[Adopted 11-30-2010 by Ord. No. 1347]
The following words and terms when used in this article shall
have the meanings as defined herein:
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 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 country 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 voluntarily 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. 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.
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), not including, however, wages or compensation paid to individuals on active military service. 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.
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.
Person, public employee or private agency designated by governing
body to collect and administer the tax on earned income and net profits.
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:
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; and
Any gain on the sale of other capital assets of the farm.
A person, partnership, association or other entity domiciled
outside the taxing district.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the taxing district.
The calendar year following the current year.
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.
A.
A tax for general revenue purposes in the amount of 1% is hereby
imposed, effective January 1, 2011, and continuing on a calendar-year
basis thereafter, on the following:
(1)
Earned income earned by residents of the Borough of Sharon Hill.
(2)
Earned income earned by nonresidents of the Borough of Sharon Hill
for work done or services performed or rendered within the limits
of the Borough of Sharon Hill.
(3)
Net profits earned by corporations and associations that are residents
of the Borough of Sharon Hill.
(4)
Net profits earned by nonresident corporations and associations for
work done, services performed or rendered, or business conducted within
the limits of the Borough of Sharon Hill.
B.
The tax levied under this article shall be applicable to earned income
received and to net profits earned in the period beginning January
1, 2011 and ending December 31, 2011, and the tax shall continue in
force on a calendar-year or taxpayer-fiscal-year basis, without annual
reenactment, unless the rate of the tax is subsequently changed.
A.
Net profits.
(1)
Payment of tax; filing declarations and returns.
(a)
On or before April 15 of the current year, every taxpayer making
net profits shall make and file with the Income Tax Officer, on a
form prescribed or approved by the Borough or the Income Tax Officer,
a declaration of the taxpayer's estimated net profits during
the period beginning January 1, of the current year and ending December
31 of the current year and pay to the Income Tax 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 June 15, September 15 and January 15 of the current year,
respectively.
(b)
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 June 15, September 15 or December 31 of the
current year, whichever of these dates next follows the date on which
the taxpayer first anticipates such net profit, and pay to the Income
Tax Officer in equal installments the tax due thereon on or before
the quarterly payment dates which remain after the filing of the declaration.
(c)
Any taxpayer may, in lieu of paying the fourth quarterly installment
of the taxpayer's estimated tax, elect to make and file with
the Income Tax Officer on or before January 31 of the succeeding year,
the final return as hereinabove required.
(d)
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 Borough or 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 Income Tax Officer the balance of tax due or shall make
demand for refund or credit in the case of overpayment.
(2)
Regulations by Income Tax Officer. The Income Tax Officer is authorized
to provide by regulation for the making and filing of adjusted declarations
of estimated net profits and for the payment 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.
(3)
Discontinuance of business. 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.
B.
Earned income.
(1)
Annual earned income tax return.
(a)
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 Borough or 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.
(b)
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.
(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 hereunder relating
to collection at source shall make and file with the Income Tax Officer,
on a form prescribed or approved by the Borough or the Income Tax
Officer, a quarterly return on or before April 15 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 Borough or the Income Tax Officer may require. 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.
Registration. Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the Borough of
Sharon Hill that 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 Income Tax Officer the employer's
name and address and all such other information as the Borough or
the Income Tax Officer may require.
B.
Employer to withhold and remit.
(1)
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the Borough of Sharon Hill that
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 the employer's 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 Borough or
the Income Tax Officer and employer shall show the name, address 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 subdivision 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 the employer's
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.
Succeeding years. On or before February 28 of the succeeding year,
every employer shall file with the Income Tax Officer:
(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 Income Tax Officer 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 and social security number, the amount of earned income
paid to the employee during said period, the amount of tax deducted,
the political subdivision imposing the tax upon such employee, and
the amount of tax paid to the Income Tax Officer. Every employer shall
furnish two copies of the individual return to the employee for whom
it is filed.
D.
Discontinuance of business. 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.
Willful or negligent failure to omit deductions. Every employer who
willingly or negligently fails or omits to make the deductions required
by this article shall be liable for payment of the taxes which it
was required to withhold to the extent that such taxes have not been
recovered from the employee.
F.
Failure or omission by employer; employee not relieved. The failure
or omission of any employer to make the deductions required by this
article shall not relieve any employee from the payment of the tax
or from complying with the requirements of this article.
A.
In general. It shall be the duty of the Income Tax Officer to receive
the taxes, fines and penalties imposed by this article. It shall also
be the duty of the Income Tax Officer to keep a record showing the
amount received from each person paying the tax and, if paid by an
employer for a person, the name of such person for whom the tax is
paid and the date of such receipt.
B.
Specific powers and duties.
(1)
The Income Tax Officer is hereby charged with the collection of the tax and payment over to the Borough of Sharon Hill as well as the administration and enforcement of the provisions of this article dealing with the declaration and payment of tax as set forth in § 332-47 and of the collection at source as set forth in § 332-48 of this article.
(2)
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, subject to
the approval of the Council of the Borough of Sharon Hill, 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 have occurred and for
reasonable extension of time, upon proper cause shown, for filing
declarations or returns, and to prescribe the forms necessary for
the administration of this article. Nothing herein is intended to
prevent the Council of the Borough of Sharon Hill from itself promulgating
such rules and regulations.
(3)
The Income Tax Officer and its employees and agents as may be designated
in writing are hereby authorized to examine the books, papers and
records of any taxpayer in order to verify the accuracy of any declaration
or return or, if no declaration or return is filed, to ascertain the
tax due. Every employer, every person and every taxpayer is hereby
directed and required to give to the Income Tax Officer or to any
agent so designated by him the opportunity for examination and investigations
as are hereby authorized.
(4)
Any information gained by the Income Tax Officer, its employees,
agents or by any other official or agent of the taxing district as
a result of any declarations, returns, investigations, hearings or
verifications required or authorized by this article shall be confidential,
except for official purposes and except in accordance with a proper
judicial order, or as otherwise provided by law.
(5)
The Income Tax 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.
(6)
The Income Tax Officer is authorized to establish different filing,
reporting and payment dates for taxpayers whose fiscal years do not
coincide with the calendar year, subject to approval by the Borough
of Sharon Hill.
C.
Bond required.
(1)
Before entering upon its official duties, the Income Tax Officer
shall give and acknowledge a bond to the Borough of Sharon Hill, which
shall include all of the requirements and conditions set forth in
this section.
(2)
The Income Tax Officer's bond shall be joint and several with
one or more corporate sureties that shall be surety companies authorized
to do business in the Commonwealth of Pennsylvania and that are duly
licensed by the Insurance Commissioner of the Commonwealth of Pennsylvania.
(3)
The Income Tax Officer's bond shall be conditioned upon the
faithful discharge by the Income Tax Officer, its employees, agents,
clerks, assistants and appointees of all trusts confided in the Income
Tax Officer by virtue of its office, upon the faithful execution of
all duties required of the Income Tax Officer by virtue of its office,
upon the just and faithful accounting or payment over, according to
law, of all moneys and all balances thereof paid to, received or held
by the Income Tax Officer by virtue of its office and upon the delivery
to its successor or successors in office of all books, papers, documents
or other official things held in right of its office.
(4)
The Income Tax Officer's bond shall be taken in the name of
the Borough of Sharon Hill and shall be for the use of the Borough
of Sharon Hill and for the use of all such other 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 on the bond.
(5)
The Borough of Sharon Hill, or any person, may sue upon the said
bond in its or his own name for its or his own use.
(6)
The Income Tax Officer's bond shall contain the name or names
of the surety company or companies bound thereon. The Borough of Sharon
Hill shall, by resolution, 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 Borough of Sharon Hill may, at any time, upon cause shown and
due notice to the Income Tax Officer and its surety or sureties, require
or allow the substitution or the addition of a surety company acceptable
to the Borough of Sharon Hill 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 Borough of Sharon Hill shall designate the custodian of the bond
required to be given by the Income Tax Officer.
The Council of the Borough of Sharon Hill shall, by resolution,
fix the compensation for the Income Tax Officer.
A.
Suit by Income Tax Officer. The Income Tax Officer may sue in the
name of the taxing district for the recovery of taxes due and unpaid
under this article.
B.
Interest and penalties.
(1)
In any suit brought or maintained by the Income Tax Officer for the
recovery of taxes due and unpaid under this article, the Income Tax
Officer shall also seek recovery of any and all interests, penalties
and costs of collection.
(2)
The Income Tax Officer may not waive or otherwise excuse interest,
penalties and/or costs of collection, either in whole or in part,
without the prior consent and approval of the Borough of Sharon Hill.
(3)
In the event that interest, penalties or costs of collection are
waived, either in whole or in part, the entire principal amount of
the taxes due shall be paid to the Borough.
A.
Violation of article. Any taxpayer who fails, neglects or refuses to make any declaration or return required by this article, any employer who fails, neglects or refuses to register, keep or supply records or returns required by § 332-48 or to pay the income tax deducted from employees, or fails, neglects or refuses to deduct or withhold the income tax from employees, any taxpayer or employer who refuses to permit the tax officer appointed by a tax collection committee or an employee or agent of the tax officer to examine books, records and papers, and any taxpayer or employer who knowingly makes any incomplete, false or fraudulent return, or attempts to do anything whatsoever to avoid the full disclosure of the amount of income in order to avoid the payment of income taxes shall, upon conviction thereof, be sentenced to pay a fine of not more than $2,500 for each offense and reasonable costs, and in default of payment of said fine and costs, to imprisonment for not more than six months.[1]
B.
Divulgence of confidential information. 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
in the County of Delaware, 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.
Cumulative penalties. The penalties imposed under this section shall
be in addition to any other penalty imposed by any other section of
this article.
D.
Failure to receive forms not a defense. 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 become effective on January 1, 2011, and
shall remain in full force and effect for the calendar year 2011.
Thereafter, this article shall remain in full force and effect on
a calendar-year basis without annual reenactment until the specific
repeal of this article by the Council of the Borough of Sharon Hill,
and the tax imposed thereafter shall be upon the taxable subjects
of this article for the entire taxable year.
