[Ord. 257, 11/12/2007]
The provisions of Section 6913 of the Local Tax Enabling Act,
P.L. 1257, No. 511, December 31, 1965, 53 P.S. §§ 6901-6924
as amended, supplemented, modified or reenacted by the General Assembly
of Pennsylvania, are incorporated herein by reference thereto; except
to the extent that options are provided in said Section 6913, this
Part designates the option selected, and except as and where hereinafter
specifically provided otherwise.
[Ord. 257, 11/12/2007]
1.
A tax for the general revenue purposes of 1/2 of 1% per annum (or
1% per annum in the event that the South Butler County School District
does not impose and/or collect an earned income tax) is hereby imposed
on:
2.
The tax levied under Subsection 1A of this section shall relate to and be imposed upon salaries, wages, commissions and other compensation and earned income paid by an employer or on his behalf to any person who is employed by or renders services to him. The tax levied under Subsection 1B of this section will relate to and be imposed on the net profits of any business, profession or enterprise carried on by any person as owner or proprietor, either individually or in association with some other person or persons.
3.
Said tax shall first be levied, collected and paid with respect to
the salaries, wages, commissions and other compensation and earned
income and the net profits earned during the last half of the calendar
year; provided, however, that where the fiscal year of a business,
profession or other activity differs from the calendar year, the tax
shall be applicable to the net profits of the fiscal year.
[Ord. 257, 11/12/2007]
1.
ASSOCIATION
BUSINESS
COLLECTOR OF TAXES
CORPORATION
DOMICILE
EARNED INCOME
A.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
B.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
(16)
EMPLOYER
NET PROFITS
A.
(1)
(2)
(3)
(4)
B.
(1)
(2)
(3)
(4)
(5)
(6)
PERSON
RESIDENT
TAXABLE YEAR
TAXPAYER
Unless otherwise expressly stated, the following terms shall have,
for the purposes of this Part, the meanings herein indicated, except
where the context indicates or requires a different meaning:
A partnership, limited partnership or any other form of unincorporated
group owned by two or more persons.
Any enterprise, activity, profession, trust or unincorporated
undertaking of any nature conducted for profit, whether by an individual,
agent, broker, copartnership, association or other entity.
The elected Tax Collector of Jefferson Township or a person
or entity of any kind duly appointed to collect taxes by the Board
of Supervisors of Jefferson Township pursuant to and under the authority
of the Local Tax Enabling Act (Act 511), 53 P.S. § 6901
et seq., as amended.
A corporation or joint-stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania or
any other state, territory or foreign country or dependency.
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 with the
present intention of making a permanent home, until some event occurs
to induce him to adopt some other permanent home.
All compensation as determined and defined under Sections
301 and 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as
the "Tax Reform Code of 1971," as amended, currently codified at 72
P.S. §§ 7301 and 7303, and regulations in 61 Pa. Code,
Part I, Subpart B, Article V (relating to personal income tax). Employee
business expenses are allowable deductions as determined under Article
III of the Tax Reform Code of 1971. The amount of any housing allowance
provided to a member of the clergy shall not be taxable as earned
income.
Examples of earned income, without intending to alter or change
the aforesaid definition or to limit such definition to these examples,
are:
Salaries.
Wages.
Commissions.
Bonuses.
Drawing accounts. (If amounts received as a drawing account
exceed the salary or commissions earned, the tax is payable on the
amounts received. If the employee subsequently repays to the employer
any amounts not in fact earned, the tax shall be adjusted accordingly.)
Incentive payments.
Tips.
Fees.
Benefits accruing from employment, including but not limited
to annual leave, vacation, holiday, sickness and separation benefits,
but excluding benefits mentioned in the succeeding Subsection B hereof.
Taxes assumed by the employer for the employee.
Regular wages received during a period of sickness or disability.
Payments to deferred annuity plans, such as Keogh, IRAs or pension
plans, etc.
National Guard or reserve pay, except active duty.
Stipends paid to graduate assistants.
All other forms of compensation for an employee's services.
Neither the kind nor rate of payment, nor the manner of employment,
exempts an employee from the tax.
All non-cash fringe benefits accruing by virtue of employment
and recognized as taxable by the Internal Revenue Service.
Without intending to alter or change the aforesaid definition,
the following are not considered to be earned income and are not subject
to the earned income tax:
Sickness, disability or retirement benefits received from annuities,
Keogh, IRAs and pension plans, except regular wages as provided in
the preceding Subsection A(11).
Payments made under any public assistance or unemployment compensation
legislation, workers' compensation or occupational disease acts or
similar legislation by any government.
Compensation or bonuses paid by a State or the United States
for active military service in the Armed Forces.
Death-benefit payments to any employee's beneficiary or estate,
whether payable in a lump sum or otherwise.
Proceeds of life insurance policies.
Cash or property received as a gift, by will or by statutes
of descent and distribution and voluntary offerings made by individuals
for the performance of baptisms, wedding ceremonies, etc., which are
received by clergymen, evangelists or religious workers.
Interest and dividends.
Rents derived from mere passive or investment ownership or subleasing
of real estate without the furnishing by the lessor of services to
the leased premises or to the lessee other than gas, electricity,
water, sewage and heat. Such rents are considered to be the return
solely from invested capital and not profits from operation of a business
activity or enterprise. Furnishing of services to common portions,
and general preservations, of rented real estate shall not make rents
described in this subsection taxable.
Value of meals and lodging furnished to domestics or other employees
by the employer for the latter's convenience.
Capital gains.
Social security benefits.
Subchapter S corporation earnings.
Payments received from annuities and deferred income plans.
Damages for personal injuries.
Scholarships and fellowships.
Payments made by employers or labor unions, including payments
made pursuant to cafeteria plans qualifying under Section 126 of the
Internal Revenue Code of 1986 (Public Law 99-514), 26 U.S.C. § 125,
for employee benefit programs covering hospitalization, sickness,
disability or death, supplemental unemployment benefits or strike
benefits, provided the plan complies with all applicable statutory
and regulatory provisions enforced by the IRS.
An individual, copartnership, association, corporation, governmental
body or unit, agency or any other entity who or which employs one
or more persons on a salary, wage, commission or other compensation
basis.
The net income from the operation of a business, profession
or other activity, except corporations, determined under Section 303
of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform
Code of 1971," as amended, and regulations in 61 Pa. Code, Part I,
Subpart B, Article V (relating to personal income tax). The term does
not include income which is not paid for services provided and which
is in the nature of earnings from an investment. For taxpayers engaged
in the business, profession or activity of farming, the term shall
not include:
Any interest earnings generated from any monetary accounts or
investment instruments of the farming business.
Any gain on the sale of farm machinery.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes.
Any gain on the sale of other capital assets of the farm.
Examples of net profits, without intending to alter or change
the aforesaid definitions, or to limit such definition to these examples,
are:
The net profits of a business or profession or other activity,
operations conducted by an individual as computed according to the
laws, regulations and procedure for computing state income tax, net
profits or net farm profits as required to be reported on State Income
Tax Form Pa. 40.
Receipts reportable for State income tax purposes as derived
from a fiduciary, partnership or joint venture (Federal Form 1065),
except any portion thereof resulting from things not covered by this
Part, such as capital gains, real estate rentals or interest as otherwise
set forth herein.
Royalties received by authors, inventors, copyrights, etc.
Net profits from the operation of hotels, motels, trailer camps,
tourist homes, boardinghouses and other similar businesses.
Net profits from the business of renting personal property or
real property.
All other net profits of an enterprise, venture or other activity,
whether such activities are conducted within or outside the taxing
district.
Every natural person, corporation, copartnership, firm, fiduciary
or association. Whenever used in any clause prescribing and imposing
a penalty, the term "person," as applied to associations, shall mean
the partners or members thereof, and as applied to corporations, shall
mean the officers thereof.
An individual, corporation, copartnership, association or
other entity domiciled in the Township of Jefferson, Butler County,
Pennsylvania.
The taxable period on the basis of which a taxpayer or claimant
is required to file his income tax return or, if he is not required
to or does not file a tax return, the calendar year.
A person, whether an individual, corporation, copartnership,
association or any other entity, required hereunder to file a return
of earned income or net profits or to pay a tax based thereon.
2.
Usage of Terms. The singular shall include the plural, and the masculine
shall include the feminine and the neuter.
[Ord. 257, 11/12/2007]
1.
A suitable person shall be appointed to collect the tax imposed by
this Part and shall be designated as the Collector of Taxes. Such
person shall collect and receive all such taxes, shall furnish a receipt
for their payment, shall keep a record showing the amount received
for each taxpayer under this Part and the date of such receipt, and
shall pay over to the Supervisors of Jefferson Township, Butler County,
Pennsylvania, according to law, the amount of taxes collected in accordance
with this Part and the rules and regulations prescribed and relating
to the administration and enforcement of the provisions of this Part.
2.
The Collector of Taxes shall report monthly to the Board of Supervisors
of Jefferson Township, Butler County, Pennsylvania, under oath or
affirmation, the total moneys received by or through such person and
pay over to Jefferson Township, Butler County, Pennsylvania, according
to law, the money then in the collector's hands due the Township of
Jefferson, Butler County, Pennsylvania.
3.
The Collector of Taxes shall receive such compensation as the Board
of Supervisors of Jefferson Township shall, according to law, determine.
4.
The Collector of Taxes, with the approval of the Board of Supervisors
of Jefferson Township, Butler County, Pennsylvania, is empowered to
prescribe rules and regulations relating to any matter or thing pertaining
to the administration and enforcement of the provisions of this Part,
including provisions for the reexamination and correction of returns
and payments. Such rules and regulations shall be inscribed in a book
kept for that purposes by the Collector of Taxes and held open to
the inspection of the public.
5.
The Collector of Taxes shall give such bond to the Township of Jefferson
as the Board of Supervisors of Jefferson Township shall require, to
be approved in such form as the Board of Supervisors shall direct,
conditioned for the faithful performance of the duties of the Collector
of Taxes.
[Ord. 257, 11/12/2007]
1.
Every taxpayer whose net profits are subject to the tax imposed by
this Part shall file a declaration of his estimated net profits for
the current year and shall pay the tax due thereon in quarterly installments,
all as provided in Section 6913, Subdivision IIIA(1)(ii), of the Local
Tax Enabling Act.
2.
Every taxpayer whose earned income is subject to the tax imposed
by this Part shall make and file final returns and pay to the officer
the balance of the tax due, as provided in Section 6913, Subdivision
IIIB, first paragraph, of the Local Tax Enabling Act.
3.
Every taxpayer whose earned income is not subject to the provisions
of this Part and of the Local Tax Enabling Act relating to collection
at the source shall make and file with the officer quarterly returns
and shall pay quarter-annually the amount of tax shown as due on such
returns, all as provided in Section 6913, Subdivision IIIB(2), of
the Local Tax Enabling Act.
4.
The officer is hereby authorized to provide by regulation, subject
to the approval of the Township, that the return of an employer or
employers, showing the amount of tax deducted by said employer or
employers from the salaries, wages or commissions of any employee
and paid by him or them to the officer, shall be accepted as the return
required of any employee whose sole income subject to the tax or taxes
under this Part is such salary, wages or commissions or earned income.
5.
The information on such return shall include the name and address
of the taxpayer; his place of employment or business; the aggregate
amount of salaries, wages, commissions and other compensation and
earned income or net profits earned by him during the preceding half-year
and subject to such tax; the amount of the tax due the Township of
Jefferson under this Part; and the amount of tax on salaries, wages,
commissions and other compensation and earned income or net profits
paid by such taxpayer during the period covered by such return to
any other political subdivision of the Commonwealth of Pennsylvania;
together with such other pertinent information as may be required;
provided, however, that where a return is made for a fiscal year or
any other period different from a calendar year, such return shall
be made within 75 days after the close of such fiscal year or other
period; and provided, further, that in any case where the sole income
of any person subject to tax under this Part is in the form of earned
income paid by an employer and where the entire tax due by such employee
has been deducted by his employer and return thereof made to the Collector
of Taxes, and such employee shall also be subject to a like tax imposed
by any other political subdivision within this Commonwealth, such
employee shall file a return with the collector of Taxes, who is hereby
authorized to refund to such employee any difference to which he shall
be entitled under the provisions of Section 14 of the Local Tax Enabling
Act (Act 511 of 1965), 53 P.S. § 6914, as amended.
[Ord. 257, 11/12/2007]
1.
Every employer having an office, factory, workshop, branch, warehouse,
or other place of business within the Township who employs one or
more persons, other than domestic servants, for a salary, wage, commission
or other compensation shall register with the officer, deduct the
tax imposed by this Part on the earned income of his employee or employees
and make and file quarterly returns and final returns and pay quarterly
to the officer the amount of taxes deducted, all as provided in Section
6913, Subdivision IV, of the Local Tax Enabling Act.
2.
Such return shall be on a form prescribed by the Collector of Taxes,
procured at the expense of the Township of Jefferson and obtainable
from the Collector of Taxes.
3.
Said return shall set forth the name and residence of each employee
subject to this tax employed during all or part of the preceding quarterly
period of the year, the total amount of such compensation, etc., earned
by each employee during the preceding quarterly period of the year
and any other pertinent information that may be required; provided,
however, that the failure or omission by the employer, either residing
within or without the Township of Jefferson, to deduct such taxes
and to make such return to the Collector of Taxes, or such other person
as the Board of Supervisors of Jefferson Township may designate, shall
not relieve an employee from the payment of such tax and from compliance
with such regulations, with respect to making returns and payment
thereof, as may be established under this Part.
4.
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 Collector of Taxes quarterly returns and shall pay quarter-annually
the amount of tax shown as due on such returns, all as provided in
Section 13, Subdivision IIIB(2), of the Local Tax Enabling Act (Act
511 of 1965), 53 P.S. § 6913, as amended.
[Ord. 257, 11/12/2007]
1.
The Collector of Taxes is hereby authorized to examine the books,
papers and records of any employer or supposed employer or of any
taxpayer or supposed taxpayer in order to verify the accuracy of any
return made or, if no return is made, to ascertain the amount of tax
due by a person under this Part. Every such employer or supposed employer
or taxpayer or supposed taxpayer is hereby directed and required to
give the Collector of Taxes facilities and opportunity for such examination
and investigations as are hereby authorized.
A.
The Collector of Taxes is hereby authorized to examine any person
under oath concerning any such compensation, etc., which was or should
have been returned for taxation and, to this end, may compel the production
of books, papers and records and the attendance of all persons before
such Collector of Taxes, whether as parties or witnesses, who the
Collector of Taxes believes to have knowledge of such salaries, wages,
commissions or earned income or net profits earned.
2.
Any information gained by the Collector of Taxes or any other employee,
agent or official of the Township of Jefferson, Butler County, Pennsylvania,
as a result of any returns, investigations, hearings or verifications
or any other proceedings, manner or means connected with the operation
of this Part shall be confidential, except for official purposes and
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 Part, and
any such person divulging such information, whether or not at the
time of such divulgence holding any official capacity or office or
being an employee or agent or in any other manner connected with the
operation of this Part, shall, upon conviction, be fined not more
than $2,500 and costs for each offense or be imprisoned for a period
not exceeding one year, or both.
[Ord. 257, 11/12/2007]
The earned Income Tax Officer shall be selected from time to
time by resolution of and shall receive such compensation for his
services and expenses as determined from time to time by the Township.
Such officer shall have the powers and duties and shall be subject
to the penalties as provided in Section 6913, Subdivisions V, VI and
VII, of the Local Tax Enabling Act.
[Ord. 257, 11/12/2007]
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 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.
All taxes imposed by this Part, together with all interest and penalties,
shall be recoverable by the Township or the appointed Collector of
Taxes as other debts are recovered.
[Ord. 257, 11/12/2007]
1.
Any person who fails, neglects or refuses to make any declaration
or return required by this Part, any employer who fails, neglects
or refuses to register or to pay the tax deducted from his employee
or fails, neglects or refuses to deduct or withhold the tax from his
employees, any person who refuses to permit the officer or any agent
designated by him to examine the 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 Part
shall, upon conviction thereof before any District Judge 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 said fine and costs, to be imprisoned for a period not
exceeding 30 days.
2.
Any person who divulges any information which is confidential under
the provisions of this Part shall, upon conviction thereof before
any District Judge 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 said fine and costs, to be
imprisoned for a period not exceeding 30 days.
3.
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other Section of this Part.
4.
The failure of any person to receive or procure forms required for
making the declaration or returns required by this Part shall not
excuse him from making such declaration or return.
[Ord. 257, 11/12/2007]
1.
The tax shall not apply to any subject of tax or person not within
the taxing power of the Township under the Constitution of the United
States and the laws and Constitution of the Commonwealth of Pennsylvania.
2.
If a final decision of a court of competent jurisdiction holds any
provision of this chapter and Part or the application of any provision
to any circumstances to be illegal or unconstitutional, the other
provisions of this chapter and Part, or the application of such provision
to other circumstances, shall remain in full force and effect. The
intention of Council is that the provisions of this chapter and Part
shall be severable and that this chapter and Part would have been
adopted if any such illegal or unconstitutional provision had not
been included.
3.
This Part shall continue in effect on a calendar-year basis without
annual reenactment.
