[Adopted 3-1-1999 by Ord. No. 1613 (Ch. 24, Part 10, of
the 1986 Code of Ordinances)]
The following words and phrases, when used in this article,
shall have the meanings given to them in this section unless the context
clearly indicates otherwise:
The determination by a local taxing authority of the amount
of underpayment by a taxpayer.
A board of local tax appeals established under § 325-52 herein (relating to administrative appeals).
Any of the following, including interest and penalty provided
by law, when levied by a political subdivision:
Any tax authorized or permitted under the Act of December 31,
1965 (P.L. 1257, No. 511), known as the "Local Tax Enabling Act."[1]
Any per capita tax levied under any act.
Any occupation, occupation assessment or occupation privilege
tax levied under any act.
Any tax on income levied under any act.
Any tax measured by gross receipts levied under any act.
Any tax on a privilege levied under any act.
Any tax on amusements or admissions levied under any act.
Any tax on earned income and net profits.
The City Council of the City of Washington.
A political subdivision levying an eligible tax, including
the City of Washington. The term shall include any officer, agent,
agency, clerk, income tax officer, collector, employee or other person
to whom the governing body has assigned responsibility for the audit,
assessment, determination or administration of an eligible tax. The
term shall not include a tax collector or collection agency who has
no authority to audit a taxpayer or determine the amount of an eligible
tax or whose only responsibility is to collect an eligible tax on
behalf of the governing body.
Any payment of tax which is determined in the manner provided
by law not to be legally due.
An individual, partnership, association, corporation, limited-liability
company, estate, trust, trustee, fiduciary or any other entity subject
to or claiming exemption from any eligible tax or under a duty to
perform an act for itself or for another under or pursuant to the
authority of an act providing for an eligible tax.
The amount or portion of any tax determined to be legally
due in the manner provided by law for which payment or remittance
has not been made.
A payment of an eligible tax made pursuant to the free will
of the taxpayer. The term does not include a payment made as a result
of distraint or levy or pursuant to a legal proceeding in which the
local taxing authority is seeking to collect its delinquent taxes
or file a claim therefor.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
A.
Contents. The local taxing authority shall prepare a statement which
sets forth the following in simple and nontechnical terms:
(1)
The rights of a taxpayer and the obligation of the local taxing authority
during an audit or an administrative review of the taxpayer's books
or records.
(2)
The administrative and judicial procedures by which a taxpayer may
appeal or seek review of any adverse decision of the local taxing
authority.
(3)
The procedure for filing and processing refund claims and taxpayer
complaints.
(4)
The enforcement procedures.
B.
Distribution. The local taxing authority shall notify any taxpayer contacted regarding the assessment, audit, determination, review or collection of an eligible tax of the availability of the statement under Subsection A. The local taxing authority shall make copies of the statement available to taxpayers upon request at no charge to the taxpayer, including mailing costs. The notification shall be stated as follows:
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"You are entitled to receive a written explanation of your rights
with regard to the audit, appeal, enforcement, refund and collection
of local taxes by calling (name of local taxing authority) at (telephone
number) during the hours of (hours of operation)."
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C.
The Delinquent Tax Collector or another designated person or entity,
as designated by the governing body, shall take all necessary actions
to enforce the provisions hereof.
A.
Minimum time periods for taxpaying response.
(1)
The taxpayer shall have at least 30 calendar days from the mailing
date to respond to requests for information by a local taxing authority.
The local taxing authority shall grant additional reasonable extensions
upon application for good cause.
(2)
The local taxing authority shall notify the taxpayer of the procedures
to obtain an extension in its initial requests.
(3)
A local taxing authority shall take no lawful action against a taxpayer
for the year in question until the expiration of the applicable response
period, including extensions.
B.
Requests for prior year returns.
(1)
Except as provided in Subsection B(2), an initial inquiry by a local taxing authority regarding a taxpayer's compliance with any eligible tax may include taxes required to be paid or tax returns required to be filed no more than three years prior to the mailing date of the notice.
(2)
A local taxing authority may make a subsequent request for a tax
return or supporting information if, after the initial request, the
local taxing authority determines that the taxpayer failed to file
a tax return, under-reported income or failed to pay tax for one or
more of the tax periods covered by the initial request.
(3)
This subsection shall not apply if the local taxing authority has
sufficient information to indicate that the taxpayer failed to file
a required return or pay an eligible tax which was due more than three
years prior to the date of the notice.
C.
Use of federal tax information. A local taxing authority may require
a taxpayer to provide copies of the taxpayer's federal income tax
return if the local taxing authority can demonstrate that the federal
tax information is reasonably necessary for the enforcement or collection
of an eligible tax and the information is not available from other
available sources or the Department of Revenue.
A.
General rule. A taxpayer who has paid an eligible tax to a local
taxing authority may file a written request with the local taxing
authority for refund or credit of the eligible tax. A request for
refund shall be made within three years of the due date for filing
the report, as extended, or one year after actual payment of the eligible
tax, whichever is later. If no report is required, the request shall
be made within three years after the due date for payment of the eligible
tax or within one year after actual payment of the eligible tax, whichever
is later.
(1)
For purposes of this section, a tax return filed by the taxpayer
with the local taxing authority showing an overpayment of tax shall
be deemed to be a written request for a cash refund unless otherwise
indicated on the tax return.
B.
Notice of underpayment. For amounts paid as a result of a notice
asserting or informing a taxpayer of an underpayment, a written request
for refund shall be filed with the local taxing authority within one
year of the date of the payment.
A.
General rule. All overpayments of tax due a local taxing authority,
including taxes on real property, shall bear simple interest from
the date of overpayment until the date of resolution.
B.
Interest rate. Interest on overpayments shall be allowed and paid
at the same rate as the commonwealth is required to pay pursuant to
§ 806.1 of the Act of April 9, 1929 (P.L. 343, No. 176),
known as the "Fiscal Code" (72 P.S. § 806.1).
C.
Exceptions.
(1)
No interest shall be allowed if an overpayment is refunded or applied
against any other tax, interest or penalty due the local taxing authority
within 75 days after the last date prescribed for filing the report
of the tax liability or within 75 days after the date the return or
report of the liability due is filed, whichever is later.
(2)
Overpayment of interest or penalty shall not bear any interest.
D.
Acceptance of refund check. The taxpayer's acceptance of the local
taxing authority's check shall not prejudice any right of the taxpayer
to claim any additional overpayment and interest thereon. Tender of
a refund check by the local taxing authority shall be deemed to be
acceptance of the check by the taxpayer for purposes of this section.
E.
DATE OF PAYMENT
(1)
(2)
(3)
(4)
(5)
DATE OF RESOLUTION
(1)
(2)
(a)
(b)
Definitions. As used in this section, the following words and phrases
shall have the meanings given to them in this subsection:
The later of the date paid or the date tax is deemed to have
been overpaid, as follows:
Any tax actually deducted and withheld at the source shall be
deemed to have been overpaid on the last day for filing the report
for the tax period, determined without regard to any extension of
time for filing.
Any amount overpaid as estimated for the tax period shall be
deemed to have been overpaid on the last day for filing the final
report for the tax period, determined without regard to any extension
of time for filing.
An overpayment made before the last day prescribed for payment
shall be deemed to have been paid on the last day.
Any amount claimed to be overpaid with respect to which a lawful
administrative review or appellate procedure is initiated shall be
deemed to have been overpaid 60 days following the date of initiation
of the review or procedure.
Any amount shown not to be due on an amended income or earned
income and net profits tax return shall be deemed to have been overpaid
60 days following the date of filing of the amended income tax return.
The date the overpayment is refunded or credited, as follows:
For a cash refund, a date preceding the date of the local taxing
authority's refund check by not more than 30 days.
For a credit for an overpayment:
The date of the local taxing authority's notice to the taxpayer
of the determination of the credit; or
The due date for payment of the tax against which the credit
is applied, whichever first occurs. For a cash refund of a previously
determined credit, interest shall be paid on the amount of the credit
from a date 90 days after the filing of a request to convert the credit
to a cash refund to a date preceding the date of the refund check
by not more than 30 days, whether or not the refund check is accepted
by the taxpayer after tender.
A local taxing authority shall notify the taxpayer in writing
of the basis for any underpayment that the local taxing authority
has determined to exist. The notification shall include:
A.
The tax period or periods for which the underpayment is asserted.
B.
The amount of the underpayment, detailed by tax period.
C.
The legal basis upon which the local taxing authority has relief
to determine that an underpayment exists.
D.
An itemization of the revisions made by the local taxing authority
to a return or report filed by the taxpayer that results in the determination
that an underpayment exists.
A.
Errors and delays. In the case of any underpayment, the local taxing
authority may abate all or any part of interest for any period for
the following:
(1)
Any underpayment or tax finally determined to be due, attributable
in whole or in part to any error or delay by the local taxing authority
in the performance of an ministerial act. For purposes of this subsection,
an error or delay shall be taken into account only if no significant
aspect of the error or delay can be attributed to the taxpayer and
after the local taxing authority has contacted the taxpayer in writing
with respect to the underpayment of tax finally determined to be due
or payable.
(2)
Any payment of a tax to the extent that any error or delay in the
payment is attributable to an officer, employee or agent of the local
taxing authority being erroneous or dilatory in performance of a ministerial
act. The local taxing authority shall determine what constitutes timely
performance of ministerial acts performed under this article.
B.
Abatement due to erroneous written advice by local taxing authority.
(1)
The local taxing authority shall abate any portion of any penalty
or excess interest attributable to erroneous advice furnished to the
taxpayer in writing by an officer, employee or agent of the local
taxing authority acting in the officer's, employee's or agent's official
capacity, if:
(2)
This subsection shall not be construed to require the local taxing
authority to provide written advice to taxpayers.
Unless otherwise specified by the taxpayer, all voluntary payments
of an eligible tax shall be prioritized by the local taxing authority
as follows:
A political subdivision levying an eligible tax shall establish
an administrative process to receive and make determination on petition
from taxpayers relating to the assessment, determination or refund
of an eligible tax. The administrative process shall consist of any
one of the following:
A.
Review and decision or hearing and decision by a local tax appeals
board appointed by the governing body. The board shall consist of
at least three but not more than seven members. Qualifications for
service on the board and compensation, if any, of the members shall
be determined by the governing body. The governing body may enter
into agreements with other political subdivisions to establish a joint
local tax appeals board.
B.
Review and decision by the governing body in executive session.
C.
A hearing and decision by a hearing officer appointed by the governing
body. The governing body shall determine the qualifications and compensation,
if any, of the hearing officer.
A.
Filing. A petition is timely filed if the letter transmitting the
petition is postmarked by the United States Postal Service on or before
the final day on which the petition is required to be filed. Deadlines
for filing petitions are as follows:
(1)
Refund petitions shall be filed within three years after the due
date for filing the report, as extended, or one year after actual
payment of an eligible tax, whichever is later. If no report is required,
the petition shall be filed within three years after the due date
for payment of an eligible tax or within one year after actual payment,
whichever is later.
(2)
Petitions for reassessment of an eligible tax shall be filed within
90 days of the date of the assessment notice.
B.
Contents. The governing body shall adopt regulations specifying the
form and content of petitions, including the process and deadlines.
A.
Authorization. A local taxing authority may enter into written agreements
with any taxpayer under which the taxpayer is allowed to satisfy liability
for any eligible tax in installment payments if the local taxing authority
or a person so designated by the City of Washington determines that
the agreement will facilitate collection.
B.
Extent to which agreements remain in effect.
(1)
Except as otherwise provided in this subsection, any agreement entered into by the local taxing authority under Subsection A shall remain in effect for the term of the agreement.
(2)
The local taxing authority may terminate any prior agreement entered into under Subsection A, if:
(3)
If the local taxing authority finds that the financial condition
of the taxpayer has significantly changed, the local taxing authority
may alter, modify or terminate the agreement, but only if:
C.
Prepayment permitted. Nothing in this section shall prevent a taxpayer
from prepaying in whole or in part any eligible tax under any agreement
with the local taxing authority.
Any information gained by a local taxing authority as a result
of any audit, return, report, investigation, hearing or verification
shall be confidential tax information. It shall be unlawful, except
for official purposes or as provided by law, for any local taxing
authority to:
A.
Divulge or make known in any manner any confidential information
gained in any return, investigation, hearing or verification to any
person.
B.
Permit confidential tax information or any book containing any abstract
or particulars thereof to be seen or examined by any person.
C.
Print, publish or make known in any manner any confidential tax information.
Except as provided in § 325-48 herein (relating to interest on overpayment), this article shall not apply to any tax on real property.
