[Adopted 1-6-1959 by Ord. No. 397; amended
in its entirety 10-3-2011 by Ord. No. 1271]
As used in this article, the following terms shall have the
meanings indicated:
The tax officer authorized by the Borough 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."[1]
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.
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.
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. A 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 some other permanent
home. In the case of a business, a domicile is that place considered
as the center of 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 Section 303 of the act of March
4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971,"[2] 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 on earned income and net profits.
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 Section 511(b) of the Local Tax Enabling
Act, P.L. 1257, Act 511 of 1965, as amended (hereinafter the "LTEA"),
53 P.S. § 6924.511(b), 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 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, Act 511
of 1965, as amended.[3]
The net income from the operation of a business, other than
a corporation, as required to be reported to or as determined by the
Department of Revenue under Section 303 of the Act of March 4, 1971
(P.L. 6, No. 2), 72 P.S. § 7303, known as the "Tax Reform
Code of 1971," and rules and regulations promulgated under that section.
The term does not include income under any of the following subsections:
B.
Income which represents:
(1)
Any gain on the sale of farm machinery;
(2)
Any gain on the sale of livestock held 12 months or more for draft,
breeding or dairy purposes; or
(3)
NONRESIDENT
NONRESIDENT TAX
OFFICIAL REGISTER
PERSON
PRECEDING YEAR
PRIVATE AGENCY
PUBLIC AGENCY
RESIDENT
RESIDENT TAX
RESIDENT TAX OFFICER
SUCCEEDING YEAR
TAXABLE INCOME
(a)
(b)
TAX BUREAU
TAX COLLECTION COMMITTEE
TAX COLLECTION DISTRICT
TAX OFFICER
TAXPAYER
TAX RECORDS
TAX REGISTER
WITHHOLDING TAX
Any gain on the sale of other capital assets of a farm.
A person or business domiciled outside the Borough levying
the tax.
An income tax levied by the Borough on nonresidents.
The part of the tax register that includes withholding tax
rates as provided in Section 511(a)(3) of the LTEA, 53 P.S. § 6924.511(a)(3).
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 levying the
tax.
An income tax levied by the Borough.
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.
Includes:
In the case of an earned income and net profits tax, earned
income and net profits.
In the case of a personal income tax, income enumerated in Section
303 of the act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax
Reform Code of 1971," 72 P.S. § 7303, as reported to and
determined by the Department of Revenue, subject to correction for
fraud, evasion or error, as finally determined by the commonwealth.
A public nonprofit entity established for the administration
and collection of taxes.
The committee established to govern the Lehigh Tax Collection
District for the purpose of income tax collection. The term shall
include a joint tax collection committee.
The Lehigh Tax Collection District established under Section
504 of the LTEA.[4]
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.
A person or business required under this article to file
a return of an income tax or to pay an income tax.
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
Section 509(e) of the LTEA, 53 P.S. § 6924.509(e). 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 Section 511(a)(1) of the
LTEA, 53 P.S. § 6924.511(a)(1).
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.
[4]
Editor's Note: See 53 P.S. § 6924.504.
A.
The tax levied under this article is a continuation of a tax previously
described in the above-referenced whereas clauses.[1] The tax previously imposed and continued under this article
is a tax for general revenue purposes of 1% and is hereby imposed
on the following:
(1)
Earned income, as defined by this article, received by residents
of the Borough on or after January 1, 2012;
(2)
Earned income, as defined by this article, received by nonresidents
of the Borough for work done or services performed or rendered in
the Borough on or after January 1, 2012;
(3)
Net profits, as defined by this article, earned on or after January
1, 2012, of businesses, professions and other activities conducted
by residents in the Borough; and
(4)
Net profits, as defined by this article, earned on or after January
1, 2012, of businesses, professions and other activities conducted
by nonresidents in the Borough.
[1]
Editor's Note: A copy of Ord. No. 1271, complete with said
clauses, is on file in the Borough offices.
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 its behalf to any person who is employed by or renders 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 person 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, 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.
B.
Partial domicile. The taxable income subject to tax of a taxpayer
who is domiciled in the Borough 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
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.
C.
Declaration and payment. Except as provided in Subsection A(2), taxpayers shall declare and pay income taxes as follows:
(1)
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 Section
512 of the LTEA, 53 P.S. § 6924.512, 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 the resident tax officer the balance of the tax due or shall make
demand for refund or credit in the case of overpayment. Every taxpayer
is required to file a final return showing the amount of earned income
received even if no payment is due and owing.
(2)
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 time of 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.
(3)
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 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.
(4)
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. Every taxpayer
is required to file a return showing the amount of net profits earned
or received even if no payment is due and owing.
(5)
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.
(6)
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.
(7)
Every taxpayer who receives any other taxable income not subject
to withholding under Section 512(3) of the LTEA, 53 P.S. § 6924.512(3),
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. In accordance with criteria established
by the Department, 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.
For taxable years commencing on and after January 1, 2012, income
taxes shall be withheld, remitted and reported as follows:
A.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the tax collection district which
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
tax officer the name and address of the employer and such other information
as the tax officer may require.
B.
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 his or her address or domicile to
complete a certificate of residency form. The certificate of residency
form shall provide information to help identify the political subdivision
where an employee lives and works. Forms of certificate of residency
may be obtained by an employer from the Department upon request by
an employer.
C.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within a tax collection district that employs
one or more persons, other than 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 Section
511 of the LTEA, 53 P.S. § 6924.511.
D.
Except as set forth in Subsection E, 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.
E.
Notwithstanding Subsection D, 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 D 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 subsection shall not be construed to change the location of an employee's place of employment for purposes of nonresident tax liability.
F.
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 C to the tax collection district, may be required by the tax officer to file returns and pay the income tax monthly. In such cases, payments 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.
G.
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 C:
(1)
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.
(2)
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 Subsections D and E 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.
H.
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.
I.
Except as otherwise provided in Section 511 of the LTEA, 53 P.S.
§ 6924.511, an employer who willfully or negligently fails
or omits to make the deductions required by this section shall be
liable for payment of income taxes which the employer was required
to withhold to the extent 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 or by law, it shall be the duty
of the tax officer to:
(1)
Collect, reconcile, administer and enforce income taxes imposed on
residents and nonresidents in the Borough included in the tax collection
district.
(2)
Receive and distribute income taxes and to enforce withholding by
employers located in the tax collection district.
(3)
Receive income taxes distributed by tax officers for other tax collection
districts.
(4)
Distribute income taxes to the Borough as required by Section 513
of the LTEA, 53 P.S. § 6924.513.
(5)
Comply with all regulations adopted by the Borough under this article
and all resolutions, policies and procedures adopted by the tax collection
committee.
(6)
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 obligations 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.A. Ch. 23,
Subchapter 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 obligations
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.
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 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.A. § 8425
(relating to refunds of overpayments) and § 8426 (relating
to interest on overpayment), on petition of and proof by the taxpayer,
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 with fiscal controls, insurance and other risk management
and loss prevention measures used by the tax 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 Section 505(h) of the LTEA,
53 P.S. § 6924.515 (h).
(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 on 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.
(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 and date of all
other moneys received or distributed and any other information required
by the Department. All tax records shall be the property of the Borough
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.A. Ch. 13, Subchapter 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 employees shall conform to the requirements set
forth in the Local Taxpayers Bill of Rights, 53 Pa.C.S.A. § 8421
et seq.
(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 for the recovery of income taxes
due to the Borough and unpaid. Nothing in this subsection shall affect
the authority of the Borough 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
or the Borough from recovering delinquent income taxes by any other
means provided by this article or by law. 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 of 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 Section 512 of the
LTEA, 53 P.S. § 6924.512, and has failed to pay the amount
deducted by the tax officer.
(d)
An employer has intentionally failed to make deductions required
by this article.
I.
Interest and penalties.
(1)
Except as provided in Subsection I(2), if the income tax is not paid when due, interest at the rate the taxpayer is required to pay to the commonwealth under Section 806 of the Act of April 9, 1929 (P.L. 343, No. 176), known as "The Fiscal Code," 72 P.S. § 806, on the amount of the income tax, and an additional penalty of 1% of the amount of the unpaid income tax for each month or fraction of a month during which the income tax remains unpaid shall be 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 taxpayer 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 underreporting 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 I(2) shall not affect or terminate any petitions, investigations, prosecutions or other proceedings pending under 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 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 violations.
(1)
Any taxpayer who fails, neglects 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 required
by Section 512 of the LTEA, 53 P.S. § 6924.512, 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.
Costs. 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 be retained by the tax officer. An itemized accounting
of all costs collected shall be remitted to the tax collection committee
on an annual basis.
L.
Appeals and tax officer actions. 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 tax collection district pursuant
to the provisions of Section 505(j) of Act 32, 53 P.S. § 6924.505(j).
Pursuant to Section 505(k) of Act 32, 53 P.S. § 6924.505(k),
any dispute among the affected parties involving a deviation of 10%
or greater from taxes received in the previous tax year shall be subject
to mandatory mediation in accordance with regulations and guidelines
adopted by the Department. A dispute involving threshold of less than
10% may be the subject of voluntary mediation in accordance with regulations
and guidelines adopted by the Department.
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, 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. A person who violates Subsection M(2) 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. If the offender is an employee of a tax collection committee or the Borough, the employee shall be discharged from employment. The offender shall pay the costs of prosecution.
The 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 taxes collected if the monthly reports required by Section
509(b) of the LTEA,[1] submitted by the tax officer include an accounting for
all compensation withheld.
[1]
Editor's Note: See 53 P.S. § 6924.509(b).
A.
The tax imposed by this article shall not apply to:
(1)
Any person as to whom it is beyond the legal power of the Borough
to impose the tax herein provided under the Constitution of the United
States and the Constitution and laws of the Commonwealth of Pennsylvania.
(2)
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 said purposes.
The provisions of this article are severable. If any sentence,
clause or section of this article is for any reason found to be unconstitutional,
illegal or invalid, such unconstitutionally, illegality or invalidity
shall not affect or impair any of the remaining provisions, sentences,
clauses or sections of this article. It is hereby declared to be the
intent of the Borough that this article would have been adopted had
such unconstitutional, illegal or invalid sentence, clause or section
not been included herein.
A.
The provisions of this article shall take effect on January 1, 2012,
and shall apply to earned income and net profits received or earned
income and net profits earned or made by a taxpayer during calendar
year 2012 and each year thereafter without annual reenactment unless
the rate of tax is subsequently changed. Changes in the rate of tax
shall become effective on the date specified in the ordinance.
B.
Nothing contained herein shall be considered to repeal by implication
or otherwise the provisions of any earned income and net profits tax
ordinance(s) previously enacted as it may apply to earned income and
net profits of taxpayers prior to the effective date of this article,
which shall remain in full force and effect with respect to such earned
income and net profits.
C.
Subject to valid enactment of this article without appeal, all provisions
of any prior ordinance or parts thereof inconsistent herewith are
hereby modified, amended and repealed by the provisions of this article,
which shall thereafter govern the taxation of such earned income and
net profits.
D.
This article is enacted under authority of the LTEA, and all provisions
thereof that relate to a tax on earned income and net profits are
incorporated into this article. Any future amendments to the LTEA
that are required to be applied to a tax on earned income or net profits
will automatically become part of this article upon the effective
date of such amendment, without the need for formal amendment of this
article, to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
