[Adopted 11-19-1962 by Ord. No. 167 (Ch. 121, Art. III, of the 1975 Code)]
A. 
Words and terms defined. As used in this article, the following terms shall have the meanings indicated:
ASSOCIATION
A partnership, limited partnership or any other form of unincorporated enterprise owned by two or more persons.
BUSINESS
Any enterprise, activity, agency, profession, trust or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, agent, broker, copartnership, association or other entity.
COMPENSATION EARNED, COMPENSATION PAID or EARNINGS
All salaries, wages, commissions, bonuses, incentive payments and/or other forms of compensation or remuneration, in cash or in property, received by an individual and paid, directly or through an agent, by an employer for services rendered.
CORPORATION
Any corporation or joint stock association organized under the laws of the United States, the Commonwealth of Pennsylvania or any other state, territory or foreign country or dependency.
DANVILLE AREA EARNED INCOME TAX COMMITTEE
The joint committee established to administer the collection, administration and enforcement of the provisions of this article and a similar resolution adopted by other municipalities of Montour County and Northumberland County, Pennsylvania, in participation with this Borough.
EMPLOYER
Any individual, copartnership, association, corporation, governmental body or unit or agency or any other entity who or that employs one or more persons on a salary, wage, commission or other compensation basis.
INCOME TAX ADMINISTRATOR
Such person as may be empowered by said Council to administer the provisions of this article.
NET PROFITS
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.
NONRESIDENT
An individual, copartnership, association or other entity domiciled outside the Borough of Danville.
PERSON
Natural person, copartnership, association, firm or fiduciary, except any corporation which is exempt from this tax under the Act of Assembly 481, approved June 25, 1947, P.L. 1145, as amended.[1] 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.
RESIDENT
An individual, copartnership, association or other entity domiciled in the Borough of Danville.
TAXPAYER
A person, whether an individual, copartnership, association or any other entity, required hereunder to file a return on earnings or net profits or to pay a tax thereon.
[1]
Editor's Note: Superseded by Act of December 31, 1985, P.L. 1257. See 53 P.S. § 6901 et seq., especially 53 P.S. § 6913.
B. 
The singular shall include the plural and the masculine shall include the feminine and the neuter.
A. 
The following annual taxes are hereby imposed for general Borough purposes:[1]
(1) 
One-half of one percent of all compensation earned or received or on after January 1, 1963, by residents.
(2) 
One-half of one percent of all compensation earned or received on or after January 1, 1963, by nonresidents for work done or services rendered in the Borough of Danville.
(3) 
One-half of one percent of the net profits earned on or after January 1, 1963, of businesses, professions and other activities engaged in or conducted by residents.
(4) 
One-half of one percent of the net profits earned on or after January 1, 1963, of businesses, professions and other activities engaged in or conducted in the Borough of Danville by nonresidents.
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
B. 
The taxes levied under Subsection A(1) and (2) shall relate to and be imposed upon revenue or compensation paid by an employer or principal for or on his behalf to any person who is employed by or renders services to him. The taxes levied under Subsection A(3) and (4) shall relate to and be imposed upon the net profits of any business, profession or enterprise carried on by any person or owner or proprietor, either individually or in association with some other person or persons.
C. 
Said tax shall first be levied, collected and paid with respect to the salaries, wages and commissions and other compensations earned from and after January 1, 1963, and with respect to the net profits of businesses, professions or other activities earned during that part of the calendar year 1963 beginning from and after January 1, 1963; provided, however, that where the fiscal year of a business, profession or other activity differs from the calendar year, the tax shall be applicable only to that part of the net profits for the fiscal year as shall be earned from and after January 1, 1963.
A. 
Every taxpayer who can reasonably be expected to earn taxable net profits during the taxable period or who is employed on a salary, wage or commission or other compensation basis and can reasonably be expected to earn, during the taxable period, taxable earnings not subject to the provisions of § 225-28 of this article relating to collection at source, shall make and file with the Income Tax Administrator, on or before April 15, 1963, on a form prescribed by the Income Tax Administrator, a declaration of the estimated tax imposed thereon by this article, the amount of the estimated tax to be withheld at source and such other relevant information as the Income Tax Administrator may require.
B. 
Every taxpayer who after April 15, 1963, can reasonably be expected to earn taxable net profits during the taxable period or who is employed on a salary, wage, commission or other compensation basis and can reasonably be expected to earn, during the taxable period, taxable earnings not subject to the provisions of § 225-28 of this article relating to the collection at source, shall make and file, on or before June 15, 1963, September 15, 1963, and January 15, 1964, whichever of these dates next follows the date on which the taxpayer could first reasonably be expected to earn such net profits or earnings, a declaration similar to that required under Subsection A.
C. 
The taxpayer making the declaration required hereinabove shall, at the time of the filing thereof, pay to the Income Tax Administrator on behalf of the Borough the estimated tax shown as due thereon; provided, however, that he shall have the right to pay the tax in equal installments on or before the remaining quarterly installment dates.
D. 
Where the taxpayer who has filed a declaration required hereinabove shall thereafter reasonably be expected to earn, during the taxable period, additional taxable net profits or earnings not subject to collection at source, or finds that he has overestimated his net profits or earnings, he may file an amended declaration with the Income Tax Administrator setting forth such relevant information as the Income Tax Administrator may require.
E. 
Every taxpayer who, during the taxable period, has earned taxable net profits or who has received taxable earnings, shall make and file with the Income Tax Administrator, on a form prescribed by the Income Tax Administrator, on or before the 15th day of the fourth month after the end of the taxable period, a final return showing all such net profits and earnings during the taxable period, the total amount of tax due thereon, the amount of the estimated tax paid under the provisions of this section, the amount of the tax that has been withheld pursuant to the provisions of § 225-28 and the balance of the tax due.
F. 
When the taxpayer's return of net profits or net earnings is made on a calendar year basis or on a fiscal year basis, the final return for such portion of taxable period as shall come within such calendar or fiscal year shall be made and filed with the Income Tax Administrator on or before the 15th day of the fourth month after the end of such calendar or fiscal year.
G. 
The percentage of the total net profits of any calendar or fiscal year of a taxpayer beginning or ending within the taxable year 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.
H. 
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.
I. 
In the event of the death of taxpayer during the taxable period, his personal representative, or in the absence of a personal representative, his heirs, as designated by the Pennsylvania Intestate Act of 1947, as amended, or as hereafter amended or supplemented,[1] shall file his final return within 90 days after the taxpayer's death and pay the tax due or demand refund in the case of overpayment.
[1]
Editor's Note: Superseded by Chapter 21 of Act No. 164 of June 30, 1972. See 20 Pa.C.S.A. § 2101 et seq.
J. 
In the event that this article or a similar earned income tax ordinance shall not be reenacted for a like taxable period immediately following the taxable period of this article, then every taxpayer shall file a final return on or before the 15th day of the fourth month following the end of the current taxable period.
K. 
Declaration of estimated tax required by the preceding subsections shall not be required from individuals whose estimated gross income from farming for the taxable year is at least 2/3 of the total estimated gross income from all sources for the taxable year.
A. 
Every employer within the Borough of Danville who employs one or more employees on a salary, wage, commission or other compensation shall deduct, at the time of the payment thereof, the tax imposed by this article on the earnings due to his employee or employees within 30 days after March 31, 1963, and within 30 days after each quarter of a year thereafter shall make and file a return with the Income Tax Administrator on a form prescribed by the Income Tax Administrator, setting forth the taxes so deducted and such other relevant information as the Income Tax Administrator may require, and shall pay to the Income Tax Administrator, on behalf of the Borough, the amount of taxes so deducted.
B. 
On or before the 15th day of February of the years 1964 and 1965, every such employer shall make and file with the Income Tax Administrator on a form prescribed by the Income Tax Administrator:
(1) 
A return, similar to form W-3 of the Internal Revenue Service of the United States Treasury Department, showing the total amount of the earnings of his employees during the portion of the preceding calendar year embraced within the taxable period, the total amount of the tax deducted and the total amount of the tax paid to the Borough.
(2) 
A return for each employee, similar to form W-2 of the Internal Revenue Service of the United States Treasury Department, showing the total amount of the employee's earnings during the portion of the preceding year embraced within the taxable period and such other relevant information as the Income Tax Administrator may require. Such employer, on or before February 15 of each of said years, shall furnish a copy of such return to the employee named in the return.
C. 
Every employer who discontinues business prior to the close of the taxable year shall, within 30 days after the discontinuance of business, file the returns hereinabove required and pay the tax due. Where discontinuance of business is due to the death of the employer, his personal representative or, in the absence of a personal representative, his heirs, as designated by the Pennsylvania Intestate Act of 1947, as amended, or as hereafter amended or supplemented,[1] shall within 90 days after the death of the employer file his return and pay the tax due or demand a refund in the case of overpayment.
[1]
Editor's Note: Superseded by Chapter 21 of Act No. 164 of June 30, 1972. See 20 Pa.C.S.A. § 2101 et seq.
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 as beneficial owner thereof, and the employee from whose earnings such tax was deducted shall be deemed to have paid such tax.
F. 
The withholding of earnings and the payment and return thereof by the employer under the provisions of this section shall not be required in respect to the earnings of domestic servants, farm laborers and casual laborers not in the course of the employer's business. This section shall not be construed to exempt such employees from the requirements of filing a declaration and a return of such earnings and the payment of tax thereon under the provisions of § 225-30.
A. 
There is hereby established the Danville Area Earned Income Tax Committee which shall consist of representatives appointed according to separate agreement as to numbers from each participating municipal board, council or other executive and legislative board which has or which will adopt a similar earned income tax ordinance or resolution in participation with the Borough of Danville, Montour County, Pennsylvania. In no event shall this committee exceed seven members.
B. 
There is hereby delegated to the Danville Area Earned Income Tax Committee all of the powers of this Borough permissible under the laws of the Commonwealth of Pennsylvania for the administration, collection and enforcement of the provisions of this article.
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 shall account monthly to the Borough the amount of money received by him and shall monthly pay over to the Borough the money so received.
C. 
The Income Tax Administrator is hereby charged with the administration and enforcement of the provisions of this article and is hereby empowered, subject to approval by those responsible for his appointment and the Danville Area Income Tax Committee, 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 of returns and 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.
D. 
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 means, facilities and opportunity for such examinations and investigations as are hereby authorized.
E. 
Any information gained by the Income Tax Administrator, his agents or any other official, agent or employee of the Borough, 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.
F. 
Any person aggrieved by any action of this Income Tax Administrator shall have the right to appeal as provided by law.
A. 
The Income Tax Administrator 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 six years after such tax is due or within six 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 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 provision of this article and has failed to pay the amounts so deducted to the Borough.
A. 
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 be liable, in addition, for the costs of collection and the interest and penalties herein imposed.
B. 
Should any amount of the tax not be paid by a taxpayer when due, because of his negligence or intentional disregard of the provisions of this article and the rules and regulations thereunder, without the intent to defraud, then in that event the Income Tax Administrator shall assess and collect 5% of the deficiency as an added penalty.
C. 
Should any amount of tax not be paid by a taxpayer when due because of fraud of the taxpayer, then in that event 50% of the deficiency shall be assessed and collected by the Income Tax Administrator as a penalty; provided, however, that should a penalty be imposed hereunder for fraud, no penalty for failure to file a return shall be imposed for the same deficiency.
D. 
In case of any failure to make and file a return required by this article within the time prescribed by this article, unless it is shown that such failure is due to reasonable cause and not due to willful neglect, there shall be added to the tax 5% if the failure is for not more than 30 days, and an additional 5% for each additional 30 days or fraction thereof during which such failure continues, not to exceed 25% in the aggregate. The amount so added to any tax shall be collected at the same time and in the same manner as part of the tax, unless the tax has been paid before the discovery of the neglect, in which case the amount so added shall be collected in the same manner as the tax.
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 Officer, the amount of the overpayment shall be refunded to the person who paid.
A. 
The tax imposed by this article shall not apply:
(1) 
To any person as to whom it is beyond the legal power of the Borough to impose the tax herein provided for under the Constitution and laws of the Commonwealth of Pennsylvania.
(2) 
To any institution or organization operated for public, religious, educational or charitable purposes, to any institution or organization not organized or operated for private profit or to a trust or a foundation established for any of the said purposes.
(3) 
To the net profits of any corporation which is subject to the Pennsylvania Corporate Net Income Tax or exempt from the Pennsylvania Corporate Net Income Tax, and any foreign corporation which is subject to the Pennsylvania Franchise Tax or exempt from the Pennsylvania Franchise Tax.
B. 
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 Borough under the provisions of § 225-28.
[Amended 5-14-1975 by Ord. No. 258]
A. 
Any person who fails, neglects or refuses to keep necessary records and supply the information required by this article or the rules and regulations pertaining thereto, to make any declaration or return required by this article; any employer who fails, neglects or refuses to deduct and/or 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, be sentenced to pay a fine of not more than $500 for each offense and costs, and in default of payment of said fine and costs, to be imprisoned in the Montour County Jail for a period not exceeding 30 days.[1]
[1]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
B. 
Any person who, except as permitted by the provisions of § 225-30, divulges any information which is confidential under the provisions of said section, shall, upon conviction thereof, be sentenced to pay a fine of not more than $500 for each offense and costs, and in default of payment of said fine and costs, to be imprisoned in the Montour County Jail for a period not exceeding 30 days.[2]
[2]
Editor's Note: Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I).
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.