[Adopted 6-1-1970 by Ord. No. 165 (Part
3, Ch. 2, Art. B, of the 1987 Code)]
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 a different meaning:
A partnership, limited partnership, or any other unincorporated
group of two or more persons.
Trappe Borough, Montgomery County, Pennsylvania.
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.
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.
The calendar year for which the tax is levied.
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.
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 to 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 persons for a salary, wage, commission or other compensation.
Person, public employee or private agency designated by the
Borough to collect and administer the tax on earned income and 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.
A person, partnership, association or other entity domiciled
outside of the Borough.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Borough.
The calendar year following the current year.
A person, partnership, association or any other entity required
hereunder to file a return on earned income or net profits or to pay
a tax thereon.
A.
A tax for general Borough purposes is imposed as follows:
(1)
One percent of all earned income earned on and after
July 1, 1970, by residents.
(2)
One percent of all earned income earned on and after
July 1, 1970, by nonresidents employed within the Borough.
(3)
One percent of the net profits earned on and after
July 1, 1970, of businesses, professions and other activities conducted
by residents.
(4)
One percent of the net profits earned on and after
July 1, 1970, of businesses, professions and other activities conducted
by nonresidents within the Borough.
B.
The tax shall be applicable to earned income received
and to net profits earned in the period beginning July 1 of the current
year and ending December 31 of the current year, or for taxpayer fiscal
years beginning in the current year, and the tax shall continue in
force on a calendar-year or taxpayer-fiscal-year basis, without annual
reenactment, unless the rate of tax is subsequently changed. The Borough
may change the rate, and such changes in rate shall become effective
on the date specified in the ordinance making the change.
A.
Net profits.
(1)
Beginning with the calendar year January 1, 1982,
every taxpayer who makes any net profits shall on or before April
30 of the then current year and each year thereafter make and file
with the Tax Collector a declaration of his estimated net profits
during the period beginning January 1 and ending December 31 of the
then current year. Taxpayer shall pay to the Tax Collector the total
amount of tax determined to be due under the estimate no later than
April 15 of the following year.
(2)
If the taxpayer, after the calendar year 1970, anticipates
net profits after April 30 of the calendar year, then he shall make
and file a declaration on or before July 31, October 31 and December
31 of the then current year, whichever of these dates next follows
the date on which the taxpayer first anticipates such net profits.
The taxpayer shall pay to the Income Tax Officer in equal installments
the amount of tax due thereon on or before the quarterly payment dates
which remain after the filing of his first declaration.
(3)
On April 30 of each calendar year, every taxpayer
shall file with the Income Tax 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 then current year and
ending December 31 of the current year (this to take effect after
1970), the total amount of tax due thereon, and the total amount of
tax theretofore paid with the estimated return. At the time of filing
a final return, the taxpayer shall pay to the Income Tax Officer the
balance of tax due or shall make demands for a refund or credit in
the case of any overpayment. Any taxpayer may, in lieu of paying the
fourth quarterly installment of his estimated tax, elect to and make
and file with the Income Tax Officer his final return on or before
January 31 of the succeeding year and to pay the tax in full at that
time.
(4)
The Income Tax Officer may be 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.
(5)
Every taxpayer who discontinues his business before
September 30 of the current year shall, within 30 days after the discontinuance
of the business, file his final return as hereinabove required and
pay the tax due or make demand for the refund or credit in the case
of an overpayment.
B.
Earned income.
(1)
Annual earned income tax return. Every taxpayer shall,
on or before April 15 of the succeeding year, make and file with the
Income Tax Officer, on a form prescribed, prepared and supplied by
the Officer, a final return showing the total amount of earned income
received during the period beginning July 1, 1970, and ending December
31, 1970, for the current year and for each year thereafter for the
period beginning January 1 and ending December 31, the total amount
of tax due thereon, the amount of the tax paid thereon, the amount
of the tax thereon that has been withheld in the event the provisions
relating to withholding hereinafter set forth have been invoked by
the Borough, and the balance of the 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 has received any earned income not subject to the provisions
relating to collection at the source shall make and file with the
Income Tax Officer, on a form prescribed or approved by the Officer,
a quarterly return on or before October 31, 1970, setting forth the
aggregate amount of earned income not subject to withholding earned
by him during the period July 1, 1970, to and including September
30, 1970, together with such other information as shall be required
on the forms supplied by the Officer. Every taxpayer who files a return
at this time shall also pay to the Income Tax Officer the amount of
tax estimated to be due thereon.
(3)
Beginning with the calendar year January 1, 1982,
every taxpayer who is employed for salary, wage, commission or other
compensation who received any earned income not subject to the provisions
relating to collection at the source shall make and file with the
Earned Income Tax Collector, on a form prepared, supplied and prescribed
by the Earned Income Tax Collector, on or before April 15 of the succeeding
year the aggregate amount of earned income not subject to withholding
by him or her and subject to the tax with such other information as
the Earned Income Tax Collector shall require. Every taxpayer who
makes such a return shall, at the time of the filing of the return
with the Earned Income Tax Collector pay to the Collector the amount
of the tax shown as due thereon.
A.
Every employer, as hereinbefore described and defined,
shall be obligated from July 1, 1970, and thereafter so long as this
article is in effect to withhold from the wages of employees subject
to the tax imposed by this article the amount of tax due in accordance
with the withholding procedure set forth hereinafter.
B.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the Borough who
employs one or more persons, other than domestic servants, for salary,
wages, commission or other compensation, who has not previously registered,
shall, within 15 days after becoming an employer, register with the
Income Tax Office his name and address and such other information
as the Office may require.
C.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the Borough who
employees 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, 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, file a return
and pay to the Income Tax Officer the amount of taxes deducted during
the preceding 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. That return, unless
otherwise agreed upon between the Income Tax Officer and employer,
shall show the name and social security number or identification number
supplied by the Officer of each employee; the earned income of that
employee during the preceding three-month period; the tax deducted
therefrom; the political subdivisions imposing the tax; the total
earned income of all such employees during that preceding three-month
period; and the total tax deducted therefrom and paid with the return.
D.
Monthly reporting. 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 Borough may be required by the Income Tax Officer to file
his return and pay the tax monthly. In such cases, payments of tax
shall be made to the Income Tax Officer on or before the last day
of the month succeeding the month for which the tax was withheld.
E.
On or before February 28 of the succeeding year, every
employer shall file with the Income Tax 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 Income Tax Officer for the period beginning January
1 of the current year and ending December 31 of the current year (July
1, 1970 to December 31, 1970, for the first 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 or identification
number supplied by the Income Tax Officer; 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; 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.
F.
Termination of business. Every employer who discontinues
business for any reason prior to December 31 of the current year shall,
within 30 days after the discontinuance of business, file the returns
and withholding statements hereinabove required and pay the tax due.
G.
Every employer who willfully or negligently fails
or omits to make the deductions required by this section shall be
liable for the payment of the taxes which he was required to withhold
to the extent that such taxes have not been recovered from the employee.
H.
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 office of Income Tax Officer is hereby created,
and Council shall from time to time by separate resolution appoint
a person or company to administer the provisions of this article,
who will be designated as the "Income Tax Officer."
B.
The Income Tax Officer shall be bonded as Council
may determine, the bond to cover all moneys coming into his hands
on behalf of the Borough, the cost of the bond to be paid by the Borough.
Before entering upon his official duties, the Income Tax Officer shall
give and acknowledge the bond to the Borough. The bond shall be in
compliance with the provisions of the Local Tax Enabling Act in all
respects and subject to the approval of the Borough Solicitor.
C.
The Income Tax Officer shall collect and receive all
such taxes, shall furnish a receipt for payment when requested to
do so by a taxpayer, and shall keep a record showing the amount received
by him for each taxpayer under this article, together with the date
of the receipt of the payment.
D.
The Income Tax Officer is empowered to prescribe rules
and regulations relating to the matter or thing pertaining to the
administration and enforcement of the provisions of this article,
subject, however, to approval of Council. Those rules and regulations
shall be inscribed by the Income Tax Officer into a book kept for
that purpose and open to the inspection of the public, and thereupon
shall have the same force and effect as if it had been incorporated
into this article.
E.
The Income Tax Officer or any other person designated
by Council is authorized to examine any of the books, papers and records
of any employer, supposed employer, taxpayer or supposed taxpayer
in order to verify the accuracy of any return made or, if no return
is made, to ascertain the amount of tax due by any person under this
article. Every such employer, supposed employer, taxpayer or supposed
taxpayer shall give to the Income Tax Officer or such other authorized
person the means, facilities and opportunities for the examination
and investigations authorized by this subsection.
F.
The Income Tax Officer is authorized to examine any
person under oath concerning any income which was or should have been
returned for taxation and shall have the power and is authorized to
issue subpoenas to compel the attendance of persons whom he deems
necessary to examine as witnesses and to compel the production of
books, records and papers relating to any account being examined.
G.
The Income Tax Officer or any other official or agent
so designated by Council is authorized to examine returns, correct
erroneous returns, consent to make refunds, and authorize the refunding
of taxes erroneously or improperly collected from or paid by the taxpayers
for any period of time not to exceed six years subsequent to the date
of payment of the sum involved.
H.
Any information gained by the Income Tax Officer or
any other official or agent of the Borough as a result of any return,
investigation, hearing or examination required or authorized by this
article shall become confidential, except for official purposes, or
except in accordance with proper judicial order or as otherwise provided
by law. Any disclosure of such information contrary to the provisions
of this section shall constitute a violation of this article.
I.
Any person who, except as permitted by the provisions of the foregoing Subsection H of this section, divulges any information which is confidential under the provisions of this article shall, upon conviction thereof before a Magisterial District Judge or court of competent jurisdiction, be sentenced to pay a fine of not more than $500 for each offense and costs and, in default of payment of such fine and costs, to be imprisoned for a period not exceeding 30 days.
A.
The Income Tax Officer may sue in the name of the
Borough 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 the 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
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 that declaration
or return in possession of the Income Tax 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 amounts so deducted to the
Income Tax Officer, or where any person has wilfully failed or omitted
to make the deductions required by this article, there shall be no
limitation.
(5)
This article shall not be construed to limit Council
from recovering the delinquent taxes by any other means provided in
the Local Tax Enabling Act.
C.
The Income Tax Officer may sue for recovery of an
erroneous refund, provided such suit is begun two years after making
such refund, except that the 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 the 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 the tax, the person liable therefor shall, in addition, be liable
for the costs of collection and the interest and penalties herein
imposed.
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 taxes deducted
from his employees or fails, neglects or refuses to deduct withholding
taxes from his employees; any person who refuses to permit the Income
Tax 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 before any Magisterial
District Judge or court of competent jurisdiction, be sentenced to
pay a fine of not more than $500 for each offense and costs and, in
default of payment of such fine and costs, to be imprisoned for a
period not exceeding 30 days.
B.
The penalties imposed under this section shall be
in addition to any other penalty imposed by any other section of this
article.
C.
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 such declaration or return.
This article shall not apply to personal property
or persons to whom or which it is beyond the legal power of the Borough
to impose the tax herein provided; the net profits of any institution,
organization, trust, association or foundation operated for public,
religious, educational or charitable purposes, provided that this
section shall not operate to relieve or exempt any such entity from
collection at source of earned income of its employees and remittance
of such collections to the Income Tax Officer.
This article shall become effective the first
day of July 1970, for the period July 1, 1970, to December 31, 1970,
and for all calendar years thereafter.
[Added 8-3-1970]
A.
Whereas, the Borough of Trappe has enacted and levied
a tax usually referred to as an "earned income tax," effective July
1, 1970; and
B.
Whereas, Perkiomen Valley School District earlier
enacted a similar tax; and
C.
Whereas, the school district and the Borough of Trappe,
together with the other municipalities situated in the school district,
will share the receipts from said taxes according to law; and
D.
Whereas, the school district has appointed a tax collector
for its tax by agreement dated July 14, 1969; and
E.
Whereas, the Borough of Trappe desires to authorize
the same tax collector to collect the earned income tax enacted by
it jointly with the collection of the earned income tax enacted by
the school district;
F.
Therefore, an agreement shall be entered into between
the Borough of Trappe and Perkiomen Valley School District for the
aforesaid purposes, in the form submitted by the Solicitor for the
School District; and the Borough Council of the Borough of Trappe
hereby adopts the earned income tax regulations promulgated by the
Perkiomen Valley School District as the earned income tax regulations
for the Borough of Trappe.
