[Adopted 11-30-1977 by Ord. No. 2352 (Ch. 166, Art. IV, of the 1986 Code)]
The following words and phrases, when used in a provision of this article, unless otherwise distinctly expressed herein or manifestly incompatible with the intent of the particular provision, shall be construed as follows:
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 for 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 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.
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 workers' 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.
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
The person, public employee or private agency designated by the governing body 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 district.
SUCCEEDING YEAR
The calendar year following the current year.
TAXPAYER
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.
This article is enacted under the authority of the provisions of Act No. 511 of 1965 of the General Assembly of the Commonwealth of Pennsylvania known as and hereinafter identified as the "Local Tax Enabling Act," its amendments and supplements.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
An annual tax for the year 1978 and each calendar year thereafter be, and is hereby, levied effective January 1, 1978, for general revenue purposes of the City of Oil City as the rate of 1% on earned income and net profits earned, paid and/or received on and after January 1, 1978, both by any resident of and by any person employed and/or operating a business, profession or other activity in the City of Oil City.
A. 
Every taxpayer making net profits shall, on or before April 15 of the succeeding year, make and file with the Income Tax Officer, on a form prescribed or approved by the Income Tax Officer, a final return showing the amount of net profits earned 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 and the total amount of tax paid thereon. At the time of filing the final return, the taxpayer shall pay to the Officer the tax due.
B. 
Every taxpayer who discontinues business prior to December 31 of the current year shall, within 30 days after the discontinuance of business, file his final return as hereinabove required and pay the tax due.
Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Income Tax Officer, on a form prescribed or approved by the Income Tax 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.
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 Income Tax Officer, on a form prescribed or approved by the Income Tax Officer, an annual return setting forth the aggregate amount of earned income not subject to withholding from him during the period beginning January 1 and ending December 31 of the current year and such other information as the Income Tax Officer may require and pay to the Income Tax Officer the amount of tax shown as due thereon on or before April 15 of the succeeding year. Every taxpayer making such return shall, at the time of filing thereof, pay to the Income Tax 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 City of Oil City who employs one or more persons, other than domestic servants, for a salary, wage, commission or other compensation, and who has not previously registered, shall, within 15 days after becoming an employer under this article, register with the Income Tax Officer his name and address and such other information as the Income Tax Officer may require.
B. 
Reports by employer.
(1) 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the City of Oil City 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 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 Income Tax Officer 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 Officer and employer, shall show the name and social security number of each such employee during such preceding three-month period, the tax deducted therefor, 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.
(2) 
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 Income Tax Officer 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 for which the tax was withheld.
C. 
Returns by employer.
(1) 
On or before February 28 of the succeeding year, every employer shall file with the Income Tax Officer:
(a) 
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 Income Tax Officer for the period beginning January 1 of the current year and ending December 31 of the current year.
(b) 
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.
(2) 
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 in Section 9[1] of the Local Tax Enabling 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 he was required to withhold to the extent that such taxes have not been recovered from the employee.
[1]
Editor's Note: See now 53 P.S. § 6924.312.
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 declarations and returns.
The Income Tax Officer shall be designated by resolution of and shall receive such compensation for his services and such expenses as determined from time to time by the Council of the City of Oil City.
It shall be the duty of the Income Tax Officer to administer and enforce the provisions of this article to collect and receive the taxes, fines and penalties imposed by this article and to keep a record showing the amount received by him from each person or business paying the tax and the date of such receipt. The Income Tax Officer shall have all the powers and duties and shall be subject to the requirements, provisions and penalties provided in the Local Tax Enabling Act.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
The Income Tax Officer 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 reexamination and correction of declarations and returns and of payments alleged or found to be incorrect or as to which an overpayment is claimed or found to be occurred, and to make refunds in cases of 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; provided, however, that no rule or regulation of any kind shall be enforceable unless it has been approved as to form and legality by the City Solicitor and approved by the City Manager. A copy of such rules and regulations currently in force shall be available for public inspection.
The Income Tax 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 Income Tax Officer reasonably believes to be an employer or taxpayer is hereby directed and required to give to the Income Tax Officer, or to any agent designated by him, the means, facilities and opportunity for such examination and investigations as are hereby authorized.
Any information gained by the Income Tax Officer, his agents or by any other official or agent of the City of Oil City as a result of any declarations, returns, investigations, hearings or verifications required or authorized by the article shall be confidential, except for official purposes and except in accordance with a proper judicial order or as otherwise provided by law.
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:
A. 
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.
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 Officer reveals a fraudulent evasion of taxes, there shall be no limitation.
C. 
In the case of substantial understatement of tax liability of 25% or more and no fraud, suit shall be begun within six years.
D. 
Where any person has deducted taxes under the provisions of this article and has failed to pay the amounts so deducted to the Income Tax Officer, or where any person has willfully failed or omitted to make the deductions required by this section, there shall be no limitation.
E. 
This section shall not be construed to limit the Council of the City of Oil City from recovering delinquent taxes by any other means provided by the Local Tax Enabling Act.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
The Income Tax Officer may sue for recovery of an erroneous refund, provided that 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.
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 Income Tax Officer or any agent designated by said Officer 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 court of competent jurisdiction in Venango County, Pennsylvania, be sentenced to pay a fine of not more than $500 for each offense and costs and, in default of payment of said fine and costs, 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 thereof before any 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 said fines and costs, 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.