[Adopted 11-14-1966 by Ord. No. O-17-1966]
[Amended 12-22-1983 by Ord. No. O-21-1983]
A. 
The following words shall have the meaning prescribed by § 13 of the Local Tax Enabling Act, as follows:[1]
ASSOCIATION
A partnership, limited partnership, or any other unincorporated group of two or more persons.
BUSINESS
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.
CORPORATION
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.
CURRENT YEAR
The calendar year of which the tax is levied.
DOMICILE
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 temporary. "Domicile" is the place in which a man has voluntarily fixed the habitation of himself and his family, 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.
EARNED INCOME
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 hospitalizations, sickness, disability or death or supplemental unemployment benefits, strike benefits, social security and retirement.
EMPLOYER
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.
INCOME TAX OFFICER or OFFICER
A person, public employee or private agency designated by the City of Farrell to collect and administer the tax on earned income and net profits.
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.
NONRESIDENT
A person, partnership, association or other entity domiciled outside the taxing district.
PERSON or INDIVIDUAL
A natural person.
PRECEDING YEAR
The calendar year before the current year.
RESIDENT
A person, partnership, association or other entity domiciled in the taxing year.
SUCCEEDING YEAR
The calendar year following the current year.
TAXPAYER
A person, partnership, association, or any other entity, required hereunder to file a declaration of estimated tax, a return of earned income or net profits, or to pay a tax thereon.
[1]
Editor's Note: Section 13 of the Local Tax Enabling Act, as amended, is repealed, effective June 30, 2012. The definitions are now contained in 53 P.S. § 6924.501.
B. 
The singular shall include the plural, and the masculine shall include the feminine and the neuter.
[Amended 2-28-1986 by Ord. No. O-9-1986; 1-2-1990 by Ord. No. O-1-1990; 12-18-1991 by Ord. No. O-18-1991; 12-23-2013 by Ord. No. O-16-2013; 11-24-2014 by Ord. No. O-4-2014; 8-24-2015 by Ord. No. O-6-2015; 10-26-2015 by Ord. No. O-12-2015]
A. 
An annual tax for general revenue purposes of 2% is hereby imposed on:
(1) 
Earned income received on or after January 1, 2016, by residents of the City of Farrell; and on
(2) 
Earned income received on or after January 1, 2016, by nonresidents of the City of Farrell for work done or services rendered or performed in the City of Farrell; and on
(3) 
The net profits earned on or and after January 1, 2016, in businesses by such residents; and on
(4) 
The net profits earned on or after January 1, 2016, in businesses conducted in the City of Farrell by nonresidents.
B. 
Said taxes shall be levied, collected and paid with respect to earned income received and net profits earned to December 31 of the current year and said tax shall continue in force on a calendar year or tax payer fiscal year basis without annual re-enactment.
C. 
In addition to the annual tax of 1% imposed by the immediately preceding subsection of this section, there is hereby also imposed an annual tax for general revenue purposes of 1/2 of 1%.
(1) 
On earned income received on and after April 1, 1986, by residents of the City of Farrell.
(2) 
On net profits earned on and after April 1, 1986, in businesses conducted by residents of the City of Farrell.
D. 
In addition to the annual tax of 1 6/10% imposed by the three immediately preceding subsections in this § 336-2, the annual tax for general revenue purposes of 2/10 of 1% is hereby amended and increased to an annual tax for general revenue purposes of 5/10 of 1%.
(1) 
On earned income received on or after January 1, 2014, by residents of the City of Farrell; and
(2) 
On net profits earned on or after January 1, 2014, from businesses conducted by residents of the City of Farrell.
E. 
On and after January 1, 2016, an annual tax of 1% is imposed on the earned income of nonresidents of the City of Farrell and on the net profits earned in businesses conducted in the City of Farrell by nonresidents and there is hereby also imposed an additional annual tax for general revenue purposes of 8/10 of 1% on:
(1) 
Earned income received on and after January 1, 2016, by nonresidents of the City of Farrell for work done or services rendered or performed in the City of Farrell; and on
(2) 
The net profits earned on and after January 1, 2016, in businesses conducted in the City of Farrell by nonresidents.
F. 
The use of 4/10 of 1% of the 8/10 of 1% of the additional tax generated on earned income and net profits earned by nonresidents of the City of Farrell shall be limited to payments against short term debt and the creation of reserve accounts necessary to exit Act 47.
The City of Farrell shall designate a person, public employee or private agency to collect and administer the tax on earned income and net profits. The Income Tax Officer shall collect and receive all such taxes, shall furnish a receipt for their payment, and shall keep a record showing the amount received by the Income Tax Officer from such taxpayer and the date of each receipt. The Income Tax Officer shall furnish a bond as required by the Local Tax Enabling Act[1] and shall have such other duties and powers as are now provided or as may hereafter be provided by the Local Tax Enabling Act.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
[Added 12-22-1983 by Ord. No. O-21-1983]
A. 
Declaration of tax.
(1) 
Every person whose net profits are subject to the tax imposed by this article shall make a declaration of the estimated tax due thereon for the taxable year and shall make payment of the same at the times and in the manner hereinafter set forth.
(2) 
Every person whose earned income is subject to the tax imposed by this article shall make a declaration of the estimated tax due for the taxable years on that portion of said earned income, if any, from which tax has not been withheld. The declaration of the estimated tax due thereon and payment of said tax shall be made at the time and in the manner hereinafter set forth.
(3) 
Husband and wife may make a joint declaration of estimated tax as if they were one taxpayer.
B. 
Date for filing declaration.
(1) 
The date for filing the declaration of estimated tax required under Subsection A(1) and (2) of this section, in the case of net profits, shall depend upon when the taxpayer commences the operation of a business, profession or other activity and in the case of earned income from which the tax is not withheld, shall depend upon when the taxpayer first begins to earn said income upon which the tax is not or will not be withheld. If the commencement of the operation of the business, profession or other activity or the earning of income from which no tax is withheld occurs or takes place before April 1 of the taxable year, a declaration of estimated tax shall be filed no later than April 15 of the taxable year.
(2) 
If the commencement of the operation of the business, profession or other activity or the earning of income from which no tax is withheld occurs or takes place after April 1 but before June 2 of the taxable year, a declaration of estimated tax shall be filed no later than June 15 of such year.
(3) 
If the commencement of the operation of the business, profession or other activity or the earning of income from which no tax is withheld occurs or takes place after June 1 but before September 2 of the taxable year, the declaration shall be filed no later than September 15 of such year.
(4) 
If the commencement of the operation of the business, profession or other activity or the earning of income from which no tax is withheld occurs or takes place after September 1 of the taxable year, the declaration shall be filed no later than January 15 of the year succeeding the taxable year.
(5) 
A declaration may be amended during the taxable year.
C. 
Payment of estimated tax.
(1) 
The estimated tax with respect to which a declaration is required shall be paid as follows:
(a) 
If the declaration is filed on or before April 15 of taxable year, the estimated tax shall be paid in four equal installments. The first installment shall be paid at the time of the filing of the declaration, and the second, third and fourth installments shall be paid on or before the succeeding June 15, September 15 and January 15, respectively.
(b) 
If the declaration is not required to be filed on or before April 15 of the taxable year and is filed after April 15, but before June 16 of the taxable year, the estimated tax shall be paid in three equal installments. The first installment shall be paid at the time of the filing of the declaration and the second and third installments shall be paid on the succeeding September 15 and January 15, respectively.
(c) 
If the declaration is not required to be filed on or before June 15 of the taxable year and is filed after June 15 but before September 16 of the taxable year, the estimated tax shall be paid in two equal installments. The first installments shall be paid at the time of the filing of the declaration and the second shall be paid on the succeeding January 15.
(d) 
If the declaration is not required to be filed on or before September 15 of the taxable year and is filed after September 15 of the taxable year, the estimated tax shall be paid in full at the time of the filing of the declaration.
(e) 
If the declaration is not filed within the time prescribed therefor, or after expiration of any extension of time therefor, Subsection C(1)(b), (c) and (d) of this section shall not apply, and there shall be paid at the time of such filing the amount of all installments of estimated tax which were due and payable on or before the date the declaration was filed, and the remaining installments shall be paid at such times and in such amounts as they would have been payable if the declaration had been filed when due.
(2) 
If any amendment of a declaration is filed, the remaining unpaid installments, if any, shall be ratably increased or decreased, as the case may be, to reflect any increase or decrease in the estimated tax by reason of such amendment, and if any amendment is made after September 15 of the taxable year, any increase in the estimated tax by reason thereof shall be paid at the time of making such amendment.
D. 
Addition to tax.
(1) 
If any taxpayer fails to file a declaration of estimated tax or fails to pay all or any part of an installment of estimated tax, he shall be deemed to have made an underpayment of estimated tax. There shall be added to the tax for the taxable year an amount at the rate of 6% per annum upon the amount of the underpayment for the period of the underpayment but not beyond the fifteenth day of the fourth month following the close of the taxable year. The amount the underpayment shall be the excess of the amount of the installments which would be required to be paid if the estimated tax were equal to 80% of the tax shown on the return for the taxable year (or if no return was filed, of the tax for such year) over the amount, if any, of the installments paid on or before the last day prescribed for such payment. No underpayment shall be deemed to exist with respect to a declaration or installment otherwise due on or after the taxpayer's death.
(2) 
No addition to tax shall be imposed if the total amount of all payments of estimated tax made on or before the last date prescribed for the payment of such installment equals or excess the lesser of:
(a) 
The amount which would have been required to be paid on or before such date if the estimated tax were:
[1] 
The tax shown on the return of the individual for the preceding taxable year, if a return showing a liability for tax was filed by the individual for the preceding taxable year and such preceding year was taxable year of 12 months.
[2] 
An amount equal to the tax computed, at the rates applicable to the taxable year, but otherwise on the basis of the facts shown on his return for, and the law applicable to, the preceding taxable year.
(b) 
An amount equal to 90% of the tax computed, at the rates applicable to the taxable year, on the basis of the actual income for the months in the taxable year ending before the month in which the installment is required to be paid.
[Amended 2-26-1976 by Ord. No. O-5-1976]
A. 
Every taxpayer and resident whose earned income or net profits are subject to the tax imposed by this article shall, on or before April 15, of the succeeding year, make and file a return with the Income Tax Officer or any other person designated by City Council. Such return shall be filed on a form prescribed by the City Solicitor, furnished at the expense of the City and obtainable from the Income Tax Officer of Office of City Manager. The information on such return shall include the name and address of the taxpayer, his place of employment or business, the aggregate amount of salaries, wages, commissions and other compensation or net profits earned by him during the preceding year and subject to such tax, the amount of tax due to the City of Farrell under this article, the amount of tax on salaries, wages, commissions and other compensation or net profits paid by such taxpayer during the period covered by such return to any other political subdivision of the Commonwealth of Pennsylvania, not including any school district, comprising part or all area of the area of the City of Farrell together with such other pertinent information as may be required.
B. 
Provided, however, that where a return is made for a fiscal year or for any other period different from a calendar year, such return shall be made within 75 days after the close of such fiscal year or other period.
C. 
The person making such a return shall at the time filling thereof, pay to the Receiver of Taxes or such other person designated by Council, the amount of tax as shown thereon, less any credits or deductions allowed pursuant to the Act of the General Assembly approved December 31, 1965, Act No. 511, as amended,[1] for payment for any concurrent period of like tax to any other political subdivision of this commonwealth by any resident of such other political subdivision.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
D. 
Any employee subject to like tax imposed by any other political subdivision within this commonwealth shall file a return with the Receiver of Taxes who is hereby authorized to refund to such employee any difference to which he shall be entitled under the provisions of the Act of the General Assembly approved by December 31, 1965, Act No. 511, known as the "Local Tax Enabling Act," as amended.
A. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the City of Farrell 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, address and such other information as the Income Tax Officer may require.
B. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the City of Farrell 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, July 31 and October 31 of each 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, June 30, September 30 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 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. 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 succeeding the month for which the tax was withheld.
C. 
On or before February 28, of the succeeding year, every employer shall file with the Income Tax Officer:
(1) 
An annual return showing the total amount of earned income tax 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.
(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 Income Tax Officer. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.
D. 
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.
E. 
Except as otherwise provided by the Local Tax Enabling Act, every employer who wilfully or negligently fails or omits to make the deductions required of 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.
F. 
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 returns.
A. 
The Income Tax Officer may sue in the name of the City of Farrell 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 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 return was filed by any person although a return was required to be filed by him under the provisions of this article, there shall be no limitation.
(2) 
Where an examination of the return filed by any person, or of other evidence relating to such return in the possession of the Income Tax 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 filed to pay the amounts so deducted to the Income Tax Officer, or where any person has wilfully failed or omitted to make the deductions required by this section, there shall be no limitation.
(5) 
This section shall not be construed to limit the City of Farrell from recovering delinquent taxes by any other means provided by the Local Tax Enabling Act.
C. 
The Income Tax Officer may sue for recovery of an erroneous refund provided 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.
If for any reason the tax is not paid when due, interest at the 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.
[Amended 2-26-1976 by Ord. No. O-5-1976; at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
A. 
Any person who fails, neglects, or refuses to make any declaration or return required by this article, 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 payment of the whole or any part of the tax imposed by this article, shall, upon conviction therefor, be sentenced to pay a fine of not more than $500 for each offense, and costs, and in default of payment, to be imprisoned for a period not exceeding 30 days.
B. 
Any person who divulges any information which is confidential under the provisions of this article, shall, upon conviction therefor, be sentenced to pay a fine of not more than $500 for each offense, and costs, and in default of payment, to be imprisoned for a period not exceeding 30 days.
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.
This article is enacted under the authority of the "Local Tax Enabling Act," being Act No. 511 of 1965, effective January 1, 1966, and any amendments or supplements thereto.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.