[Adopted 12-10-2009 by Ord. No. 657]
A.
A tax for the general revenue purposes of 1% (Maximum is 1%.) is
hereby imposed on residents of Upper Chichester Township:
B.
Imposition of tax on nonresidents. A tax for the general revenue
purposes of 1% (Maximum is 1%.) is hereby imposed on nonresidents
of Upper Chichester Township:
C.
The tax levied under Subsections A(1) and B(1) of this section shall relate to earned income paid by an employer or on his behalf to any person who is employed by or renders services to him. The tax levied under Subsections A(2) and B(2) of this section will relate to and be imposed on the net profits from the operation of a business, profession or other activity, except corporations, carried on by any person as owner or proprietor, either individually or in association with some other person or persons.
D.
The tax levied under this article shall be applicable to earned income
received and to net profits earned in the period beginning January
1 of the current year, and ending December 31 of the current year
(or for taxpayer fiscal years . . .) (taxes imposed for the first
time shall become effective from the date specified in the ordinance
by resolution . . . .).
As used in this article, the following terms shall have the
meanings indicated:
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, partnership, association, or any other
activity.
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 voluntarily fixed place of
habitation of a person, not for a mere special or limited purposed,
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.
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 Subpt. B Art. V (relating to personal income tax), not including, however, wages or compensation paid to individuals on active military service. 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.
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 governing
body 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,"[2] 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:
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 on the farm.
A person, partnership, association or other entity domiciled
outside the taxing district.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the taxing district.
The calendar year following the current year.
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.
A.
Net profits.
(1)
Every taxpayer making net profits shall, as Upper Chichester Township
elects: i) pay to the officer an annual payment of tax due on or before
April 15, of the succeeding year for the period beginning January
1, and ending December 31, of the current year, or ii) on or before
April 15, of the current year, make and file with the officer on a
form prescribed or approved by the officer, a declaration of his estimated
net profits during the period beginning January 1, and ending December
31, of the current year, and pay to the officer in four equal quarterly
installments the tax due thereon as follows: the first installment
at the time of filing the declaration, and the other installments
on or before June 15, of the current year, September 15, of the current
year, and January 15, of the current year, respectively.
(2)
Where the governing body elects to require the filing of a declaration
and quarterly payments, any taxpayer who first anticipates any net
profit after April 15, of the current year, shall make and file the
declaration hereinabove required on or before June 15, of the current
year, September 15, of the current year, or December 31, of the current
year; whichever of these dates next follows the date on which the
taxpayer first anticipates such net profit, and pay to the officer
in equal installments the tax due thereon on or before the quarterly
payment dates which remain after the filing of the declaration.
(3)
Where the governing body requires a declaration of estimated net
profits and quarterly payments of tax due on such profits, every taxpayer
shall, on or before April 15, of the succeeding 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 period
beginning January 1, of the current year, and ending December 31,
of the current 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 estimated
tax, elect to make and file with the officer on or before January
31, of the succeeding year, the final return as hereinabove required.
(4)
The 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 business prior to December 31, of
the current year, shall, within 30 days after the discontinuance of
business, file his final return as hereinabove required and pay the
tax due.
B.
Earned income.
(1)
Annual earned income tax return. At the election of the governing
body every taxpayer shall, on or before April 15, of the succeeding
year, make and filed with the officer on a form prescribed or approved
by the officer a final return showing the amount of earned income
received during the period beginning January 1, of the current year,
and ending December 31, of the current 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 oat source 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 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 received
any earned income not subject to the provisions relating to collection
at source shall:
[Amended 6-10-2010 by Ord. No. 660]
(a)
Make and file with the officer on a form prescribed or approved
by the officer, an annual return setting forth the aggregate amount
of earned income not subject to withholding from him during the period
beginning January 1, and ending December 31, of the current year,
and such other information as the officer may require, and pay to
the officer the amount of tax shown as due thereon on or before April
15, of the succeeding year; and
(b)
Make and file with the officer on a form prescribed or approved
by the officer, a quarterly return 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, setting forth the aggregate
amount of earned income not subject to withholding by him during the
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, and subject to the tax, together
with such other information as the officer may require. Every taxpayer
making such 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 Upper Chichester Township imposing
a tax on earned income or net profits within Upper Chichester Township
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 officer his name and address and such other information as
the officer may require.
B.
Every employer having an office, factory, workshop, branch, warehouse,
or other place of business within Upper Chichester Township imposing
a tax on earned income or net profits within Upper Chichester 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 ordinance or resolution
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 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. Such return unless
otherwise agreed upon between the officer and employer shall show
the name and social security number of each such employee, the earned
income of such employee during such proceeding three-month period,
the tax deducted therefrom, the political subdivisions imposing the
tax upon such employee, the total earned income of all such employees
during such preceding three-month period, and the total tax deducted
there from and paid with the return. 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 officer to file
his 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 the succeeding year, every employer
shall file with the officer:
(1)
An annual return showing the total amount paid, the total amount
of tax deducted, and the total amount of tax paid to the officer 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, 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.
D.
Every employer who discontinues business 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.
E.
Except as otherwise provided in 53 P.S. § 6909,[1] 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.
[1]
Editor's Note: Former 53 P.S. §§ 6901 to 6909
were renumbered as 53 P.S. §§ 6924.101 to 6924.312.
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 the ordinance or
resolution relating to the filing of declarations and returns.
A.
It shall be the duty of the officer to collect and receive the taxes,
fines and penalties imposed by the ordinance or resolution. 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 the date of such receipt.
B.
Each officer, before entering upon his official duties shall give
and acknowledge a bond to the political subdivision or political subdivisions
appointing him. If such political subdivision or political subdivisions
shall by resolution designate any bond previously given by the officer
as adequate, such bond shall be sufficient to satisfy the requirements
of the subsection.
(1)
Each 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 this commonwealth.
(2)
Each bond shall be taken in the name of the appointing authority
or authorities, and shall be for the use of the political subdivision
or political subdivisions appointing the officer, 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.
(3)
The political subdivision or political subdivisions appointing the
officer, or any person may sue upon the said in its or his own name
for its or his own use.
(4)
Each such bond shall contain the name or names of the surety company
or companies bound thereon. The political subdivision or political
subdivisions appointing the officer 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.
(5)
The political subdivision or political subdivisions appointing the
officer may, at any time, upon cause shown and due notice to the officer,
and his surety or sureties, require or allow the substitution or the
addition of a surety company acceptable to such political subdivision
or political subdivisions for the purpose of making the bond sufficient
in amount, without releasing the surety or sureties first approved
from an accrued liability or previous action on such bond.
(6)
The political subdivision or political subdivisions appointing the
officer shall designate the custodian of the bond required to be given
by the officer.
C.
The officer charged with the administration and enforcement of the
provisions of the ordinance or resolution is hereby empowered to prescribe,
adopt, promulgate and enforce, rules and regulations relating to any
matter pertaining to the administration and enforcement of the ordinance
or resolution, 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 case 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 the ordinance or resolution. No rule or regulation of any kind
shall be enforceable unless it has been approved by the governing
body. A copy of such rules and regulations currently in force shall
be available for public inspection.
D.
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 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 and 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, the means, facilities and opportunity for such examination
and investigations, as are hereby authorized.
F.
Any information gained by the officer, his agents, or by any other
official or agent of the taxing district, as a result of any declarations,
returns, investigations, hearings or verifications required or authorized
by the ordinance or resolution, 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 authorized to establish different filing, reporting
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
H.
The officer shall distribute earned income taxes to the appropriate political subdivisions within 60 days of the deadline for payment by an employer as set forth in § 523-45B. The political subdivisions shall not be required to request the officer to distribute the funds collected but shall at least annually reconcile their receipts with the records of the officer and return to or credit the officer with any overpayment. A political subdivision shall not be required to pay a fee or commission to the other political subdivision or its tax officer for tax revenue distributed under this subsection. If the officer, within one year after receiving a tax payment, cannot identify the taxing jurisdiction entitled to a tax payment, he shall make payment to the municipality in which the tax was collected. If earned income taxes are not distributed to the appropriate political subdivision within one year of receipt, the political subdivision may make a written demand on a tax officer or political subdivision for tax revenues collected and attributable to residents of the political subdivision making the demand. If the taxes attributable to residents of the political subdivision making the demand are not paid within 30 days from the date of the demand, the political subdivision, person, public employee or private agency designated by the political subdivision may enter into an arbitration agreement with the officer under 42 Pa.C.S.A. Ch. 73, Subch. A (relating to statutory arbitration), or bring an action in an appropriate court of common pleas in the name of the taxing district for the recovery of taxes not distributed in accordance with this subsection. The action must be brought within seven years of the collection of the taxes.
The Income Tax Officer shall receive such compensation for his
services and expenses as determined by the governing body. In the
case of a single collector established pursuant to Subsection (b)
of Section 10 of this Act,[1] 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.
[1]
Editor's Note: See 53 P.S. § 6924.313.
A.
The officer may sue in the name of the taxing district for the recovery
of taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by the ordinance or resolution
shall be begun within three years after such 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 areas:
(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 the ordinance or resolution, 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 the ordinance
or resolution, 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 section shall not be construed to limit the governing body from
recovering delinquent taxes by any other means provided by this article.
(6)
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 material
fact.
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, in addition, be liable for the costs of collection
and the interest and penalties herein imposed.
B.
Notwithstanding the provisions of Subsection A, the governing body may, by ordinance or resolution, establish a one-time period during which interest or interest and penalties that would otherwise be imposed for the nonreporting or underreporting of earned income tax liabilities or for the nonpayment of earned income taxes previously imposed and due shall be waived in total or in part if the taxpayer voluntarily files delinquent returns and pays the taxes in full during the period so established. Each governing body may adopt regulations to implement the provisions of this subsection.
C.
The provisions of Subsection B shall not affect or terminate any petitions, investigations, prosecutions or other proceedings pending under the provisions of this article, or prevent the commencement or further prosecution of any proceedings by the proper authorities for violations of this article. No proceedings shall, however, be commenced on the basis of delinquent returns filed pursuant to Subsection B if the returns are determined to be substantially true and correct and the taxes are paid in full within the prescribed time.
A.
Any person who fails, neglects, or refuses to make any declaration
or return required by this article or resolution, 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 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 therefor before any
Magisterial District Judge, alderman 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, to be imprisoned
for a period not exceeding 30 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, alderman 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 30 days.
C.
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section of the ordinance or
resolution.
D.
The failure of any person to receive or procure forms required for
making the declaration or returns required by the ordinance or resolution
shall not excuse him from making such declaration or return.
This article shall be effective on January 10, 2010, and shall
continue on a calendar-year basis, thereafter without annual reenactment.
