[Adopted 12-13-2011 by Ord. No. 9-2011[1]]
[1]
Editor’s Note: This ordinance also superseded former
Art. V, Earned Income and Net Profits Tax, adopted 9-9-2004 by Ord.
No. 14-2004. This ordinance was reenacted 1-3-2012 by Ord. No. 4-2012,
which stated it would be effective from 1-1-2012 to 12-31-2012 and
annually for each calendar year thereafter. Ordinances adopting subsequent
reenactments are on file in the Borough offices.
As used in this article, the following terms shall have the
meanings indicated:
The tax officer authorized by the Borough of Moosic to collect
income taxes levied prior to January 1, 2012.
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 sole proprietorship, corporation, joint-stock association
or company, partnership, limited partnership, limited liability company,
association, business trust, syndicate or other commercial or professional
activity organized under the laws of this commonwealth or any other
jurisdiction.
A certified public accountant, public accountant or firm,
as provided for in the act of May 26, 1947 (P.L. 318, No. 140) known
as the CPA Law.
A written demand for payment made by a tax officer or tax
collection district for income taxes collected by another tax officer
or tax collection district.
The Commonwealth of Pennsylvania.
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 term
shall include an entity which is classified as a corporation for federal
income tax purposes.
The calendar year for which the tax is levied.
The Department of Community and Economic Development of the
Commonwealth.
The place where a person lives and has a permanent home and
to which the person has the intention of returning whenever 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 purpose,
but with the present intention of making a permanent home, until some
event occurs to induce the person to adopt business affairs and the
place where its functions are discharged.
The compensation as required to be reported to or as determined by the Department of Revenue under § 303 of the act of March 4, 1971 (P.L. 6, No. 2) known as the Tax Reform Code of 1971, and rules and regulations promulgated under that section. Employee business expenses as reported to or determined by the Department of Revenue under Article III of the Tax Reform Code of 1971 shall constitute allowable deductions in determining earned income. The term does not include offsets for business losses. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
The tax levied by the Borough of Moosic on earned income
and net profits.
The actual local services tax rate levied by the Borough
of Moosic on taxpayers based on the total of all local services taxes
imposed under this act and all other acts, adjusted under § 311
of the LTEA.
The actual tax rate levied by The Borough of Moosic on a
taxpayer based on the total of all income taxes imposed under this
act and all other acts, adjusted under § 311 of the LTEA.
A person, business entity or other entity, employing one
or more persons for a salary, wage, commission or other compensation.
The term includes the commonwealth, a political subdivision and an
instrumentality or public authority of either. For purposes of penalties
under this article, the term includes a corporate officer.
Except as set forth in § 511(b) of the LTEA, an
earned income and net profits tax, personal income tax or other tax
that is assessed on the income of a taxpayer levied by the Borough
of Moosic under the authority of this act or any other act.
An entity formed by two or more Tax Collection Committees
for the purpose of income tax collection in more than one tax collection
district.
The Pennsylvania Local Tax Enabling Act, P. L. 1257, 1965,
as amended.
The net income from the operation of a business, other than
a corporation, as required to be reported to or a determined by the
Department of Revenue under § 303 of the act of March 4,
1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971, and rules
and regulation promulgated under that section. The term does not include
income under any of the following:
A person or business domiciled outside the Borough of Moosic
levying the tax.
An income tax by the Borough of Moosic on nonresidents.
The part of the tax register that includes withholding tax
rates as provided in § 511(a)(3) of the LTEA.
A natural person.
The calendar year before the current year.
A business entity or person appointed as a Tax Officer by
a Tax Collection Committee.
Any and all public bodies, authorities, agencies, instrumentalities,
political subdivisions, intermediate units, councils, boards, commissions
or similar governmental entities.
A person or business domiciled in the Borough of Moosic levying
the tax.
An income tax levied by the Borough of Moosic.
The Tax Officer administering and collecting income taxes
for the tax collection district in which a taxpayer is domiciled.
The calendar year following the current year.
A public nonprofit entity established for the administration
and collection of taxes.
The committee established to govern each tax collection district
for the purpose of income tax collection. The term shall include a
joint Tax Collection Committee.
A tax collection district established under § 504
of the LTEA encompassing political subdivision in Lackawanna County,
including the Borough of Moosic.
A political subdivision, public employee, tax bureau, county
except a county of the first class, or private agency which administers
and collects income taxes for one or more tax collection districts.
Unless otherwise specifically provided, for purposes of the obligations
of an employer, the term shall mean the tax officer for the tax collection
district within which the employer is located, or, if an employer
maintains workplaces in more than one district, the Tax Officer for
each such district with respect to employees principally employed
therein.
Tax returns, supporting schedules, correspondence with auditors
or taxpayers, account books and other documents, including electronic
records, obtained or created by the Tax Officer to administer or collect
a tax under this article. The term includes documents required by
§ 509(e) of the LTEA. The term "electronic records" includes
data and information inscribed on a tangible medium or stored in an
electronic or other medium and which is retrievable in perceivable
form.
A database of all county, municipal and school tax rates
available on the Internet as provided in § 511(a) (1) of
the LTEA.
Includes:
In the case of earned income and net profit Tax, earned income
and net profits.
In the case of a personal income tax, income enumerated in § 303
of the act of March 4, 1971 (P.L. 6, No. 2) known as the Tax Reform
Code of 1971, as report to and determined by the Department of Revenue,
subject to correction for fraud, evasion or error, as finally determined
by the commonwealth.
A person(s) or business required under this article to file
a return of an income tax or to pay an income tax.
An income tax levied by a political subdivision under the
authority of this article or any other ordinance, or any other tax
levied by a municipality or school district for which employer withholding
may be required under this article.
A.
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 year beginning in the current year, except that
taxes imposed for the first time shall become effective from the date
specified in this article, and the tax shall continue in force on
a calendar year or taxpayer fiscal year basis, without annual reenactment,
unless the rate of the tax is subsequently changed. Changes in rate
shall become effective on the date specified in this article. A tax
for general revenue purposes of 1% is hereby imposed on the following;
(1)
Earned income, as defined by this article, received by residents
of the Borough of Moosic on or after January 1, 2012 ;
(2)
Earned income, as defined by this article, received by nonresidents
of the Borough of Moosic of Lackawanna County for work done or services
performed or rendered in the Borough of Moosic of Lackawanna County
on or after January 1, 2012;
(3)
Net profits earned on or after January 1, 2012, of businesses, professions,
and other activities conducted by residents in the Borough of Moosic
of Lackawanna County, and
(4)
Net profits earned on or after January 1, 2012, of businesses, professions,
and other activities conducted in the Borough of Moosic of Lackawanna
County, by nonresidents.
B.
The tax levied under Subsection A(1) and (2) herein shall relate to and be imposed upon salaries, wages, commissions, and other compensation paid by an employer or on his behalf to any person who is employed by or rendered services to him. The tax levied under Subsection A(3) and (4) herein shall relate to and 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 some other persons or persons.
A.
Application.
(1)
Income taxes shall be applicable to taxable income earned or received
based on the method of accounting used by the taxpayer in the period
beginning January 1 of the current year and ending December 31 of
the current year, except that taxes imposed for the first time and
changes to existing tax rates become effective on January 1, as specified
in this article, and the tax shall continue in force on a calendar
year or taxpayer fiscal year basis, without annual reenactment, unless
the rate of the tax is subsequently changed.
(2)
For a taxpayer whose fiscal year is not a calendar year, the Tax
Officer shall establish deadlines for filing, reporting and payment
of taxes which provide time periods equivalent to those provided for
a calendar year taxpayer.
(3)
Partial domicile. The taxable income subject to tax of a taxpayer
who is domiciled in the Borough of Moosic Riverside School District
for only a portion of the tax year shall be an amount equal to the
taxpayer's taxable income multiplied by a fraction, the numerator
of which is the number of calendar months during the tax year that
the individual is domiciled in the Borough of Moosic and Riverside
School District, and the denominator of which is 12. A taxpayer shall
include in the numerator any calendar month during which the taxpayer
is domiciled for more than half the calendar month. A day that a taxpayer's
domicile changes shall be included as a day the individual is in the
new domicile and not the old domicile. If the number of days in the
calendar month in which the individual lived in the old and new domiciles
are equal, the calendar month shall be included in calculating the
number of months in the new domicile.
(4)
Declaration and payment. Except a provided in Subsection A(2), taxpayers shall declare and pay income taxes as follows:
(a)
Every taxpayer shall, on or before April 15 of the succeeding
year, make and file with the resident Tax Officer a final return showing
the amount of taxable 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 on the taxable income, the amount
of tax paid, the amount of tax that has been withheld under § 512
of the LTEA and the balance of tax due. All amounts reported shall
be rounded to the nearest whole dollar. At the time of filing the
final return, the taxpayer shall pay to the resident Tax Officer the
balance of the tax due or shall make demand or refund or credit in
the case of overpayment.
(b)
Every taxpayer making net profits shall, by April 15 of the
current year, make and file with the resident Tax Officer a declaration
of the taxpayer's estimated net profits during the period beginning
January 1 and ending December 31 of the current year, and shall pay
to the resident Tax Officer in four equal quarterly installments the
tax due on the estimated net profits. The first installment shall
be paid at the filing the declaration, and the other installments
shall be paid on or before June 15 of the current year, September
15 of the current year and January 15 of the succeeding year, respectively.
(c)
Any taxpayer who first anticipates any net profit after April
15 of the current year shall make and file the declaration required
on or before June 15 of the current year, September 15 of the current
year or December 31 of the current year, whichever the date next follows
the date on which the taxpayer first anticipates such net profit,
and shall pay to the resident Tax Officer in equal installments the
tax due on or before the quarterly payment dates that remain after
the filing of the declaration.
(d)
Every taxpayer shall, on or before April 15 of the succeeding
year, make and file with the resident Tax Officer a final return showing
the amount of net profits earned or received based on the method of
accounting used by the taxpayer during the period beginning January
1 of the current year and ending December 31 of the current year the
total amount of tax due on the net profits and the total amount of
tax paid. At the time of filing the final return, the taxpayer shall
pay to the resident Tax 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 the estimated
tax, elect to make and file with the resident Tax Officer, on or before
January 31 of the succeeding year, the final return.
(e)
The Department, in consultation with the Department of Revenue,
shall provide by regulation for the 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 under
this subsection anticipates additional net profits not previously
declared or has overestimated anticipated net profits.
(f)
Every taxpayer who discontinues business prior to December 31
of the current year shall, within 30 days after the discontinuance
of business, file a final return as required under this subsection
and pay the tax due.
(g)
Every taxpayer who receives any other taxable income not subject
to withholding under § 512(3) of the LTEA shall make and
file with the resident Tax Officer a quarterly return on or before
April 15 of the current year, June 15 of the current year, September
15 of the current year and January 15 of the succeeding year, setting
forth the aggregate amount of taxable income not subject to withholding
by the taxpayer 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 income tax, together with such other information as the
Department may require. Every taxpayer filing a return shall, at the
time of filing the return, pay to the resident Tax Officer the amount
of income tax due. The Department shall establish criteria under which
the tax officer may waive the quarterly return and payment of the
income tax and permit a taxpayer to file the receipt of taxable income
on the taxpayer's annual return and pay the income tax due on
or before April 15 of the succeeding year.
A.
For taxable years commencing on and after January 1, 2012, or earlier
taxable years if specified by a tax collection district, income taxes
shall be withheld, remitted and reported as follows:
(1)
Every employer within the tax collection district of Lackawanna County,
having an office, factory, workshop, branch, warehouse, or other place
of business within the taxing jurisdiction imposing a tax on earned
income or net profits within the Taxing District who employees 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
Tax Officer the name and address of the employer and such other information
as the officer may require.
(2)
An employer shall require each new employee to complete a certificate
of residency form, which shall be an addendum to the federal employee's
withholding allowance certificate (Form W-4). An employer shall also
require any employee who changes their address or domicile to complete
a certificate of residency form. Upon request, certificate of residency
forms shall be provided by the department. The certificate of residency
form shall provide information to help identify the political subdivision
where an employee lives and works.
(3)
Every employer having an office, factory, workshop, branch, warehouse
or other place of business with a tax collection district that employs
one or more persons, other domestic servants, for a salary, wage,
commission or other compensation, shall, at the time of payment, deduct
from the compensation due each employee employed at such place of
business the greater of the employee's resident tax or the employee's
nonresident tax as released in the official register under § 511
of the LTEA.
(4)
Except as set forth in Subsection A(5), within 30 days following the end of each calendar quarter, every employer shall file a quarterly return and pay the amount of income taxes deducted during the preceding calendar quarter to the Tax Officer for the place of employment of each employee. The form shall show the name, address and social security number of each employee, the compensation of the employee during the preceding three-month period, the income tax deducted from the employee, the political subdivision imposing the income tax upon the employee, the total compensation of all employees during the preceding calendar quarter, the total income tax deducted from the employees and paid with the return and any other information prescribed by the Department.
(5)
Notwithstanding Subsection A(4), the provisions of this subsection shall apply if an employer has more than one place of employment in more than one tax collection district. Within 30 days following the last day of each month, the employer may file the return required by Subsection A(4) and pay the total amount of income taxes deducted from employees in all work locations during the preceding month to the Tax Officer for either the tax collection district in which the employer's payroll operations are located or as determined by the Department. The return and income taxes deducted shall be filed and paid electronically. The employer must file a notice of intention to file combined returns and make combined payments with the Tax Officer for each place of employment at least one month before filing its first combined return or making its first combined payment. This paragraph shall not be construed to change the location of an employee's place of employment of for purposes of nonresident tax liability.
(6)
Any employer who, for two of the preceding four quarterly periods, has failed to deduct the proper income tax, or any part of the income tax, or has failed to pay over the proper amount of income tax as required by Subsection A(3) to the tax collection district may be required by the Tax Officer to file returns and pay the income tax monthly. In such cases, payment of income tax shall be made to the Tax Officer on or before the last day of the month succeeding the month for which the income tax was withheld.
(7)
On or before February 28 of the succeeding year, every employer shall file with the Tax Officer where income taxes have been deducted and remitted pursuant to Subsection A(3):
(a)
An annual return showing, for the period beginning January 1
of the current year and ending December 31 of the current year, the
total amount of compensation paid the total amount of income tax deducted,
the total amount of income tax paid to the Tax Officer and any other
information prescribed by the Department.
(b)
An individual withholding statement, which may be integrated with the federal wage and tax statement (Form W-2), 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 address and social security number, the amount of compensation paid to the employee during the period, the amount of income tax deducted, the amount of income tax paid to the Tax Officer, the numerical code prescribed by the Department representing the tax collection district where the payments required by Subsection A(4) and (5) were remitted and any other information required by the Department. Every employer shall furnish one copy of the individual withholding statement to the employee for whom it is filed.
(8)
Any employer who discontinues business prior to December 31 of the
current year shall, within 30 days after the discontinuance of business,
file returns and withholding statements required under this section
and pay the income tax due.
(9)
Except or otherwise provided in § 511 of LTEA, an employer
who willfully or negligently fails or omits to make the deductions
required by this subsection shall be liable for payment of income
taxes which the employer was required to withhold to the extend that
the income taxes have not been recovered from the employee. 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 income
tax or from complying with the requirements for filing of declaration
and returns.
A.
Tax collection. In addition to any other power and duty conferred
upon a Tax Officer in this article, it shall be the duty of the Tax
Officer:
(1)
To collect, reconcile, administer and enforce income taxes imposed
on residents and nonresidents of the Borough of Moosic and Riverside
School District included in the tax collection district.
(2)
To receive and distribute income taxes and to enforce withholding
by employers located in the collection district.
(3)
To receive income taxes distributed by Tax Officers for other tax
collection districts.
(4)
To distribute income taxes to Borough of Moosic and Riverside School
District as required by § 513 of the LTEA .
(5)
To comply with all regulations adopted by the Borough of Moosic and
Riverside School District under this article and all resolutions,
policies and procedures adopted by the Tax Collection Committee.
(6)
To invest all income taxes in the custody of the Tax Officer in authorized
investments, subject to the approval of the Tax Collection Committee.
The Tax Officer shall observe the standard of care that would be observed
by a prudent person dealing with property of another. For the purposes
of this subsection, the term "authorized investment" shall include
all of the following:
(a)
Short-term obligation of the United States government or its
agencies or instrumentalities which are backed by the full faith and
credit of the United States or are rated in the highest category by
a nationally recognized statistical rating organization.
(b)
Deposits in savings accounts, time deposits, share accounts
or certificates of deposit of institutions, insured by the Federal
Deposit Insurance Corporation or the National Credit Union Share Insurance
Fund, or their successor agencies, to the extent that the accounts
are insured and, for the amount above the insured maximum, that collateral,
free from other liens, for the amount is pledged by the depository
institution.
(c)
Deposits in investment pools established by the State Treasurer
or established by local governments pursuant to 53 Pa.C.S. Ch. 23,
Subch. A (relating to intergovernmental cooperation) and related statutes,
provided that the investment pools are rated in the highest category
by a nationally recognized statistical rating organization.
(d)
Repurchase agreements which are fully collateralized by obligation
of the United States government or its agencies or instrumentalities,
which are free from other liens and backed by the full faith and credit
of the United States or are rated in the highest category by a nationally
recognized statistical rating organization.
(7)
To distribute income generated from investments authorized under
this section.
B.
Monthly reports. The Tax Officer shall, within 20 days after the end of each month, provide a written report, on forms prescribed by the Department, to the Secretary of the Tax Collection Committee and to the secretary of the Borough of Moosic and Riverside School District for which taxes were collected during the previous month. The report shall include a breakdown of all income taxes, income generated from investments under Subsection A(6), penalties, costs and other money received, collected, expended and distributed for each political subdivision served by the Tax Officer and of all money distributed to tax officers for other Tax Collection Districts.
C.
Overpayments. A Tax Officer shall refund, under 53 Pa.C.S. §§ 8425
(relating to refunds of overpayments) and 8426 (relating to interest
on overpayment), on petition of and proof by the taxpayer, of income
taxes paid in excess of income taxes rightfully due.
D.
Bonds. Prior to initiating any official duties, each Tax Officer
shall give and acknowledge a bond to the appointing Tax Collection
Committee as follows:
(1)
The Tax Collection Committee shall fix the amount of the bond in
an amount equal to the maximum amount of taxes that may be in the
possession of the Tax Officer at any given time or an amount sufficient,
in combination collection district, to secure the financial responsibility
of the Tax Officer in accordance with guidelines adopted by the Department.
The amount of the bond shall be revised annually by the Tax Collection
Committee based upon the annual examination required under § 505(h)
of the LTEA.
(2)
Each bond shall be joint and several, with one or more corporate
sureties, which shall be surety companies authorized to do business
in this commonwealth and licensed by the Insurance Department.
(3)
Each bond shall be conditioned upon the completion of all of the
following by the Tax Officer's employees and appointees:
(a)
The faithful execution of all duties required of the Tax Officer.
(b)
The just and faithful accounting or payment over of all moneys
and balances paid to, received or held by the Tax Officer by virtue
of the office in accordance with law.
(c)
The delivery of all tax records or other official items held
in right as the Tax Officer to the Tax Officer's successor in
office.
(4)
Each bond shall be taken in the name of the tax collection district
and shall be for the use of the tax collection district appointing
the Tax Officer, and for the use of any other political subdivision
or tax collection district for which income taxes shall be collected
or distributed in case of a breach of any conditions of the bond by
the acts or neglect of the principal of the bond.
(5)
The Tax Collection Committee or any political subdivision may sue
upon the bond for the payment or distribution of income taxes.
(6)
Each bond shall contain the name of the surety company bound on the
bond.
(7)
The Tax Collection Committee may, upon cause shown and due notice
to the Tax Officer and the Tax Officer's sureties, require or
allow the substitution or the addition of a surety company acceptable
to the Tax Collection Committee for the purpose of making the bond
sufficient in amount, without releasing the sureties first approved
from any accrued liability or previous action on the bond.
(8)
The Tax Collection Committee shall designate the custodian of the
bond.
(9)
The Tax Officer shall file copies of all bonds in effect with the
Borough of Moosic and Riverside School District.
(10)
A copy of all bonds in effect shall be made available upon request
and at no cost to the Department or to a tax collection district or
political subdivision seeking payment or distribution of income taxes
authorized by this article.
E.
Records. It shall be the duty of the Tax Officer to keep a record
showing the amount of income taxes received from each taxpayer or
other Tax Officer, the date of receipt, the amount of all other money
received or distributed and any other information required by the
Department. All tax records shall be the property of the Borough of
Moosic and the Riverside School District and the tax collection district
in which the taxes were collected. The tax collection district and
Tax Officer shall retain all tax records as directed by the Tax Collection
Committee and, when applicable, in accordance with retention and disposition
schedules established by the Local Government Records Committee of
the Pennsylvania Historical and Museum Commission under 53 Pa. C.S.
Ch. 13, Subch. F (relating to records). Tax records under this subsection
may be retained electronically as permitted by law.
F.
Employer and taxpayer audits.
(1)
In order to verify the accuracy of any income tax declaration or
return or, if no declaration or return was filed, to ascertain the
income tax due, the Tax Officer and the Tax Officer's designated
employees may examine or audit the records pertaining to income taxes
due of any of the following:
(2)
The examination or audit conducted by the Tax Officer and the Tax
Officer's designated employee shall conform to the requirements
set forth in 53 Pa. C.S. Ch. 84, Subch. C (relating to local taxpayers'
bill of rights).
(3)
Every employer and taxpayer or other person whom the Tax Officer reasonably believes to be an employer or taxpayer shall provide to the Tax Officer and the Tax Officer's designated employees the means, facilities and opportunity for the examination and investigation authorized under Subsection F(1).
(4)
For purposes of this subsection, the term "records" shall include
any books, papers and relevant federal or state tax returns and accompanying
schedules, or supporting documentation for any income taxable under
this article.
G.
Exchange of information.
(1)
The Tax Officer shall ensure that the tax collection district enters
into an agreement with the Department of Revenue for the exchange
of information as necessary for the collection of income taxes.
(2)
The Department of Revenue may enter into agreements with each tax
collection district and shall establish procedures under which tax
collection, filing and other taxpayer and locality information in
its custody will be made available to Tax Officers for purposes of
collection, reconciliation and enforcement no later than one year
after the deadline for filing returns for the tax year in question.
H.
Actions for collection of income taxes. The Tax Officer may file
an action in the name of the Borough of Moosic and the Riverside School
District for the recovery of income taxes due to the Borough of Moosic
and Riverside School District and unpaid. Nothing in this subsection
shall affect the authority of the Borough of Moosic and the Riverside
School District to file an action in its own name for collection of
income taxes under this article. This subsection shall not be construed
to limit a Tax Officer, a tax collection district of the Borough of
Moosic and Riverside School District from recovering delinquent income
taxes by any other means provided by this article. Actions for collection
of income taxes shall be subject to the following:
(1)
(2)
If there is substantial understatement of income tax liability of
25% or more and there is no fraud, an action must be commenced within
six years.
(3)
(4)
There is no limitation of action if any of the following apply:
(a)
A taxpayer fails to file a declaration or return required under
this article.
(b)
An examination of a declaration or return or other evidence
in the possession of the Tax Officer relating to the declaration or
return reveals a fraudulent evasion of income taxes.
(c)
An employer has deducted income taxes under § 512
of the LTEA and has failed to pay the amount deducted to the Tax Officer.
(d)
An employer has intentionally failed to make deductions required
by this article.
(5)
The Tax Officer shall be entitled to impose and collect the reasonable
costs incurred to provide notices of delinquency or to implement similar
procedures utilized to collect delinquent taxes from a taxpayer as
approved by the Tax Collection Committee. Reasonable costs collected
may retained by the Tax Officer. An itemized accounting of all costs
collect shall be remitted to the Tax Collection Committee on an annual
basis.
I.
Interest and penalties against the taxpayer.
(1)
Except as provided in Subsection B, if the income tax is not paid when due, interest at the rate the taxpayer is required to pay to the commonwealth under § 806 of the act of April 9, 1929 (P.L. 343, 176), known as the Fiscal Code, on the amount of the income tax, and additional penalty of 1% of the amount of the unpaid tax for each month or fraction of a month during which the income tax remains unpaid shall added and collected, but the amount shall not exceed 15% in the aggregate. Where an action is brought for the recovery of the income tax, the liable for the income tax shall, in addition, be liable for the costs of collection, interest and penalties.
(2)
The Department may establish conditions under which a Tax Officer,
with the concurrence of the Tax Collection Committee, may abate interest
or penalties that would otherwise be imposed for the nonreporting
or under-reporting of income tax liabilities or for the nonpayment
of income taxes previously imposed and due if the taxpayer voluntarily
files delinquent returns and pays the income taxes in full.
(3)
The provisions of Subsection B shall not affect or terminate any petition, investigations, prosecutions or other proceedings pending under this article, or prevent the commencement or further prosecution of any proceedings by the proper authorities for violation of this article. No proceedings shall, however, be commenced on the basis of delinquent returns filed pursuant to Subsection H if the returns are determined to be substantially true and correct and the income taxes are paid in full within the prescribed time.
J.
Fines and penalties for taxpayer violations.
(1)
Any taxpayer who fails, neglect or refuses to make any declaration
or return required by this article, any employer who fails, neglects
or refuses to register, keep or supply records or returns by § 512
of the LTEA or to pay the income tax deducted from employees, or fails,
neglects or refuses to deduct or withhold the income tax from employees,
any taxpayer or employer who refuses to permit the Tax Officer appointed
by a Tax Collection Committee or an employee or agent of the Tax Officer
to examine books, records and papers, and any taxpayer or employer
who knowingly makes any incomplete, false or fraudulent return, or
attempts to do anything whatsoever to avoid the full disclosure of
the amount of income in order to avoid the payment of income taxes
shall, upon conviction thereof, be sentenced to pay a fine of not
more than $2,500 for each offense and reasonable costs, and in default
of payment of said fine and costs, to imprisonment for not more than
six months.
(2)
Any employer required under this article to collect, account for
and distribute income taxes who willfully fails to collect or truthfully
account for and distribute income taxes, commits a misdemeanor and
shall, upon conviction, be sentenced to pay a fine not exceeding $25,000
or to imprisonment not exceeding two years, or both.
(3)
The penalties imposed under this subsection shall be in addition
to any other costs and penalties imposed by this article.
(4)
The failure of any person to obtain forms required for making the
declaration or returns required by this article shall not excuse the
person from making the declaration or return.
K.
Collection. In addition to the powers and duties enumerated in this
section when designated by the Tax Collection Committee, a Tax Officer
may collect other taxes levied pursuant to this article, the act of
June 27, 2006 (1st Sp.Sess., P.L. 1873, No. 1) known as the taxpayer
Relief Act, or other statutory law.
L.
Appeals. A determination of the Tax Officer relating to the assessment,
collection, refund, withholding, remittance or distribution of income
taxes may be appealed to the appeals board established by the Tax
Collection Committee by a taxpayer, employer, political subdivision
or another collection district pursuant to the provisions of 53 P.S.
§ 6924.505(j).
M.
Confidentiality.
(1)
General rule. Any information gained by a Tax Officer or any employee
or agent of a Tax Officer or of the Tax Collection Committee as a
result of any declarations, returns, investigations, hearings or verifications
shall be confidential tax information.
(2)
Prohibited conduct. It shall be unlawful, except for official purposes
or as provided by law, for the commonwealth, the Borough of Moosic,
and the Riverside School District, Tax Collection Committee member,
Tax Officer or employee or agent of a Tax Officer or Tax Collection
Committee to do any of the following:
(3)
Penalties against Tax Officers. A person who violates Subsection B commits a misdemeanor of the third degree and shall, upon conviction, be sentenced to pay a fine of not more than $2,500 or to imprisonment for not more than one year, or both. If the offender is a member of the Tax Collection Committee, the member shall be removed from the Tax Collection Committee or the Borough of Moosic and the Riverside School District, the employee shall be discharged from employment. The offender shall pay the cost of prosecution.
The resident Tax officer shall receive such compensation for
his services and expenses as determined by the Tax Collection Committee.
At the discretion of the Tax Collection Committee, the Tax Officer
may be permitted to withhold the amount of the Tax Officer's
compensation from income tax collected, if the monthly reports required
by § 509 (b) of the LTEA submitted by the Tax Officer include
an accounting for all compensation withheld.
A.
The governing body of the Borough of Moosic and the Riverside School
District which imposed an income tax prior to January 1, 2011, shall
do all the following:
B.
Every employer shall remit 2011 income taxes and file the quarterly
and annual reports required by former Division IV(b) and (c) of § 13
to either the Article XIII Tax Officer or the newly appointed Tax
Officer, as determined by the Borough of Moosic and the Riverside
School District released on the official register in accordance with
§ 511 of the LTEA.
C.
By July 1, 2011, each Tax Collection Committee shall develop a plan
to transition from the provisions of former § 13 to the
provisions of §§ 512 and 513 of the LTEA, and from
the Article XII Tax Officer to the newly appointed Tax Officer for
2012.
D.
The Article XIII Tax Officer shall deliver all tax records to the
Borough of Moosic and the Riverside School District and the newly
appointed Tax Officer by June 30, 2012, unless otherwise agreed to
by the political subdivision and the newly appointed Tax Officer.
E.
Any delinquent income taxes or reports from 2011 or previous years
which have not been remitted or provided to the Article XIII Tax Officer
by June 30, 2012, shall become the responsibility of the newly appointed
Tax Officer. The Borough of Moosic and the Riverside School District
that has made other provisions for the collection of delinquent income
taxes or reports for 2011 or previous years shall notify the newly
appointed Tax Officer.
F.
Beginning with the first quarter of 2012, employers shall remit income
taxes withheld and make reports as required by § 512 of
the LTEA to the newly appointed Tax Officer.
G.
NEWLY APPOINTED TAX OFFICER
Definitions. The following words and phrases when used in this section
shall have the meanings given in this subsection unless the context
clearly indicates otherwise.
A Tax Officer appointed under § 507(a) of the LTEA;
is responsible for the collection of 2012 income taxes.
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
of Moosic and the Riverside School District to impose the tax herein
provided under the Constitution of the United States and the Constitution
of the Commonwealth of Pennsylvania.
(2)
To institutions or organizations operated for public, religious,
educational or charitable purposes, to institutions or organizations
not organized or operated for private profit, or to trusts and foundations
established for any of the said purposes.
This article shall take effect on January 1, 2012.
