[Adopted 7-9-1981 by Ord. No. 42]
This article shall be known and may be cited
as "the Earned Income and Net Profits Tax Ordinance" of the Township
of Potter.
This article is enacted pursuant to the authority
conferred by the Local Tax Enabling Act, Act of 1965, December, 31,
P.L. 1257, § 1 (53 P.S. § 6901 et seq.), as amended.
The provisions of Section 13 of the Local Tax
Enabling Act (53 P.S. § 6913), as amended, are incorporated
herein by reference and shall be deemed a part hereof as if set forth
at length herein; provided, however, that where options are given
in said Section 13, this article designates the option elected, and
any option not selected shall be deemed a nullity and without force
and effect.
The following words, when used in this article,
shall have the meanings ascribed to them in this section, except in
those instances where the context clearly indicates a different meaning:
The agent and/or deputy agent designated by the Township
to collect the tax imposed by this article and to administer the provisions
thereof; the collector shall have all the powers, rights, duties and
obligations assigned to the "income tax officer" as defined in the
Local Tax Enabling Act.
The place where one lives and his or her permanent home and
to which he or she has the intention of returning whenever he or she
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 voluntarily fixed
place of habitation of a person, 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 or her 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.
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 workers' 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.
A person, partnership, association, corporation, institution,
governmental body or unit or agency, or any other entity employing
one or more resident or nonresident persons for a salary, wage, commission
or other compensation included in the definition of "earned income."
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 but having earned income or net profits
having a situs in the taxing district.
Every natural person, partnership, association or other entity
when used in any clause concerning the imposition, declaration or
payment of tax. Whenever used in any clause prescribing and imposing
a fine or imprisonment, the term "person," as applied to associations,
shall mean the partners of members thereof, and as applied to corporations,
the officers thereof.
A person, partnership, association, or other entity domiciled
in the taxing district.
The period beginning January 1 of the current year and ending
December 31 of the current year, and each succeeding calendar year
thereafter.
[Amended 4-14-2004 by Ord. No. 99]
A person, partnership, association, or any other entity domiciled
within the territorial limits of the Township or doing business therein
and required to file a return of earned income or net profits or to
pay a tax thereon.
The Township of Potter, a municipal corporation of the Commonwealth
of Pennsylvania, being situate in the County of Beaver in said commonwealth.
[Amended 4-14-2004 by Ord. No. 99]
An annual tax for general revenue purposes of
1% is hereby imposed on the earned income and net profits of resident
and nonresident taxpayers during the period beginning January 1 of
the current year and ending December 31 of the current year and each
succeeding calendar year thereafter.
[Added 4-14-2004 by Ord.
No. 99]
As authorized by 53 P.S. § 6902, persons
whose total income from all sources is less than $5,000 per annum
are hereby exempted from this tax.
A.
During the period beginning January 1 of the current
year and ending December 31 of the current year, every taxpayer making
net profits shall file with the collector, on or before April 15 of
the succeeding year, an annual return, as hereinafter set forth, and
shall concurrently therewith make payment to the collector of the
tax required to be paid hereunder.
[Amended 4-14-2004 by Ord. No. 99]
B.
During each succeeding calendar year following the
aforesaid taxable period, every taxpayer making net profits shall
file with the collector, on or before April 15 next following the
year for which the tax was levied, an annual return as hereinafter
set forth and shall concurrently therewith make payment to the collector
of the tax annually required to be paid hereunder.
A.
During the period beginning January 1 of the current
year, every taxpayer receiving earned income shall file with the collector,
on or before April 15 of the succeeding year, an annual return, as
hereinafter set forth, and concurrently therewith make payment to
the collector of the tax required to be paid hereunder.
[Amended 4-14-2004 by Ord. No. 99]
B.
During each succeeding calendar year following the
aforesaid taxable period, every taxpayer receiving earned income shall
file with the collector, on or before April 15 next following the
year for which the tax was levied, an annual return as hereinafter
set forth and shall concurrently therewith make payment to the collector
of the tax annually required to be paid hereunder.
A.
The annual return required hereunder to be filed with the collector shall be made on a form prescribed by the collector and shall set forth the aggregate amount of all net profits and all earned income, the total amount of tax due thereon, the amount of tax paid thereon, the amount of tax that has been withheld at source pursuant to § 190-10 hereof, the balance of tax due and such other relevant information as the collector may require. At the time of filing his return, the taxpayer shall pay the tax, if any, due or shall make demand for refund or credit in the event of overpayment; provided, however, that when the return is made for a fiscal year, the return shall be made within 75 days from the end of such fiscal year.
B.
A taxpayer whose taxable income shall consist solely of salaries, wages, commission, compensations or other earned income, the tax on which has been collected at source in accordance with the provisions of § 190-10, shall not be relieved thereby of filing an annual return as required by § 190-9A hereof.
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 quarterly
on or before the times hereinafter set forth file a return and pay
to the collector the amount of taxes required to be deducted during
the preceding three-month period of employment. Such return shall
be made upon a form prescribed by the collector and shall set forth
the name and social security number of each such employee during the
preceding three-month period, the tax deducted therefrom, the total
tax deducted from all such employees and paid with the return, and
such other relevant information as the collector may require:
|
Quarterly Period Current Tax Year
|
Return Due
| |
|---|---|---|
|
January - March
|
April 30
| |
|
April - June
|
July 31
| |
|
July - September
|
October 31
| |
|
October - December
|
January 31 of the succeeding year
|
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 collector to file his return and pay the tax
monthly. In such cases, payments of tax shall be made to the collector
on or before the last day of the month succeeding the month for which
the tax was withheld.
C.
On or before February 28 of the succeeding year, every
employer shall file with the collector:
(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 collector for the period beginning January 1 of
the current year and ending December 31 of the current year.
(2)
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, and the amount of tax paid to the collector. 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 the current year shall, within 30 after the discontinuance
of business, file the returns and withholding statements hereinabove
required and pay the tax due.
E.
Except as otherwise provided in Section 9 of the Local
Tax Enabling Act (53 P.S. § 6909), every employer who willfully
or negligently fails or omits to make the deductions required by this
section 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.
F.
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 annual returns.
G.
If the employer shall deduct the tax as required by
this section, the amount deducted shall be held in trust by such employer
for the use of the Township, as beneficial owner thereof, and the
employee from whose earnings such tax was deducted shall be deemed
to have paid such tax.
A.
It shall be the duty of the collector to collect and
receive the taxes, fines and penalties imposed by this article for
payment over to the Township Treasurer. 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, if paid by such person in respect
of another person, the name of such other person, and the date of
such receipt.
B.
The collector is hereby charged with the administration
and enforcement of the provisions of this article and is hereby empowered,
subject to the approval of the Township, 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 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 not to exceed three years subsequent to the
date of payment of the sum involved, and to prescribe forms necessary
for the administration of this article.
C.
The collector shall refund, upon 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.
D.
The collector and agents designated in writing by
him are hereby authorized to examine the books, papers, and records
of any employer or of any taxpayer in order to verify the accuracy
of any return or, if no return was filed, to ascertain the tax due.
Every employer and every taxpayer is hereby directed and required
to give the collector and any agent so designated in writing by him
the means, facilities and opportunity to make such examinations and
investigations as are hereby authorized. The collector is hereby authorized
to compel the production of books, papers and records and the attendance
of all persons, whether as parties or as witnesses, in order to verify
the accuracy of any return or, if no return was filed, in order to
ascertain the tax due.
E.
Any information gained by the collector, his agents,
or by any other official, agent or employee of the Township as a result
of any return, investigation or hearing 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.
F.
The collector is hereby authorized to establish different
filing, reporting and payment dates for taxpayers whose fiscal years
do not coincide with the calendar year.
G.
The collector, with the consent of the Township, may
employ a qualified accountant to audit the books and records of any
taxpayer. If said audit reveals a willful or fraudulent violation
of any of the terms of this article or a willful or fraudulent attempt
on the part of the taxpayer to evade the payment of the tax imposed
by this article, then said taxpayer shall, in addition to all other
penalties imposed by this article, be liable for the costs of the
audit.
A.
The collector shall sue in the name of the Township
for the recovery of taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by this
article shall begin within three years after such tax is due or within
three years after a return has been filed, whichever date is later;
provided, however, that this limitation shall not prevent the institution
of suit for collection of any tax due or determined to be due in the
following cases:
(1)
Where no return was filed by any person although a
return was required to be filed by him under the provisions of this
article, there shall be no limitation;
(2)
Where a false or fraudulent return was filed with
the intent to evade payment of the tax imposed by this article, there
shall be no limitation;
(3)
In the case of substantial understatement of tax liability
of 25% or more, and no fraud, suit shall begin within five years;
(4)
Where any person has deducted taxes under the provisions of this article and has failed to pay the amounts so deducted to the collector, or where any person has willfully failed to pay the amounts so deducted to the collector, or where any person has willfully failed or omitted to make the deductions required by § 190-10 hereof, there shall be no limitation.
C.
The collector may sue for recovery of an erroneous
refund, provided such suit is begun within two years after making
such refund, except that 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 cost of collection and the interest and penalties herein
imposed.
[Amended 11-14-2001 by Ord. No. 88]
A.
Any person who fails, neglects or refuses to file
any return required under this article; makes or files an incomplete,
false or fraudulent return required under this article; fails, neglects
or refuses to pay the tax deducted from any employee of the person;
fails, neglects or refuses to permit the collector or a duly authorized
agent of the collector to examine the books, records or papers of
the person; fails to comply with any order or directive of the collector
issued pursuant to any section of this article; intentionally, knowingly,
recklessly or negligently divulges any confidential information; or
violates any provision of this article shall be subject to all of
the following:
(1)
Shall be liable for civil enforcement penalties.
(3)
Shall, upon failure or refusal to timely pay the total
amount of the civil penalty, pay, upon judgment, all court costs,
including all reasonable attorneys' fees incurred by the Township
as a result of the violation, including the prosecution of all civil
enforcement proceedings.
B.
Each day that a violation is continued shall constitute
a separate offense.
