[Adopted 4-12-1960 by Ord. No. 449]
[1]
Editor's Note: The tax heretofore enacted
by ordinance was levied for the calendar year 2011 at the same rates
and under the same term applicable on 12-31-2010 by Ord. No. 1168,
adopted 12-8-2010. Further reenactments are on file in the Borough
offices.
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:
A partnership, limited partnership or any other unincorporated
group of two or more persons.
An enterprise, activity, profession or undertaking of any
nature conducted for profit or ordinarily conducted for profit, whether
by an individual, 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.
Salaries, wages, commissions and other compensation as defined
in this article.
An individual, partnership, association, corporation, governmental
body or unit or agency or any other entity, employing one or more
persons on a salary, wage, commission or other compensation basis.
The person designated by the Borough Council of Milton to
administer the provisions of this article.
The net income from the operation of a business, profession
or other activity, after provision for all costs and expenses incurred
in the conduct thereof, either paid or accrued in accordance with
the accounting system used in such business, profession or other activity,
but without deduction of taxes based on income.
An individual, partnership, association or other entity domiciled
outside the Borough of Milton.
A natural person, partnership, corporation, fiduciary or
association. Whenever used in any section prescribing and imposing
a penalty, the term "person," as applied to associations, shall mean
the partners or members thereof and, as applied to corporations, the
officers thereof.
An individual, partnership, association or other entity domiciled
in the Borough of Milton.
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, not including periodic payments for sick or
disability benefits and those 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
public assistance or unemployment compensation payments made by any
governmental agency or 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 or any bonus or additional compensation paid
by the United States or the Commonwealth of Pennsylvania or any other
state for such service.
Subject to the tax imposed by this article.
A person, whether an individual, partnership, association
or any other entity, required hereunder to file a return of earnings
or net profits or to pay a tax thereon.
A.
A tax for general revenue purposes of 1% is hereby
imposed on the following:
(1)
Salaries, wages, commissions and other compensation
earned on and after July 1, 1960, by individual residents of the Borough
of Milton.
(2)
Salaries, wages, commissions and other compensation
earned on and after July 1, 1960, by individual nonresidents of the
Borough of Milton in the Borough of Milton.
(3)
Net profits, earned on and after July 1, 1960, by
residents of the Borough of Milton.
(4)
Net profits, earned on and after July 1, 1960, in
the Borough of Milton by nonresidents of the Borough of Milton.
B.
The tax levied under Subsection A(1) and (2) herein shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by an 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 on the net profits of any business, profession or other activity carried on by any person or persons.
C.
Every corporation which is subject to the Pennsylvania
corporate net income tax or exempt from the Pennsylvania corporate
net income tax and every foreign corporation which is subject to the
Pennsylvania franchise tax or exempt from the Pennsylvania franchise
tax shall be exempt from the tax imposed by this article.
D.
The tax levied by this article shall be applicable
to salaries, wages, commissions and other compensation and to net
profits earned in the period beginning January 1 and ending December
31 of each year.
[Amended 10-28-1998 by Ord. No. 1103]
[Amended 8-8-1961 by Ord. No. 461; 10-28-1998 by Ord. No.
1103]
A.
Net profits.
(1)
Every person hereinafter called "taxpayer," who reasonably
expects that he will earn any taxable net profits during the period
between January 1 and December 31 of each year shall, on or before
April 15 of each year, make and file with the Income Tax Administrator,
on a form prescribed by the Income Tax Administrator, a declaration
of his estimated net profits for the period beginning January 1 and
ending December 31 of each year, setting forth the estimated tax imposed
by this article on such estimated net profits and such other relevant
information as the Income Tax Administrator may require. The taxpayer
making the declaration shall, at the time of filing thereof, pay the
Borough of Milton 1/4 of the estimated tax shown as due thereon, and
such taxpayer shall thereafter pay the remainder of such estimated
tax as follows: 1/4 on or before June 15, 1/4 on or before September
15 and 1/4 on or before January 15.
(2)
A person who on April 15 of each year did not reasonably expect that he would earn any taxable net profits during the period between January 1 and December 31 of that year and who subsequent to October 15 reasonably expects that he will earn taxable profits on or before December 31 of that year shall make and file, on or before January 15, a declaration similar to that required under the foregoing Subsection A(1). The taxpayer making the declaration shall, at the time of filing thereof, pay to the Borough of Milton the estimated tax shown as due thereon.
(3)
The Income Tax Administrator 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 shall thereafter either reasonably expect additional net
profits not previously declared or find that he has overestimated
his net profits.
(4)
On or before April 15 of each year, every taxpayer
who has earned taxable net profits shall make and file with the Income
Tax Administrator, on a form prescribed by him, a final return showing
all of such net profits for the period beginning January 1 and ending
December 31 of the previous year the total amount of tax due, the
amount of estimated tax paid under the provisions of this section
and the balance due. When the return is made for a fiscal year different
from the calendar year, the return shall be made within 105 days from
the end of said fiscal year. The percentage of the total net profits
of any calendar or fiscal year of a taxpayer beginning or ending within
the period beginning January 1 and ending December 31 to which the
tax imposed by this article shall be applicable shall be equal to
the same percentage of such total net profits as the number of days
in any such year within such period bears to the total number of days
in any such year. 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 of any year shall, within 30 days after the discontinuance
of business, file his final return as hereinabove required and pay
the tax due or demand refund or credit, in the case of overpayment.
B.
Salaries, wages, commissions and other compensation.
(1)
Every taxpayer who is employed on a salary, wage, commission or other compensation basis and who reasonably expects to earn any taxable earnings not subject to the provisions of § 219-13 of this article relating to the collection at source shall, on or before April 15 of each year, make and file with the Income Tax Administrator a declaration of his estimated total amount of taxable salaries, wages, commissions and other compensation for the period beginning January 1 and ending December 31 of that year, the estimated amount of the tax thereon that will be deducted therefrom pursuant to § 219-13 of this article, the estimated amount of tax imposed by this article that will not be deducted therefrom pursuant to § 219-13 and such other relevant information as the Income Tax Administrator may require. In preparing his declaration of estimated taxable salaries, wages, commissions and other compensation taxable under this article, the taxpayer shall use the same amounts with respect to such items as he shall have used in preparing his declaration of estimated tax for that year for federal income tax purposes, if such taxpayer shall be required to file any such last-mentioned declaration.
(2)
A person who on April 15 did not reasonably expect that he would earn any salaries, wages, commissions and other compensation not subject to the provisions of § 219-13 of this article relating to the collection at source, during the period between January 1 and December 31 of that year, and who subsequent to April 15 reasonably expects that he will earn salaries, wages, commissions and other compensation not subject to the provisions of § 219-13 of this article on or before December 31 shall make and file on or before January 15 a declaration similar to that required under the immediately foregoing Subsection B(1). The taxpayer making the declarations shall at the time of filing thereof pay to the Borough of Milton the estimated tax shown as due thereon.
(3)
The Income Tax Administrator is hereby authorized
to provide by regulation for the making and filing of adjusted declarations
of estimated salaries, wages, commissions and other compensation and
for the payments of the estimated tax in cases where a taxpayer who
has filed the declaration hereinabove required shall thereafter either
reasonably expect additional salaries, wages, commissions and other
compensation not previously declared or find that he has overestimated
his salaries, wages, commissions and other compensation.
(4)
On or before April 15 of each year, every taxpayer who has received taxable salaries, wages, commissions and other compensation shall make and file with the Income Tax Administrator on a form prescribed by him a final return showing all such salaries, wages, commissions and other compensation earned during the period beginning January 1 and ending December 31 of the previous year, the total amount of tax due thereon, the amount of estimated tax thereon paid under the provisions of this section, if any, and the amount, if any, of tax thereon that has been withheld pursuant to the provisions of § 219-13 of this article 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.
[Amended 10-28-1998 by Ord. No. 1103]
A.
Every person within the Borough of Milton who employs
one or more persons on a salary, wage, commission or other compensation
basis, other than domestic servants, shall deduct, at the time of
the payment thereof, the tax imposed by this article on the salaries,
wages, commissions and other compensation due to his employee or employees
and shall, on or before the 30th day of the months of April, July,
October and January next following such deductions, respectively,
make and file with the Income Tax Administrator on a form prescribed
by the Income Tax Administrator a return, setting forth the taxes
so deducted and pay to the Borough of Milton the amount of taxes deducted
for the preceding quarterly periods.
B.
On or before April 15 of each year, every such employer
shall file with the Income Tax Administrator on forms prescribed by
him:
(1)
An annual return showing the total amount of salaries,
wages, commissions and other compensation earned by his employee or
employees on which a tax is imposed by this article, the total amount
of tax deducted and the total amount of tax paid to the Borough of
Milton in respect of salaries, wages, commissions and other compensation
earned by his employee or employees during the period beginning January
1 and ending December 31 of each year.
(2)
A return in respect of each person who was an employee
during all or any part of the period beginning January 1 and ending
December 31 of each year, and who earned during such period any salaries,
wages, commissions or other compensation subject to the tax imposed
by this article, setting forth the employee's name, address and social
security number, the amount of such salaries, wages, commissions or
other compensation earned by the employee during said period, the
amount of tax deducted therefrom and such other relevant information
as the Income Tax Administrator may require. Every employer shall
furnish a copy of the individual return to the employee in respect
of whom it was filed.
C.
Every employer who discontinues business prior to
December 31 of any year shall, within 30 days after the discontinuance
of business, file the returns hereinabove required and pay the tax
due.
D.
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.
E.
If an employer makes a deduction of tax as required
by this section, the amount deducted shall constitute in the hands
of such employer a trust fund held for the account of the Borough
of Milton as beneficial owner thereof, and the employee from whose
salaries, wages, commissions or other compensation such tax was deducted
shall be deemed to have paid such tax.
A.
It shall be the duty of the Income Tax Administrator
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 paying the tax and, if paid by such
person in respect of another person, the name of such other person
and the date of such receipt.
B.
The Income Tax Administrator is hereby charged with
the administration and enforcement of the provisions of this article
and is hereby 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 prescribe forms necessary for the
administration of this article.
C.
The Income Tax Administrator and agents designated,
in writing, by him are hereby authorized to examine the books, papers
and records of any person 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 person is hereby directed and required to give
to the Income Tax Administrator or to any agent so designated by him
the opportunity for such examinations and investigations as are hereby
authorized.
D.
Any information gained by the Income Tax Administrator,
his agents or by any other official, agent or employee of the Borough
of Milton as a result of any declarations, returns, investigations,
hearings or verifications required or authorized by this article shall
be confidential and shall not be disclosed to any person except for
official use in connection with the administration or enforcement
of this article or as otherwise provided by law.
E.
Any person aggrieved by any action of the Income Tax
Administrator shall have the right of appeal as provided by law.
A.
The Income Tax Administrator may sue in the name of
the Borough of Milton 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)
In the case of a false or fraudulent declaration or
return with the intent to evade tax.
(3)
Where any person has deducted taxes under the provisions
of this article and has failed to pay the amounts so deducted to the
Borough of Milton.
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 one-half of one percent (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 Income Tax Administrator is hereby authorized
to accept payment of the amount of tax claimed by the Borough in any
case where any person disputes the validity or amount of the Borough'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 Income Tax Administrator, the amount of the overpayment shall
be refunded to the person who paid.
A.
The tax imposed by this article shall not apply to:
(1)
Any person as to whom it is beyond the legal power
of the Borough of Milton to impose the tax herein provided for under
the Constitution of the United States and the Constitution of the
Commonwealth of Pennsylvania.
(2)
The net profits of any institution or organization
operated for public, religious, educational or charitable purposes,
to an institution or organization not organized or operated for private
profit or to a trust or a foundation established for any of said purposes.
[Amended 8-8-1961 by Ord. No. 461]
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 pay the tax deducted from his employees;
any person who refuses to permit the Income Tax Administrator or any
agent properly designated by him to examine his books, records and
papers; and any person who makes any incomplete, false or fraudulent
return 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, be sentenced to pay a fine of not more than $500 and costs
of prosecution and, in default of payment of such fine and costs,
to be imprisoned in the Northumberland County Jail for a period not
exceeding 30 days.
[Amended 10-28-1998 by Ord. No. 1103]
B.
Any person who, except as permitted by the provisions of § 219-14D of this article, divulges any information which is confidential under the provisions of said subsection shall, upon conviction thereof before any District Justice, be sentenced to pay a fine of not more than $500 for each offense and costs of prosecution and, in default of payment of such fine and costs, to be imprisoned in the Northumberland Jail for a period not exceeding 30 days.
[Amended 10-28-1998 by Ord. No. 1103]
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 the
forms required for making any declaration or return required by this
article shall not excuse him from making such declaration or return.
