[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.
ASSOCIATION
BOROUGH
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EARNED INCOME TAX COLLECTOR OR OFFICER
EMPLOYER
NET PROFITS
NONRESIDENT
PERSON or INDIVIDUAL
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
Words defined.
A partnership, limited partnership or any other group of
two or more persons.
The Borough of Souderton.
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.
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.
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.
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.
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.
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.
A person, partnership, association or other entity domiciled
outside of the Borough of Souderton.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Borough of Souderton.
The calendar year following this 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 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:
(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.
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.
