[Adopted 11-5-1973 by Ord. No. 419 (Ch. 90, Part 3, Art. V, of the 1972 Code)]
Unless otherwise expressly stated, the following words and phrases shall be construed throughout this article to have the meanings indicated in this section:
A. 
Word usage. The singular shall include the plural, and the masculine gender shall include the feminine and neuter.
B. 
Words defined.
ASSOCIATION
A partnership, limited partnership or any other group of two or more persons.
BOROUGH
The Borough of Souderton.
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. An 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 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 workmen's compensation acts, occupational disease acts and similar legislation, or payments commonly recognized as old age benefits, retirement pay or pension 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.
EARNED INCOME TAX COLLECTOR OR OFFICER
Person, public employee or private agency designated by the Borough Council of the Borough of Souderton to collect and administer the tax on earned income and net profits.
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.
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 of the Borough of Souderton.
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 Borough of Souderton.
SUCCEEDING YEAR
The calendar year following this 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.
A tax for general Borough revenue purposes of 1% is hereby imposed on the following:
A. 
Salaries, wages, commissions and other compensation earned on and after January 1, 1974, by residents of the Borough of Souderton and nonresidents of the Borough within the confines of the Borough.
B. 
Net profits, earned on and after August 1, 1974, of businesses, professions and other activities conducted by residents of the Borough of Souderton and by nonresidents of the Borough within the confines of the Borough.
C. 
The tax levied under this article shall be applicable to earned income received and to net profits earned by residents of the Borough and by nonresidents of the Borough within the confines of the Borough, for the period commencing January 1 of the current year and ending December 31, or for the taxpayer's fiscal year beginning in the current year, and the tax shall continue in force on a calendar-year basis or taxpayer fiscal-year basis without annual reenactment unless the rate of the tax is subsequently changed. The Borough may, by ordinance, change the rate. Such change shall become effective on the date specified in that ordinance.
A. 
Net profits.
(1) 
Beginning with the calendar year January 1, 1974, every taxpayer who makes any net profits shall on or before April 15 of the then current year and each year thereafter make and file with the Tax Collector, on a form prescribed by the Tax Collector, a declaration of his estimated net profits during the period beginning January 1 and ending December 31 of the then current year. The taxpayer shall pay to the Tax Collector the total amount determined to be due under the estimate in four equal payments as follows:
(a) 
The first payment on or before April 15 with declaration.
(b) 
The second payment on or before June 15.
(c) 
The third payment on or before September 15.
(d) 
The final payment on or before January 15 of the succeeding year.
(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 June 15, September 15 and December 31 of the then current year, whichever of these dates next follows the date on which the taxpayer first anticipates such net profits. The taxpayer shall pay to the Tax Collector in equal installments the amount of tax due thereon on or before the quarterly payment dates which remain after the filing of his first declaration.
(3) 
On or before April 15 of the succeeding year, every taxpayer shall make and file with the Tax Collector, on a form prescribed or approved by the Tax Collector, 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 Borough shall provide by resolution regulations 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 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.
B. 
Earned income.
(1) 
Annual earned income tax return. Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Earned Income Tax Collector a final return on a form prescribed, prepared and supplied by the Earned Income Tax Collector, showing the total 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.
(2) 
Earned income not subject to withholding. Every taxpayer who is employed for salary, wage, commission or other compensation who received any earned income not subject to the provisions of this article relating to collection at the source shall make and file with the Earned Income Tax Collector, on a form prepared, supplied and prescribed by the Earned Income Tax Collector, 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 Earned Income Tax Collector shall require. Every taxpayer who makes such a return shall at the filing of the return with the Earned Income Tax Collector pay to the Collector 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 Borough, 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.
B. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business or employment within the Borough, 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 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 Earned Income Tax Collector 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 30 of the current year, respectively. Such return, unless otherwise agreed upon between the Earned Income Tax Collector and employer, shall show the name and social security number, or identification number supplied by the Tax Collector, of each such employee, the earned income of such employee during the preceding three-month period, the tax deducted therefrom, the political subdivision imposing such tax, the total earned income of all such employees during the preceding three-month period and the total tax deducted therefrom and paid with the return.
C. 
Monthly reporting. 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 Borough of Souderton, may be required by the Earned Income Tax Collector to file his return and pay the tax monthly. In such cases, payments of tax shall be made to the Earned Income Tax Collector on or before the last day of the month succeeding the month for which the tax was withheld.
D. 
On or before February 28 of the succeeding year, every employer shall file with the Earned Income Tax Collector:
(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 Earned Income Tax Collector 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, social security number or identification number supplied by the Tax Collector, 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 Earned Income Tax Collector. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.
E. 
Every employer who discontinues business for any reason 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.
F. 
Every employer who willfully or negligently fails to make or omits the deductions required by this section shall be liable for the payments of the taxes which he was required to withhold to the extent that such taxes have not been recovered from the employee.
G. 
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 for the filing of declarations and returns.
A. 
The office of Earned Income Tax Collector is hereby created by this article, and the Borough Council shall from time to time by separate resolution appoint a person or company to administer the provisions of this taxing article who will be designated the "Earned Income Tax Collector."
B. 
The Earned Income Tax Collector shall be bonded as the Borough Council may determine, said bond to cover all moneys coming into his hands on behalf of the Borough. Before entering upon his official duties, the Earned Income Tax Collector shall give and acknowledge the bond to the taxing district appointing him. Said bond shall be in compliance with Act 511[1] in all respects and subject to the approval of the taxing district solicitor.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
C. 
The Earned Income Tax Collector shall collect and receive all such taxes, shall furnish a receipt for payment when requested to do so by a taxpayer and shall keep a record showing the amount received by him for each taxpayer under this article, together with the date of the receipt of such payment.
D. 
The Earned Income Tax Collector is hereby empowered to prescribe rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this article, subject, however, to the approval of the Borough Council of the Borough of Souderton. Such rules and regulations shall be inscribed by the Earned Income Tax Collector into a book kept for that purpose and open to the inspection of the public, and thereupon shall have the same force and effect as if it had been incorporated into this article.
E. 
The Earned Income Tax Collector is hereby authorized to examine any of the books, papers and records of any employer, supposed employer, 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 any person under this article. Every such employer, supposed employer, taxpayer or supposed taxpayer shall give to the Earned Income Tax Collector or such other authorized person the means, facilities and opportunities for such examination and investigations hereby authorized.
F. 
The Earned Income Tax Collector is authorized to examine any person under oath concerning any income which was or should have been returned for taxation, and shall have the power and is hereby authorized to issue subpoenas to compel the attendance of persons whom he deems necessary to examine as witnesses, and to compel the production of books, records and papers relating to any account being examined.
G. 
The Earned Income Tax Collector or any other official or agent so designated by the Borough Council shall have the power to reexamine returns, correct erroneous returns, consent to make refunds and authorize the refunding of taxes erroneously or improperly collected from, or paid by, the taxpayers for any period of time not to exceed six years subsequent to the date of payment of the sum involved.
H. 
Any information gained by the Earned Income Tax Collector or any other official or agent of the Borough as a result of any return, investigation, hearing or examination required or authorized by this article shall become confidential, except for official purposes, or 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 section, shall constitute a violation of this article.
I. 
Any person who, except as permitted by the provisions of the foregoing Subsection G of this article, divulges any information which is confidential under the provisions of this article shall, upon conviction thereof before any Magisterial District Judge or court of competent jurisdiction, be sentenced to pay a fine of not more than $500 for each offense, and costs, or suffer imprisonment for a period of 30 days, or both.
A. 
The Earned Income Tax Collector may sue in the name of the Borough of Souderton for the recovery of taxes due and unpaid under this article.
B. 
Any suit brought to recover the taxes 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:
(1) 
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.
(2) 
Where an examination of the declaration or return filed by any person, or 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 there is no fraud, suit shall be begun within six years.
(4) 
Where any person has deducted taxes under the provisions of this article, and has failed to pay the amount so deducted to the officer, or where any person has willfully failed to make or omitted the deductions required by this article, there shall be no limitation.
(5) 
This article shall not be construed to limit the Borough of Souderton from recovering the delinquent taxes by any other means provided in the Local Tax Enabling Act.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
C. 
The officer may sue for recovery of an erroneous refund, provided such suit is begun 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 or to withhold the tax 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 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 Magisterial District Judge or court of competent jurisdiction in the county in which the political subdivision imposing the tax is located, be sentenced to pay a fine of not more than $500 for each offense, and costs, or imprisonment for a period not exceeding 30 days, or both.
B. 
The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this article.
C. 
The failure of any person to receive or procure forms required for making the declarations or returns required by this article shall not excuse him from making such declarations or returns.
This article shall not apply to personal property or persons to whom or which is beyond the legal power of the Borough to impose the tax herein provided nor to the net profits of any institution, organization, trust, association or foundation operated for public, religious, educational or charitable purposes, provided that this section shall not operate to relieve or exempt any such entity from collection at source of earned income of its employees and remittance of such collections to the officer.
This article shall become effective the first day of January 1974, for the period January 1, 1974, to December 31, 1974, and for all calendar years thereafter.