.
CURRENT YEAR
The calendar year for which the tax is levied.
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 the case of businesses or associations, the domicile is that place considered the center of business affairs and the place where its functions are discharged.
EARNED INCOME
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, Article 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.
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.
INCOME TAX OFFICER OR OFFICERS
Person, public employee or private agency designated by the Borough Council of the Borough of Birdsboro to collect and administer the tax on earned income and net profits.
NET PROFITS
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, Article 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:
A. 
Any interest earnings generated from any monetary accounts or investment instruments of the farming business;
B. 
Any gain on the sale of farm machinery;
C. 
Any gain on the sale of livestock held 12 months or more for draft, breeding or dairy purposes; and
D. 
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled outside the Borough of Birdsboro.
PERSON or INDIVIDUAL
A natural person.
PRECEDING YEAR
The calendar year before the current year.
RESIDENT
A person, partnership, association or other entity domiciled in the Borough of Birdsboro.
SUCCEEDING YEAR
The calendar year following the current year.
TAXPAYER
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 of 1% is hereby imposed for general revenue purposes a) in the case of a taxpayer on a calendar year basis, for the current year beginning July 1, 1970, and ending December 31, 1970, and for each year thereafter beginning on January 1 of said year and ending on December 31 of said year; and b) in the case of taxpayer other than a calendar year for the current year beginning July 1, 1970, and ending at the end of the taxpayer's fiscal year and thereafter beginning the first day of such taxpayer's fiscal year and ending at the end thereof upon the following:
(1) 
Salaries, wages, commissions and other compensation earned for activities or services, wherever performed or rendered by individual residents of the Borough of Birdsboro.
(2) 
Salaries, wages, commissions and other compensation earned for activities or services performed or rendered within the Borough of Birdsboro by individual nonresidents of the Borough of Birdsboro.
(3) 
Net profits earned from operation of a business, profession or other activity wherever carried on by residents of the Borough of Birdsboro.
(4) 
Net profits earned from operation of a business, profession or other activity carried on within the Borough of Birdsboro by nonresidents of the Borough of Birdsboro.
B. 
The taxes levied under Subsection A(1) and (2) herein shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by any employer or on his behalf to a person who is employed by him. The tax levied under Subsection A(3) and (4) herein shall relate to and be imposed upon the net profits of any business, profession or other activity carried on by any person or persons.
A. 
Net profits.
(1) 
Each taxpayer making a net profit for the period from July 1, 1970, and ending December 31, 1970, shall pay the tax due on or before April 15, 1971, to the Income Tax Officer, and such taxpayer shall pay on April 15 of any succeeding year the tax due for the period beginning January 1 and ending December 31 of the current year. Accompanying said payment shall be a return form prescribed or approved by the Income Tax Officer.
(2) 
Every taxpayer who discontinues business prior to December 31 of any year shall, within 30 days after the discontinuance of his business, file his final return as hereinabove required and pay the tax due.
B. 
Earned income.
(1) 
Annual earned income tax return. Every taxpayer, on or before April 15, 1971, and on or before April 15 of every succeeding year, shall make and file with the Income Tax Officer on a form prescribed or approved by the Officer, a final return showing the amount of earned income received during the period beginning July 1, 1970, and ending December 31, 1970, and for every succeeding year beginning January 1 of the immediately prior year an ending December 31 of said immediately prior year, respectively, 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.
(2) 
Earned income not subject to withholding. 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 Income Tax Officer a return setting forth the aggregate amount of earned income not subject to withholding from him during the period beginning July 1, 1970, and ending December 31, 1970, and thereafter for the periods beginning January 1 and ending December 31 of the then current year, and such other information as the Income Tax Officer may require, and pay to said Officer the amount of tax shown due thereon on or before April 15, 1971, or April 15 of each succeeding year.
A. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the Borough of Birdsboro who on July 1, 1970, employs one or more persons, other than domestic servants, for a salary, wage, commission or other compensation, shall on or before December 1, 1970, register with the officer his name and address and such other information as the Officer may require. Every employer having an office, factory, workshop, branch, warehouse or other place of business within the Borough of Birdsboro, who after July 1, 1970, employs for the first time after that date one or more persons, other than domestic servants, for a salary, wage, commission or other compensation, 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.
B. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the Borough of Birdsboro, who employs one or ore 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 of employees, and shall, on or before January 31, 1971, file a return and pay to the Income Tax Officer the amount of taxes deducted during the preceding two months ending December 31, 1970, and shall file a return and pay to the Income Tax Officer for each succeeding year on April 30 of the then current year, July 31 of the then current year, October 31 of the then current year and January 31 of the then current year, the amount of taxes deducted during the preceding three months period ending March 31 of the then current year, June 30 of the then current year, September 30 of the then current year and December 31 of the then current year, respectively. Each such return filed unless otherwise agreed upon between the Income Tax Officer and the employer shall show the name and social security number of each such employee, the earned income of such employee during the preceding three-month period, the tax deducted therefrom, the political subdivision 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. 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 Income Tax Officer of the Borough of Birdsboro, may be required by such Officer to file his return and pay the tax monthly. In such case 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.
C. 
On or before February 28, 1971, and on or before February 28 of every 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 July 1, 1970, and ending December 31, 1970, and for every succeeding year for the period beginning January 1 of the immediately prior year and ending December 31 of the immediately prior year.
(2) 
A return withholding statement for each employee employed during all or any part of the period beginning July 1, 1970, and ending December 31, 1970, and for every succeeding year for the period beginning January 1 of the immediately prior year and ending December 31 of the immediately prior 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.
D. 
Every employer who discontinues business prior to December 31 of any current year shall, within 30 days after the discontinuance of business, file the returns and withholding statements hereinabove required and pay the tax due.
E. 
Except as otherwise provided by Section 9 of the Act of the General Assembly of the Commonwealth of Pennsylvania, approved the December 31, 1965, No. 511, known as the "Local Tax Enabling Act,[1]" every employer who willfully or negligently fails or omits to make the deductions required by this section of this article 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.
[1]
Editor's Note: See 53 P.S. § 6901 et seq. and 53 P.S. § 6924.101 et seq.
F. 
The failure or omission of any employer to make the deductions required by this section of this article 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 declaration and returns.
A. 
It shall be the duty of the Income Tax 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. Upon the filing of a final return for any year and its acceptance as true and correct by the Income Tax Officer, said Officer shall promptly refund any overpayment of tax demanded therein to the taxpayer. The Income Tax Officer shall pay all taxes, fines and penalties collected by him, less refunds made to taxpayers for overpayment of tax and a reasonable reserve for refunds which must be made therefrom, to the Treasurer of the Borough of Birdsboro within one month 15 days after the receipt of the same.
B. 
Bond.
(1) 
The Income Tax Officer, before entering upon his official duties, shall give and acknowledge a bond to the Borough of Birdsboro in such amount as may be fixed from time to time by resolution of the Borough Council, which amount shall be equal to the maximum amount of taxes of which such Officer may be in possession at any given time. If the Borough Council shall by resolution designate any bond previously given by the Income Tax Officer as adequate, such previously given bond shall satisfy the requirements of this subsection.
(2) 
The bond of the Income Tax Officer shall be joint and several, with one or more corporate sureties which shall be surety companies authorized to do business in the Commonwealth of Pennsylvania and duly licensed by the insurance Commissioner of said Commonwealth.
(3) 
Said bond shall be conditioned upon the faithful discharge by said Officer, his clerks, assistants and appointees of all trusts confided in him by virtue of his office upon the faithful execution of all duties required by him by virtue of his office, upon the just and faithful accounting and paying over, according to law, of all moneys and balances thereof to be 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.
(4) 
Said bond shall be taken in the name of the Borough of Birdsboro and shall be for the use of the Borough of Birdsboro and for the use of such other person or persons for whom money shall be collected or received, or as its or his interest shall otherwise appear, in case of a breach of any of the conditions of said bond by the acts or neglect of the principal on the bond.
(5) 
The Borough of Birdsboro or any person may sue upon said bond in its or his own name for its or his own use.
(6) 
The bond shall contain the name or names of the surety companies bound thereon.
(7) 
The Borough of Birdsboro may, at any time, upon cause shown and due notice to the Officer and his surety or sureties, require or allow the substitution or the addition of a surety company acceptable to said Borough 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 said bond.
(8) 
The Secretary of the Borough of Birdsboro shall be the custodian of the bond required to be given by the Income Tax Officer, unless said Borough Secretary is appointed as the Income Tax Officer, in which event, the Borough Treasurer shall be the custodian of the said bond. In the event that the Secretary is appointed as the Income Tax Officer, and that the Borough Secretary and the Borough Treasurer are one and the same individual, then the Chairman of the Borough Council shall be the custodian of said bond.
C. 
The Income Tax Officer is hereby empowered to prescribe, adopt and 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 case of overpayment, for any period of time of to exceed six years subsequent to the date of payment of the sum involved, and to prescribe forms necessary for the administration of this article. No rule or regulation of any kind shall be enforceable unless it has been approved by resolution of the Borough Council of the Borough of Birdsboro. A copy of all such rules and regulations from time to time in force shall be available for public inspection at the office of the Earned Income Tax Officer.
D. 
The Earned Income Tax 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.
E. 
The Income Tax Officer and the 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 Income Tax 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 ever person whom the Income Tax 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 investigation as are hereby authorized.
F. 
Any information gained by the Income Tax Officer, his agent or by any other official or agent of the Borough of Birdsboro 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.
G. 
The Income Tax Officer is hereby authorized to establish different filing, reporting and payment dates for taxpayers whose fiscal years do not coincide with the calendar year.
A. 
The Income Tax Officer may sue in the name of the Borough of Birdsboro 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 amount so deducted to the Income Tax Officer, or where any person has wilfully failed or omitted to make the deductions required by this section, there shall be no limitation.
(5) 
This action shall not be construed to limit the Borough Council of the Borough of Birdsboro from recovering delinquent taxes by any other means provided by this article or by other appropriate law.
C. 
The Income Tax Officer may sue for recovery of an erroneous refund, provided such suit is begun within two years after making such refund, except that the suit 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 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 cost of collection and the interest therein imposed.
[Amended 10-10-2011 by Ord. No. 432]
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 refuse 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, 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, shall 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, 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, shall 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.
D. 
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 any such declaration or return.
A. 
Payment of any tax on salaries, wages, commissions, other compensation or net profits of business, professions or other activities to a political subdivision by residents thereof pursuant to an ordinance or resolution passed or adopted under the authority of the Act of December 31, 1965, No. 55, known as the "Local Tax Enabling Act," shall be credited to and allowed as a deduction from the liability of such persons for any other like tax respectively on salaries, wages, commissions, other compensation or on net profits of businesses, professions or other activities imposed by this article.
B. 
Payment of any tax on income to any political subdivision by residents thereof pursuant to an ordinance or resolution passed or adopted under the authority of the Act of December 31, 1965, No. 511, known as the "Local Tax Enabling Act," 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 other tax on salaries, wages, commissions, other compensation or on net profits of business, professions or other activities imposed by this article.
C. 
Payment of any tax on income to any political subdivision other than the school district of which the Borough of Birdsboro forms a part by residents thereto pursuant to an ordinance or resolution passed or adopted under the authority of the Act of December 31, 1965, No. 511, known as the "Local Tax Enabling Act," 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 proportions as hereinafter set forth, be credited to and allowed as a deduction from the liability of such persons for any other tax on salaries, wages, commissions, other compensation or on net profits of businesses, professions or other activities imposed by this article.
D. 
Payment of any tax on income to any state, other than the Commonwealth of Pennsylvania, or to any political subdivision of such other state 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 persons for any other tax on salaries, wages, commissions, other compensation or net profits of businesses, professions or other activities imposed by this article, if residents of the Borough of Birdsboro 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.
E. 
Where a credit or a deduction is allowable under the provisions of this section, 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.
[Amended 10-10-2011 by Ord. No. 432]
The Earned Income Tax Officer shall demand, receive and collect from all corporations, political subdivisions, associations, companies, firms or individuals employing persons owing delinquent earned income taxes, or whose spouse owes delinquent earned income taxes, or having in possession unpaid commissions or earnings belonging to any person or person owing delinquent earned income taxes, or whose spouse owes delinquent earned income taxes, upon the presentation of a written notice in demand under oath or affirmation, containing the name of the taxable or the spouse thereof, and the amount of tax due. Upon the presentation of such written notice and demand, it shall be the duty of any corporation, political subdivision, association, company, firm or individual to collect from the wages, commissions or earnings of such individual employees then owing 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 Earned Income Tax Officer of the Borough of Birdsboro 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 Earned Income Tax Officer. 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 Earned Income Tax Officer, less the cost of bookkeeping involved in such transaction, as above provided, within the time hereby 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 Earned Income Tax Officer, or by the proper authorities of the Borough of Birdsboro, 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.
Upon presentation of a written notice and demand under oath or affirmation, to the State Treasurer or any other fiscal officer of the Commonwealth of Pennsylvania, or its boards, authorities, agencies or commissions, it shall be the duty of the Treasurer or officer to deduct from the wages then owing, or that shall within 60 days thereafter become due to any employee, a sum sufficient to pay the respective amount of the delinquent earned income taxes and costs show on the written notice. The same shall be paid to the Earned Income Tax Officer of the Borough of Birdsboro within 60 day after such notice shall have been given.
The Borough of Birdsboro in accordance with the authority granted it by Section 21 of the Act of December 31, 1965, No. 511, known as the "Local Tax Enabling Act," shall have the power to collect unpaid earned income taxes from the persons owing such taxes by suit in assumpsit or other appropriate remedy. Upon each such judgment, execution may be issued without any stay or benefit of any exemption law.