[Adopted 11-7-1966 by Ord. No. 744 (Ch. 886 of the 1982 Code)]
[Amended 12-5-2003 by Ord. No. 1481]
As used in this article, 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 any other undertaking
of an unincorporated nature conducted for profit or ordinarily conducted
for profit, whether by a person, association or any other entity.
A corporation or joint-stock association organized under
the laws of the United States, the commonwealth or any other state,
territory, foreign country or dependency.
The calendar year for which the tax is imposed.
The place where one lives and has his or her permanent home
and to which he or she has the intention of returning whenever he
or she is absent. An actual residence is not necessarily a domicile,
for a 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 person has voluntarily fixed the habitation of
himself or herself and his or her 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 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.
Compensation as determined under Section 303 of the Act of
March 4, 1971 (P.L. 6, No 2), known as the Tax Reform Code of 1971,[1] and regulations in 61 Pa. Code Pt. I Sub Pt. B Art. V (relating to personal income tax). Employee business expenses are allowable deductions under Article III of the Tax Reform Code of 1971. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
A natural person who is a resident of the Borough.
A person, association, corporation, institution, governmental
body, unit or agency or any other entity employing one or more persons
for a salary, wage, commission or other compensation.
A person, public employee or private agency designated by
Council 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, determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971, and regulations in 61 Pa. Code Pt. I Subpt. B Art. V (relating to personal income tax), the term does not include income which is not paid for services provided and which is in the nature of earnings from an investment. For taxpayers engaged in the business, profession or activity of farming, the terms shall not include:
Any interest earnings generated from any monetary accounts or
investment instruments of the farming business;
Any gain on the sale of farm machinery;
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
Any gain on the sale of other capital assets of the farm.
A person, association or other entity domiciled outside the
Borough.
A natural person.
The calendar year before the current year.
A person, association or other entity domiciled in the Borough.
The calendar year following the current year.
A person, association or any other entity required under
this article to file a return of earned income or net profits or to
pay a tax thereon.
[1]
Editor's Note: See 72 P.S. § 7101 et seq.
A.
A tax for general revenue purposes of 1% is hereby imposed upon the
following:
(1)
Salaries, wages, commissions and other compensation earned by residents
of the Borough;
(2)
Salaries, wages, commissions and other compensation earned by nonresidents
of the Borough for work done or services performed or rendered in
the Borough;
(3)
Net profits of businesses, professions and other activities conducted
by residents of the Borough; and
(4)
Net profits of businesses, professions and other activities conducted
in the Borough by nonresidents.
B.
The tax levied under Subsection A(1) and (2) hereof relate to and shall be imposed on salaries, wages, commissions and other compensation paid by an employer, or on his or her behalf, to any person who is employed by or renders services to him or her. The tax levied under Subsection A(3) and (4) hereof relate to and shall 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 any other person.
A.
Net profits.
(1)
Every taxpayer making net profits shall, on or before April 15 of
each year, make and file with the Income Tax Officer, on a form prescribed
or approved by the Officer, a declaration of his or her estimated
annual net profits between January 1 and December 31 of such year
and shall pay to the Officer in equal quarterly installments the tax
due thereon and on April 15, June 15, September 15 and on January
15 of the following year.
(2)
Any taxpayer who first anticipates net profits after April 15 shall make the declaration required in Subsection A(1) hereof on or before the quarterly payment date next following such anticipation and shall pay to the Officer in equal installments the tax due thereon on or before the succeeding quarterly payment dates which remain after the filing of the declaration.
(3)
Every taxpayer shall, on or before April 15 of the following year,
make and file with the Officer, on a form prescribed or approved by
the Officer, a final return showing the amount of net profits earned
during the preceding calendar year, the total amount of tax due thereon
and the total amount of tax paid thereon. At the time of filing the
final return, the taxpayer shall pay to the Officer the balance of
tax due or shall make demand for refund or credit in the case of overpayment.
Any taxpayer may, in lieu of paying the fourth quarterly installment
of his or her estimated tax, elect to make and file the final return
with the Officer on or before January 31 of the following year as
required in this paragraph.
(4)
The Officer 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 required in Subsection A(1) hereof anticipates additional net profits not previously declared or finds that he or she has overestimated his or her anticipated net profits.
B.
Earned income.
(1)
Every taxpayer shall, on or before April 15 of each year, make and file with the Officer, on a form prescribed or approved by the Officer, a final return showing the amount of earned income received during the preceding calendar year, the total amount of tax due thereon, the amount of tax paid thereon, the amount of tax thereon that has been withheld pursuant to the provisions relating to the collection at source (as provided for in § 310-4) 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 make demand for refund or credit in the case of overpayment.
(2)
Every taxpayer who is employed for a salary, wage, commission or other compensation and who receives the collection at source (as provided for in § 300-4) shall make and file with the Officer, on forms prescribed or approved by the Officer, quarterly returns on or before April 30, July 31 and October 31 of each year and January 31 of the following year, setting forth the aggregate amount of earned income not subject to withholding by him or her during the three-month periods ending March 31, June 30, September 30 and December 31, respectively, and subject to the tax, together with such other information as the Officer may require. Every taxpayer making such a return shall, at the time of filing thereof, pay to the officer the amount of tax shown as due thereon.
A.
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 a salary, wage, commission
or other compensation, who has not previously registered, shall, within
15 days after becoming an employer, register with the Income Tax Officer
the employer's name and address and such other information as the
Officer may require.
B.
Requirements,
(1)
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 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 or
her or its employee or employees and shall, on or before April 30,
July 31 and October 31 of each year and January 31 of the following
year, file returns and pay to the Officer the amount of taxes deducted
during the preceding three-month periods ending March 31, June 30,
September 30 and December 31, respectively. Such a return, unless
otherwise agreed upon between the Income Tax Officer and employer,
shall show the name and social security number of each such employee,
the earned income of such employee during such preceding three-month
period, the tax deducted therefrom, the political subdivision imposing
the tax upon the employee, the total earned income of all such employees
during the preceding three-month period and the total tax deducted
therefrom and paid with the return.
(2)
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 shall be required
by the Officer to file his, her or its return and pay the tax monthly.
In such cases, payments of tax shall be made to the Officer 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 each year, every employer shall file
with the 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 Officer for the preceding calendar year; and
(2)
A return withholding statement for each employee employed during
all or any part of the preceding calendar year, setting forth the
employee's name, address and social security number, the amount of
earned income paid to the employee during the preceding calendar year,
the amount of tax deducted, the political subdivision imposing the
tax upon such employee and 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.
D.
Every employer who discontinues business prior to December 31 shall, within 30 days after the discontinuance of business, file the returns and withholding statements required in Subsection C hereof and pay the tax due.
E.
Except as otherwise provided in Section § 310-12, 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 the employer 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 declarations and returns.
A.
It shall be the duty of the Income Tax Officer to collect and receive
the taxes, fines and penalties imposed by this article. It shall also
be his or her duty to keep a record showing the amount received by
him or her from each person or business paying the tax and the date
of such receipt.
B.
The Officer, before entering upon his or her official duties, shall
give and acknowledge a bond to the Borough.
(1)
If Council designates, by ordinance or resolution, any bond previously
given by the Officer as adequate, such bond shall be sufficient to
satisfy the requirements of this subsection.
(2)
Such bond shall be joint and several with one or more corporate sureties
which shall be surety companies authorized to do business in the commonwealth
and duly licensed by the Insurance Commissioner of the Commonwealth.
(3)
Such bond shall be conditioned upon the faithful discharge by the
Officer, his or her clerks, assistants and appointees, of all trusts
confided in him or her by virtue of his or her office, upon the faithful
execution of all duties required of him or her by virtue of his or
her office, upon the just and faithful accounting or payment, according
to law, of all moneys and balances thereof paid to, received or held
by him or her by virtue of his or her office and upon the delivery
to his or her successor in office of all books, papers, documents
or other official things held in right of his or her office.
(4)
Such bond shall be taken in the name of the Borough or jointly in
the names of the Keystone Oaks School District and the Borough, and
shall be for the use of the political subdivision appointing the Officer
where the same Officer is appointed by the School District and the
Borough, and for the use of such other person or persons for whom
money shall be collected or received, or as his or her interest shall
otherwise appear, in case of a breach of any of the conditions thereof
by the acts or neglect of the principal on the bond.
(5)
The Borough, or if a joint bond is provided to the School District
and the Borough, either political subdivision, or any person, may
sue upon such bond in his, her or its own name for his, her or its
own use.
(6)
Such bond shall contain the name of the surety company bound thereon.
The Borough, or the School District and the Borough if a combined
bond is provided, shall fix the amount of the bond at an amount equal
to the maximum amount of taxes which may be in the possession of the
Officer at any given time.
(7)
The Borough, or the School District and the Borough if a combined
bond is provided, may at any time, upon cause shown and the notice
to the Officer and his or her surety, require or allow the substitution
or the addition of a surety company acceptable to the Borough or to
the School District and the Borough, as the case may be, for the purpose
of making the bond sufficient in amount, without releasing the surety
first approved from any accrued liability or previous action on such
bond.
(8)
The Borough or the School District and the Borough, as the case may
be, shall designate the custodian of the bond required to be given
by the Officer.
C.
The Officer charged with the administration and enforcement of this
article is hereby authorized 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 make refunds in cases of overpayment
for any period of time not to exceed six years subsequent to the date
of payment of the sum involved, and to prescribe forms necessary for
the administration of this article. No rule or regulation of any kind
shall be enforceable until it has been approved by a resolution of
Council. A copy of the rules and regulations currently in force shall
be available for public inspection.
D.
With the prior approval of Council, the Officer shall refund, on
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.
E.
The Officer and agents designated by him or her are hereby authorized
to examine the books, papers and records of any employer or of any
taxpayer or of any person whom the Officer reasonably believes to
be an employer or taxpayer, 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 employer, every taxpayer and every person
whom the Officer reasonably believes to be an employer or taxpayer
is hereby directed and required to give to the Officer, or to any
agent designated by him or her, the means, facilities and opportunity
for such examination and investigations as are authorized in this
subsection.
F.
Any information gained by the Officer, by his or her agents or by
any other official or agent of the Borough as a result of any declaration,
return, investigation, hearing or verification required or authorized
by this article shall be confidential except for official purposes
and except in accordance with a proper judicial order, or as otherwise
provided by law.
G.
The Officer is hereby authorized to establish different filing, reporting
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
The Income Tax Officer shall receive such compensation for his
or her services and expenses as determined by Council from time to
time.
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 date on which such tax is due,
or within three years after the date on which the declaration or return
has been filed, whichever date is later. However, 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, there shall be no limitation.
(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 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 Officer,
or where any person has willfully failed or omitted to make the deductions
required by this section, there shall be no limitation.
(5)
This subsection shall not be construed to limit the governing body
from recovering delinquent taxes by any other means provided by this
article.
C.
The 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 a material
fact.
If the tax is not paid when due, interest at the rate of 6%
per year on the amount of such tax, and an additional penalty of 1/2%
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 imposed under this section.
A.
No person shall fail, neglect or refuse to make any declaration or
return required by this article. No employer shall fail, neglect or
refuse to register or to pay the tax deducted from his or her employees
or fail, neglect or refuse to deduct or withhold the tax from his
or her employees. No person shall refuse to permit the Income Tax
Officer or any agent designated by him or her to examine his or her
books, records and papers. No person shall knowingly make any incomplete,
false or fraudulent return or attempt to do anything whatsoever to
avoid the full disclosure of the amount of his or her net profits
or earned income in order to avoid the payment of the whole or any
part of the tax imposed by this article.
B.
No person shall divulge any information which is confidential under
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 or her from making such declaration or return.
This article and the tax imposed hereunder is adopted under
and by virtue of the authority contained in the Local Tax Enabling
Act, being Act No. 511 of December 31, 1965, as amended,[1] the provisions of which are hereby accepted and adopted
by Council. Where the interpretation, terms or provisions of this
article are not in accord with or in compliance with the provisions
of such Act, provisions of such Act are intended to be adopted and
resolved by this article as fully as though incorporated, set forth
and made part of this article.
[1]
Editor's Note: See 53 P.S. § 6901 et seq. and 53
P.S. §§ 6924.101 to 6924.312.
This article shall become effective on January 1, 1967.
