[Adopted 12-5-1966 by Ord. No. 532]
This article is enacted under the authority of the Act of December 31, 1965, No. 511, known and cited as the "Local Tax Enabling Act."[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
A. 
Unless otherwise expressly stated, the following terms shall have, for the purposes of this article, the meanings indicated in this section:
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 workman'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 employment compensation payments made by any governmental agency or payments to reimburse expenses or payments made by employers or labor unions for wages 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 agency or any other entity, employing one or more persons for a salary, wages, commission or other compensation.
INCOME TAX OFFICER or OFFICER
Person, public employee or private agency designed by Borough Council 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 districts.
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, the Borough of North East.
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 to pay a tax thereon.
B. 
The singular shall include the plural and the masculine shall include the feminine and the neuter.
A. 
An annual tax for general revenue purpose not exceeding 1% for the taxable year beginning January 1, 1967, and ending December 31, 1967, and for each and every taxable year thereafter is hereby imposed on:
(1) 
Earned income, salaries, wages, commissions and other compensation earned on and after January 1, 1967, and for each and every taxable year thereafter by residents of the Borough of North East.
(2) 
Earned income, salaries, wages, commissions and other compensation earned on and after January 1, 1967, and for each and every taxable year thereafter by nonresidents of the Borough of North East for work done or services performed or rendered in North East Borough.
(3) 
The net profits earned on and after January 1, 1967, and each and every taxable year thereafter of businesses, professions and other activities conducted by such residents.
(4) 
The net profits earned on and after January 1, 1967, of businesses, professions or other activities conducted by nonresidents of the Borough of North East for services performed or rendered in North East Borough and every taxable year thereafter.
B. 
The taxes levied under Subsection A(1) and (2) of this section shall relate to and be levied, assessed and imposed upon earned income, salaries, wages, commissions and other compensation paid by an employer or on his behalf to any person who is employed by or renders services to him. The taxes levied under Subsection A(3) and (4) of this section shall relate to and be levied, assessed and imposed on the net profits of any business, profession or enterprise carried on by any person, owner or proprietor, either individually or in association with some other person or persons.
C. 
The taxes levied under Subsection A(1) and (2) of this section and Subsection A(3) and (4) of this section shall not relate to and shall not be levied, assessed, imposed and collected on goods and articles manufactured in the Borough of North East or on the by-products of manufacture or on minerals, timber, natural resources and farm products produced in the Borough or on the preparation or processing thereof for use or market or on any privilege, act or transaction related to the business of manufacturing, the production, preparation or processing of minerals, timber and natural resources or farm products, by manufacturers, by producers and by farmers with respect to the goods, articles and products of their own manufacture, production or growth or on any privilege, act or transaction relating to the business of processing by-products of manufacture or on the transportation, loading, unloading or dumping or storage of such goods, articles, products or by-products, except that the taxes levied under Subsection A(1) through (4) of this section are hereby and shall be levied, assessed imposed and collected on the earned income or net profits of natural persons engaged in the above activities whether doing business as individual proprietorship or as members of partnerships or other associations.
D. 
Said tax shall first be levied, collected and paid with respect to the earned income, salaries, wages, commissions and other compensation earned on and after January 1, 1967, and for each and every taxable year thereafter, and with respect to the net profits of businesses, professions and other activities earned on and after January 1, 1967, and for each and every taxable year thereafter.
A. 
Each person whose earnings, earned income or net profits are subject to the tax levied, assessed and imposed by this article shall, on or before March 15 of each year, make and file with the Income Tax Officer a return on a form furnished by or obtainable from the Income Tax Officer, setting forth the aggregate amount of earned income, salaries, wages, commissions and other compensation or net profits earned by him during the preceding year, and subject to said tax, together with such other pertinent information as the Income Tax Officer may require; provided, however, that where the return is made for a fiscal year or any other period different from a calendar year, the said return shall be made within 75 days from the end of said fiscal year or other period.
B. 
Such period shall also show the amount of the tax levied, assessed and imposed by this article on such earned income and net profits. The person making said return shall at the time of filing thereof, pay the said Income Tax Officer the amount of tax shown as due thereon; provided, however, that the taxpayer shall have the right to make an estimate on or before March 15 of the year during which the taxes accrue and to pay said taxes quarterly during said year on the basis of the estimate which he has made. All taxes shown to be due and unpaid by the final return shall be paid at the time of filing the return. And, further provided, that where the return is made for a fiscal year or any other period different from a calendar year, the said estimate shall be made within 75 days from the beginning of said fiscal year or other period; provided, further, that where any portion of the tax so due shall have been deducted at source and shall have been paid to the Income Tax Officer by the person making said deduction, credit for the amount so paid shall be deducted from the amount shown to be due and only the balance if any, shall be due and payable at the time of filing of said return or as hereinabove provided. Provided, further, that the Income Tax Officer is authorized to provide by regulation that the return of an employer or employers, showing the amount of tax deducted by him or them from the earned income, salary, wages or commissions of an employee and paid by him to them to the Income Tax Officer, shall be accepted as the return required of any employee whose sole income subject to the tax under this article is such earned income, salary, wages or commissions.
Each employer within the Borough who employs one or more persons on a salary, wage, commission or other compensation basis, shall deduct, monthly or more often than monthly, at the time of the payment thereof, the tax of 1% of earned income, salaries, wages, commissions or other compensation due by the said employer to the said employee for services performed or rendered after January 1, 1967, and for each and every taxable year thereafter; and shall, on or before the fifteenth day of the month next following each period of three months during which said deductions have been made, make a return and pay to the Income Tax Officer the amount of tax so deducted. Said return shall be on a form or forms furnished by or obtainable from the Income Tax Officer and shall set forth the name and residence of each employee of said employee during all or any part of the preceding three-month period, the amounts of earned income, salaries, wages, commissions or other compensation earned during such preceding three month period by each of such employees, together with such other pertinent information as the Income Tax Officer may require. Upon proof being furnished by any taxpayer that a portion of his earned income, wages, salaries, commissions or other compensation has been retained by his employer for the purpose of being applied on tax provided for in this article, said taxpayer shall be given credit on the tax due from him for the amount so retained by his employer.
It shall be the duty of the Income Tax Officer to collect and receive the tax imposed by this article. It shall also be the duty of the Income Tax Officer, in addition to keeping the records now required by law or resolution or ordinance, to keep a record showing the amount received by him from such taxpayer and the date of such receipt.
[Amended 6-6-2005 by Ord. No. 830; at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
A. 
The Income Tax Officer is hereby charged with the enforcement of the provisions of this article and is hereby empowered, subject to the approval of the Borough Council to adopt, promulgate and enforce rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this article, including provisions for the re-examination and correction of returns and payments alleged or found to be incorrect or as to which an overpayment or underpayment is claimed or found to have occurred.
B. 
The Income Tax Officer or any agent or employee authorized in writing by him 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 was made, to ascertain the tax imposed by this article. Every such employer or supposed employer or taxpayer or supposed taxpayer is hereby directed and required to give to the said Income Tax Officer or his duly authorized agent or employee, the means, facilities and opportunity for such examination and investigations as are hereby authorized. The Income Tax Officer is hereby authorized to examine any person under oath concerning any income 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 him, whether as parties or witnesses, whom he believes to have knowledge of such earned income or net profits.
C. 
Any information gained by the Income Tax Officer or any other official or agent of the Borough as a result of any returns, investigations, hearings or verifications required or authorized by this article, shall be confidential, except for official purposes and except in accordance with proper judicial order, or as otherwise provided by law, and any person or agent divulging such information shall be subject to a fine or penalty of $500 and costs for each offense or to undergo imprisonment for not more than 30 days for the nonpayment of such fine or penalty and costs.
D. 
The Earned Income Tax Collector, or his agent, is hereby authorized without further resolution of Borough Council to: periodically solicit from the owners and/or occupiers of real estate within the Borough of the names, addresses, and occupation, and places of employment or business of persons occupying said real estate as a residence or domicile; review municipal utility records to determine the names and addresses of persons occupying real estate for business or residential purposes within the Borough.
It shall be the duty of the Borough Council to appoint an Income Tax Officer and such deputies, officers, clerks, collectors or other assistants and employees as it may deem necessary for the assessment and collection of taxes imposed by this article, to fix the rate of compensation for the same and to secure whatever supplies and equipment are necessary for the assessment and collection of said taxes.
[Amended 4-3-2017 by Ord. No. 894]
All taxes imposed by this article remaining unpaid after they become due shall bear interest at the rate of 6% per annum, and the person upon whom said taxes are imposed shall be further liable to a penalty of 10% of the amount of the unpaid tax.
All taxes imposed by this article, together with all interest and penalties, shall be recoverable by the Borough as other debts of like amount are recoverable. The Income Tax Officer shall have the right and is hereby empowered, to enforce payment of past due taxes levied and assessed in accordance with the terms of this article by any other method and means by which a local Tax Collector is empowered to enforce payment of taxes under the provisions of the Local Tax Collection Law approved May 25, 1945, P.L. 1050, as amended.[1]
[1]
Editor's Note: See 72 P.S. § 5511.1 et seq.
A. 
Any person who shall fail, neglect or refuse to make any return required by this article or any taxpayer who shall fail, neglect or refuse to pay the tax, penalties and interest imposed by this article or any person who shall refuse to permit the Income Tax Officer or any agent or employee appointed by him in writing to examine his books, records and papers or who shall knowingly make any incomplete, false or fraudulent return or who shall attempt to do anything whatsoever to avoid the full disclosure of the amount of earnings or profits to avoid payment of the whole or any part of the tax, shall be subject to a fine or penalty of not less than $25 nor more than $500 for the use of the Borough and costs, for each such offense or to undergo imprisonment for not more than 30 days for the nonpayment of such fine or penalty and costs, within 10 days from the imposition thereof.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
B. 
Such fine or penalty shall be in addition to any other penalty imposed, levied and assessed by any other section of this article.
C. 
The failure of any employer or any taxpayer to receive or procure a return form shall not excuse him from making a return.
A. 
The annual tax for general revenue Borough purposes on:
(1) 
Earned income, salaries, wages, commissions and other compensation earned during the year beginning January 1, 1967, and ending December 31, 1967, and for each and every taxable year thereafter, by residents of the Borough.
(2) 
Earned income, salaries, wages, commissions and other compensation earned on and after January 1, 1967, and each and every taxable year thereafter by nonresidents of the Borough for work done or services performed or rendered in North East Borough.
(3) 
The net profits earned on and after January 1, 1967, and each and every taxable year thereafter of businesses, professions and other activities conducted by such residents.
(4) 
The net profits earned on and after January 1, 1967, of businesses, professions or other activities conducted by nonresidents of the Borough for services performed or rendered in the Borough and for each and every taxable year thereafter.
Is fixed at 1%. This rate is to be reviewed each year by the Borough Council and fixed in accordance with the budget requirements for the ensuing taxable year.
A certified copy of this article or a certificate with respect thereto, shall be filed with the Bureau of Municipal Affairs of the Department of Internal Affairs, Harrisburg, Pennsylvania within 15 days after the effective date of this article.
This article shall not apply to any person or property as to whom or which it is beyond the legal power of the Borough to levy, assess and impose the tax or duties herein.
The Local Tax Enabling Act of 1965, known and cited as the "Local Tax Enabling Act, Act No. 511 of 1965," to which reference may be had as if fully incorporated herein, is hereby incorporated herein insofar as said Act controls taxes levied, assessed and collected on earned income or net profits as therein set forth.