[Ord. 1393-11, 11/14/2011]
This Part 8 shall be known as the "Borough of Gettysburg Earned
Income and Net Profits Tax Ordinance," referred to herein as "Part
8."
[Ord. 1393-11, 11/14/2011]
1.
It is the intent and purpose of this Part 8 to include all of the applicable language and provisions of 53 P.S. § 6924.501 et seq., the Act of General Assembly of July 2, 2008 (P.L. 197), and known as "Act No. 32," as may be amended and supplemented from time to time. In all enforcement of the administration of this Part 8, the language and intent of the Act, as amended, shall take precedence.
2.
The tax imposed by this Part 8 shall be collected and administered in accordance with all applicable laws and regulations and regulations, policies and procedures adopted by the Tax Collection Committee or tax officer. This includes any regulations, policies and procedures adopted in the future to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
[Ord. 1393-11, 11/14/2011]
All words and phrases shall have the meanings as set forth in
Act 32, as amended. The following words and phrases, when used in
this Part 8, shall have the meanings ascribed to them as follows:
An enterprise, activity, profession or any other undertaking
of an unincorporated nature conducted for profit or ordinarily conducted
for profit, whether by a person, partnership, association or any other
entity.
A sole proprietorship, corporation, joint-stock association
or company, partnership, limited partnership, limited liability company,
association, business trust, syndicate or other commercial or professional
activity organized under the laws of this commonwealth or any other
jurisdiction.
A 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. This term
shall include an entity which is classified as a corporation for federal
income tax purposes.
The calendar year for which the tax is levied.
The Pennsylvania Department of Community and Economic Development
or successor agency charged with any duties under the Act, as may
be amended and supplemented.
The place where a person or individual lives and has his
or her permanent home and to which he or she has the intention of
returning whenever he or she 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 place in which a person has voluntarily fixed the habitation of
himself or herself and his or her 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 or her 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.
The compensation as required to be reported to or as determined
by the Pennsylvania Department of Revenue under Section 303 of the
Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code
of 1971," and rules and regulations promulgated under that section.
For purposes of earned income, employee business expenses are allowable
deductions as determined under Article III of the Tax Reform Code
of 1971. The term does not include offsets for business losses. The
amount of any housing allowance provided to a member of the clergy
shall not be taxable as earned income.
The tax levied herein by the Borough of Gettysburg on earned
income and net profits; also referred to as the "tax" in this Part
8.
A person, business entity or other entity employing one or
more persons for a salary, wage, commission or other compensation.
The term includes the commonwealth, a political subdivision and an
instrumentality or public authority of either. For purposes of penalties
hereunder, this term includes a corporate officer.
A city of the second class, city of the second class A, city
of the third class, borough, town, township of the first class or
township of the second class. For purposes of this Part 8, such term
shall mean the Borough of Gettysburg, Adams County, Pennsylvania.
The net income from the operation of a business, except corporations
as required to be reported to or as determined by the Department of
Revenue under Section 303 of the Act of March 4, 1971 (P.L. 6, No.
2), known as the "Tax Reform Code of 1971," and the rules and regulations
promulgated under such section. The term does not include income which
is not paid for services provided and which is in the nature of earnings
from an investment. Further, the teem shall not include:
A person, partnership, association or other entity domiciled
outside of the municipality.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the municipality.
The calendar year following the current year.
A public nonprofit entity established by a tax collection
committee for the administration and collection of earned income and
net profits tax.
The committee established to govern each tax collection district
for the purpose of income tax collection. This term shall include
a joint tax collection committee.
The Adams Tax Collection District as established under the
Act.
A Political subdivision, public employee, tax bureau, county,
excluding a county of the first class, or private agency which administers
and collects earned income and net profits for one or more tax collection
districts. Unless otherwise specifically provided, for purposes of
the obligations of an employer, the term shall mean the tax officer
or tax collector for the tax collection district within which the
employer is located, or if an employer maintains workplaces in more
than one tax collection district, the tax officer for each such tax
collection district with respect to employees principally employed
therein.
A person or business required hereunder to file a return
of earned income or net profits or to pay a tax thereon.
[Ord. 1393-11, 11/14/2011]
1.
A tax of 1% for general revenue purposes is hereby imposed on earned
income and net profits earned by residents of the municipality.
2.
A tax of 1% for general revenue purposes is hereby imposed on earned
income and net profits earned by nonresidents, exclusive of domestic
servants and Maryland residents.
3.
The earned income and net profits tax levied under this Part 8 shall
be applicable to earned income received and to net profits earned
during 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. The earned income and net profits tax shall continue
in force on a calendar-year or taxpayer-fiscal-year basis without
the need for annual enactment or reenactment, unless the rate of the
tax is subsequently changed. For a taxpayer whose fiscal year is not
a calendar year, the tax officer shall establish deadlines for filing,
reporting and payment of taxes which provide time periods equivalent
to those provided for a calendar-year taxpayer.
[Ord. 1393-11, 11/14/2011]
1.
Application.
A.
Income taxes shall be applicable to taxable income earned or received
based on the method of accounting used by the taxpayer in the period
beginning January 1 of the current year and ending December 31 of
the current year; except that taxes imposed for the first time and
changes to existing tax rates shall become effective on January 1
or July 1, as specified in this Part 8, 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.
B.
For a taxpayer whose fiscal year is not a calendar year, the tax
officer shall establish deadlines for filing, reporting and payment
of taxes which provide time periods equivalent to those provided for
a calendar-year taxpayer.
2.
Partial Domicile. The taxable income subject to tax of a taxpayer
who is domiciled in the municipality for only a portion of the tax
year shall be an amount equal to the taxpayer's taxable income multiplied
by a fraction, the numerator of which is the number of calendar months
during the tax year that the individual is domiciled in the municipality,
and the denominator of which is 12. A taxpayer shall include in the
numerator any calendar month during which the taxpayer is domiciled
for more than 1/2 of the calendar month. A day that a taxpayer's domicile
changes shall be included as a day the individual is in the new domicile
and not the old domicile. If the number of days in the calendar month
in which the individual lived in the old and new domiciles is equal,
the calendar month shall be included in calculating the number of
months in the new domicile.
3.
Declaration and Payment. Except as provided in Subsection 1B above, taxpayers shall declare and pay income taxes as follows:
A.
Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the resident tax officer, a final return showing the amount of taxable income received during the period beginning January 1 of the current year and ending December 31 of the current year, the total amount of tax due on the taxable income, the amount of tax paid, the amount of tax that has been withheld under § 24-807 below and the balance of tax due. All amounts reported shall be rounded to the nearest whole dollar. At the time of filing the final return, the taxpayer shall pay the tax officer the balance of the tax due or shall make demand for refund or credit in the case of overpayment.
B.
Every taxpayer making net profits shall, by April 15 of the current
year, make and file with the tax officer a declaration of the taxpayer's
estimated net profits during the period beginning January 1 and ending
December 31 of the current year and shall pay to the tax officer in
four equal quarterly installments the tax due on the estimated net
profits. The first installment shall be paid at the time of filing
the declaration, and the other installments shall be paid on or before
June 15 of the current year, September 15 of the current year and
January 15 of the succeeding year, respectively.
C.
Any taxpayer who first anticipates any net profit after April 15
of the current year shall make and file the declaration required on
or before June 15 of the current year, September 15 of the current
year or December 31 of the current year, whichever date next follows
the date on which the taxpayer first anticipates such net profit,
and shall pay to the tax officer in equal installments the tax due
on or before the quarterly payment dates that remain after the filing
of the declaration.
D.
Every taxpayer shall, on or before April 15 of the succeeding year,
make and file with the tax officer a final return showing the amount
of net profits earned or received based on the method of accounting
used by the taxpayer during the period beginning January 1 of the
current year and ending December 31 of the current year, the total
amount of tax due on the net profits, and the total amount of tax
paid. At the time of filing the final return, the taxpayer shall pay
to the tax officer the balance of tax due or shall make demand for
refund or credit in the case of overpayment. Any taxpayer may, in
lieu of paying the fourth quarterly installment of the estimated tax,
elect to make and file with the tax officer, on or before January
31 of the succeeding year, the final return.
E.
The Department, in consultation with the Department of Revenue, shall
provide by regulation for the filing of adjusted declarations of estimated
net profits and for the payments of the estimated tax in cases where
a taxpayer who has filed the declaration required under this subsection
anticipates additional net profits not previously declared or has
overestimated anticipated net profits.
F.
Every taxpayer who discontinues business prior to December 31 of
the current year shall, within 30 days after the discontinuance of
business, file a final return as required under this Part 8 and pay
the tax due.
G.
Every taxpayer who receives any other taxable income not subject
to withholding under Section 512(3) of the Act shall make and file
with the resident tax officer a quarterly return on or before April
15 of the current year, June 15 of the current year, September 15
of the current year, and January 15 of the succeeding year, setting
forth the aggregate amount of taxable income not subject to withholding
by the taxpayer during the three-month periods ending March 31 of
the current year, June 30 of the current year, September 30 of the
current year, and December 31 of the current year, respectively, and
subject to income tax, together with such other information as the
Department may require. Every taxpayer filing a return shall, at the
time of filing the return, pay to the tax officer the amount of income
tax due. The Department shall establish criteria under which the tax
officer may waive the quarterly return and payment of the income tax
and permit a taxpayer to file the receipt of taxable income on the
taxpayer's annual return and pay the income tax due on or before April
15 of the succeeding year.
H.
The TCC may, by regulation, waive the requirements for a quarterly
return and payment of income tax under specified circumstances, including
those instances where a taxpayer's annual taxable income is less than
a specified amount.
[Ord. 1393-11, 11/14/2011]
1.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the municipality, having imposed
a tax on earned income or net profits within its municipal boundaries,
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 tax officer or other designated agent the employer's name
and address and such other information as the Department or tax officer
may require.
2.
Every employer shall require each new employee to complete a certificate
of residency form, which form shall be an addendum to the federal
employee's withholding allowance certificate (Form W-4 or successor
form). An employer shall also require any employee who changes an
address or domicile to complete a certificate of residency form, which
forms are available from the Department or the tax officer upon request.
The purpose of said form shall be to help identify the political subdivision
where an employee lives and works.
[Ord. 1393-11, 11/14/2011]
1.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the municipality, imposing a tax
on earned income or net profits within the municipality, who employs
one or more persons, exclusive of domestic servants and Maryland residents,
for a salary, wage, commission or other compensation, shall deduct
at the time of payment thereof the greater of the employee's resident
tax or the employee's nonresident tax imposed by this Part 8 on the
earned income due to his, her or its 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 quarterly return and pay to the tax officer the amount
of taxes deducted during the preceding quarterly 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 tax officer
and employer, shall show the name and social security number of each
such employee, the compensation of such employee during such preceding
three-month period, the tax deducted therefrom, the political subdivisions
imposing the tax upon such employee, the total compensation of all
such employees during such preceding quarterly period, and the total
tax deducted therefrom and paid with the return as well as any other
information prescribed by the Department or the tax officer.
2.
Any employer who, for two of the preceding four quarterly periods,
has failed to deduct the proper tax or any part thereof or who has
failed to pay over the proper amount of tax to the tax officer may
be required by the tax officer to file a return and pay the tax monthly.
In such cases, payments of tax shall be made to the tax officer on
or before the last day of the month succeeding the month for which
the tax was withheld.
3.
Notwithstanding the provisions of Subsection 1 above, the provisions of this Subsection 3 shall apply if any employer has more than one place of employment in more than one tax collection district. Within 30 days following the last day of each month, the employer may file the return required by Subsection 1 above and pay the total amount of tax due from employees in all work locations during the preceding month to the tax officer for either the tax collection district in which the employer's payroll operations are located or as determined by the Department. The return and tax deducted shall be filed and paid electronically. The employer must file a notice of intention to file combined returns and make combined payments with the tax officer for each place of employment at least one-month prior to filing its first combined return or making its first combined payment. This subsection shall not be construed to change the location of an employee's place of employment for purposes of nonresident tax liability.
4.
On or before February 28 of the succeeding year, every employer shall
file with the tax officer, or other designated tax officer to whom
tax which has been deducted, has been remitted as required herein:
A.
An annual return showing the total amount of compensation paid, the
total amount of tax deducted, the total amount of tax paid to the
tax officer for the period beginning January 1 of the current year
and ending December 31 of the current year, and any other information
prescribed by the Department.
B.
An individual withholding statement, which may be integrated with
the federal wage and tax statement (Form W-2 or successor form), 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 compensation paid to the employee during said
period, the amount of tax deducted, the numerical code prescribed
by the Department representing the tax collection district where payments
required herein were remitted, and any other information required
by the Department or the tax officer, and the amount of tax paid to
the tax officer. Every employer shall furnish two copies of the individual
return to the employee for whom it is filed.
5.
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.
6.
Except as otherwise provided for in Section 511 of the Act, 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 the employer is required to withhold to the extent that such taxes have not been recovered from the employee. The failure or omission of any employer to make the deductions required by this section shall not relieve any employee from the payment of the tax or from complying with the requirements of this Part 8 relating to the filing of declarations and returns.
7.
No employer shall be required to deduct or withhold taxes, file returns
or pay taxes with regard to residents of Maryland.
[Ord. 1393-11, 11/14/2011]
1.
It shall be the duty of the tax officer to collect and receive the
taxes, fines and penalties imposed by this Part 8. It shall also be
the tax officer's duty to keep a record showing the amount of tax
received from each taxpayer paying the tax and the date of such receipt.
2.
Each tax officer, before entering upon official duties, shall give
and acknowledge a bond to the TCC appointing such tax officer. The
bond provided shall be subject to and consistent with the requirements
as set forth in the Act.
3.
The tax officer shall comply with all resolutions, policies and procedures
adopted by the TCC and shall comply with all regulations promulgated
and adopted by the Department under the Act.
4.
The tax 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.
5.
The tax officer and agents designated by the tax officer are hereby
authorized to examine the books, papers and records of any employer
or of any taxpayer or of any person whom the tax 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. Said document shall be made available to
the tax officer or agents by the respective employers, taxpayers and
persons subject to such examination. Such examination or audits shall
be conducted by the tax officer and any agents in accordance with
53 Pa.C.S.A., Chapter 84, Subchapter C (relating to the local taxpayers
bill of rights).
6.
Any information gained by the tax officer or designated 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 Part 8 shall be and remain confidential,
except for official purposes and except in accordance with a proper
judicial order or as otherwise provided by law.
7.
The tax officer is authorized to establish different filing, reporting
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year, provided that any filing, reporting or payment
dates shall provide time periods equivalent to those time periods
set forth for taxpayers whose fiscal year coincides with a calendar
year.
[Ord. 1393-11, 11/14/2011]
1.
The tax officer may sue in the name of the municipality within the
TCD for the recovery of taxes due and unpaid under this Part 8.
2.
Any suit brought to recover the tax imposed by this Part 8 shall
be begun within three years after: (a) such tax is due; or (b) the
declaration or return has been filed; or (c) a redetermination of
compensation or net profits by the Pennsylvania Department of Revenue,
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:
A.
Where no declaration or return was filed by any person although a
declaration or return was required to be filed by him under the provisions
of this Part 8, there shall be no limitation.
B.
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 tax officer reveals a fraudulent evasion of taxes,
there shall be no limitation.
C.
Where any person has deducted taxes under the provisions of this
Part 8 and has failed to pay the amounts so deducted to the tax officer
or where any person has willfully failed or omitted to make the deductions
required by this Part 8, there shall be no limitation.
D.
Where an employer has intentionally failed to make deductions required
by this Part 8.
E.
In the case of substantial understatement of tax liability of 25%
or more and no fraud, suit shall be begun within six years.
3.
The tax 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.
4.
This section shall not be construed to limit the municipality from
recovering delinquent taxes by any other means provided by the Act.
Further, nothing set forth herein shall be construed to limit a tax
officer, a tax collection district or a political subdivision from
recovering delinquent taxes by any other means provided by the Act."
[Ord. 1393-11, 11/14/2011]
1.
Except as may be provided for in Subsection 2 below, in the event that any tax imposed in this Part 8 is not paid when due, interest shall accrue at the same rate a taxpayer is required to pay to the commonwealth as provided in Section 806 of the Act of April 9, 1929 (P.L. 343, No. 176), known as the "Fiscal Code," or such successor legislation, on the amount of said tax; and an additional penalty of 1% of the unpaid tax for each month or fraction thereof during which the tax remains unpaid shall be added and collected; but the amount of penalty shall not exceed 15% in the aggregate. Where an action is brought for the recovery of tax, the taxpayer liable for the tax shall, in addition, be liable for the costs of collection, interest and penalties, including but not limited to court costs and attorney's fees.
2.
Pursuant to the Act, the Department may establish conditions under
which a tax officer, with the concurrence of the TCC, may abate interest
or penalties that would otherwise be imposed for the nonreporting
or underreporting of income tax liabilities or for nonpayment of taxes
previously imposed and due if the taxpayer files delinquent returns
and pays the tax in full.
3.
The provisions of Subsection 2 above shall not affect or terminate any petitions, investigations, prosecutions or other proceedings pending under this Part 8, or prevent the commencement of further prosecution of any proceedings by the appropriate authorities for violations of this Part 8. However, no proceedings shall be commenced on the basis of delinquent returns filed pursuant to Subsection 2 above if the returns are determined to be substantially true and correct and the tax due is paid within the prescribed time.
[Ord. 1393-11, 11/14/2011]
1.
Any person who fails, neglects or refuses to make any declaration
or return required by this Part 8, any employer who fails, neglects
or refuses to register or to pay the tax deducted from employees or
fails, neglects or refuses to deduct or withhold the tax from employees,
any person who refuses to permit the tax officer or any agent so designated
to examine books, records, or 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
net profits or earned income in order to avoid the payment of the
whole or any part of the tax imposed by this Part 8 shall, upon conviction
thereof, be sentenced to pay a fine of not more than $2,500 for each
offense, and costs, and in default of payment of said fine and costs,
to be imprisoned for a period not exceeding six months.
2.
Any employer who is required under this Part 8 to collect, account
for and distribute taxes and who willfully fails to collect or truthfully
account for and distribute such tax commits a misdemeanor and shall,
upon conviction, be sentenced to pay a fine not exceeding $25,000
or to imprisonment not exceeding two years, or both.
3.
Any person who divulges any information which is confidential under
the provisions of this Part 8 shall, upon conviction thereof, be sentenced
to pay a fine of not more than $2,500 for each offense, and costs,
or to imprisonment for not more than one year, or both.
4.
The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this Part 8.
5.
The failure of any person to receive or procure forms required for
making the declaration or returns required by this Part 8 shall not
excuse him or her from making such declaration or return.
6.
The Borough of Gettysburg shall approve, by adoption of a resolution
of the Borough Council, a cost of collection schedule to be imposed
by the designated tax officer for the collection of taxes on earned
income and net profits upon any taxpayer whose taxes are or become
delinquent and/or remain due and unpaid. Said cost of collection schedule
may be modified from time to time by resolution of the Borough Council
upon submission of amendments to said collection schedule adopted
by the TCC. The designated tax officer is hereby authorized to retain
such costs of collection as set forth in the collection schedule in
recovering delinquent taxes and as permitted to be assessed to delinquent
taxpayers pursuant to law.
[Ord. 1393-11, 11/14/2011]
This Part 8 shall not apply to any person or property as to
whom or which it is beyond the legal power of the municipality to
levy, assess and impose the tax or duties as herein provided.
[Ord. 1393-11, 11/14/2011]
The provisions of this Part 8 shall be severable. If any of
its provisions shall be held to be unconstitutional, illegal or otherwise
invalid, that decision shall not affect the remaining provisions of
this Part 8 or of the Borough Code of Ordinances. It is hereby declared
to be the intention of the Borough Council of the Borough of Gettysburg
that this Part 8 would have been adopted if such invalid or unconstitutional
provision had not been included.
[Ord. 1393-11, 11/14/2011]
1.
The primary purpose of this Part 8 is to conform the local income
tax currently levied on earned income and net profits by the Borough
of Gettysburg with the Act and to do so within the time frame set
forth in the Act.
2.
Any prior ordinance or resolution, and particularly the resolution adopted on April 10, 1978, and then readopted on June 12, 1978, levying such tax is hereby amended and restated in its entirety to read as set forth in this Part 8. To the extent that any previous ordinance or resolution, or any portion thereof, is inconsistent or conflicts with this Part, such ordinance or resolution, or any portion thereof, shall be repealed to the extent of such inconsistency and/or conflict. To the extent of the same or any prior ordinance or resolution levying such tax in force immediately prior to enactment of this Part 8, this Part is intended as a continuation of such prior ordinance or resolution and not as the enactment of an ordinance imposing a new tax, except as to the tax imposed on nonresidents herein, which is intended as a new tax. It is the express intention of the Borough of Gettysburg to substitute the tax provided for in this Part 8 in the place and stead of the earned income and net profits tax imposed by prior ordinance or resolution and particularly the said resolution adopted on April 10, 1978, and then readopted on June 12, 1978. All other ordinances or resolutions and parts of ordinances or resolutions inconsistent herewith are hereby repealed. In the event that this Part 8 or any portion thereof is determined to be unconstitutional or otherwise invalid, the prior ordinance or resolution, or portion thereof, levying a similar tax shall remain in full force and effect and shall not be affected by the adoption of this Part. Nothing contained herein shall affect, impair or otherwise abrogate any act done or liability incurred, nor shall any provisions of this Part 8 affect, impair or preclude any suit or prosecution pending, whether or not currently initiated, to enforce any right, penalty or violation under the authority of any previous ordinance or resolution in force prior to adoption of this Part.
[Ord. 1393-11, 11/14/2011]
The effective date of this Part 8 and beginning of the initial
current year shall be January 1, 2012.
