[Adopted 11-12-1954 by Ord. No. 259 (Art. 337 of the 1978 Codified Ordinances)[1]]
[1]
Editor's Note: The Income Tax Ordinance was last reenacted by Ordinance 501, passed December 14, 1965. Act 160 of 1967 removes from Act 511, the Local Tax Enabling Act, the provisions of Sections 4, 5 and 7 of the Act relating to annual reenactment of taxes and specifies that every tax levied under the provisions of the Act would continue in force on a calendar or fiscal year basis without annual reenactment unless the rate of tax was subsequently changed.
A. 
The following words and phrases, when used in this article, shall have the meaning ascribed to them in this section, except where the context clearly indicates or requires a different meaning.
ASSOCIATION
A partnership, limited partnership, or any other form of unincorporated enterprise, owned by two or more persons.
BUSINESS
Includes any enterprise, activity, profession, trade or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, copartnership, association or other entity.
COLLECTOR
The Collector of Income Tax for the Township.
COMPENSATION
All salaries, wages, commissions, bonuses, incentive payments, fees and tips that may accrue or be received by an individual for services rendered, whether directly or through an agent and whether in cash or in property; but "compensation" does not include periodic payments for sick or disability benefits and those 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, nor public assistance or unemployment compensation payments, nor any wages or compensation paid by the United States to any person for active service in the Army, Navy or Air Force of the United States nor any bonus or additional compensation paid by the United States or the commonwealth or any other state for such service.
CORPORATION
Any corporation or joint-stock association organized under the laws of the United States, the commonwealth, or any other state, territory or foreign country or dependency.
EMPLOYEE
Any natural person who is a resident in the Township or employed therein upon whose compensation, as above defined, a tax is imposed by this article.
EMPLOYER
Any individual, copartnership, association, corporation, governmental body, unit or agency or any other entity who employs for compensation, as above defined, one or more employees upon whose compensation a tax is imposed by this article.
NET PROFITS
The net gain from the operation of a business, profession or enterprise, after provision for all costs and expenses incurred in the conduct thereof, either paid or accrued in accordance with the accounting system used, and without deduction of taxes based on income.
NONRESIDENT
An individual, partnership, association or other entity domiciled outside the Township.
PERSON
Includes every natural person, copartnership, association, firm or fiduciary. Whenever used in any clause prescribing and imposing a penalty, the term "person," as applied to associations, means the partners or members thereof, and as applied to corporations, the officers thereof.
RESIDENT
An individual, copartnership, association or other entity resident or domiciled in the Township.
TAXPAYER
Any person, as above defined, upon whose compensation or net profits, as defined above, a tax is imposed by this article.
TOWNSHIP
The Township of O'Hara.
B. 
The singular shall include the plural and the masculine shall include the feminine and the neuter.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]
A tax for general revenue purposes of 1% is hereby imposed on:
A. 
Salaries, wages, commissions and other compensation earned by residents of the Township;
B. 
Salaries, wages, commissions and other compensation earned by nonresidents of the Township for work done or services performed or rendered in the Township;
C. 
The net profits earned from business, professions or other activities conducted by such residents; and on
D. 
The net profits earned from business, professions or other activities conducted in the Township by nonresidents.
E. 
The tax levied under Subsections A and B hereof shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by an employer or on their behalf to any person who is employed by or renders services to them. The tax levied under Subsections C and D hereof shall relate to and be imposed on the net profits of any business, profession or enterprise carried on by any person as owner or as proprietor, either individually or in association with some other person or persons.
[Amended 1-13-1968 by Ord. No. 553; at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]
A. 
Net profits.
(1) 
Every taxpayer who anticipates any net profits shall, on or before March 15 of each year, make and file with the Collector of Income Tax, on a form prescribed by the Collector, a declaration of their estimated net profits during the period beginning January 1 and ending December 31, setting forth the estimated amount of net profits anticipated by them during the period and subject to the tax, the amount of tax imposed by this article on such estimated net profits and such other information as the Collector may require. The taxpayer making the declaration shall at the time of filing thereof pay to the Collector the estimated amount of tax shown as due thereon. However, the taxpayer shall have the right to pay the estimated tax in quarterly installments as follows: The first installment at the time of filing the declaration on or before March 15 and the other installments on or before June 15, September 15, and January 15, respectively.
(2) 
Any taxpayer who first anticipates any net profits after March 15 of each year shall make and file the declaration hereinabove required on or before June 15, September 15, or January 15, whichever of these dates next follows the date on which the taxpayer first anticipates such net profits. The taxpayer making the declaration shall, at the time of filing thereof, pay to the Collector the estimated amount of tax shown as due thereon. However, the taxpayer shall have the right to pay the estimated tax in equal installments on or before the quarterly installment payment dates which remain after the filing of the declaration.
(3) 
The Collector of Income Tax is hereby authorized to provide by regulation for the making and filing of adjusted declarations of estimated net profits and for the payments 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 they have overestimated their anticipated net profits.
(4) 
On or before March 15 of each year, every taxpayer who has received net profits shall make and file with the Collector, on a form prescribed by them, a final return showing all of their net profits for the period beginning January 1 and ending December 31, the total amount of tax due, the amount of estimated tax paid under the provisions of this section and the balance due. However, any taxpayer may, in lieu of paying the fourth quarterly installment of their estimated tax, elect to make and file with the Collector of Income Tax on or before January 15 the final return as hereinabove required. 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.
(5) 
Every taxpayer who discontinues business prior to December 31 shall, within 15 days after the discontinuance of business, file their final return as hereinabove required and pay the tax due.
B. 
Salaries, wages, commissions and other compensation.
Every taxpayer who is employed on a salary, wage, commission or other compensation basis and who receives any earnings not subject to the provisions of § 401-4 relating to collection at source shall, on or before April 15, make and file with the Collector of Income Tax, on a form prescribed by the Collector, a return setting forth the aggregate amount of salaries, wages, commissions and other compensation earned by them during January, February and March and subject to the tax, together with such other information as the Collector may require. They shall also, on or before July 15, October 15, and January 15, make and file with the Collector a return setting forth the aggregate amount of salaries, wages, commissions and other compensation earned by them during the three-month periods ending June 30, September 30, and December 31, respectively, and subject to the tax, together with such other information as the Collector may require. Every taxpayer making such return shall, at the time of filing thereof, pay to the Collector the amount of tax shown as due thereon.
[Amended 1-13-1968 by Ord. No. 553; at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]
A. 
Every person within the Township who employs one or more persons on a salary, wage, commission or other compensation basis, other than domestic servants, shall, on or before January 15 of each year, or within 15 days after becoming an employer, register with the Collector of Income Tax their name and address and such other information as the Collector may require.
B. 
Every person within the Township who employs one or more persons on a salary, wage, commission or other compensation basis, other than domestic servants, shall deduct monthly, or more often than monthly at the time of payment thereof, the tax imposed by this article on the salaries, wages, commissions and other compensation due to their employee or employees, and shall file with the Collector, on a form or forms furnished by or obtainable from the Collector, quarterly returns on the dates herein prescribed and pay to the Collector the amount of taxes deducted and shown by such returns to be due for each quarter by each such employee. Such quarterly returns shall be filed and payment of taxes so deducted and shown to be due thereby shall be paid on or before April 15 of each year, for all taxes deducted during the quarter beginning January 1 and ending March 31; on or before July 15 for the quarter ending June 30; on or before October 15 for the quarter ending September 30; and on or before February 15, for the quarter ending December 31.
C. 
On or before February 28 of each year, every such employer shall file with the Collector of Income Tax on forms prescribed by them:
(1) 
An annual return showing the total amount of salaries, wages, commissions and other compensation paid, the total amount of tax deducted and the total amount of tax paid to the Collector during the period beginning January 1 and ending December 31 of each year; and
(2) 
A return for each employee employed during all or any part of the period beginning January 1 and ending December 31 of each year, setting forth the employee's name, address and social security number, the amount of salaries, wages, commissions or other compensation paid to the employee during that period, the amount of tax deducted, the amount of tax paid to the Collector and such other information as the Collector may require. Every employer shall furnish a copy of the individual return to the employee for whom it is filed.
D. 
Every employer who discontinues business prior to December 31 shall, within 15 days after the discontinuance of business, file the returns hereinabove required and pay the tax due.
E. 
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 relating to the filing of declarations and returns.[1]
[1]
Editor's Note: Original Section 337.05, Collector of Income Tax, of the 1978 Code of Ordinances, which immediately followed this section, was repealed at time of adoption of Code (see Ch. 1, General Provisions, Art. II).
A. 
Rules and regulations. Council may, by resolution, adopt, promulgate and enforce rules and regulations for the purpose of administration and enforcement of the provisions of this article, including provision for the reexamination and correction of returns and payments alleged or found to be incorrect or as to which an overpayment or underpayment is claimed or found to have occurred.
B. 
Investigative powers of the Collector. The Collector of Income Tax or any agent or employee designated, in writing, by Council is hereby authorized to examine the books, papers and records of any employer or alleged employer of any taxpayer or alleged taxpayer in order to verify the accuracy of any return made, or if no return was made, to ascertain the tax imposed by this article. Every such employer or alleged employer or taxpayer or alleged taxpayer is hereby directed and required to give to the Collector or any other person designated by Council the means, facilities and opportunity for such examinations and investigations as are hereby authorized. The Collector is hereby authorized to examine any person concerning any income which was or should have been returned for taxation, and to this end may compel the production of books, papers and records, and the attendance of all persons before them, whether as parties or witnesses, whom the Collector believes to have knowledge of such income.
C. 
Confidential information. Any information gained by the Collector or any other official or agent designated by Council as a result of any returns, investigations, hearings or verifications required or authorized by this article shall be confidential, except for official purposes and except in accordance with proper judicial order, or as otherwise provided by law, and any person, official or agent divulging such information shall be guilty of a violation of this section and subject to the penalty in § 401-10.
[1]
Editor's Note: See 53 P.S. § 6924.509(a).
All taxes imposed by this article remaining unpaid after they become due shall bear interest, in addition to the amount of the unpaid tax, at the rate of 1/2 of 1% per month until such tax is paid, and the person upon whom the tax is imposed shall be further liable to a penalty of 1/2 of 1% of the amount of the unpaid tax for each month or fraction of a month for the first six months of nonpayment. 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.
[1]
Editor's Note: See 53 P.S. § 6924.509(i).
A. 
The Collector of Income Tax may sue for the recovery of taxes due and unpaid under this article.
B. 
Any suit brought to recover the tax imposed by this article shall be begun within three years after such tax is due or within three years after a declaration or return has been filed, whichever date is later. However, 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:
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]
(1) 
Where no declaration or return was filed by any person, although a declaration or return was required to be filed by them under the provisions of this article.
(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 Collection Officer reveals a fraudulent evasion of taxes, including, but not limited to, substantial understatement of taxes deducted and of actual or estimated net profits or earnings.
(3) 
Where any person has deducted taxes under the provisions of this article and has failed to pay the amounts so deducted to the Collection Officer.
[1]
Editor's Note: See 53 P.S. § 6924.301 et seq.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]
The Collector of Income Tax is hereby authorized to accept payment under protest of the amount of tax claimed by the Township in any case where any person disputes the validity or amount of the Township's claim for the tax. If it is thereafter judicially determined by a court of competent jurisdiction that there has been an overpayment to the Collection Officer, the amount of the overpayment shall be refunded to the person who paid under protest.
[Amended 1-16-1979 by Ord. No. 682]
A. 
The tax imposed by this article shall not apply:
(1) 
To any person as to whom it is beyond the legal power of the Township to impose the tax herein provided for under the Constitution of the United States and the Constitution and laws of the commonwealth.
(2) 
To institutions or organizations operated for public, religious, educational or charitable purposes, to institutions or organizations not organized or operated for private profit or to trusts and foundations established for any of those purposes.[1]
[1]
Editor's Note: Original Section 337.10(a)(3), which established a wage tax exemption for those earning less than $3,200, which immediately followed this subsection, was repealed 12-18-1979 by Ord. No. 698.
B. 
This section shall not be construed to exempt any person who is an employer from the duty of collecting the tax at source from their employees and paying the amount collected to the Collector of Income Tax under the provisions of § 401-4.
A. 
Whoever violates any provision of this article or who fails, neglects or refuses to deduct the tax from the employee at the source and pay the same to the Collector of Income Tax as required by this article; or whoever fails, neglects or refuses to pay the tax, penalties and interest imposed by this article; or who refuses to permit the Collector or any person designated by Council, in writing, to examine their books, records and papers; or who knowingly makes any incomplete, false or fraudulent return or who attempts to do anything whatever to avoid the full disclosure of the amount of compensation or other net income to avoid the payment of the whole or any part of the tax shall be fined not more than $500 for each offense. Such fine or penalty shall be in addition to any other penalty imposed by any other section of this article.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. II)]
B. 
Information charging any such violation may be made by the Collector or by such other person or persons as may from time to time be authorized so to do by Council.
C. 
The failure of any person to receive or procure the forms required for making the declarations or returns required by this article shall not excuse them from making such declaration or return.
[1]
Editor's Note: See 53 P.S. § 6924.706.