[Adopted 4-18-1966 by Ord. No. 347]
The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates or requires a different meaning.
A partnership, limited partnership or any other unincorporated
group of two or more persons.
An enterprise, activity, profession or any other undertaking
of an unincorporated nature, conducted for profit or ordinarily conducted
for profit, whether by a person, partnership, association, or any
other 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; provided,
however that as used herein, "current year" shall during 1966 refer
only to the period beginning July 1, 1966 and ending December 31,
1966.
The place where one lives and has his permanent home and
to which he has the intention of returning whenever he is absent.
Actual residence is not necessarily domicile, for domicile is the
fixed place of abode which, in the intention of the taxpayer, is permanent
rather than transitory. Domicile is the voluntarily fixed place of
habitation of a person, not for a mere special or limited purpose,
but with the present intention of making a permanent home until some
event occurs to induce him to adopt some other permanent home. In
the case of businesses or associations, the domicile is that place
considered as the center of business affairs and the place where its
functions are discharged.
[Amended 7-7-1997 by Ord. No. 604]
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
service after reaching a specific age or after a stated period of
employment or payments commonly known as "public assistance" or unemployment
compensation payments made 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 Borough Council of the Borough of Sellersville, Bucks
County, Pennsylvania.
A person, public employee or private agency designated by
a governing body to collect and administer the tax on earned income
and net profits.
The net income from the operation of a business, profession
or other activity, except corporations, after provisions 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, partnership, association or other entity domiciled
outside the taxing district.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the taxing district.
The calendar year following the current year.
The Borough of Sellersville, Bucks County, Pennsylvania.
A person, partnership, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
A tax for general revenue purposes is hereby imposed at the
rate of 1% on the following:
A.
Earned income received in the current year by residents of the taxing
district.
B.
Earned income received in the current year within the taxing district
by nonresidents thereof.
C.
Net profits earned during the current year by residents of the taxing
district.
D.
Net profits earned during the current year within the taxing district
by nonresidents thereof.
[Amended 7-7-1997 by Ord. No. 604]
The tax levied under this article shall be applicable to earned
income received and to net profits earned in the period beginning
January 1 of the current year and ending December 31 of the current
year or for taxpayer fiscal years beginning in the current year, except
that taxes imposed for 1966 shall become effective July 1, 1966, 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. Regardless of the fiscal year of any taxpayer,
such taxpayer shall be liable for payment of the tax hereby imposed
from July 1, 1966.
[Amended 7-7-1997 by Ord. No. 604]
A.
Every taxpayer making net profits shall, on or before April 15 of
the current year, make and file with the Officer, on a form prescribed
or approved by the Officer, a declaration of his estimated net profits
during the period beginning January 1 and ending December 31 of the
current year and pay to the Officer in four equal quarterly installments
the tax due thereon as follows: the first installment at the time
of filing the declaration and the other installments on or before
June 15 of the current year, September 15 of the current year and
January 15 of the succeeding year, respectively.
B.
Any taxpayer who first anticipates any net profit after April 15
of the current year shall make and file the declaration hereinabove
required on or before June 15 of the current year, September 15 of
the current year or December 31 of the current year, whichever of
these dates next follows the date on which the taxpayer first anticipates
such net profit, and pay to the Officer in equal installments the
tax due thereon on or before the quarterly payment dates which remain
after the filing of the declaration.
C.
Every taxpayer shall, on or before April 15 of the succeeding year,
make and file with the Officer, on a form prescribed or approved by
the Officer, a final return showing the amount of net profits earned
during the period beginning January 1 of the current year and ending
December 31 of the current year the total amount of tax due thereon
and the total amount of tax paid thereon. At the time of filing the
final return, the taxpayer shall pay to the Officer the balance of
tax due or shall make demand for refund or credit in the case of overpayment.
D.
Any taxpayer may, in lieu of paying the fourth quarterly installment
of his estimated tax, elect to make and file with the Officer on or
before January 31 of the succeeding year the final return as hereinabove
required.
E.
The Officer is hereby 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.
G.
Earned income. Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with the Officer, on a form prescribed
or approved by the Officer, a final return showing the amount of 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.
H.
Every taxpayer who is employed for a salary, wage, commission or
other compensation and who received any earned income not subject
to the provisions relating to collection at source shall make and
file with the Officer, on a form prescribed or approved by the Officer,
a quarterly return on or before April 30 of the current year, July
31 of the current year, October 31 of the current year, and January
31 of the succeeding year, setting forth the aggregate amount of earned
income not subject to withholding by him during the three-month periods
ending March 31 of the current year, June 30 of the current year,
September 30 of the current year, and December 31 of the current year,
respectively, and subject to the tax, together with such other information
as the Officer may require. Every taxpayer making such a return shall,
at the time of filing thereof, pay to the Officer the amount of tax
shown as due thereon.
A.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the taxing jurisdiction, 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 or within 15 days
after the effective date of this article, whichever shall first occur,
register with the Officer his name and address and such other information
as the Officer may require.
B.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the taxing jurisdiction 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 article on the earned income due to
his employee or employees and shall, on or before April 30 of the
current year, July 31 of the current year, October 31 of the current
year and January 31 of the succeeding year, file a return and pay
to the Officer the amount of taxes deducted during the preceding three-month
periods ending March 31 of the current year, June 30 of the current
year, September 30 of the current year and December 31 of the current
year, respectively. Such return, unless otherwise agreed upon between
the Officer and employer, shall show the name and social security
number of each such employee, the earned income of such employee during
such preceding three-month period, the tax deducted therefrom, the
political subdivisions imposing the tax upon such employee, the total
earned income of all such employees during such preceding three-month
period and the total tax deducted therefrom and paid with the return.
[Amended 7-7-1997 by Ord. No. 604]
C.
Any employer who for two of the preceding four quarterly periods
has failed to deduct the proper tax or any part thereof or has failed
to pay over the proper amount of tax to the taxing authority may be
required by the Officer to file his return and pay the tax monthly.
In such cases, payments of tax shall be made to the Officer on or
before the last day of the month succeeding the month for which the
tax was withheld.
D.
On or before February 28, of the succeeding year, every employer
shall file with the Officer:
[Amended 7-7-1997 by Ord. No. 604]
(1)
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 Officer for the period beginning January 1 of the current year
and ending December 31 of the current year.
(2)
A return withholding statement for each employee employed during
all or any part of the period beginning January 1 of the current year
and ending December 31 of the current year, setting forth the employee's
name, address and social security number, the amount of earned income
paid to the employee during said period, the amount of tax deducted,
the political subdivisions imposing the tax upon such employee and
the amount of tax paid to the Officer. Every employer shall furnish
two copies of the individual return to the employee for whom it is
filed.
E.
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.
F.
Except as otherwise provided in Section 9 of Act No. 511 of 1965,
the Local Tax Enabling Act of 1965,[1] every employer who willfully or negligently fails or omits
to make the deductions required by this section shall be liable for
payment of the taxes which he was required to withhold to the extent
that such taxes have not been recovered from the employee.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
G.
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 article relating
to the filing of declarations and returns.
H.
If an employer makes a deduction of tax as required by this article,
the amount deducted shall constitute, in the hands of such employer,
a trust fund held for the account of the governing body as beneficial
owner, and the employee from whose earned income such tax was deducted
shall be deemed to have paid such tax.
A.
It shall be the duty of the Officer to collect and receive the taxes,
fines and penalties imposed by this article. It shall also be his
duty to keep a record showing the amount received by him from each
person or business paying the tax, and if paid by such taxpayer or
employer in respect of another taxpayer, the name of such other taxpayer
and the date of such receipt.
B.
The Officer is hereby charged with the administration and enforcement
of the provisions of this article and is hereby empowered to prescribe,
adopt, promulgate and enforce rules and regulations relating to any
matter pertaining to the administration and enforcement of this article,
including provisions for the reexamination and correction of declarations
and returns and of payments alleged or found to be incorrect or as
to which an overpayment is claimed or found to have occurred and to
make refunds in cases of overpayment for any period of time not to
exceed six years subsequent to the date of payment of the sum involved
and to prescribe forms necessary for the administration of this article.
No rule or regulation of any kind shall be enforceable unless it has
been approved by resolution by the governing body. A copy of such
rules and regulations currently in force shall be available for public
inspection.
C.
The Officer shall refund, on petition of and proof by the taxpayer,
earned income tax paid on the taxpayer's ordinary and necessary business
expenses to the extent that such expenses are not paid by the taxpayer's
employer.
D.
The Officer and agents designated by him are hereby authorized to
examine the books, papers and records of any employer or of any taxpayer
or of any person whom the Officer reasonably believes to be an employer
or taxpayer, in order to verify the accuracy of any declaration or
return, or if no declaration or return was filed, to ascertain the
tax due. Every employer and every taxpayer and every person whom the
Officer reasonably believes to be an employer or taxpayer is hereby
directed and required to give to the Officer, or to any agent designated
by him, the means, facilities and opportunity for such examination
and investigations, as are hereby authorized.
E.
Any information gained by the Officer, his agents or by any other
official or agent of the taxing district as a result of any declarations,
returns, investigations, hearings or verifications required or authorized
by this article shall be confidential, except for official purposes
and except in accordance with a proper judicial order or as otherwise
provided by law.
F.
The Officer is authorized to establish different filing, reporting
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
A.
The Officer may sue in the name of the taxing district for the recovery
of taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by this article shall
be begun within three years after such tax is due or within three
years after the declaration or return has been filed, whichever date
is later; provided, however, that this limitation shall not prevent
the institution of a suit for the collection of any tax due or determined
to be due in the following cases:
(1)
Where no declaration or return was filed by any person, although
a declaration or return was required to be filed by him under provisions
of this article, there shall be no limitation.
(2)
Where an examination of the declaration or return filed by any person
or of other evidence relating to such declaration or return in the
possession of the Officer reveals a fraudulent evasion of taxes, there
shall be no limitation.
(3)
In the case of substantial understatement of tax liability of 25%
or more and no fraud, suit shall be begun within six years.
(4)
Where any person has deducted taxes under the provisions of this
article and has failed to pay the amounts so deducted to the Officer
or where any person has willfully failed or omitted to make the deductions
required by this section, there shall be no limitation.
C.
This section shall not be construed to limit the governing body from
recovering delinquent taxes by any other means provided by this article.
D.
The Officer may sue for recovery of an erroneous refund, provided
that such suit is begun two years after making such refund, except
that the suit may be brought within five years if it appears that
any part of the refund was induced by fraud or misrepresentation of
material fact.
[Amended 7-7-1997 by Ord. No. 604]
A.
If for any reason the tax is not paid when due, interest at a rate
of 6% per annum on the amount of said tax, and an additional penalty
of 1/2 of 1% of the amount of the unpaid tax for each month or fraction
thereof during which the tax remains unpaid shall be added and collected.
Where suit is brought for the recovery of any such tax, the person
liable therefor shall, in addition, be liable for the costs of collection
and the interest and penalties herein imposed.
B.
Notwithstanding the provisions of Subsection A, the governing body may, by ordinance or resolution, establish a one-time period during which interest or interest and penalties that would otherwise be imposed for the nonreporting or underreporting of earned income tax liabilities or for the nonpayment of earned income taxes previously imposed and due shall be waived in total or in part if the taxpayer voluntarily files delinquent returns and pays the taxes in full during the period so established. The governing body may adopt regulations to implement the provisions of this subsection.
C.
The provisions of Subsection B shall not affect or terminate any petitions, investigations, prosecutions or other proceedings pending under the provisions of this article or prevent the commencement or further prosecution of any proceedings by the proper authorities for violations of this article. No proceedings shall, however, be commenced on the basis of delinquent returns filed pursuant to Subsection B if the returns are determined to be substantially true and correct and the taxes are paid in full within the prescribed time.
[Amended 12-8-1969 by Ord. No. 389]
A.
Any person who fails or refuses to make any declaration or return
required by this article, any employer who fails or refuses to register
or to pay the tax deducted from his employees or fails 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
to avoid the full disclosure of the amount of his net profits or earned
income in order to avoid the payment of the whole or any part of the
tax imposed by this article shall be prosecuted in the same manner
provided for the enforcement of summary offenses under the Pennsylvania
Rules of Criminal Procedure. A person convicted of violating this
section shall be sentenced to pay a fine not to exceed $1,000 per
violation, plus court costs and reasonable attorneys' fees incurred
by the Borough of Sellersville, or to imprisonment for not more than
90 days, or both. Violations of more than one provision of this section
shall constitute separate violations. Each day that a violation of
any provision of this section continues or occurs shall constitute
a separate violation.
[Amended 10-12-2015 by Ord. No. 703]
B.
Any person who divulges any information which is confidential under
the provisions of this article shall be prosecuted in the same manner
provided for the enforcement of summary offenses under the Pennsylvania
Rules of Criminal Procedure. A person convicted of violating this
section shall be sentenced to pay a fine not to exceed $1,000 per
violation, plus court costs and reasonable attorneys' fees incurred
by the Borough of Sellersville, or to imprisonment for not more than
90 days, or both. Violations of more than one provision of this section
shall constitute separate violations. Each day that a violation of
any provision of this section continues or occurs shall constitute
a separate violation.
[Amended 12-8-1969 by Ord. No. 389; 10-12-2015 by Ord. No. 703]
C.
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section of this article.
D.
The failure of any person to receive or procure forms required for
making the declaration or returns required by this article shall not
excuse him from making such declaration or return.
[Amended 7-7-1997 by Ord. No. 604]
The Tax Collector shall demand, receive and collect all delinquent
taxes from all corporations, political subdivisions, associations,
companies, firms or individuals employing persons owing delinquent
earned income taxes or whose spouse owes delinquent earned income
taxes or having in possession unpaid commissions or earnings belonging
to any person or persons owing delinquent earned income taxes or whose
spouse owes delinquent earned income taxes, upon the presentation
of a written notice and demand certifying that the information contained
therein is true and correct and containing the name of the taxable
or the spouse thereof and the amount of tax due. No more than 10%
of the wages, commissions or earnings of the delinquent taxpayer or
spouse thereof may be deducted at any one time for delinquent earned
income taxes and costs. Upon the presentation of such written notice
and demand, it shall be the duty of any such corporation, political
subdivision, association, company, firm or individual to deduct from
the wages, commissions or earnings of such individual employees then
owing, or that shall within 60 days thereafter become due, or from
any unpaid commissions or earnings of any such taxable in its or his
possession, or that shall within 60 days thereafter come into its
or his possession, a sum sufficient to pay the respective amount of
the delinquent earned income taxes, and costs, shown upon the written
notice or demand and to pay the same to the Tax Collector within 60
days after such notice shall have been given. Such corporation, political
subdivision, association, firm or individual shall be entitled to
deduct from the moneys collected from each employee the costs incurred
from the extra bookkeeping necessary to record such transactions,
not exceeding 2% of the amount of money so collected and paid over
to the Tax Collector. Upon the failure of any such corporation, political
subdivision, association, company, firm or individual to deduct the
amount of such taxes or to pay the same over to the Tax Collector,
less the cost of bookkeeping involved in such transaction, as herein
provided, within the time required, such corporation, political subdivision,
association, company, firm or individual shall forfeit and pay the
amount of such tax for each such taxable whose taxes are not withheld
and paid over or that are withheld and not paid over, together with
a penalty of 10% added thereto, to be recovered by an action of assumpsit
in a suit to be instituted by the Tax Collector or by the proper authorities
of the taxing district, as debts of like amount are now by law recoverable,
except that such person shall not have the benefit of any stay of
execution or exemption law. The Tax Collector shall not proceed against
a spouse or his employer until he has pursued collection remedies
against the delinquent taxpayer and his employer under this section.
[Amended 7-7-1997 by Ord. No. 604]
A.
Payment of any tax to any other political subdivision pursuant to
an ordinance or resolution passed or adopted prior to the effective
date of Act No. 511 of 1965, the Local Tax Enabling Act of 1965, shall
be credited to and allowed as a deduction from the liability of taxpayers
for any like tax respectively on salaries, wages, commissions, other
compensation or net profits of businesses, professions or other activities
and for any income tax imposed by any other political subdivision
of this commonwealth under the authority of the Local Tax Enabling
Act.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
B.
Payment of any tax on salaries, wages, commission, other compensation
or net profits of business, professions or other activities to any
other political subdivision by residents thereof pursuant to any ordinance
or resolution passed or adopted under the authority of Act No. 511
of 1965, the Local Tax Enabling Act of 1965, shall be credited to
and allowed as a deduction from the liability of such persons for
any other like tax respectively on salaries, wages, commissions, other
compensation or net profits of businesses, professions or other activities
imposed by any other political subdivision of this commonwealth pursuant
to the Local Enabling Act.[2]
[2]
Editor's Note: For the Local Tax Enabling Act, see 53 P.S.
§ 6924.101 et seq.
C.
Payment of any tax on income to any other political subdivision by
residents thereof pursuant to an ordinance of resolution passed or
adopted under the authority of Act No. 511 of 1965, the Local Tax
Enabling Act of 1965, 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 like tax respectively
on salaries, wages, commissions, other compensation or net profits
of businesses, professions or other activities imposed by any other
political subdivision of this commonwealth pursuant to the Local Tax
Enabling Act.[3]
[3]
Editor's Note: See 53 P.S. § 6924.101 et seq.
D.
Payment of any tax on income to any state or to any other political
subdivision thereof by residents thereof, pursuant to any state or
local law, to the extent that such income includes salaries, wages,
commissions or other compensation or net profits of businesses, professions
or other activities, but in such proportions as hereinafter set forth,
be credited to and allowed as a deduction from the liability of such
person for any other tax on salaries, wages, commissions, other compensation
or net profits of businesses, professions or other activities imposed
by any political subdivision of this commonwealth under the authority
of the Local Tax Enabling Act,[4] if residents of the political subdivision in Pennsylvania
receive credits and deductions of a similar kind to a like degree
from the tax on income imposed by the other state or political subdivision
thereof.
[4]
Editor's Note: See 53 P.S. § 6924.101 et seq.
E.
Payment of any tax on income to any state other than Pennsylvania
or to any political subdivision located outside the boundaries of
this commonwealth by residents of a political subdivision located
in Pennsylvania shall, to the extent that such income includes salaries,
wages, commission or other compensation or net profits of businesses,
professions or other activities, but in such proportions as hereinafter
set forth, be credited to and allowed as a deduction from the liability
of such person for any tax imposed under this article.
F.
Where a credit or a deduction is allowable in any of the several
cases hereinabove provided, it shall be allowed in proportion to the
concurrent periods for which taxes are imposed by the other state
or respective political subdivisions but not in excess of the amount
previously paid for a concurrent period.
G.
No credit or deduction shall be allowed against any tax on earned
income imposed under the authority of the Local Tax Enabling Act to
the extent of the amount of credit or deduction taken for the same
period by the taxpayer against any income tax imposed by the Commonwealth
of Pennsylvania imposed under Section 314 of the Act of March 4, 1971
(P.L. 6), known as the "Tax Reform Code of 1971,"[5] on account of taxes imposed on income by other states
or by their political subdivisions.
[5]
Editor's Note: See 72 P.S. § 7314.