[Ord. No. 359, 12/18/1991]
The provisions of this Part shall be known as the "Earned Income
Tax Ordinance of Hatfield Borough."
[Ord. No. 359, 12/18/1991; as amended by Ord. No. 501, 8/15/2012]
1.
ASSOCIATION
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EARNED INCOME TAX COLLECTOR
EMPLOYER
NET PROFITS
(1)
(2)
(3)
(4)
NONRESIDENT
PERSON OR INDIVIDUAL
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
Definitions. As used
in this Part, the following terms shall have the meanings indicated:
A partnership or 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 county 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 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.
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,"[1] and regulations in 61 Pa. Code, Part. I, Subpart. B, Article
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.
Person, public employee or private agency designated by the
Borough Council of the Borough of Hatfield 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 salary, wage, commission or other compensation.
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,"[2] and regulations in 61 Pa. Code, Part I, Subpart B, Article
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.
Any gain on the sale of other capital assets of the farm.
A person, partnership, association or other entity domiciled
outside of the Borough of Hatfield.
A natural person.
The calendar year before this current year.
A person, partnership, association or other entity domiciled
in the Borough of Hatfield.
The calendar year following the current year.
A person, partnership, association or other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
2.
Construction. In this Part, the singular shall include the plural
and the masculine shall include the feminine and the neuter.
[Ord. No. 359, 12/18/1991]
1.
Tax. A tax for general Borough purposes is imposed on all earned
income and net profits, as defined herein, of residents and nonresidents
of the Borough of Hatfield for income earned, or net profits retained,
on or after April 1, 1992.
2.
Tax Rate. The tax rate on all earned income or net profits earned
by residents and nonresidents of Hatfield Borough shall be 1/2 of
1% of such earned income or net profits retained.
3.
Continuing Tax. The tax levied under this Part shall be applicable
to earned income and net profit received by residents and nonresidents
for the period beginning April 1, 1992, of the current year and ending
December 31 of the current year, or for the taxpayer's fiscal year
which extends in the current year, and the tax shall continue in force
on a calendar year basis without annual reenactment, unless the rate
of the tax is subsequently changed. The Borough Council of the Borough
of Hatfield may, by ordinance, change the rate. Such change shall
become effective on the date specified in this Part.
[Ord. No. 359, 12/18/1991]
1.
The declaration and payment of any tax shall be pursuant to the following
procedures:
A.
Net Profits.
(1)
Every taxpayer making net profits shall on or before April 15
of each year make and file with the Earned Income Tax Collector on
a form prescribed by the Income Tax Collector, a declaration of his
estimated net profits during the period beginning April 1 and ending
December 31 of the current year and pay to the collector 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 of the current year, September 15 of the current
year, and January 15 of the succeeding year.
(2)
On or before April 15 of the succeeding year, every taxpayer
shall make and file a final return on a form prescribed by the collector,
showing the amount of net profits earned, the total amount of tax
due and the total amount of tax paid thereon. At the time of filing
the final return, the taxpayer shall pay to the Earned Income Tax
Collector the balance of the tax due, or shall make demand for refund
or credit in the case of overpayment. An incomplete or improperly
completed tax return shall be considered as not having been filed.
Each final return shall be substantiated and supported by such United
States Federal Income Tax Return forms as required by the collector,
which shall at least include a copy of the Federal W-2 Form in the
case of an earned income taxable and Schedule "C" of the federal return
as to a net profits taxable.
B.
Earned Income. Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with the collector, a final return
showing the amount of earned income received during the period beginning
April 1 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 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. An incomplete
or improperly completed tax return shall be considered as not having
been filed. Each final return shall be substantiated and supported
by such United States Federal Income Tax Return forms as required
by the collector, which shall include a copy of the Federal W-2 Form
in the case of an earned income taxable, and Schedule "C" of the federal
return as to a net profits taxable.
C.
Quarterly Returns. For the calendar year 1992, every taxpayer who is employed for salary, wage, commission or other compensation who received any earned income not subject to the provisions relating to collection at the source, (§ 24-205 hereinafter), 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 July 31, 1992, October 31, 1992, and January 31, 1993 and thereafter 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 period 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 information as the Earned Income Tax Collector shall require. Every taxpayer who makes such a return shall, at the time of the filing of the return with the Earned Income Tax Collector; pay to the collector the amount of the tax shown as due thereon.
D.
Registration with Earned Income Tax Collector. Every individual resident
18 years of age or over who has not previously registered shall, within
15 days of attaining such age, register with the Earned Income Tax
Collector his name, address and other such information as the Earned
Income Tax Collector may require.
[Ord. No. 359, 12/18/1991]
1.
Withholding procedures shall be as follows:
A.
Duty of Employer. Every employer, as hereinbefore described and defined,
shall be obligated, from April 1, 1992, and thereafter so long as
this Part is in effect, to withhold from wages of employees subject
to the tax imposed by this Part, the amount of tax due in accordance
with the withholding procedures set forth hereinafter.
B.
Registration of Employer. Every employer having an office, factory,
workshop, branch, warehouse or other place of business within the
Borough of Hatfield, who employs one or more persons other than domestic
servants, for salary, wage, commission or other compensation, who
has not previously registered, shall, within 15 days after becoming
an employer, register with the Earned Income Tax Collector his name
and address and such other information as the officer may require.
C.
Withholding Procedures. Every employer having an office, factory,
workshop, branch, warehouse or other place of business within the
Borough of Hatfield, 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 Part
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 period 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 an 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 such
preceding three-month period; the tax deducted therefrom; the political
subdivision imposing the tax; 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.
D.
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 Hatfield, 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.
E.
Annual Return of Employer. 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
7 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 7 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 subdivisions
posing 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.
F.
Termination of Business. 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 to pay the tax due.
G.
Liability of Employer. Every employer who willfully or negligently
fails or omits to make 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.
H.
Employer's Nondeduction. 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 Part to the filing of declarations and returns.
I.
Landlord/Owner's Duties to Report. The owner of any rental unit or
units, whether residential or nonresidential, situate within the territorial
boundaries of Hatfield Borough, shall submit to the Borough or Earned
Income Tax Collector a list of the occupants, consisting of the names
and designations, of all person 18 years of age and older residing
in the apartment house or rental unit who are not transient occupants.
The list shall be submitted within 60 days from December 31, 1991,
and shall be updated quarterly thereafter, every April 1, July 1,
October 1 and January 1.
J.
Duty to File Return. No taxpayer who is otherwise obliged to file
a tax return pursuant to this Part, shall be relieved or excused from
the responsibility of filing a tax return where no earned income or
net profits are earned unless specifically exonerated from so filing
by the Council of Hatfield Borough. In such event, the taxpayer shall
file a return with the Earned Income Tax Collector stating the reasons
why no income was earned or net profits retained.
[Ord. No. 359, 12/18/1991; as amended by Ord. No. 501, 8/15/2012]
1.
The Earned Income Tax Collector for Hatfield Borough is created by
this Part and the Borough Council of the Borough of Hatfield shall,
from time to time, by resolution, appoint such person, company, agency
or institution to administer the provisions of this Part, which entity
shall be designated the "Earned Income Tax Collector of Hatfield Borough,"
and who, or which shall have the following powers, duties, obligations
and responsibilities:
A.
Bond of Earned Income Tax Collector. The Earned Income Tax Collector
shall post a bond as the Borough Council of the Borough of Hatfield
may determine, said bond to cover all moneys coming into his hands
on behalf of the Borough of Hatfield, the costs of the bond to be
paid by the Hatfield Borough. Before entering upon his official duties,
the Earned Income Tax Collector shall give and acknowledge the bond
to the Borough appointing him. Said bond shall be in compliance with
Act 511 in all respects and subject to the approval of the Borough
Solicitor.
B.
Collection of Taxes. The Earned Income Tax Collector shall collect
and receive all such taxes, fines and penalties which may become due
hereunder and 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 Part, together with the date of
the receipt of such payment.
C.
Development of Rules and Regulations. 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 Part, subject, however, to the approval
of the Borough Council of Hatfield Borough 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 have the same force and effect as if it had been incorporated
into this Part.
D.
Right to Examine Records. The Earned Income Tax Collector or any
other person designated by the Borough Council of the Borough of Hatfield
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
Part. 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.
E.
Right to Commence Proceedings. The Earned Income Tax Collector is
authorized to examine any person under oath concerning any income
which has 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.
F.
Power to Make Refunds. The Earned Income Tax Collector or any other
official or agent so designated by the Borough Council of the Borough
of Hatfield 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.
G.
Confidentiality of Information. Any information gained by the Earned
Income Tax Collector or any other official or agent of Hatfield Borough
as a result of any return, investigation, hearing or examination required
or authorized by this Part 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 Part.
H.
Violation of Confidentiality of Information. Any person who, except
as permitted by the provision of Subsection 1.G of this section, divulges
any information which is confidential under the provisions of this
Part 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, and in default thereof
to be imprisoned for a period not exceeding 30 days.
[Ord. No. 359, 12/18/1991]
1.
Suits, if any, necessitated due to violation of any of the provisions
of this Part may be commenced by the Earned Income Tax Collector in
the name of the Borough of Hatfield for the recovery of any taxes
due or due and underpaid pursuant to this Part.
A.
Time of Suit/Limitation of Actions. Any suit brought to recover the
tax imposed by this Part 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 Part, there shall be no limitation.
(2)
Where an examination of the declaration or return filed by any
person or of other evidence relating to such declaration or return
in the possession of the Earned Income Tax Collector reveals a fraudulent
evasion of taxes, there shall be no limitation.
(3)
In the case of substantial understatement of tax liability,
25% or more, and no fraud, suit shall be begun within six years.
(4)
Where any person has deducted taxes under the provision of this
Part and has willfully failed or omitted to make the deductions required
by this Part, there shall be no limitation.
(5)
This Part shall not be construed to limit the Borough of Hatfield
from recovering the delinquent taxes by any other means provided in
the Local Tax Enabling Act.
B.
Suit to Recover Erroneous Refund. The Earned Income Tax Collector
may sue for recovery of an erroneous refunds provided that such suit
is begun two years after making such refund, except that the suit
may be brought within live five years if it appears that any part
of the refund was induced by fraud or misrepresentation of material
fact.
[Ord. No. 359, 12/18/1991]
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 the recovery of any such
tax, the person liable therefor shall, in addition, be liable for
legal costs of collection and for interest and penalties herein imposed.
[Ord. No. 359, 12/18/1991; as amended by Ord. No. 501, 8/15/2012]
1.
Penalties for violations of this Part shall be as follows:
A.
Fines. Any person who fails, neglects or refuses to make any declaration
or return required by this Part; or any employer who fails, neglects
or refuses to register or to pay the taxes deducted from his employees,
or fails, neglects or refuses to deduct withholding taxes from his
employees; or any landlord or owner of rental properties who fails
to provide the names and addresses of all tenants in their premises
or any person who refuses to permit the Earned Income Tax Collector
or any agent designated by him to examine his books, records and papers;
or any person who knowingly makes any incomplete, false or fraudulent
return, or does 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 Part,
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 and, in default of payment
of such fine and costs, to be imprisoned for a period not exceeding
30 days.
B.
Cumulative Penalties. The penalties imposed under this section shall
be in addition to any other penalty imposed by any other section of
this Part.
C.
Failure to Receive or Procure Forms/No Excuse. The failure of any
person to receive or procure forms required for making the declaration
or returns required by this Part shall not excuse him from making
such declaration or return.
