[Ord. 851, 11/26/1990, § 601; as amended by Ord.
1005, 5/23/2011]
The following words or phrases when used in this Part shall
have the meanings ascribed to them in this section, except where the
context clearly indicates a different meaning:
A partnership, 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 persons, partnerships, associations, 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 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 voluntary 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.
Compensation as determined under § 303 of the Act
of March 4, 1971, P.L. 6, No. 2, known as the "Tax Reform Code of
1971," 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.
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.
A person, public employee, or private agency designated by
the Borough Council 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, determined under § 303
of the Act of March 4, 1971, P.L. 6, No. 2, known as the "Tax Reform
Code of 1971," 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 the taxing district.
A natural person.
The calendar year before the current year.
A person, partnership, association, or other entity domiciled
in the taxing district.
The calendar year following the 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.
[Ord. 851, 11/26/1990, § 602; as amended by Ord.
865, 7/27/1992, § 602]
A tax at the rate of 1% on each dollar is hereby imposed on
all earned income and net profits, as defined herein, earned by residents
of the Borough of Hatboro and earned by all nonresidents of the Borough
of Hatboro for work done or services performed or rendered in the
Borough of Hatboro, subject, however, to the limitations of the rate
of tax as are provided for in § 8 of said Act, 53 P.S. § 6908.
This tax shall become effective January 1, 1993, and shall remain
in effect thereafter on a calendar year basis without annual re-enactment
unless the rate of tax is subsequently changed. Any taxpayer, as defined
herein, whose total income from all sources is less than $4,000 per
annum shall be exempt from the tax imposed pursuant to this Part,
or any portion thereof; provided, however, that such exemption shall
not be deemed to exempt such taxpayer from compliance with all other
provisions of this Part.
[Ord. 851, 11/26/1990, § 603]
1.
Net Profits.
A.
Every taxpayer making net profits shall on or before April 15 of
each year, make and file with the officer on a form prescribed by
the officer, a declaration of his estimated net profits during this
period beginning January 1 and ending December 31 of the current year
and pay to the officer 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.
B.
On or before April 15 of the succeeding year, every taxpayer shall
make and file a final return on a form prescribed by the officer 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 officer the balance of the tax
due, or shall make a demand for refund or credit in the case of an
overpayment. An incomplete or improperly completed tax return shall
be substantiated and supported by such United States Federal Income
Tax Return forms as required by the officer, 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.
2.
Earned Income. Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with the officer a final return showing
the 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 balance
of the tax due or shall make demand for refund of 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 officer, 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 net profits taxable.
3.
Earned Income Not Subject to Withholding. Every taxpayer who is employed
for a salary, wage, commission, or other compensation and who received
any earned income not subject to the provisions relating to collection
at source, shall make and file with the officer on a form prescribed
or approved by the officer, 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
tax, together with such other information as the officer may require.
Every taxpayer making such return shall, at the time of filing thereof,
pay to the officer the amount of tax shown as due thereon.
[Ord. 851, 11/26/1990, § 604; as amended by Ord.
907, 9/23/1996, § 24-104]
1.
Every employer having an office, factory, workshop, branch, warehouse,
or other place of business within the Borough of Hatboro who employs
one or more persons, other than domestic servants, for a 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 officer 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 31 of the current
year, respectively. Such returns, unless otherwise agreed upon between
the officer and employer, shall show the name and Social Security
number of each such employee, the earned income of such employee during
such proceeding three-month period, the tax deducted therefrom, the
political subdivision imposing the tax upon such employee, the political
subdivision in which such employee resides, the total earned income
of all such employees during such proceeding three-month period, and
the total tax deducted therefrom and paid with the return.
2.
Any employer, who for two of the proceeding 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 taxing authority, may
be required by the officer to file his return and pay the tax monthly.
In such cases, payments of tax shall be made to the officer on or
before the last day of the month succeeding the month for which the
tax was withheld.
3.
On or before February 28 of the succeeding year, every employer shall
file with the officer:
A.
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 officer for 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, 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 officer. Every employer
shall furnish two copies of the individual return to the employee
for whom it is filed.
4.
Every employer who discontinues business prior to December 31 of
the current year, shall, within 30 days after the discontinuance of
business, file the returns and withholding statements herein above
required and pay the tax due.
5.
Except as otherwise provided, every employer who willfully or negligently
fails to make the deductions required by this section, shall be liable
for payment of the taxes which he was required to withhold to the
extent that such taxes have not been recovered from the employee.
6.
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 relating
to the filing of declarations and returns.
[Ord. 851, 11/26/1990, § 605]
1.
It shall be the duty of the officer to collect and receive the taxes,
fines, and penalties imposed by this Part. It shall also be his duty
to keep a record showing the amount received by him from each person
or business paying the tax, and the date of such receipt.
2.
Each officer, before entering upon his official duties, shall give
and acknowledge a bond to the Borough of Hatboro in such amount and
of such form and substance as is now or hereafter provided by law.
3.
The officer charged with the administration and enforcement or the
provisions of this Part is hereby empowered to prescribe, adopt, promulgate,
and enforce rules and regulations relating to any matter pertaining
to the administration and enforcement of this Part, including provisions
for the reexamination and correction of declarations and returns and
of payments alleged or found to be incorrect, or as to which an overpayment
is claimed or found to have occurred, and to make refunds in case
of overpayment for any period of time not to exceed six years subsequent
to the date of payment of the sum involved, and to prescribe forms
necessary for the administration of this Part. No rule or regulation
of any kind shall be enforceable unless it has been approved by Borough
Council of the Borough of Hatboro. A copy of such rules and regulations
currently in force shall be available for public inspection.
4.
The officer shall refund, on petition of and proof by the taxpayer,
earned income tax paid on the taxpayer's ordinary and necessary
business expenses, to the extent that such expenses are not paid by
the taxpayer's employer.
5.
The officer and agents designated by him are hereby authorized to
examine the books, papers, and records of any employer or of any taxpayer
or of any person whom the officer reasonably believes to be an employer
or taxpayer, in order to verify the accuracy of any declaration or
return, or if no declaration or return was filed, to ascertain the
tax due. Every employer and every taxpayer and every person whom the
officer reasonably believes to be an employer or taxpayer is hereby
directed and required to give to the officer, or to any agent designated
by him, the means, facilities, and opportunity for such examination
and investigations, as are hereby authorized.
6.
Any information gained by the officer, his agents, or by any other
official or agent of the taxing district, as a result of any declarations,
returns, investigations, hearings, or verifications required or authorized
by this Part shall be confidential, except for official purposes and
except in accordance with proper judicial order, or as otherwise provided
by law.
7.
The officer is authorized to establish different filing, reporting,
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
8.
The officer shall, at least quarterly, distribute earned income taxes
to the appropriate political subdivisions. The political subdivisions
shall not be required to request the officer to distribute the funds
collected but shall at least annually reconcile their receipts with
the records of the officer and return to or credit the officer with
any overpayment. If the officer, within one year after receiving a
tax payment, cannot identify the taxing jurisdiction entitled to a
tax payment, he shall make payment to the Borough in which the tax
was collected. Within 120 days of the passage of this Part, any present
accumulated funds that are unclaimed shall be distributed on the same
basis.
[Ord. 851, 11/26/1990, § 606]
The officer may sue in the name of the Borough of Hatboro for
recovery of taxes due and unpaid under this Part as is now or may
hereafter be provided by law; provided, however, that nothing contained
in this section shall be construed to limit the Borough of Hatboro
from recovering delinquent taxes by any other means provided by law.
[Ord. 851, 11/26/1990, § 607]
1.
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 0.5% of the amount of 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 therefore shall, in addition, be liable for the costs of collection
and the interest and penalties herein imposed.
2.
Notwithstanding the provisions of Subsection 1, the Borough Council may, by ordinance or resolution, establish a one time period during which interest or interest and penalties that would otherwise be imposed for nonreporting or underreporting of earned income tax liabilities or for the nonpayment of earned income taxes previously imposed and due shall be waived in total or in part if the taxpayer voluntarily files delinquent returns and pays the taxes in full during the period so established. Each governing body may adopt regulations to implement the provisions of this subsection.
3.
The provisions of Subsection 2, above, shall not affect or terminate any petitions, investigations, prosecutions, or other proceedings pending under the provisions of this Part, or prevent the commencement or further prosecution of any proceedings by the proper authorities for violations of this Part. No proceedings shall, however, be commenced on the basis of delinquent returns filed pursuant to Subsection 2 if the returns are determined to be substantially true and correct and the taxes are paid in full within the prescribed time.
[Ord. 851, 11/26/1990, § 608; as amended by Ord.
907, 9/23/1996, § 24-108; and by Ord. 1005, 5/23/2011]
1.
Any person who fails, neglects, or refuses to make any declaration
or return required by this Part, any employer who 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, any person who knowingly makes
any incomplete, false, or fraudulent return, or attempts to do anything
whatsoever to avoid full disclosure of the amount of his net profits
of earned income in order to avoid the payment 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, be sentenced
to pay a fine of not more than $500 plus costs and, in default of
payment of said fine and costs, to a term of imprisonment not to exceed
30 days. Each day that a violation of this Part continues shall constitute
a separate offense.
2.
Any person who divulges any information which is confidential under
the provisions of this Part shall, upon conviction, be sentenced to
pay a fine of not more than $500 for each offense plus costs of prosecution
and, in default of payment of such fine and costs as may be imposed,
to be imprisoned for a period not exceed 30 days.
3.
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section of this Part.
4.
The failure of any person the receive or procure forms required for
making the declaration or return required by this Part shall not excuse
him from making such declaration or return.
