The following words and phrases when used in this article shall have the meanings ascribed to them in this §
260-1, except where the context clearly indicates or requires a different meaning:
ASSOCIATION
A partnership, limited partnership, or any other unincorporated
group of two or more persons.
BUSINESS
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.
CORPORATION
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.
DOMICILE
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.
EARNED INCOME
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," and regulations in 61 Pa. Code Pt. I Subpt. B Art.
V (relating to personal income tax). Employee business expenses are allowable deductions as determined 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.
[Amended 7-14-2003 by Ord. No. 4-2003]
EMPLOYER
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.
INCOME TAX OFFICER or OFFICER
Person, public employee or private agency designated by a
governing body to collect and administer the tax on earned income
and net profits.
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 term shall not include:
[Amended 7-14-2003 by Ord. No. 4-2003]
A.
Any interest earnings generated from any monetary accounts or
investment instruments of the farming business;
B.
Any gain on the sale of farm machinery;
C.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
D.
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the taxing district.
RESIDENT
A person, partnership, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
The Income Tax Officer shall receive such compensation for his services and expenses as determined by the Board of Commissioners. In case of a single collector established pursuant to §
260-10B of this article, the taxing jurisdictions shall share in the compensation and expenses of a single officer according to the proportionate share that the total annual collections for each jurisdiction bears to the total annual collection for all political subdivisions in a single collector district, except that, with the agreement of 2/3 of all participating political subdivisions, a different manner of sharing may be substituted.
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 costs of collection and the interest and penalties herein
imposed.
[Amended 8-14-1989 by Ord. No. 16-1989]
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 tax deducted from his employees,
or fails, neglects or refuses to deduct or withhold the tax from his
employees; any person who refuses to permit the Officer or 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 thereof before any Magisterial District Judge or court
of competent jurisdiction in the county or counties in which the political
subdivision imposing the tax is located, 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 for a period not
exceeding 60 days.
B. Any person who divulges any information which is confidential under
the provisions of this article shall, upon conviction thereof 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 said fines and costs, to be
imprisoned for a period not exceeding 60 days.
C. The penalties imposed under this §
260-9 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 forms required for
making the declaration or returns required by this Part 3 shall not
excuse him from making such declaration or return.
Any assessment of a tax on personal property of a decedent shall
include all property owned, held or possessed by a decedent which
should have been returned by him for taxation for any former year
or years not exceeding five years prior to the year in which the decedent
died.
No assessment may be made of any tax imposed under this article
more than five years after the date on which such tax should have
been paid except where a fraudulent return or no return as been filed.
The Tax Collector shall demand, receive and collect from all
corporations, political subdivisions, associations, companies, firms
or individuals employing persons owing delinquent earned income taxes,
or whose wife owes delinquent earned income taxes, or having in possession
unpaid commissions or earnings belonging to any person or persons
owing delinquent earned income taxes, or whose wife owes delinquent
earned income taxes, upon the presentation of a written notice and
demand under oath or affirmation containing the name of the taxable
or the husband thereof and the amount of tax due. Upon the presentation
of such written notice and demand, it shall be the duty of any such
corporation, political subdivision, association, company, firm or
individual to deduct from the wages, commissions or earnings of such
individual employees then owing or that shall within 60 days thereafter
become due, or from any unpaid commissions or earnings of any such
taxable in its or his possession or that shall within 60 days thereafter
come into its or his possession, a sum sufficient to pay the respective
amount of the delinquent earned income taxes, and costs shown upon
the written notice or demand, and to pay the same to the Tax Collector
of the taxing district in which such delinquent tax was levied within
60 days after such notice shall have been given. Such corporation,
political subdivision, association, firm or individual shall be entitled
to deduct from the moneys collected from each employee the costs incurred
from the extra bookkeeping necessary to record such transactions,
not exceeding 2% of the amount of money so collected and paid over
to the Tax Collector. Upon the failure of any such corporation, political
subdivision, association, company, firm or individual to deduct the
amount of such taxes or to pay the same over to the Tax Collector,
less the bookkeeping cost involved in such transaction as herein provided,
within the time hereby required, such corporation, political subdivision,
association, company, firm or individual shall forfeit and pay the
amount of such tax for each such taxable whose taxes are not withheld
and paid over, or that are withheld and not paid over, together with
a penalty of 10% added thereto, to be recovered by an action of assumpsit
in a suit to be instituted by the Tax Collector or by the proper authorities
of the taxing district as debts of like amount are now by law recoverable,
except that such person shall not have the benefit of any stay of
execution or exemption law.
Upon presentation of a written notice and demand under oath
or affirmation to the State Treasurer or any other fiscal officer
of the state, or its boards, authorities, agencies or commissions,
it shall be the duty of the Treasurer or officer to deduct from the
wages then owing or that shall within 60 days thereafter become due
to any employee a sum sufficient to pay the respective amount of the
delinquent earned income taxes and costs shown on the written notice.
The same shall be paid to the Tax Collector of the taxing district
in which said delinquent tax was levied within 60 days after such
notice shall have been given.
Each taxing district shall have power to collect unpaid taxes from the persons owing such taxes by suit in assumpsit or other appropriate remedy. Upon each such judgment, execution may be issued without any stay or benefit of any exemption law. The right of each such taxing district to collect unpaid taxes under the provisions of this §
260-17 shall not be affected by the fact that such taxes have been entered as liens in the Office of the Prothonotary or the fact that the property against which they were levied has been returned to the County Commissioners for taxes for prior years.
The Board of Commissioners shall provide for not less than one
examination each year of the books, accounts and records of the Income
Tax Collector by a certified public accountant, a firm of certified
public accountants, a competent individual public accountant or a
firm of competent public accountants appointed by the Board of Commissioners.
Whenever one person or agency is selected to collect earned income
tax from more than one political subdivision, the books, accounts
and records of such person or agency shall be examined as provided
in the case of a tax collector for each political subdivision, except
that the accountant shall be selected in the manner provided for selection
of one person or agency to collect earned income taxes for the school
district established under Section 296 of the "Public School Code
of 1949" and the townships within the geographical limits of such
school district. The reports of the audit shall be sent to the Board
of Commissioners employing the accountant. No further or additional
audit shall be performed by elected or appointed auditors.