Municipality of Bethel Park, PA Article III Income Tax

[Adopted 12-11-1978 by Ord. No. 12-11-78A; amended in its entirety 11-8-1999 by Ord. No. 11-8-99A[1]]

[1] Editor's Note: This ordinance also provided that its provisions be effective retroactive to 1-1-1999.

62.28 Legislative intent.

62.28.1. The preambles set forth above are incorporated in the body of this ordinance by this reference as an expression of the legislative intent in the consideration and enactment thereof. It is also Council's intent that the tax levied hereby will be collected and administered in the same manner, under the same procedures, at the same time and by the same municipal employees and/or private agency as the tax presently imposed pursuant to Ordinance No. 12-11-78A, as amended and reenacted.

62.29 Definitions.

62.29.1. The following words and phrases, when used in this ordinance, shall have the meaning ascribed to them in this section, except where the context clearly indicates or requires a different meaning:

62.29.2. ASSOCIATION — A partnership, limited partnership or any other unincorporated group of two or more persons.

62.29.3. 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.

62.29.4. 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.

62.29.5. CURRENT YEAR — The calendar year for which the tax is levied.

62.29.6. 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 a domicile, for a domicile is the fixed place of abode which, in the intention of the taxpayer, is permanent rather than transitory. A domicile is the place in which a person has voluntarily fixed the habitation of such person's 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 such person 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.

62.29.7. EARNED INCOME — Compensation as determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Pt. I, Subpt. B, Art. 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.

[Amended 5-12-2003 by Ord. No. 5-12-03A]

62.29.8. EMPLOYEE — Any natural person domiciled in the Municipality of Bethel Park or employed therein upon whose earned income, as above defined, a tax is imposed by this ordinance.

62.29.9. 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.

62.29.10. INCOME TAX OFFICER or OFFICER — The person, public employee or private agency designated by the Municipality of Bethel Park to collect and administer the tax on earned income and net profits; the Finance Officer of the Municipality, or the Municipal Manager's designee.

62.29.11. NET PROFIT — 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," and regulations in 61 Pa. Code Pt. I Subpt. B, Art. 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:

[Amended 5-12-2003 by Ord. No. 5-12-03A]

1. Any interest earnings generated from any monetary accounts or investment instruments of the farming business;

2. Any gain on the sale of farm machinery;

3. Any gain on the sale of livestock held 12 months or more for draft, breeding or dairy purposes; and

4. Any gain on the sale of other capital assets of the farm.

62.29.12. PERSON or INDIVIDUAL — A natural person.

62.29.13. PRECEDING YEAR — The calendar year before the current year.

62.29.14. RESIDENT — A person, partnership, association or other entity domiciled in the Municipality of Bethel Park.

62.29.15. SUCCEEDING YEAR — The calendar year following the current year.

62.29.16. 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.

62.29.17. NONRESIDENT — A person, partnership, association or other entity domiciled outside the Municipality of Bethel Park.

[Added 5-12-2003 by Ord. No. 5-12-03A]

62.30 Levy of tax; continuance without annual reenactment.

[Amended 11-10-2003 by Ord. No. 11-10-03B; 11-10-2008 by Ord. No. 11-10-08A; 11-13-2023 by Ord. No. 11-13-23B]

62.30.1. A tax for general revenue purposes of 1.0% is hereby imposed on:

1. Earned income received beginning January 1, 2024, and ending December 31, 2024, by residents of the Municipality of Bethel Park; and on

2. The net profits earned beginning January 1, 2024, and ending December 31, 2024, of businesses, professions or other activities conducted by residents of the Municipality of Bethel Park, regardless of where the same were earned.

62.30.2. The tax herein levied and imposed shall continue in force on a calendar-year basis following December 31, 2024, without annual reenactment until such time as the Council of the Municipality of Bethel Park shall change the rate of tax or by appropriate ordinance repeal such tax.

62.31 Declaration and payment.

62.31.1. Net profits.

1. Every taxpayer making net profits shall, on or before April 15 of the current year, make and file with 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 at the time of filing the declaration and the other installments on or before July 15 of the current year, and October 15 of the current year and January 15 of the succeeding year, respectively.

2. Any taxpayer who first anticipates any net profit after April 15 of the current year shall make and file the declaration hereinabove required on or before July 15 of the current year, October 15 of the current year or January 15 of the succeeding year, whichever of these dates next follows the date on which the taxpayer first anticipates such net profit, and pay to the Officer in equal installments the tax due thereon on or before the quarterly payment dates which remain after the filing of the declaration.

3. Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Officer on a form prescribed or approved by the 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 balance of tax due or shall make demand for refund or credit in the case of overpayment.

4. The Officer may 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. 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.

62.31.2. Earned income.

1. Annual earned income tax return. Every taxpayer shall, on or before April 15 of each year, make and file with the Officer, on a form prescribed or approved by the Officer, a final return showing the amount of earned income received during the period beginning January 1 and ending December 31 of the preceding 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 the tax due or shall make demand for refund or credit in the case of overpayment.

2. 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 returns shall, at the time of filing thereof, pay to the Officer the amount of tax shown as due thereon.

[Amended 8-11-2008 by Ord. No. 8-11-2008]

62.32 Collection at source.

62.32.1. Every employer having an office, factory, workshop, branch, warehouse or other place of business within the Municipality of Bethel Park, 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.

62.32.2. Quarterly returns.

1. Every employer having an office, factory, workshop, branch, warehouse or other place of business within the Municipality of Bethel Park, 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 ordinance on the earned income due to his employee or employees who are subject to the levy thereof, 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 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, the earned income of such employee during such preceding three-month period, the tax deducted therefrom, the political subdivisions imposing the tax upon such employee, the total earned income of all such employees during the preceding three-month period, and the total tax deducted therefor 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 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.

3. On or before February 15 of the succeeding year, every employer shall file with the 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 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 Officer. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.

62.32.3. 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.

62.32.4. Except as otherwise provided in Section 62.31 hereof, 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.

62.32.5. 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 ordinance relating to the filing of declarations and returns.

62.33 Powers and duties of Officer.

62.33.1. It shall be the duty of the Officer, who shall be the Finance Officer of the Municipality of Bethel Park or the Municipal Manager's designee, to collect and receive the taxes, fines and penalties imposed by this ordinance. 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.

62.33.2. Bond.

1. The Officer, before entering upon his official duties, shall give and acknowledge a bond to the Municipality of Bethel Park, unless it is waived by Council of the Municipality of Bethel Park. If the Council of the Municipality of Bethel Park shall, by resolution, designate any bond previously given by the Officer as adequate, such bond shall be sufficient to satisfy the requirements of this subsection.

2. 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 Commissioner of this commonwealth.

3. Such bond shall be conditioned upon the faithful discharge by 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 by virtue of his office, upon the just and faithful accounting or payment over, according to law, of any moneys and all balances thereof paid to, received or held by him by virtue of his office and upon the delivery to his successor or successors in office of all books, papers, documents or other official things held in right of his office.

4. Such bond shall be taken in the name of the Municipality of Bethel Park, and shall be for the use of such political subdivision and for the use of such other person or persons for whom money shall be collected or received, or as his or her interest shall otherwise appear, in case of a breach of any of the conditions thereof by the acts or neglect of the principal of the bond.

5. The Municipality of Bethel Park, or any person, may sue upon said bond in its or his own name for its or his own use.

6. Such bond shall contain the name or names of the surety company or companies bound thereon. The Municipality of Bethel Park shall fix the amount of the bond at an amount equal to the maximum amount of taxes which may be in the possession of the Officer at any given time.

7. The Municipality of Bethel Park may, at any time, upon cause shown and due notice to the Officer and his surety or sureties, require or allow the substitution or the addition of a surety company acceptable to the Municipality of Bethel Park for the purpose of making the bond sufficient in amount, without releasing the surety or sureties first approved from any accrued liability or previous action on such bond.

8. The Municipality of Bethel Park shall designate the custodian of the bond required to be given by the Officer.

9. The Officer charged with the administration and enforcement of the provisions of this ordinance is hereby empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of this ordinance, including provisions for the reexamination and correction of declarations and returns, and all payments alleged or found to be incorrect, or to which an overpayment is claimed or found to have occurred, and to make refunds in cases of overpayment where a claim is made within three years of the due date for filing an applicable declaration or return or one year after payment of the applicable tax, whichever is later, and to prescribe forms necessary for the administration of this ordinance. No rule or regulation of any kind shall be enforceable unless it has been approved by resolution of the Council of the Municipality of Bethel Park. A copy of such rules and regulations currently in force shall be available for public inspection.

10. With the prior approval of the Council of the Municipality of Bethel Park, 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.

62.33.3. 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.

62.33.4. Any information gained by the Officer, his agent or by any other official or agent of the taxing district, as the result of any declarations, returns, investigations, hearings or verifications required or authorized by this ordinance shall be confidential, except for official purposes and except in accordance with a proper judicial order, or as otherwise provided by law.

62.33.5. The Officer is authorized to establish different filing, reporting and payment dates for taxpayers whose fiscal years do not coincide with the calendar year.

62.33.6. The Officer shall, at least quarterly, distribute earned income taxes to Bethel Park. Bethel Park 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.

[Added 5-12-2003 by Ord. No. 5-12-03A]

62.34 Compensation of Officer.

62.34.1. The Income Tax Officer shall receive such compensation for his services and expenses as shall be determined by the Council of the Municipality of Bethel Park from time to time. In the case of a single collector established by the Council of the Municipality of Bethel Park and the Board of Directors of the School District of Bethel Park, such taxing jurisdictions shall share in the compensation and expenses of a single Officer according to the proportionate share that the total annual collection for all political subdivisions in a single collector district, except that with the agreement of 2/3 of all participating political subdivisions, a different manner of sharing may be substituted.

62.35 Suit for collection of taxes.

62.35.1. The Officer may sue in the name of the Municipality of Bethel Park for the recovery of taxes due and unpaid under this ordinance.

62.35.2. Any suit brought to recover the tax imposed by this ordinance 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 ordinance, 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 with six years.

4. Where any person has deducted taxes under the provisions of this ordinance 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 governing body from recovering delinquent taxes by any other means provided by law.

62.35.3. The Officer may sue for the 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.

62.36 Interest and penalties.

62.36.1. If for any reason the tax is not paid when due, interest at the rate of 6% per annum in 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.

62.37 Violations and penalties.

62.37.1. Any person who fails, neglects or refuses to make any declaration or return required by this ordinance; 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 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 amounts 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 ordinance, shall, upon conviction thereof before any Justice of the Peace or Magistrate or court of competent jurisdiction in Allegheny County, 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 in the Allegheny County Jail.

62.37.2. Any person who divulges any information which is confidential under the provisions of this ordinance shall, upon conviction thereof before any Justice of the Peace 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 fines and costs, to imprisonment for a period not exceeding 30 days in the Allegheny County Jail.

62.37.3. The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this ordinance or applicable law of the Commonwealth of Pennsylvania.

62.37.4. The failure of any person to receive or procure forms required for making the declaration or returns required by this ordinance shall not excuse him from making such declaration or return.

62.38 Administration and enforcement.

62.38.1. The Municipal Manager and Finance Officer of the Municipality of Bethel Park are charged with enforcement and collection of the taxes enacted under the article. Assessment, enforcement and collection procedures and any appeal therefrom shall be pursuant to rules and regulations as have been or will be adopted by Municipal Council, including such rules and regulations required to be adopted by Pennsylvania Act 50 of 1998.

62.39 Authority.

62.39.1. This ordinance and the tax imposed hereunder is adopted under and by virtue of the authority contained in the Act of the General Assembly of the Commonwealth of Pennsylvania numbered 62, approved the 13th day of April 1972, entitled the "Home Rule Charter and Optional Plans Law," its supplements and amendments, the provisions of which are hereby accepted and adopted by the Council of the Municipality of Bethel Park, and where the interpretation of terms or provisions of the ordinance are not in accord with or in compliance with the provisions of said Act of Assembly, the provisions of said Act of Assembly are intended to be ordained and enacted by this ordinance as fully as though incorporated, set forth and made part of this ordinance.

62.40 Severability.

62.40.1. The provisions of this ordinance are severable, and if any word, words, part, parts, provisions, section, sentence, clause or exception shall be illegal, invalid or unconstitutional, such illegality, invalidity or unconstitutionality shall not affect or impair any of the remaining words, parts, provisions, sections, clauses, sentences or exceptions of this ordinance. It is hereby declared to be the intent of the Council of the Municipality of Bethel Park that this ordinance would have been ordained and enacted if such illegal, invalid or unconstitutional part had not been included herein.

62.41 Effective date.

62.41.1. The provisions of this ordinance shall become effective January 1, 1999.

62.41A Repealer.

62.41A.1. Any ordinance or part of ordinance conflicting with the provisions of this ordinance be and the same is hereby repealed to the extent of such conflict.