[Adopted 11-14-1972 by Ord. No. 291, approved 11-14-1972]
[Added 7-8-1975 by Ord. No. 305]
B.
Any rules and regulations governing the earned income tax adopted
subsequent hereto may be amended by either a resolution of the Council
of the Borough of West Conshohocken or by an ordinance duly adopted
by the Council of the Borough of West Conshohocken.[2]
[Added 2-10-2004 by Ord. No. 04-04, approved 2-10-2004]
[2]
Editor's Note: Said rules and regulations are on file
in the Borough offices.
A.
ASSOCIATION
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EARNED INCOME TAX COLLECTOR
EMPLOYER
NET PROFITS
NONRESIDENT
PERSON OR INDIVIDUAL
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
Unless otherwise expressly stated, the following terms shall have,
for the purpose of this article, the meanings ascribed to them in
this section:
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 a profit or ordinarily conducted
for profit, whether by a person, partnership, association or any other
entity.
A corporation or joint-stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania or
any other state, territory, foreign county 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 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.
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent and whether in cash or in property; not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement, or
payments arising under workmen's compensation acts, occupational
disease acts and similar legislation, or payments commonly recognized
as old-age benefits, retirement pay or pensions paid to persons retired
from service after reaching a specific age or after a stated period
of employment, or payments commonly known as public assistance or
unemployment compensation payments made by any governmental agency,
or payments to reimburse expenses or payments made by employers or
labor unions for wage and salary supplemental programs, including
but not limited to programs covering hospitalization, sickness, disability
or death, supplemental unemployment benefits, strike benefits, social
security and retirement.
The person, public employee or private agency designated
by the Borough of West Conshohocken to collect and administer the
tax on earned income and net profits.
A person, partnership, association, corporation, institution,
governmental body or unit or agency or any other entity employing
one or more persons for salary, wage, commission or other compensation.
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, without deduction
of taxes based on income.
A person, partnership, association or other entity domiciled
outside the Borough of West Conshohocken.
A natural person.
The calendar year before this current year.
A person, partnership, association or other entity domiciled
in the Borough of West Conshohocken.
The calendar year following the current year.
A person, partnership, association or other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
B.
In this article the singular shall include the plural, and the masculine
shall include the feminine and the neuter.
A.
A tax for general business purposes is hereby imposed on:
[Amended 8-8-1989 by Ord. No. 401, approved 8-8-1989; 1-2-2001 by Ord. No. 00-23, approved 1-2-2001]
B.
The tax levied under this article shall be applicable to earned income
received and to net profits earned by residents and nonresidents for
the period beginning January 1 of the current year and ending December
31 of the current year or for taxpayers fiscal year which extends
into the current year, and the tax shall continue in force on a calendar
year basis or taxpayer fiscal year basis without annual reenactment,
unless the rate of the tax is subsequently changed. The Borough of
West Conshohocken may by ordinance change the rate. Such change shall
become effective on the date specified in the ordinance.
A.
Net profits.
(1)
Beginning with the calendar year January 1, 1973, every taxpayer
who makes any net profits shall, on or before April 30 of the then
current year and each year thereafter, make and file with the Tax
Collector a declaration of his estimated net profits during the period
beginning January 1 and ending December 31 of the then current year.
The taxpayer shall pay to the Tax Collector the total amount of tax
determined to be due under the estimate as follows:
(2)
If a taxpayer during the calendar year 1973 anticipates net profits
after April 30 of the calendar year, then he shall make and file a
declaration on or before July 31, October 31 or April 15 of the then
current year, whichever of these dates next follows the date on which
the taxpayer first anticipates such net profits. The taxpayer shall
pay to the Tax Collector in equal installments the amount of tax due
thereon on or before the quarterly payment dates which remain after
the filing of his first declaration.
(3)
On April 15 of each calendar year, every taxpayer shall file with
the Tax Collector a final income tax return showing the amount of
the net profits earned during the period beginning January 1 of the
preceding year and ending December 31 of the preceding year, the total
amount of tax due thereon and the total amount of tax theretofore
paid with the estimated return. At the time of filing a final return,
the taxpayer shall pay to the Earned Income Tax Collector the balance
of tax due or shall make demand for a refund or credit in the case
of any overpayment. Any taxpayer may, in lieu of paying the fourth
quarterly installment of his estimated tax, elect to make and file
with the Tax Collector his final return on or before January 31 of
the succeeding year and to pay the tax in full at that time.
(4)
The Borough of West Conshohocken shall provide by regulation for
the making and filing of adjusted declarations of estimated net profits
and for the payments of the estimated tax in cases where a taxpayer
who has filed the declaration hereinabove required anticipates additional
net profits not previously declared or finds that he has overestimated
his anticipated net profits.
(5)
Discontinuance of business. If a taxpayer discontinues his business
before September 30 of the current year, he shall, within 30 days
after the discontinuance of the business, file his final return as
hereinabove required and pay the tax due or make demand for a refund
or credit in the case of an overpayment.
B.
Earned income.
(1)
Annual earned income tax return. Every taxpayer shall, on or before
April 15 of the succeeding year, make and file with the Earned Income
Tax Collector, on a form prescribed, prepared and supplied by the
Earned Income Tax Collector, a final return showing the total amount
of earned income received during the period beginning January 1 and
ending December 31, and for each year thereafter during the period
beginning January 1 and ending December 31, the total amount of tax
due thereon, the amount of the tax paid thereon, the amount of the
tax thereon that has been withheld in the event the provisions relating
to withholding hereinafter set forth have been invoked by the Borough
of West Conshohocken and the balance of the tax due. At the time of
the filing of the final return, the taxpayer shall pay the balance
of the tax due or may make a demand for refund or credit in the case
of an overpayment.
(2)
Beginning with the calendar year 1973, every taxpayer who is employed
for salary, wage, commission or other compensation and who received
any earned income not subject to the provisions relating to collection
at the source shall make and file with the Earned Income Tax Collector,
on a form prepared, supplied and prescribed by the Earned Income Tax
Collector, 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 period ending March 31 of the current year, June 31 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 Earned Income Tax Collector shall
require. Every taxpayer who makes such a return shall, at the time
of the filing of the return with the Earned Income Tax Collector,
pay to the Collector the amount of the tax shown as due thereon.
C.
Registration.
[Added 6-14-1983 by Ord. No. 357, approved 6-15-1983]
(1)
Each individual resident 18 years of age or over who has not previously
registered shall, within 15 days of attaining the age of 18 years,
register with the Earned Income Tax Collector with forms provided
by said Collector.
(2)
The registration form shall include, among other things, the name,
address, social security number, current occupation, employer, employer's
address and any additional information required by the Earned Income
Tax Collector.
(3)
The failure to register by any individual resident 18 years of age
or over who has not previously registered, within 15 days of attaining
the age of 18 years, shall constitute a summary offense and shall
be subject to the penalties as are provided for in this article.
(4)
Any resident, individual or other entity that makes application for
a building permit or use and occupancy permit for any residential
dwelling located within the Borough of West Conshohocken shall include
in their application an earned income tax registration form providing
information regarding the residents of that dwelling.
[Added 4-11-2000 by Ord. No. 00-1, approved 4-11-2000]
D.
No income.
[Added 6-14-1983 by Ord. No. 357, approved 6-15-1983]
(1)
In the event that a resident taxpayer had no earned income or net
profits as defined herein, said taxpayer nevertheless must file the
appropriate earned income tax return at the time specified herein
setting forth the fact that he or she had no earned income or net
profits during the previous year.
(2)
The failure to file an earned income tax return, regardless of whether
or not a resident taxpayer had earned income or net profits, shall
constitute a summary offense and shall be subject to the penalties
as are provided for in this article.
A.
Every employer, as hereinbefore described and defined, shall be obligated,
from January 1, 1973, and thereafter so long as this article is in
effect, to withhold from wages of employees subject to the tax imposed
by this article the amount of tax due, in accordance with the withholding
procedure set forth hereinafter.
B.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the Borough of West Conshohocken,
who employs one or more persons, other than servants, for salary,
wage, commission or other compensation, who has not previously registered,
shall, within 15 days after becoming an employer, register with the
Earned Income Tax Collector his name and address and such other information
as the officer may require.
C.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the Borough of West Conshohocken,
who employs one or more persons, other than domestic servants, for
salary, wage, commission or other compensation, shall deduct at the
time of payment thereof the tax imposed by this article on the earned
income due to his employee or employees, and shall, on or before April
30 of the current year, July 31 of the current year, October 31 of
the current year and January 31 of the succeeding year, file a return
and pay to the Earned Income Tax Collector the amount of taxes deducted
during the preceding three-month periods ending March 31 of the current
year, June 30 of the current year, September 30 of the current year
and December 31 of the current year, respectively. Such return, unless
otherwise agreed upon between the Earned Income Tax Collector and
employer, shall show the name and social security number or identification
number supplied by the Tax Collector 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, 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.
D.
Monthly reporting. 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
Borough of West Conshohocken, may be required by the Earned Income
Tax Collector to file his return and pay the tax monthly. In such
cases, payments of tax shall be made to the Earned Income Tax Collector
on or before the last day of the month succeeding the month for which
the tax was withheld.
E.
On or before February 28 of the succeeding year, every employer shall
file with the Earned Income Tax Collector:
(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 Earned Income Tax Collector 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, social security number or identification number supplied
by the Tax Collector, 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 Earned Income Tax Collector. Every employer shall furnish two
copies of the individual return to the employee for whom it is filed.
F.
Termination of business. Every employer who discontinues business
for any reason prior to December 31 of the current year shall, within
30 days after the discontinuance of business, file the returns and
withholding statement hereinabove required and pay the tax due.
G.
Every employer who willfully or negligently fails or omits to make
the deductions required by this section shall be liable for the payments
of the taxes which he was required to withhold, to the extent that
such taxes have not been recovered from the employee.
H.
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 as
to the filing of declarations and returns.
I.
Any application for a building permit or use and occupancy permit for any commercial or business structure within the Borough of West Conshohocken shall include proof the employers located in such structure have registered with the Earned Income Tax Collector as required by § 105-47A, B and C.
[Added 4-11-2000 by Ord. No. 00-1, approved 4-11-2000]
A.
The office of Earned Income Tax Collector is hereby created by this
article, and the Borough of West Conshohocken shall from time to time
by separate ordinance appoint a person or company to administer the
provisions of this article, who will be designated the "Earned Income
Tax Collector."
B.
The Earned Income Tax Collector shall be bonded as the Borough Council
may determine, said bond to cover all moneys coming into his hands
on behalf of the Borough of West Conshohocken and the costs of the
bond to be paid by the Borough of West Conshohocken. Before entering
upon his official duties, the Earned Income Tax Collector shall give
and acknowledge the bond to the Borough appointing him. Said bond
shall be in compliance with Act No. 511 in all respects and subject
to the approval of the Borough Solicitor.
C.
The Earned Income Tax Collector shall collect and receive all such
taxes, shall furnish a receipt for payment when requested to do so
by a taxpayer and shall keep a record showing the amount received
by him for each taxpayer under this article, together with the date
of the receipt of such payment.
D.
The Earned Income Tax Collector is hereby empowered to prescribe
rules and regulations relating to any matter or thing pertaining to
the administration and enforcement of the provisions of this article,
subject, however, to the approval of the Borough Council of the Borough
of West Conshohocken. Such rules and regulations shall be inscribed
by the Earned Income Tax Collector into a book kept for that purpose
and open to inspection by the public and thereupon shall have the
same force and effect as if they had been incorporated into this article.
E.
The Earned Income Tax Collector or any other person designated by
the Borough of West Conshohocken is hereby authorized to examine any
of the books, papers and records of any employer, supposed employer,
taxpayer or supposed taxpayer in order to verify the accuracy of any
return made or, if no return was made, to ascertain the amount of
tax due by any person under this article. Every such employer, supposed
employer, taxpayer or supposed taxpayer shall give to the Earned Income
Tax Collector or such other authorized person the means, facilities
and opportunities for such examination and investigations hereby authorized.
F.
The Earned Income Tax Collector is authorized to examine any person
under oath concerning any income which was or should have been returned
for taxation, and shall have the power and is hereby authorized to
issue subpoenas to compel the attendance of persons whom he deems
necessary to examine as witnesses and to compel the production of
books, records and papers relating to any account being examined.
G.
The Earned Income Tax Collector or any other official or agent so
designated by the Borough of West Conshohocken shall have the power
to reexamine returns, correct erroneous returns, consent to make refunds
and authorize the refunding of taxes erroneously or improperly collected
from or paid by the taxpayers for any period of time not to exceed
six years subsequent to the date of payment of the sum involved.
H.
Any information gained by the Earned Income Tax Collector or any
other official or agent of the Borough of West Conshohocken as a result
of any return, investigation, hearing or examination required or authorized
by this article shall become confidential, except for official purposes
or except in accordance with proper judicial order or as otherwise
provided by law. Any disclosure of any such information contrary to
the provisions of this subsection shall constitute a violation of
this article.
I.
Any person who, except as permitted by the provisions of the foregoing Subsection H of this section, divulges any information which is confidential under the provisions of this article, shall, upon conviction thereof before any District Justice or court of competent jurisdiction, be sentenced to pay a fine of not more than $500 for each offense and costs, and in default thereof, shall be imprisoned for a period not exceeding 30 days.
A.
The Earned Income Tax Collector may sue in the name of the Borough
for the recovery of taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by this article shall
be begun within three years after such tax is due or within three
years after the declaration or return has been filed, whichever date
is later; provided, however, that this limitation shall not prevent
the institution of a suit for the collection of any tax due or determined
to be due in the following cases:
(1)
Where no declaration or return was filed by any person although a
declaration or return was required to be filed by him under the 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 Earned Income Tax Collector reveals a fraudulent
evasion of taxes, there shall be no limitation.
(3)
In the case of substantial understatement of tax liability, 25% or
more, and no fraud, suit shall be begun within six years.
(4)
Where any person has deducted taxes under the provisions of this
article and has failed to pay the amount so deducted to the Earned
Income Tax Collector, or where any person has willfully failed or
omitted to make the deductions required by this article, there shall
be no limitation.
C.
This section shall not be construed to limit the Borough Council
from recovering the delinquent taxes by any other means provided in
the Local Tax Enabling Act.
D.
The Earned Income Tax Collector may sue for recovery of an erroneous
refund, provided 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% 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
legal costs of collection and for interest and penalties herein imposed.
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 taxes deducted from his employees,
or fails, neglects or refuses to deduct withholding taxes from his
employees; any person who refuses to permit the Earned Income Tax
Collector 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 does 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 District Justice
or Magistrate or court of competent jurisdiction, be sentenced to
pay a fine of not more than $500 for each offense and costs, and in
default of payment of such fine and costs shall be imprisoned for
a period not exceeding 30 days.
B.
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section of this article.
C.
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 shall not apply to: personal property or persons
to whom or which it is beyond the legal power of the Borough of West
Conshohocken to impose the tax herein provided; the net profits of
any institution, organization, trust, association or foundation operated
for public, religious, educational or charitable purposes; provided
that this provision shall not operate to relieve or exempt any such
entity from collection at source of earned income of its employees
and remittance of such collections to the Earned Income Tax Collector.
