The following words and phrases when used in this article shall have
the meanings ascribed to them in this section, except where the context clearly
indicates or requires a different meaning:
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; provided, however,
that as used herein, "current year" shall during 1968 refer only to the period
beginning July 1, 1968, and ending December 31, 1968.
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 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 retirement 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
by any governmental agency or payments to reimburse expenses or payments made
by employers or labor unions for wage and salary supplemental programs, including
but not limited to programs covering hospitalization, sickness, disability
or death; supplemental unemployment benefits; strike benefits; social security;
and retirement.
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.
GOVERNING BODY
The Borough Council of the Borough of East Stroudsburg, Monroe County,
Pennsylvania.
INCOME TAX OFFICER or OFFICER
Person, public employee or private agency designated by the governing
body 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, 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 hereunder
to file a return of earned income or net profits or to pay a tax thereon.
[Amended 1-19-1988 by Ord.
No. 878, approved 1-19-1988]
A. Net profits.
(1) 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 shall 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.
(2) Any taxpayer who first anticipates any net profit after
April 15 of the current year shall make and file the declaration hereinabove
required 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 profit, and shall
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.
(3) 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 make demand for refund
or credit in the case of overpayment.
(4) 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.
(5) The officer is hereby authorized to 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 hereinabove required anticipates additional net profits
not previously declared or finds that he has overestimated his anticipated
net profits.
(6) 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 hereinabove required and shall pay the
tax due.
B. Earned income.
(1) 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 earned income received 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, 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) 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 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 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 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.
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 officer shall have power, in case of the neglect or refusal of any
person, copartnership or association, to make payment of the amount of any
tax due by him, after two months from the date of the tax notice, to levy
the amount of such tax, any penalty due thereon and costs, not exceeding costs
and charges allowed constables for similar services, by distress and sale
of the goods and chattels of such delinquent, wherever situate or found, upon
giving at least 10 days' public notice of such sale by posting 10 written
or printed notices and by one advertisement in a newspaper of general circulation
published in the county. No failure to demand or collect any taxes by distress
and sale of goods and chattels shall invalidate any return made, or lien filed,
for nonpayment of taxes or any tax sale for the collection of taxes.
The 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 persons owing delinquent earned income taxes, or
whose spouse owes delinquent earned income taxes, upon the presentation of
a written notice and demand certifying that the information contained therein
is true and correct and containing the name of the taxpayer 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 such corporation, political subdivision,
association, company, firm or individual to deduct 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 taxpayer in its or his possession, or that shall within 60 days thereafter
come into its or his possession, a sum sufficient to pay the amount of the
delinquent earned income taxes and costs shown upon the written notice or
demand and to pay the same to the officer 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 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 officer, less the cost of bookkeeping
involved in such transaction, as herein provided, within the time required,
such corporation, political subdivision, association, company, firm or individual
shall forfeit and pay the amount of such tax for each such taxpayer 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 officer or by the proper authorities
of the taxing district, 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.
All provisions of the Local Tax Enabling Act are incorporated herein
by references.