[Ord. 2011-06, 12/5/2011, § 1]
All terms defined in the Local Tax Enabling Act shall have the
meanings set forth therein. The following terms shall have the meanings
set forth herein:
Person, entity, or authorized representative of the tax officer,
appointed as tax officer pursuant to the Local Tax Enabling Act to
collect the tax.
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.
January 1, 2012.
This Part.
The Board of Supervisors.
The Local Tax Enabling Act, as set forth in 53 P.S. § 6901
et seq., while such numbering and provisions remain in effect under
Act 32 of 2008, and as set forth in 53 P.S. § 6924.101 et
seq., when such numbering and provisions become effective under Act
32, and as amended in the future.
A person or business domiciled outside the political subdivision
levying the tax.
A person domiciled in the political subdivision levying the
tax.
The tax imposed by this enactment.
A form prescribed by the collector for reporting the amount
of tax or other amount owed or required to be withheld, remitted,
or reported under this enactment or the Local Tax Enabling Act.
The period from January 1 to December 31.
Spring Township.
The tax collection committee established to govern and oversee
the collection of earned income tax within the TCD under the Local
Tax Enabling Act.
Any tax collection district to which the taxing authority
or any part of the taxing authority is assigned under the Local Tax
Enabling Act.
[Ord. 2011-06, 12/5/2011, § 2]
1.
General Purpose Resident Tax. The taxing authority hereby imposes
a tax for general revenue purposes at the rate of 0.5% on earned income
and net profits of individual residents of the taxing authority.
2.
General Purpose Municipal Nonresident Tax. The taxing authority also
imposes a tax for general revenue purposes at the rate of 0.5% on
earned income and net profits derived by an individual who is not
a resident of the taxing authority from any work, business, profession,
or activity, of any kind engaged in within the boundaries of the taxing
authority.
3.
Ongoing Tax. The tax shall continue at the above rates during the
current tax year and each tax year thereafter, without annual re-enactment,
until this enactment is repealed or the rate is changed.
4.
Combined Tax Rate Applicable to Residents. Currently, the total rate
applicable to residents of the taxing authority, including the tax
imposed by the school district and municipality in which the individual
resides, is 1.55%.
5.
Municipal Tax Rate Applicable to Nonresidents. Currently, the total
rate applicable to nonresidents working within the taxing authority
based on the municipal nonresident tax rate is 1.55%.
6.
Local Tax Enabling Act Applicable. The tax is imposed under authority
of the Local Tax Enabling Act, and all provisions thereof that relate
to a tax on earned income or net profits are incorporated into this
enactment. Any future amendments to the Local Tax Enabling Act that
are required to be applied to a tax on earned income or net profits
will automatically become part of this enactment upon the effective
date of such amendment, without the need for formal amendment of this
enactment, to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
7.
Applicable Laws, Regulations, Policies, and Procedures. The tax shall
be collected and administered in accordance with: (A) all applicable
laws and regulations; and (B) regulations, policies and procedures
adopted by the TCC or by the collector. This includes any regulations,
policies, and procedures adopted in the future to the maximum extent
allowed by 1 Pa.C.S.A. § 1937.
[Ord. 2011-06, 12/5/2011, § 3]
Although credits and deductions against tax are permitted under
certain circumstances as provided in applicable law and regulations,
no individuals are exempt from tax based on age, income, or other
factors.
[Ord. 2011-06, 12/5/2011, § 4]
Every individual receiving earned income or earning net profits
in any tax year shall file tax returns and pay tax in accordance with
the Local Tax Enabling Act. Individuals who are no longer employed
or whose tax is withheld in full must file an informational tax return
notifying the tax office that there is no payment due for the specific
tax year.
[Ord. 2011-06, 12/5/2011, § 5]
Every employer shall register, withhold, and remit tax, and
the tax returns in accordance with the Local Tax Enabling Act.
[Ord. 2011-06, 12/5/2011, § 6]
The tax will be collected from individuals and employers by
the collector.
[Ord. 2011-06, 12/5/2011, § 7]
Individual and employers are subject to interest, penalties,
costs, and fines in accordance with the Local Tax Enabling Act, including
costs imposed by the collector in accordance with the Local Tax Enabling
Act.
[Ord. 2011-06, 12/5/2011, § 9]
The primary purpose of this enactment is conform the earned
income and net profits tax currently imposed to the Local Tax Enabling
Act, as amended and restated by Act 32 of 2008, and to do so within
the time frame required by Act 32. Any prior enactment imposing a
tax on earned income or net profits of individuals is amended and
restated in its entirety to read as stated in this enactment. Any
other prior enactment or part of any prior enactment conflicting with
the provisions of this enactment is rescinded insofar as the conflict
exists. To the extent the same as any enactment in force immediately
prior to adoption of this enactment, the provisions of this enactment
are intended as a continuation of such prior enactment and not as
a new enactment. If this enactment is declared invalid, any prior
enactment levying a similar tax shall remain in full force and effect
and shall not be affected by adoption of the enactment. If any part
of this enactment is declared invalid, the similar part of any prior
enactment levying a similar tax shall remain in effect and shall not
be affected by adoption of the enactment. The provisions of this enactment
shall not affect any act done or liability incurred, nor shall such
provisions affect any suit or prosecution pending or to be initiated
to enforce any right or penalty or to punish offense under the authority
of any enactment in force prior to adoption of this enactment. Subject
to the foregoing provisions of this section, this enactment shall
amend and restate on the effective date any enactment levying a tax
on earned income or net profits in force immediately prior to the
effective date.
[Ord. 61-1980, 12/1/1980]
1.
All residents and employers within the Township of Spring, and all
nonresidents who receive salaries, wages, commissions, wages or other
compensation for work done or service performed in the Township of
Spring by nonresidents, as well as on the net profits of businesses,
professions or other activities conducted in the Township by nonresidents,
are subject to these rules and regulations and to the earned income
tax ordinance of the Township of Spring [subpart 1 of this Part],
which levies a tax on earned income, as well as on net profits, and
requiring resident employers to withhold the tax from their employers.
2.
The tax ordinance and these rules and regulations are continuing
ones, applicable until changed by the Township. Copies of the original
tax ordinance may be examined at the Township office [subpart A].
[Ord. 61-1980, 12/1/1980, Art. 1]
The following words and phrases used in this Part have the following
meanings unless the context clearly indicates a different meaning:
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.
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 pensions paid to persons retired
from service after reaching a specific age or after a stated period
of employment, or payments commonly known as public assistance or
unemployment compensation payments made by any governmental agency,
or payments to reimburse expenses, or payment 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.
A natural person employed by an "employer" on a salary, wage,
commission or other compensation basis.
A natural person, partnership, association, corporation,
governmental body or unit or agency, or any other entity employing
one or more persons on a salary, wage, commission or other compensation
basis.
Person, public employee, or private agency designated by
the Board of Supervisors 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, 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.
The official Township or Board of Supervisor's action,
by resolution or ordinance, levying the earned income and net profits
tax [this Part].
The Township of Spring, which has levied the earned income
tax and in addition thereto the net profits tax, and requiring resident
employers to withhold the tax.
[Ord. 61-1980, 12/1/1980, Art. 2]
1.
Persons Subject to Tax.
A.
All residents of the Township of Spring. A resident is an individual
who is domiciled in the taxing district as evidenced, among other
things, by one or more of the following:
(1)
By his customarily being physically present, sleeping and eating
there.
(2)
By his maintaining religious, civic and club affiliations there.
(3)
By his holding himself out as residing there, i.e., giving address
in registration for licenses, voting, payment of per capita, personal
property or income taxes.
(4)
By his spouse and minor children living there.
(5)
By the center of his affairs appearing to be there.
B.
Normally it is not difficult to determine the residence or domicile
of an individual because most of the determining factors usually point
to one conclusion. Obviously, if a person has all of the foregoing
factors occurring in one district, he is a resident of that district.
C.
Of more difficulty is the situation concerning individuals as to
whom some of the factors occur in one district and others take place
elsewhere. Each case must be determined solely on its own facts.
D.
Nonresidents Who Are Subject to The Tax. In accordance with the provisions
of Act No. 511, nonresidents of the Township of Spring are also subject
to the tax for work done or services performed or rendered in the
Township of Spring, as well as on the net profits earned by such nonresidents
for businesses, professions or other activities conducted in the Township
of Spring by such nonresident.
3.
What is Included in Earned Income.
A.
Examples of earned income (without intending in any way to limit
the provisions of this Part to these examples) are:
(1)
Salaries.
(2)
Wages.
(3)
Commission.
(4)
Bonuses.
(5)
Drawing accounts (if amounts received as a drawing account exceed
the salary or commissions earned, the tax is payable on the amounts
received. If the employee subsequently repays to the employer any
amounts not in fact earned, the tax shall be adjusted accordingly.)
(6)
Incentive payments.
(7)
Tips.
(8)
Fees.
(9)
Benefits accruing from employment including, but not limited to, annual leave, vacation, holiday, sickness and separation benefits, but excluding benefits mentioned in Subsection 5A of this section.
(10)
Taxes assumed by the employer for the employee.
(11)
Regular wages received during a period of sickness or disability.
(12)
Deferred annuity payments.
(13)
National Guard pay (except active duty).
(14)
1-W Classification pay.
(15)
Stipends paid to graduate assistants.
(16)
All other forms of compensation for an employee's services.
B.
Neither the kind nor rate of payment, nor the manner of employment
exempts an employee from the tax. Compensation received in the form
of property shall be taxed at its fair market value at the time of
receipt.
4.
What is Included in "Net Profits." Examples of net profits (without
intending in any way to limit the provisions of this Part to these
examples) are:
A.
The net profits of a business or profession or of farm operations
conducted by an individual or by a husband and wife, as computed according
to the laws, regulations and procedure for computing Federal Income
Tax "net profits" or "net farm profits" as required to be reported
on Federal Income Tax Form 1040 (Schedules C or F of the current year
edition).
B.
Receipts reportable for Federal income tax purposes, as derived from a fiduciary, partnership, small business corporation or joint venture (Federal Income Tax Form 1065), except any portion thereof resulting from things not taxed by this Part, such as capital gains, real estate, rentals or interest, as set forth under Subsection 5 of this section.
C.
Royalties received by authors, inventors, etc.
D.
Income from the operation of hotels, motels, trailer camps, tourist
homes, boarding houses and other similar businesses.
E.
Income from the business of renting personal property.
F.
All other net profits of an enterprise, venture or other activity,
whether such activities are conducted within or outside the taxing
district.
5.
Exclusions from Tax. The following are not considered to be earned
income and are not subject to the tax:
B.
Payments made under any public assistance or unemployment compensation
legislation.
C.
Compensation or bonuses paid by a State or the United States for
active military service in the Armed Forces, except National Guard
and 1-W pay.
D.
Death benefit payments to an employee's beneficiary or estate,
whether payable in a lump sum or otherwise.
E.
Proceeds of life insurance policies.
F.
Cash or property received as a gift, by will or by statutes of descent
and distribution.
G.
Interest and dividends.
H.
Rents derived from mere "passive" or "investment" ownership or subleasing
of real estate without the furnishing by the lessor of services to
the leased premises or to the lessee other than gas, electricity,
water, sewerage, and heat. (Such rents are considered to be the return
solely from invested capital and not profits from the operation of
a business activity or enterprise taxed by this Part). Furnishing
of services to common portions, and general preservation of rented
real estate shall not make rents described in this subsection taxable.
I.
Value of meals and lodging furnished to domestics or other employees
by the employer for the latter's convenience.
J.
Capital gains.
K.
Social Security benefits.
L.
Sub-chapter S corporation earnings.
M.
Payments received from annuities and deferred income plans.
N.
Damages for personal injuries.
O.
Scholarships and fellowships.
6.
Resident Taxation. The entire earned income, as well as the net profits
received in or earned by a resident of the taxing district is subject
to this tax. Neither the source of the earned income or net profits
nor the place where it is received and/or earned exempts a resident
from tax.
7.
Deductions and Losses.
A.
Deductions.
(1)
Employee's unreimbursed business expenses.
(2)
Business expenses for which an employee has not been reimbursed
are allowed as a deduction from gross wages provided such expenses
are necessary (required by the employer) in order for the taxpayer
to keep his present job. For example, a salesman on a commission basis
may deduct from his gross earnings those unreimbursed expenses incurred
in producing his gross income, to the extent that they were allowable
for Federal income tax purposes.
(3)
Examples (but not limited to) of expenses which may not be deducted
are travel to and from work; cost of meals and lodging for salesmen
and truck drivers, etc. unless the "away from home overnight" test
as established by the Federal Government is met; dues to unions or
professional societies; uniforms and work clothing; tools; license
fees; tuition fees; educational expenses not required by taxpayer's
employer to keep his present job; office space and facilities unless
required by employer; and personal expenses such as medical, contributions,
interest, other taxes, gifts and entertainment, subscriptions, travel,
relocation expenses, etc.
B.
Losses.
(1)
Taxpayers are not allowed to offset a gain in one class of income
against a loss in another class of income. If a net loss is incurred,
zero must be entered on the appropriate line of the annual earned
income and net profits tax return. Losses may be applied only in the
year in which the loss was actually incurred, and may not be carried
over to subsequent years. One person's losses may not be deducted
from his or her spouse's earnings.
(2)
Example: A person who is employed and receives a wage or salary
may not offset against such income the losses incurred in the operation
of a business, profession, farm, partnership, small business corporation,
enterprise or other venture.
[Ord. 61-1980, 12/1/1980, Art. 3]
1.
Employers Required to Withhold. Every employer having an office,
factory, workshop, branch, warehouse or other place of business located
within the taxing district, and who employs one or more persons (other
than domestic servants in a private home) for a salary, wage, commission
or other compensation, shall deduct the tax from the resident employee's
wages at the time of payment thereof.
2.
Voluntary Withholding. Any employer located outside the taxing district
may voluntarily withhold the tax from employees who are residents
of the taxing district but who are employed outside the district.
3.
Registration of Employers.
B.
All employers who have a place of business located within the taxing
district shall maintain complete records of all employees for a period
of six years in such form as to enable the officer to determine the
employer's liability to withhold for each employee, the amount
of taxable income for each employee, the actual amount withheld, the
actual amount transmitted to the Officer and such other information
available to such employer as will enable the officer to carry out
his responsibilities.
4.
Liability of Employee. Failure of any employer to withhold tax shall
not relieve the employee from payment of such tax.
[Ord. 61-1980, 12/1/1980, Art. 4]
1.
Annual Returns of Taxpayers.
A.
On or before April 15 of each year every person who was a resident
of the Township of Spring, and all nonresidents subject to the tax,
for all or any part of the preceding calendar year shall file with
the appropriate officer an annual tax return showing all earned income,
as well as net profits received and/or earned for the previous year.
B.
If a person has no earned income to report, the word "none" shall
be entered on the annual tax return, and the return shall be signed,
dated and returned to the officer with an explanation (military service,
retired, disability income only, etc.).
C.
If self-employment profit is incurred, the type of business, profession
or enterprise shall be indicated on the annual tax return and the
amount of the profit shall be shown on the appropriate line of the
return. If a self-employment loss is incurred, "zero" shall be entered
on the appropriate line of the annual tax return.
D.
When a return is made for a fiscal year, the return shall be filed
within 105 days from the end of said fiscal year.
E.
Such return shall also show the taxpayer's name, address, place
or places of employment or business, the amount of tax due, the amount
of any credit claimed for tax withheld by an employer (with a copy
of the withholding statement showing amount of tax withheld) and such
other information as may be indicated on the return form or as may
be required by the officer. Every person subject to the tax shall
file such return regardless of the fact that his wages may have been
subject to withholding of the tax by his employer and regardless of
whether or not tax is due.
F.
At the time of filing the annual return, the taxpayer shall pay any
tax due. Total balances less than $1 need not be paid.
G.
Tax returns must be signed and dated by the taxpayer(s) in the space(s)
provided.
2.
Quarterly Payment of Taxpayers. In addition to the annual tax return,
a declaration or estimated income tax form must be filed by all taxpayers
who anticipate earned income or net profits in excess of $2,500 in
a given calendar year or fiscal year, if the tax due thereon is not
withheld by the employer(s). Quarterly payments of 1/4 of the total
estimated tax due for the year shall be made to the appropriate officer
at the following times:
|
For the Quarter Comprising the Following Months in Which Earned
Income or Net Profits are Received:
|
Quarterly Payment (1/4 of total estimated tax owed) Due on or
Before:
| |
|---|---|---|
|
Jan., Feb., March:
|
April 30
| |
|
April, May, June
|
July 31
| |
|
July, Aug., Sept.:
|
October 31
| |
|
Oct., Nov., Dec.:
|
January 31
|
3.
Returns of Employers and Payment of Withheld Tax.
A.
Every employer required to withhold the tax shall file a return on
the proper form setting forth the name, Social Security number, address,
municipality of residence and amount of tax withheld for each employee,
and shall remit the total sum thereof to the appropriate officer at
the following times:
|
For the Quarter Comprising the Following Months in Which Wages
are Paid:
|
Quarterly Payment (1/4 of total estimated tax owed) Due on or
Before:
| |
|---|---|---|
|
Jan., Feb., March:
|
April 30
| |
|
April, May, June
|
July 31
| |
|
July, Aug., Sept.:
|
October 31
| |
|
Oct., Nov., Dec.:
|
January 31
|
B.
Every employer who discontinues business prior to the completion
of the taxable year shall, within 30 days after discontinuance of
business, file and furnish the returns required by this section covering
periods between the last such returns and date of discontinuing business
and transmit to the officer all tax remaining due.
4.
Fiscal Years.
5.
Cash or Accrual Basis. A taxpayer may report income on either the
cash or accrual basis as those terms are used for Federal income tax
purposes. The basis used by the taxpayer shall be the same as used
by the taxpayer for Federal income tax purposes.
6.
Extensions.
A.
A taxpayer who requires an extension of time in which to file his
annual tax return shall make written application to the appropriate
officer no later than 105 days from the end of the calendar or fiscal
year for which the return will be filed. A taxpayer who is granted
an extension of time for filing his Federal tax return shall not automatically
be entitled to a similar extension of time for filing his local return.
B.
Interest at the rate of 6% per annum must be paid even though an
extension of time for filing is granted.
7.
Change in Federal Taxable Income. If the amount of a taxpayer's
earned income or net profits reported on his annual Federal income
tax return is changed or corrected either by action of the Internal
Revenue Service or by the individual's filing of an amended annual
Federal return, the taxpayer shall report to the appropriate officer
such change or correction within 30 days after the date when the final
such change or correction was determined.
[Ord. 61-1980, 12/1/1980, Art. 6; as amended by Ord. 09-00,
10/2/2000]
1.
Income Tax Officer/Collector. The officer is charged with the administration
and enforcement of this Part and is authorized to act on behalf of
the Township of Spring in such administrative and enforcement matters.
2.
Requests for Rulings. Any taxpayer or employer desiring a specific
ruling concerning this Part shall submit all pertinent facts in writing
to the appropriate officer who shall issue a ruling.
3.
Examination of Books and Records of Taxpayers and Employers.
A.
The officer and agents designated in writing by him are authorized
to examine the books, papers and records of any taxpayer or supposed
taxpayer or of any employer or supposed employer in order to verify
the accuracy of any return; or, if no return was filed, to ascertain
the tax due, if any. Every taxpayer or supposed employer is required
to give the officer or any agent so designated by him, the means,
facilities and opportunity for such examination and investigations
as are authorized.
B.
Information obtained by the officer or any other official or agent
of the officer as a result of any return, investigation, hearing or
verification required or authorized, is confidential and may not be
disclosed to any person, except for official use in connection with
administration or enforcement of this Part, or as otherwise provided
by law.
4.
Records to be Kept by Taxpayers. Taxpayers and employers subject
to this Part are required to keep such records as will enable the
filing of true and accurate returns, whether of taxes withheld at
source, or of taxes payable upon earned income or net profits, or
both; and such records shall be preserved for a period of not less
than six years in order to enable the officer to verify the correctness
and accuracy of the returns filed.
5.
Refunds. A completed annual tax return must be filed before a request
for refund can be considered. Depending upon the nature of the refund,
additional documentation to substantiate the request may be required.
Refund requests will not be processed until the necessary documentation
is provided. Amounts less than $1 will be refunded only upon written
request of the taxpayer, addressed to the officer.
6.
Interest and Penalties. 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 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 recovery of
any such tax, the person liable therefor shall, in addition, be liable
for the cost of collection and interest and penalties herein imposed.
7.
Fines and Penalties for Violations. Any person who violates any provision
of this Part shall, upon conviction thereof, be sentenced to pay a
fine not to exceed $500 plus costs and, in default of payment of said
fine and costs, to imprisonment for a term not to exceed 30 days.
Some of the violations which may result in such conviction are:
A.
Revelation for unauthorized purposes by any officer or employee or
agent of the officer or taxing district of any confidential information
acquired as a result of the operation of this Part.
B.
Failure, neglect or refusal on the part of any person, any partner
or a partnership or any officer of a corporation or association to
file any report or return, or to pay, deduct from wages, or transmit
any tax, penalty or interest required of such person, partnership,
corporation or unincorporated association.
C.
Failure, neglect or refusal to maintain or to reveal to the officer
or his authorized representative, or to permit the latter to examine
books, records or papers relevant to the tax imposed hereunder.
D.
Knowingly making any incomplete, false or fraudulent report or return
or attempting to do any other thing to avoid payment of the tax in
whole or in part.
8.
Concurrent Remedies. Imposition of any fine or imprisonment shall
not bar either civil liability for tax, penalty or interest or prosecution
for embezzlement, fraudulent conversion, theft or other offense under
the Pennsylvania Crimes Code.
9.
Failure to Receive Forms. Failure of a taxpayer or employer to receive
forms or returns required by this Part does not excuse any failure
to file any reports or returns required or to pay any tax due.
