[Ord. 545, 11/8/2010]
The following words and terms used in this Part shall have the
meanings as defined herein:
A partnership, limited partnership, limited liability company
or any 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
entity.
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 voluntary 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 him to adopt some other permanent home. In the case of businesses,
or associations, the domicile is considered as the center of business
affairs and the place where functions are discharged.
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent and whether in cash or in property, not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workmen's compensation acts, occupational
disease acts and similar legislation or payments commonly recognized
as old-age benefits, retirement pay or pensions paid to persons retired
from employment or payments commonly known as public assistance or
unemployment compensation payments by any governmental agency or payments
to reimburse expenses or payments made by employers or labor unions
for wage and salary supplemental programs, including but not limited
to programs covering hospitalization, sickness, disability or death,
supplemental unemployment benefits, strike benefits, social security
and retirement.
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.
The person, public employee or private agency designated
by the Council of the Borough of East Lansdowne 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, after provision for all costs
and expenses incurred in the conduct thereof, determined either on
a cash or accrual basis in accordance with the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
A person domiciled outside of the limits of the Borough of
East Lansdowne or a partnership, association or other entity maintaining
as a center of its business affairs a place outside of the Borough
of East Lansdowne.
A natural person.
The calendar year before the current year.
A person, corporation, association or other entity domiciled
in the Borough of East Lansdowne.
The calendar year following the current year.
A person, corporation, fiduciary or association subject to
the tax imposed by this Part.
A person, corporation, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
[Ord. 545, 11/8/2010]
1.
A tax for general revenue purposes in the amount of 1% is hereby
imposed, effective January 1, 2011, and continuing thereafter, on
the following:
A.
Earned income earned by residents of the Borough of East Lansdowne.
B.
Earned income earned by nonresidents of the Borough of East Lansdowne
for work done or services performed or rendered within the limits
of the Borough of East Lansdowne.
C.
Net profits from unincorporated business activities conducted by
residents of the Borough of East Lansdowne.
D.
Net profits from unincorporated business activities conducted by
nonresidents within the limits of the Borough of East Lansdowne.
2.
The tax levied hereunder shall relate to and be imposed upon salaries,
wages, commissions and other compensation herein defined as earned
income paid by an employer or on his behalf to a person employed by
him subject to the tax as well as upon any resident person of the
Borough of East Lansdowne. The tax levied hereunder also relates to
and is imposed upon the net profits of any business, profession or
other activity carried on by any corporation, association or person
in the Borough of East Lansdowne.
[Ord. 545, 11/8/2010]
1.
Net Profits.
A.
Every taxpayer earning net profits shall, on or before April 15 of
the current year, make and file with the Income Tax Officer on a form
prescribed or approved by the Income Tax Officer a declaration of
his estimated net profits during the period beginning January 1, and
ending December 31, of the current year and to pay to the Income Tax
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 July 31 of the current year,
October 31 of the current year, and January 31 of the succeeding year,
respectively.
B.
Any taxpayer who first anticipates any net profit after April 30
of the current year shall make and file the declaration hereinabove
required on or before July 31 of the current year, October 31 of the
current year or January 31 of the succeeding year, whichever of these
dates next follows the date on which the taxpayer first anticipates
such net profit, and pay to the Income Tax Officer in equal installments
the tax due thereon on or before the quarterly payment dates which
remain after the filing of the declaration.
C.
Succeeding year. Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with the Income Tax Officer on a form
prescribed or approved by the Income Tax 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 Income Tax Officer the balance of tax due or shall make
demand for refund or credit in the case of overpayment. An incomplete
or improperly completed tax return shall be considered as not having
been filed.
D.
Any taxpayer may, in lieu of paying the fourth quarterly installment
of his estimated tax, elect to make and file with the Income Tax Officer,
on or before January 31 of the succeeding year, the final return as
hereinabove required.
E.
The Income Tax Officer is 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.
F.
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.
2.
Earned Income.
A.
Annual Earned Income Tax Return. Every taxpayer shall, on or before
April 15 of the succeeding year, make and file with the Income Tax
Officer on a form prescribed or approved by the Income Tax 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 at 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. Each final return
shall be submitted and supported by such United States federal income
tax return forms as required by the officer, which shall at least
include a copy of the federal W-2 form in the case of earned income
taxable, and Schedule C of the federal return as to a net profits
taxable.
B.
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 hereunder relating
to collection at source shall make and file with the Income Tax Officer
on a form prescribed or approved by the Income Tax Officer, a quarterly
return on or before April 15 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
Income Tax Officer may require. Every taxpayer making such return
shall, at the time of filing thereof, pay to the Income Tax Officer
the amount of tax shown as due thereon.
[Ord. 545, 11/8/2010]
1.
Registration. Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the Borough of
East Lansdowne who employs one or more persons, other than domestic
servants, for a salary, wage, commission or other compensation, who
has not previously registered, shall within 15 days after becoming
an employer, register with the Income Tax Officer his name and address
and such other information as the Income Tax Officer may require.
2.
Employer to Withhold and Remit.
A.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the Borough of East Lansdowne who
employs one or more persons, other than domestic servants, for a salary,
wage, commission or other compensation, shall deduct at the time of
payment thereof, the tax imposed by this Part 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 Income Tax 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 Income Tax Officer and employer
shall show the name, address, and social security number of each such
employee, the earned income of such employee during such preceding
three-month period, the tax deducted therefrom, the political subdivision
imposing the tax upon such employee, the total earned income of all
such employees during such preceding three-month period, and the total
tax deducted therefrom and paid with the return.
B.
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 Income Tax Officer to file his return and pay the
tax monthly. In such cases, payments of tax shall be made to the Income
Tax Officer on or before the last day of the month succeeding the
month for which the tax was withheld.
3.
Succeeding Year. On or before February 28 of the succeeding year,
every employer shall file with the Income Tax Officer:
A.
An annual return showing the total amount of earned income paid,
the total amount of tax deducted, and the total amount of tax paid
to the Income Tax Officer for the period beginning January 1 of the
current year and ending December 31 of the current year.
B.
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 subdivision imposing the tax upon such employee, and
the amount of tax paid to the Income Tax Officer. Every employer shall
furnish two copies of the individual return to the employee for whom
it is filed.
4.
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.
5.
Every employer who willingly 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.
6.
The failure or omission of any employer to make the deductions required
by this section shall not relieve any employee from the payment of
the tax or from complying with the requirements of this Part.
[Ord. 545, 11/8/2010]
1.
Exemption. Any person whose total earned income and net profits from
all sources is less than $12,000 for any calendar year in which the
earned income tax is levied is exempt from the payment of the earned
income tax for that calendar year.
2.
Procedure to Claim Exemption.
A.
A person seeking to claim an exemption from the earned income tax may annually file an exemption certificate with the Borough and with the person's employer, if any, affirming that the person reasonably expects to receive earned income and net profits from all sources of less than $12,000 in the calendar year for which the exemption certificate is filed. In the event the Borough utilizes a tax collection officer, it shall provide a copy of the exemption certificate to that officer. The exemption certificate shall have attached to it a copy of all the employee's last pay stubs or W-2 forms from employment for the year prior to the fiscal year for which the employee is requesting to be exempted from the tax. Upon receipt of the exemption certificate and until otherwise instructed by the Borough or except as required by this Subsection 2, the employer shall not withhold the tax from the person during the calendar year or the remainder of the calendar year for which the exemption certificate applies. Employers shall ensure that the exemption certificate forms are readily available to employees at all times and shall furnish each new employee with a form at the time of hiring. The exemption certificate form shall be the uniform form provided by the Borough.
B.
With respect to a person who claimed an exemption for a given calendar
year from the tax, upon notification to an employer by the person
or by the Borough that the person has received earned income and net
profits from all sources equal to or in excess of $12,000 in that
calendar year or that the person is otherwise ineligible for the tax
exemption for that calendar year, or upon an employer's payment
to the person of earned income in an amount equal to or in excess
of $12,000 in that calendar year, an employer shall withhold the earned
income tax from the person under Subsection 2C.
C.
If a person who claimed an exemption for a given calendar year from
the tax becomes subject to the tax for the calendar year under Subsection
2B; the employer shall withhold the tax for the remainder of that
calendar year. The employer shall withhold from the person, for the
first payroll period after receipt of the notification under Subsection
2B, a lump sum equal to the amount of tax that was not withheld from
the person due to the exemption claimed by the person under this subsection,
plus the per-payroll amount due for that first payroll period. The
amount of tax withheld per payroll period for the remaining payroll
periods in that calendar year shall be the same amount withheld for
other employees. In the event the employment of a person subject to
withholding of the tax under this subsection is subsequently severed
in that calendar year, the person shall be liable for any outstanding
balance of tax due, and the Borough may pursue collection under this
Part.
[Ord. 545, 11/8/2010]
1.
It shall be the duty of the Income Tax Officer of the Borough of
East Lansdowne to receive the taxes, fines and penalties imposed by
this Part. It shall also be the duty of the Officer to keep a record
showing the amount received from each person paying the tax and, if
paid by an employer for a person, the name of such person for whom
the tax is paid and the date of such receipt.
2.
The Income Tax Officer is hereby charged with the collection of the tax and payment over to the Treasurer of the Borough of East Lansdowne as well as the administration and enforcement of the provisions of this Part dealing with the declaration and payment of tax as set forth in § 24-303 and of the collection at source as set forth in § 24-304. The Income Tax Officer is hereby empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of this Part, subject to the approval of the Council of the Borough of East Lansdowne, 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, not to exceed six years, and for reasonable extension of time, upon proper cause shown, for filing declarations or returns, and to prescribe the forms necessary for the administration of this Part. Nothing herein is intended to prevent the Council of the Borough of East Lansdowne from itself promulgating such rules and regulations. A copy of such rules and regulations currently in force shall be available for public inspection.
3.
The Income Tax Officer and such agents as may be designated in writing
are hereby authorized to examine the books, papers and records of
any taxpayer in order to verify the accuracy of any declaration or
return or, if no declaration or return is filed, to ascertain the
tax due. Every person or taxpayer is hereby directed and required
to give to the Income Tax Officer or to any agent so designated by
him the opportunity for examination and investigations as are hereby
authorized.
4.
Information obtained by the Income Tax Officer or his agents or by
any other official or agent of the Borough of East Lansdowne as a
result of any declaration, return, investigation, hearing or verification
required or authorized by this Part shall be confidential and shall
not be disclosed except for official use in connection with the administration
or enforcement of this Part or as otherwise provided by law.
[Ord. 545, 11/8/2010]
1.
Each officer, before entering upon his official duties, shall give
and acknowledge a bond to the Borough of East Lansdowne. If the Borough
Council of the Borough of East Lansdowne shall by ordinance designate
any bond previously given by the officer as adequate, such bond shall
be sufficient to satisfy the requirements of this subsection.
2.
Each such bond shall be joint and several, with one or more corporate
sureties, which shall be surety companies authorized to do business
within the Commonwealth and duly licensed by the Insurance Commission
of this Commonwealth.
3.
Each such bond shall be conditioned upon the faithful discharge by
the officer, his clerks, assistants and appointees of all trusts confided
in him by virtue of his office, upon the faithful execution of all
duties required by him according to law, of all monies and balances
thereof paid to, received, or held by him by virtue of this office,
and upon the delivery to his successor or successors in office of
all books, papers, documents or other official thins held in right
of his office.
4.
Each such bond shall be taken in the name of the Borough of East
Lansdowne and shall be for the use of the Borough of East Lansdowne
and for the use of such other person or persons for whom money shall
otherwise appear, the case of a breach of any of the conditions thereof,
by the acts or neglect of the principal of the bond.
[Ord. 545, 11/8/2010]
1.
The Officer may sue in the name of the Borough for recovery of taxes
due and unpaid under this Part.
2.
A suit may be brought to recover the tax imposed by this Part within
three years after such tax is due or within three years after a declaration
or return has been filed, whichever date is later; provided, however,
that this limitation shall not prevent the institution of suit for
the collection of any tax due or determined to be due in the following
cases:
A.
Where no declaration or return was filed by any person although a
declaration or return was required to be filed under the provisions
of this Part.
B.
In the case of a false or fraudulent declaration or return with the
intent to evade tax.
C.
Where any person or taxpayer required under this Part to deduct and
pay over taxes has deducted taxes according to the provisions of this
Part and has failed to pay the amount so deducted to the Borough of
East Lansdowne.
D.
In the case of substantial understatement of tax liability of 25%
or more and no fraud, suit shall begin within six years.
E.
This section shall not be construed to limit the Borough from recovering
delinquent taxes by any other means provided by law.
3.
The Officer may sue for recovery of an erroneous refund, provided
that such suit is begun within 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.
[Ord. 545, 11/8/2010]
1.
If for any reason the tax is not paid when due, there shall be added
to the tax interest at the rate of 6% per annum on the amount of said
tax. In addition thereto, there shall be an added penalty of 1/2 of
1% of the amount of the unpaid tax for each month or fraction thereof
during the time which the tax remains unpaid. Where suit is brought
for the recovery of tax, penalty or interest, the taxpayer shall be
liable for an additional amount equal to the costs of collection.
2.
The Income Tax Officer, or his authorized agent, shall be authorized
to waive interest, or penalty, or both, in whole or in part, under
the following circumstances only:
A.
Where litigation of the amount of taxes due is pending or threatened
and waiver of interest, or penalty, or both, on past amounts owed
is proposed as part of an overall settlement of the litigation.
B.
Where the waiver of interest, or penalty, or both, is part of an
agreement under which the entire principal amount of the taxes due
shall be paid to the Borough whether litigation is pending or threatened
or not.
[Ord. 545, 11/8/2010]
1.
Payment of any tax on salaries, wages, commissions, other compensation
or on net profits of businesses, professions or other activities to
a political subdivision by residents thereof pursuant to an ordinance
or resolution passed or adopted under the authority of the Act known
as the "Local Tax Enabling Act" shall be credited to and allowed as
a deduction from the liability of such person for any other like tax
respectively on salaries, wages, commissions or other compensation
or on net profits of businesses, professions or other activities imposed
by any other political subdivision of this Commonwealth under the
authority of this Act.
2.
Payment of any tax on income to any political subdivision by residents
thereof pursuant to an ordinance or resolution passed or adopted under
the authority of the Act known as the "Local Tax Enabling Act" shall,
to the extent that such income includes salaries, wages, commissions,
other compensation or net profits of businesses, professions or other
activities, but in such proportion as hereinafter set forth, be credited
to and allowed as a deduction from the liability of such persons for
any other tax on salaries, wages, commissions, other compensation
or net profits of businesses, professions or other activities imposed
by any other political subdivision of this Commonwealth under the
authority of said Act.
3.
Residents of political subdivisions other than the Borough of East Lansdowne who are subject to this tax and who have paid tax to the Borough of East Lansdowne pursuant to the collection at source, as provided in § 24-304 of this Part, shall, upon application by the taxpayer on the appropriate form, cause to be forwarded to said political subdivision for credit the appropriate amount of tax or shall be entitled to repayment after submission of an appropriate application and proofs, as required by the Borough of East Lansdowne.
[Ord. 545, 11/8/2010]
1.
Any person who fails, neglects or refuses to make any declaration
or return required by this Part, 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 payments of the whole or any part of the tax imposed by this Part
shall, upon conviction thereof before any proper District Justice
or court of competent jurisdiction in the County of Delaware, be sentenced
to pay a fine of not more than $500 for each offense and costs and,
in default of payment of said fine and costs, be imprisoned for a
period not exceeding 30 days.
2.
Any person who divulges any information which is confidential under
the provisions of this Part shall, upon conviction thereof before
any District Justice or court of competent jurisdiction in the County
of Delaware, 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, be imprisoned for a period not exceeding 30 days.
3.
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section of this Part.
4.
The failure of any person to receive or procure forms required for
making the declaration or returns required by this Part shall not
excuse him from making such declaration or return.
[Ord. 545, 11/8/2010]
This Part shall become effective on the first day of January,
AD 2011, and shall remain in full force and effect for the fiscal
year 2011. Thereafter, this Part shall remain in full force and effect
on a calendar-year basis without annual reenactment until the specific
repeal of this Part by the Council of the Borough of East Lansdowne.
