[Adopted 12-4-1978]
This Article shall be known and may be cited
as the "Earned Income Tax Ordinance."
A.
ADULT
ASSOCIATION
BUSINESS
COMPENSATION
CORPORATION
COUNCIL
DWELLING
EMPLOYEE
EMPLOYER
INCOME TAX OFFICER
LANDLORD
MUNICIPALITY
NET PROFITS
NONRESIDENT
PERSON
RESIDENT
ROOMING HOUSE
TAXPAYER
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:
An individual of the age of 21 years or more.
[Added 12-9-1998 by Ord. No. 1998-8]
A partnership, limited partnership, or any other form of
unincorporated enterprise, owned by two or more persons.
Includes any enterprise, activity, profession, trade or undertaking
of any nature conducted for profit or ordinarily conducted for profit,
whether by an individual, copartnership, association or other entity.
All salaries, wages, commissions, bonuses, incentive payments,
fees and tips that may accrue or be received by an individual for
services rendered, whether directly or through an agent and whether
in cash or in property; but shall not include periodic payments for
sick or disability benefits and those commonly recognized as old-age
benefits, retirement pay nor pensions paid to persons retired from
service after reaching a specific age or after a stated period of
employment, nor public assistance or unemployment compensation payments,
nor any wages or compensation paid by the United States to any person
for active service in the Army, Navy, or Air Force of the United States
nor any bonus or additional compensation paid by the United States
or the Commonwealth of Pennsylvania or any other state for such service.
Any corporation or joint stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania or
other state, territory or foreign country of dependency.
The Council of the Municipality of Kingston, Luzerne County,
Pennsylvania.
Any building or portion thereof designed or used exclusively
as the residence or sleeping place of one or more persons. This definition
shall be construed to include mobile homes and rooming houses. This
definition shall not be construed to include hotels, motels, homeless
shelters, dormitories, hospitals, rehabilitation or treatment centers,
nursing homes or personal care homes.
[Added 12-9-1998 by Ord. No. 1998-8]
Any natural person resident in the Municipality of Kingston
or employed therein upon whose compensation, as above defined, a tax
is imposed for this Article.
Any individual, copartnership, association, corporation,
governmental body, unit or agency, or any other entity, who employs
for "compensation," as above defined, one or more employees upon whose
compensation a tax is imposed by this Article.
The Income Tax Collector appointed or employed by the Municipality
of Kingston.
A natural or nonnatural person or entity which offers for
habitation as owner or manager one or more dwellings within the Municipality
of Kingston.
[Added 12-9-1998 by Ord. No. 1998-8]
The Municipality of Kingston, Luzerne County, Pennsylvania.
The net gain from the operation of a business, profession
or enterprise, after provision for all costs and expenses incurred
in the conduct thereof, either paid or accrued in accordance with
the accounting system used, and without deduction of taxes based on
income.
An individual, partnership, association or other entity domiciled
outside the Municipality of Kingston, Luzerne County, Pennsylvania.
Includes every natural person, copartnership, association,
firm or fiduciary. Whenever used in any clause prescribing and imposing
a penalty, the term "person," as applied to associations, shall mean
the partners of members thereof and, as applied to corporations, the
officers thereof.
An individual, copartnership, association or other entity
resident or domiciled in the Municipality of Kingston, Luzerne County,
Pennsylvania.
A building in which rooms for lodging and/or boarding are
let for a fee to three or more individuals not including individuals
related by blood or marriage to the owner or owners of the premises.
[Added 12-9-1998 by Ord. No. 1998-8]
Any "person," as above defined, upon whose "compensation"
or "net profits," as above defined, a tax is imposed by this Article.
B.
Word usage. The singular shall include the plural,
and the masculine shall include the feminine and the neuter.
[Amended 12-8-1986; 12-21-1987; 10-7-1991 by Ord. No. 1991-23; 12-20-1999 by Ord. No. 1999-13]
A.
Residents.
(1)
A tax for general revenue purposes is hereby imposed
by the Municipality of Kingston on:
B.
A tax for general revenue purposes of 1% is hereby
imposed by the Municipality of Kingston on:
(1)
Salaries, wages, commissions and other compensation
earned after January 1, 2000, by nonresidents of the municipality
for work done or services rendered in the municipality; and
(2)
The net profits earned after January 1, 2000, of businesses,
professions or other activities conducted in the municipality by nonresidents.
C.
The tax levied under Subsection A(1)(a) and B(1) herein shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by an employer or on his behalf to any Kingston resident who is employed by or renders services to such employer. The tax levied under Subsections A(1)(b) and B(2) herein shall relate to and be imposed on the net profits of any business, profession or enterprise carried on by any person as owner or as proprietor, either individually or in association with some other person or persons.
A.
Net profits.
(1)
Every taxpayer who anticipates any net profits shall,
on or before March 15, make and file with the Income Tax Officer,
on a form prescribed by the Income Tax Officer, a declaration of his
estimated net profits during the period beginning January 1 and ending
December 31, setting forth the estimated amount of net profits anticipated
by him during the said period and subject to the tax, the amount of
tax imposed by this Article on such estimated net profits and such
other information as the Income Tax Officer may require. The taxpayer
making the declaration shall, at the time of filing thereof, pay to
the Income Tax Officer the estimated amount of tax shown as due thereon;
provided, however, that the taxpayer shall have the right to pay the
estimated tax in four quarterly installments as follows: the first
installment at the time of filing the declaration on or before March
15, and the other installments on or before June 15, September 15
and February 15, respectively.
(2)
Any taxpayer who first anticipates any net profits
after March 15 shall make and file the declaration hereinabove required
on or before June 15, September 15 or February 15, whichever of these
dates next follows the date on which the taxpayer first anticipates
such net profits. The taxpayer making the declaration shall, at the
time of filing thereof, pay to the Income Tax Officer the estimated
amount of tax shown as due thereon; provided, however, that the taxpayer
shall have the right to pay the estimated tax in equal installments
on or before the quarterly installment payment dates which remain
after the filing of the declaration.
(3)
The Income Tax Officer is hereby 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.
(4)
On or before March 15, every taxpayer who has received
net profits shall make and file with the Income Tax Officer, on a
form prescribed by him, a final return showing all of his net profits
for the period beginning January 1 and ending December 31, the total
amount of tax due, the amount of estimated tax paid under the provisions
of this section and the balance due; provided, however, that any taxpayer
may, in lieu of paying the fourth quarterly installment of his estimated
tax, elect to make and file with the Income Tax Officer on or before
January 15 the final return as hereinabove required. 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.
(5)
Every taxpayer who discontinues business prior to
December 31 shall, within 15 days after the discontinuance of business,
file his final return as hereinabove required and pay the tax due.
B.
Salaries, wages, commissions and other compensation. Every taxpayer who is employed on a salary, wage, commission or other compensation basis and who receives earnings not subject to the provisions of § 161-33 of this Article relating to collection at source shall, on or before April 15, make and file with the Income Tax Officer, on a form prescribed by the Income Tax Officer, a return setting forth the aggregate amount of salaries, wages, commissions and other compensation earned by him during January, February and March and subject to the tax, together with such other information as the Income Tax Officer may require. He shall also, on or before July 15, October 15 and February 15, make and file with the Income Tax Officer, on a form prescribed by the Income Tax Officer, a return setting forth the aggregate amount of salaries, wages, commissions and other compensation earned by him during the three-month periods ending June 30, September 30 and December 31 respectively, and subject to the tax, together with such other information as the Income Tax Officer may require. Every taxpayer making such return shall, at the time of filing thereof, pay to the Income Tax Officer the amount of tax shown as due thereon.
A.
Every person within the Municipality of Kingston who
employs one or more persons on a salary, wage, commission or other
compensation basis, other than domestic servants, shall on or before
January 15, or within 15 days after becoming an employer, register
with the Income Tax Officer his name and address and such other information
as the Income Tax Officer may require.
B.
Every person within the Municipality of Kingston who
employs one or more persons on a salary, wage, commission or other
compensation basis, other than domestic servants, shall deduct monthly,
or more often than monthly, at the time of payment thereof, the tax
imposed by this Article on the salaries, wages, commission and other
compensation due to his employee or employees and shall file with
the Income Tax Officer, on a form or forms furnished by or obtainable
from said Officer, quarterly returns on the dates herein prescribed
and pay to said Officer the amount of taxes deducted and shown by
such returns to be due for each quarter by each such employee. Such
quarterly returns shall be filed and payment of taxes so deducted
and shown to be due thereby shall be paid on or before April 15, for
all taxes deducted during the quarter beginning January 1 and ending
March 31; on or before July 15, for the quarter ending June 30; on
or before October 15, for the quarter ending September 30; and on
or before January 15, for the quarter ending December 31.
C.
On or before February 28, every such employer shall
file with the Income Tax Officer on forms prescribed by him:
(1)
An annual return showing the total amount of salaries,
wages, commissions and other compensation paid, the total amount of
tax deducted and the total amount of tax paid to the Income Tax Officer
during the period beginning January 1 and ending December 31; and
(2)
A return for each employee employed during all or
any part of the period beginning January 1 and ending December 31,
setting forth the employee's name, address and Social Security number,
the amount of salaries, wages, commissions or other compensations
paid to the employee during said period, the amount of tax deducted,
the amount of tax paid to the Income Tax Officer and such other information
as the Income Tax Officer may require. Every employer shall furnish
a copy of the individual return to the employee for whom it is filed.
D.
Every employer who discontinues business prior to
December 31 shall, within 15 days after the discontinuance of business,
file the returns hereinabove required and pay the tax due.
E.
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 Mayor shall appoint the Income Tax Officer and
shall demand of the Officer a proper bond in a sum to be prescribed
by resolution of the Council.
B.
It shall be the duty of the Officer to collect and
receive the taxes and penalties imposed by this Article and to account
to the Council in the same manner as is provided by law for the collection
and payment of other taxes and to enforce the provisions of this Article.
It shall also be his duty, in addition to keeping such records, as
are now required by law or by municipal ordinance or resolution, to
keep a complete and accurate record of the taxes due hereunder and
paid by or for each taxpayer and the date of all such payments.
C.
For the Officer's services in the collection of such
taxes and enforcing and administering the provisions of this Article
the Officer shall receive such compensation and reimbursement for
expenses reasonably incurred in connection therewith as the Council,
by resolution, may determine.
D.
In the event the Officer shall fail to qualify or
in the event of vacancy of said Officer, the Administrator of the
Municipality of Kingston shall be deemed to be the Officer under this
Article, until such time as a successor has been appointed.
A.
Rules and regulations. The Council of the Municipality
of Kingston may, by resolution, adopt, promulgate and enforce the
rules and regulations for the purpose of administration and enforcement
of the provisions of this Article, including provisions for the reexamination
and correction of returns and payments alleged or found to be incorrect
or as to which an overpayment or underpayment, is claimed or found
to have occurred.
B.
Investigate powers of the Income Tax Officer. The
Officer, or any agent or employee designated in writing by the Council,
is hereby authorized to examine the books, papers and records of any
employer, or alleged employer, or any taxpayer or alleged taxpayer
in order to verify the accuracy of any return made or, if no return
was made, to ascertain the tax imposed by this Article. Every such
employer or alleged employer or taxpayer or alleged taxpayer is hereby
directed and required to give to the said Officer or any other person
designated by the Council the means, facilities and opportunity for
such examinations and investigations as are hereby authorized. The
Officer is hereby authorized to examine any person concerning any
income which was or should have been returned for taxation, and to
this end may compel the production of books, papers and records and
the attendance of all persons before him, whether as parties or witnesses,
whom he believes to have knowledge of such income.
C.
Confidential information. Any information gained by
the Officer or any other official or agent designated by the Council
as a result of any returns, investigations, hearings or verifications
required or authorized by this Article shall be confidential, except
for official purposes, and except in accordance with proper judicial
order, or as otherwise provided by law, and any person, official or
agent divulging such information shall, upon conviction thereof before
any Justice of the Peace, be sentenced to pay a fine of not more than
$100 for each offense and costs and, in default of said fine and costs,
to be imprisoned in the Luzerne County Jail for a period not exceeding
30 days.
All taxes imposed by this Article remaining
unpaid after they become due shall bear interest, in addition to the
amount of the unpaid tax, at the rate of 1/2% per month until such
tax is paid, and the persons upon whom said taxes are imposed shall
be further liable to a penalty of 1/2 of 1% of the amount of the unpaid
tax for each month or fraction of a month for the first six months
of nonpayment. 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.
The Income Tax Officer may sue 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 six years after such tax is due or within
six years after a 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.
(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 Income Tax Officer reveals a fraudulent
evasion of taxes, including, but not limited to, substantial understatement
of taxes deducted and of actual or estimated net profits or earnings.
(3)
Where any person has deducted taxes under the provisions
of this Article and has failed to pay the amounts so deducted to the
Income Tax Officer.
The Officer is hereby authorized to accept payment
under protest of the amount of tax claimed by the municipality in
any case where any person disputes the validity or amount of the municipality's
claim for the tax. If it is thereafter judicially determined by a
court of competent jurisdiction that there has been an overpayment
to the Officer, the amount of the overpayment shall be refunded to
the person who paid under protest.
The tax imposed by this Article shall not apply to institutions or organizations operated for public, religious, educational or charitable purposes, to institutions or organizations not organized or operated for private profits or to trusts and foundations established for any of the said purposes. This section shall not be construed to exempt any person who is an employer from the duty of collecting the tax at source from his employees and paying the amount collected to the Officer under the provisions of § 161-33 of this Article.
