[Adopted 12-16-1998 by Ord. No. 1635 (Ch. 111, Art. VI, of
the 1972 Code)]
As used in this article, the following terms shall have the
meanings indicated:
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 persons, partnership, association or any other
entity.
A corporation or joint stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania or
any other state, territory, foreign country or dependency.
The calendar year for which the tax is levied.
The place where one lives and has his permanent home and
to which he has the intention of returning whenever he is absent.
Actual residence is not necessarily domicile, for domicile is the
fixed place of abode which, in the intention of the taxpayer, is permanent
rather than transitory. Domicile is the voluntary fixed place of habitation
of a person, not for a mere special or limited purpose, but 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.
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 property; not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness, 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, compensation payments by any governmental agency, or payments
to reimburse expenses, or payments made by employers or labor unions
for wage and salary supplemental programs, including, but not limited
to, programs covering hospitalization, sickness, disability or death,
supplemental unemployment benefits, strike benefits, Social Security
and retirements.
A person, partnership, association, corporation, institution,
governmental body or unit or agency, or any other entity employing
one or more persons for a salary, or any other entity employing one
or more persons for a salary, wage, commission or other compensation.
The Lansdale Borough Council.
Person, public employee or private agency designated by governing
body to collect and administer the tax on earned income.
The net income from the operation of a business, profession
or other activity, except corporations, after provision for all costs
and expenses incurred in the conduct thereof, determined either on
a cash or accrual basis in accordance with the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
A person, 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.
All property lying within the boundaries of the Borough of
Lansdale, Montgomery 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 at the rate of 1% on each dollar is hereby imposed on
all earned income and net profits, as defined herein, earned by residents
of the Borough of Lansdale and on all earned income and net profits
earned by nonresidents of the Borough of Lansdale employed or working
within the Borough of Lansdale. This tax shall become effective January
1, 1999, and shall remain in effect thereafter on a calendar-year
basis without annual reenactment unless the rate of tax is subsequently
changed.
A.
Net profits.
(1)
Every taxpayer making net profits shall on or before April 15 of
each year make and file with the officer on a form prescribed 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 on or before June 15 of
the current year, September 15 of the current year and January 15
of the succeeding year.
(2)
On or before April 15 of the succeeding year, every taxpayer shall
make and file a return on a form prescribed by the officer showing
the amount of net profits earned, the total amount of tax due 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 the tax
due or shall make demand for refund or credit in the case of overpayment.
An incomplete or improperly completed tax return shall be considered
as not having been filed. Each final return shall be substantiated
and supported by such United States Federal Income Tax return forms
as required by the officer, which shall at least include a copy of
the Federal W-2 form in the case of an earned income taxable and Schedule
C of the federal return as to a net profits taxable.
B.
Earned income. Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with 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. An incomplete or improperly completed tax return shall
be considered as not having been filed. Each final return shall be
submitted and supported by United States Federal Income Tax return
forms as required by the officer, which shall include a copy of the
Federal W-2 form in the case of an earned income taxable and Schedule
C of the federal return as to a net profit taxable.
C.
Earned income not subject to withholding. Every taxpayer who is employed
for a salary, wage, commission or other compensation and who received
any earned income not subject to the provisions 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 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 Borough of Lansdale 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 the Borough of Lansdale 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 the officer the amounts 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 returns, 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 the preceding three-month period, the tax
deducted therefrom, the political subdivision imposing the tax upon
such employee and the political subdivision in which the employer
resides, the total earned income of all such employees during such
preceding three-month period and the total deducted therefrom and
paid with the return.
B.
Any employer who, for two of the preceding four quarterly periods,
has failed to deduct the proper tax, or any part thereof, or has failed
to pay over the proper amount of tax to the taxing authority, may
be required by the 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. Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the tax jurisdiction
imposing a tax on earned income or net profits within the Borough
of Lansdale 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 officer, his name and address and such other information
as the officer may require.
C.
On or before February 28 of the succeeding year, every employer shall
file with the officer:
(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 showing withholding statements for each employee during
all or 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 who 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, 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.
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 requirement of the ordinances relating
to the filing of declarations and returns.
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 the date of such receipt.
B.
Each officer, before entering upon his official duties, shall give
and acknowledge a bond to the Borough of Lansdale. If the Borough
of Lansdale Council shall by ordinance designate any bond previously
given by the officer as adequate, such bond shall be sufficient to
satisfy the requirements of this subsection.
(1)
Each such bond shall be joint and several, with one or more corporate
sureties which shall be surety companies authorized to do business
in this commonwealth and duly licensed by the Insurance Commission
of this commonwealth.
(2)
Each bond shall be conditioned upon the faithful discharge of the
officer, his clerks, assistants and appointees of all trusts confided
in him by virtue of his office, upon the faithful execution of all
duties required by him according to law, of all moneys and all balances
thereof paid to, received or held by him by virtue of this office,
and upon the deliveries to his successor or successors in office of
all books, papers, documents or other official things held in right
of his office.
(3)
Each such bond shall be taken in the name of and shall be for the
use of the Borough of Lansdale and for the use of such other person
or persons for whom money shall otherwise appear, in case of a breach
of any of the conditions thereof by the acts or neglect of the principle
on the bond.
C.
The officer charged with the administration and enforcement of the
provisions of this article 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 re-examination and correction of declarations
and returns and of payments alleged or found to be incorrect, or as
to which an 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 rules or
regulations of any kind shall be enforceable unless they have been
approved by the Lansdale Borough Council. A copy of such rules and
regulations currently in force shall be available for public inspection.
D.
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.
E.
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.
F.
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.
G.
The officer is authorized to establish different filing, reporting
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar years.
H.
The officer shall, at least quarterly, distribute earned income taxes
to the appropriate political subdivisions. The political subdivisions
shall not be required to request the officer to distribute the funds
collected but shall at least annually reconcile their receipts with
the records of the officer and return to or credit the officer with
any overpayment. If the officer, within one year after receiving a
tax payment, cannot identify the taxing jurisdiction entitled to a
tax payment, he shall make payment to the municipality in which the
tax was collected. Within 120 days of the passage of this act, any
present accumulated funds that are unclaimed shall be distributed
on the same basis.
[Amended 8-20-2003 by Ord. No. 1703]
Any resident of the Borough or nonresident who lives in a municipality
that has not adopted an earned income tax whose total income from
all sources is less than $5,000 per annum shall be exempt from this
earned income and net profits tax upon processing a claim for exemption
with the appropriate Borough officer pursuant to the rules and regulations
of the Borough of Lansdale, Lansdale Borough Council and/or the officer.
The owner of any apartment house or rental unit located in the
Borough of Lansdale or the authorized representative of the owner
shall submit to the Secretary of the Borough a list of the occupants,
consisting of the names and apartment designations, of all persons
18 years of age and older residing in the apartment house or rental
unit and who are not transient occupants. The list shall be submitted
within 60 days from December 31 and shall be updated quarterly thereafter,
every April 1, July 1, October 1 and January 1.
A.
The officer may sue in the name of the Borough of Lansdale for recovery
of taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by this article shall
begin 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 begin 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.
(5)
This section shall not be construed to limit the Borough of Lansdale
from recovering delinquent taxes by any other means provided by law.
C.
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.
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% if 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.
A.
Any person who fails, neglects or refuses to make any declaration
or return required by the this article, any employer who 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 thereof before any Magisterial District Judge or court
of competent jurisdiction in the county, be sentenced to pay a fine
of not more than $600 for a period not exceeding 30 days. Each violation
shall constitute a separate offense, punishable by a like fine or
imprisonment for each day of continued violation.[1]
B.
Any person who divulges any information which is confidential under
the provisions of this article shall, upon conviction thereof before
any Magisterial District Judge or court of competent jurisdiction,
be sentenced to pay a fine of not more than $600 for each offense,
and costs, and in default of payment of said fines and costs to be
imprisoned for a period of not exceeding 30 days.[2]
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.
