Township of East Pennsboro, PA
Cumberland County
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Table of Contents
Table of Contents
[Ord. 141-66, 1/3/1966, § 1; as amended by Ord. 145-66, 3/3/1966, § 1]
The following words and phrases, when used in this Part, shall have the meanings 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 unincorporated group of two or more persons.
BUSINESS
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.
CORPORATION
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.
CURRENT YEAR
The calendar year for which the tax is levied.
DOMICILE
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.
EARNED INCOME
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 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.
EMPLOYER
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.
INCOME TAX OFFICER or OFFICER
A person, public employee or private agency designated by the Board of Commissioners of the Township of East Pennsboro to collect and administer the tax on earned income and net profits.
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.
NONRESIDENT
A person, partnership, association or other entity domiciled outside the Township of East Pennsboro.
PERSON or INDIVIDUAL
A natural person.
PRECEDING YEAR
The calendar year before the current year.
RESIDENT
A person, partnership, association or other entity domiciled in the Township of East Pennsboro.
SUCCEEDING YEAR
The calendar year following the current year.
TAXPAYER
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. 141-66, 1/3/1966, § 2; as amended by Ord. 145-66, 2/3/1966, § 2]
1. 
A tax for general revenue purposes is hereby imposed at the rate of 1% on the following:
A. 
Earned income received on and after February 3, 1966, by residents of the Township of East Pennsboro.
B. 
Earned income received on and after February 3, 1966, by nonresidents of the Township of East Pennsboro in the Township of East Pennsboro.
C. 
Net profits, earned on and after February 3, 1966, by residents of the Township of East Pennsboro.
D. 
Net profits earned on and after February 3, 1966, in the Township of East Pennsboro by nonresidents of the Township of East Pennsboro.
2. 
The tax levied upon earned income shall relate to and be imposed upon that earned income paid by an employer or on his behalf to a taxpayer who is employed by him. The tax levied upon net profits herein shall relate to and be imposed on the net profits of any business, profession or other activity carried on by any taxpayer.
3. 
Every corporation which is subject to the Pennsylvania Corporate net income tax or exempt from the Pennsylvania corporate net income tax and every foreign corporation which is subject to the Pennsylvania franchise tax or exempt from the Pennsylvania franchise tax shall be exempt from the tax imposed by this Part 2A.
4. 
The tax levied under this Part 2A shall be applicable to earned income received and to net profits earned on and after February 3 of the current year and ending December 31 of the current year or for taxpayer fiscal years beginning in the current year, and the tax shall continue in force on a calendar-year or taxpayer fiscal-year basis.
5. 
Commencing with the year following 1966 and thereafter whenever "February 3" is referred to herein, "January 1" shall be substituted therefor. Notwithstanding that all dates herein specifically refer to 1966 and 1967, the said date shall also apply to all current years subsequent to 1966 and 1967.
[Ord. 141-66, 1/3/1966, § 3, as amended by Ord. 145-66, 2/3/1966, § 3]
1. 
Net Profits.
A. 
Every taxpayer who reasonably expects that he will earn any taxable net profits during the period between February 3, 1966, and December 31, 1966, shall on or before April 15, 1966, make and file with the Income Tax Officer or his agent on a form prescribed by the Income Tax Officer or his agent a declaration of his estimated net profits for the period beginning February 3, 1966, and ending December 31, 1966, setting forth the estimated amount of net profits reasonably expected by him for the said period and subject to the tax, the amount of estimated tax imposed by this Part 2A on such estimated net profits, and such other relevant information as the Income Tax Officer or his agent may require. The taxpayer making the declaration shall, at the time of filing thereof, pay the Income Tax Officer or his agent 25% of the estimated tax shown as due thereon and such taxpayer shall thereafter pay 25% of the estimated tax in each of three installments, as follows: one installment on or before June 15, 1966, one installment on or before September 15, 1966, and the last installment on or before January 15, 1967.
B. 
A taxpayer who on April 15, 1966, did not reasonably expect that he would earn any taxable net profits during the period between February 3, 1966, and December 31, 1966, and who subsequent to April 15, 1966, reasonably expects that he will earn taxable net profits on or before December 31, 1966, shall make and file on or before June 15, 1966, September 15, 1966, or January 15, 1967, whichever of these dates next follows the date on which the taxpayer first reasonably expects such net profits, a declaration similar to that required under the foregoing Subsection 1A. The taxpayer making the declaration shall, at the time of filing thereof, pay to the Income Tax Officer or his agent the estimated tax shown as due thereon; provided, however, that 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.
C. 
The Income Tax Officer or his agent is hereby authorized to provide by regulation 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 shall thereafter either reasonably expect additional net profits not previously declared or find that he has overestimated his net profits.
D. 
On or before April 15, 1967, every taxpayer who has earned taxable net profits shall make and file with the Income Tax Officer or his agent on a form prescribed by him, a final return showing all of such net profits for the period beginning February 3, 1966, and ending December 31, 1966, the total amount of tax due, the amount of estimated tax paid under the provisions of this section, and the balance due. When the return is made for a fiscal year different from the calendar year, the return shall be made within 105 days from the end of the said fiscal year. The percentage of the total net profits of any calendar or fiscal year of a taxpayer beginning or ending within the period beginning February 3, 1966, and ending December 31, 1966, to which the tax imposed by this Part 2A shall be applicable shall be equal to the same percentage of such total net profits as the number of days in any such year within such period bears to the total number of days in any such year.
(1) 
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) 
On or before January 31, 1967, a taxpayer may, in lieu of paying his fourth quarterly installment of his estimated tax, elect to file his final return with the Income Tax Officer or his agent and make final payment or claim refund as the case may be.
E. 
Every taxpayer who discontinues business prior to December 31, 1966, shall within 30 days after the discontinuance of business, file his return as hereinabove required and pay the tax due or demand refund or credit in the case of overpayment.
2. 
Earned Income.
A. 
Every taxpayer who is employed on a salary, wage, commission or other compensation basis and who reasonably expects to receive any earned income not subject to the provisions of Subsection 1D of this section relating the collection at source, shall, on or before April 15, 1966, make and file with the Income Tax Officer or his agent a declaration of his estimated total amount of earned income for the period beginning February 3, 1966, and ending December 31, 1966, the estimated amount of tax thereon that will be deducted therefrom pursuant to § 24-204 of this Part 2A, the estimated amount of tax imposed by this Part 2A that will not be deducted therefrom pursuant to § 24-204 of this Part 2A and such other relevant information as the Income Tax Officer or his agent may require. In preparing his declaration of estimated earned income taxable under this Part 2A, the taxpayer shall use the same amounts with respect to such items as he shall have used in preparing his declaration of estimated tax for the year 1966 for the federal income tax purposes, if such taxpayer shall be required to file any such last mentioned declaration.
B. 
A taxpayer who on April 15, 1966, did not reasonably expect that he would receive any earned income not subject to the provisions of § 24-204 of this Part 2A relating to the collection at source, during the period between February 3, 1966, and December 31, 1966, and who subsequent to April 15, 1966, reasonably expects that he will receive any earned income not subject to the provisions of § 24-204 of this Part 2A, on or before December 31, 1966, shall make and file on or before June 15, 1966, September 15, 1966, or January 15, 1967, whichever of these dates next follows the date on which the taxpayer first reasonably expects that he will receive such earned income, a declaration similar to that required under the immediately foregoing Subsection 2A of this section. The taxpayer making the declaration shall at the time of filing thereof pay to the Income Tax Officer or his agent the estimated tax shown as due thereon; provided, however, that 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.
C. 
The Income Tax Officer or his agent is hereby authorized to provide by regulation for the making and filing of adjusted declarations of estimated earned income and for the payments of the estimated tax in cases where a taxpayer who has filed the declaration hereinabove required shall thereafter either reasonably expect additional earned income not previously declared or find that he has overestimated his earned income.
D. 
On or before April 15, 1967, every taxpayer who has received earned income shall make and file with the Income Tax Officer or his agent on a form prescribed by him a final return showing all such salaries, wages, commissions and other compensation earned during the period beginning February 3, 1966, and ending December 31, 1966, the total amount of tax due thereon, the amount of estimated tax thereon paid under the provisions of this section, if any, and the amount, if any, of tax thereon that has been withheld pursuant to the provisions of § 24-204 of this Part 2A and the balance of tax due. On or before January 31, 1967, a taxpayer may, in lieu of paying his fourth quarterly installment of his estimated tax, elect to file his final return with the Income Tax Officer and make final payment or claim refund as the case may be.
E. 
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.
[Ord. 141-66, 1/3/1966, § 4; as amended by Ord. 145-66, 2/3/1966, § 4]
1. 
Every employer within the Township of East Pennsboro who employs one or more persons on a salary, wage, commission or other compensation basis, other than domestic servants, shall deduct at the time of the payment thereof the tax imposed by this Part 2A on the earned income due to his employee or employees, and shall on or before April 30, 1966, July 31, 1966, October 31, 1966, and January 31, 1967, respectively, make and file with the Income Tax Officer or his agent on a form prescribed by the Income Tax Officer or his agent a return, setting forth the taxes so deducted for the preceding quarterly periods ending March 31, 1966, June 30, 1966, September 30, 1966, and December 31, 1966, respectively.
2. 
On or before February 28, 1967, every such employer shall file with the Income Tax Officer or his agent on forms prescribed by him:
A. 
An annual return showing the total amount of earned income received by his employee or employees, on which a tax is imposed by this Part 2A, the total amount of tax deducted and the total amount of tax paid to the Township of East Pennsboro in respect of earned income received by his employee or employees during the period beginning February 3, 1966, and ending December 31, 1966.
B. 
A return in respect of each taxpayer who was an employee during all or any part of the period beginning February 3, 1966, and ending December 31, 1966, and who received during such period any earned income subject to the tax imposed by this Part 2A, setting forth the employee's name, address and Social Security number, the amount of earned income received by the employee during said period, the amount of tax deducted therefrom and such other relevant information as the Income Tax Officer or his agent may require. Every employer shall furnish a copy of the individual return to the employee in the respect of whom it was filed.
3. 
Every employer who discontinues business prior to December 31, 1966, shall, within 30 days after the discontinuance of business, file the returns hereinabove required and pay the tax due.
4. 
The failure or omission of any employer to make the deduction required by this section shall not relieve any employee from the payment of the tax or from complying with the requirements of this Part 2A relating to the filing of declarations and returns.
5. 
If an employer makes a deduction of tax as required by this section, the amount deducted shall constitute in the hands of such employer a trust fund held for the account of the Township of East Pennsboro as beneficial owner thereof and the employee from whose earned income such tax was deducted shall be deemed to have paid such tax.
[Ord. 141-66, 1/3/1966, § 5; as amended by Ord. 145-66, 2/3/1966, § 5]
1. 
It shall be the duty of the Income Tax Officer or his agent to collect and receive the taxes, fines and penalties imposed by this Part 2A. It shall also be his duty to keep a record showing the amount received by him from each taxpayer or employer paying the tax and if paid by such taxpayer or employer in respect of another taxpayer, the name of such other taxpayer and the date of such receipt.
2. 
The Income Tax Officer or his agent is hereby charged with the administration and enforcement of the provisions of this Part 2A and 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 2A, including provisions for the re-examination 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 prescribe forms necessary for the administration of this Part 2A.
3. 
The Income Tax Officer and agents designated in writing by him are hereby authorized to examine the books, papers and records of any taxpayer or employer 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 taxpayer and employer is hereby directed and required to give to the Income Tax Officer or to any agent so designated by him the opportunity for such examinations and investigations as are hereby authorized.
4. 
Any information gained by the Income Tax Officer, his agents, or by any other official, agent or employee of the Township of East Pennsboro, as a result of any declaration, returns, investigations, hearings or verifications required or authorized by this Part 2A shall be confidential and shall not be disclosed to any person except for official use in connection with the administration or enforcement of this Part 2A or as otherwise provided by law.
5. 
Any taxpayer or employer aggrieved by any action of the Income Tax Officer or his agent shall have the right of appeal as provided by law.
[Ord. 141-66, 1/3/1966, § 6; as amended by Ord. 145-66, 2/3/1966, § 6]
1. 
The Income Tax Officer or his agent may sue in the name of the Township of East Pennsboro for the recovery of taxes due and unpaid under this Part 2A.
2. 
Any suit brought to recover the tax imposed by this Part 2A 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, 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:
A. 
Where no declaration or return was filed by any person although a declaration or return was required to be filed by him under the provisions of this Part 2A.
B. 
In the case of a false or fraudulent declaration or return with the intent to evade tax.
C. 
Where any employer has deducted taxes under the provisions of this Part 2A and has failed to pay the amount so deducted to the Township of East Pennsboro.
D. 
In the case of substantial understatement of tax liability of 25% or more, and no fraud, suit shall be begun within six years.
3. 
The Income Tax Officer or his agent 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.
4. 
This section shall not be construed to limit the Township of East Pennsboro from recovering delinquent taxes by any other means provided by the Local Tax Enabling Act, 53 P.S. § 6901 et seq.
[Ord. 141-66, 1/3/1966, § 7; as amended by Ord. 145-66, 2/3/1966, § 7]
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 taxpayer or employer liable therefor shall, in addition, be liable for the costs of collection and the interest and penalties herein imposed.
[Ord. 141-66, 1/3/1966, § 8; as amended by Ord. 145-66, 2/3/1966, § 8]
The Income Tax Officer or his agent is hereby authorized to accept payment 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 Income Tax Officer or his agent, the amount of the overpayment shall be refunded or credited to the taxpayer or employer who paid.
[Ord. 141-66, 1/3/1966, § 9; as amended by Ord. 145-66, 2/3/1966, § 9]
The Board of Commissioners shall, by resolution hereafter to be adopted, designate such person, persons, firm or corporation as Income Tax Officer at such rate of compensation as it shall deem appropriate, whose term shall expire at the end of the year for which appointed. The Board of Commissioners and the Income Tax Officer may contract with an agent and delegate thereto the powers and duties prescribed in this Part 2A for the Income Tax Officer. The designated Income Tax Officer shall have the powers and duties prescribed in this Part 2A.
[Ord. 141-66, 1/3/1966, § 10; as amended by Ord. 145-66, 2/3/1966, § 10]
1. 
The tax imposed by this Part 2A shall not apply:
A. 
To any person as to whom it is beyond the legal power of the Township of East Pennsboro to impose the tax herein provided for under the Constitution of the United States and the Constitution and laws of the Commonwealth of Pennsylvania.
B. 
To the net profits of any institution or organization operated for public, religious, educational or charitable purposes, to an institution or organization not organized or operated for private profit, or to a trust or a foundation established for any of the said purposes.
2. 
This section shall not be construed to exempt any employer from the duty of collecting the tax at source from his employees and paying the amount collected to the Income Tax Officer or his agent under the provisions of § 24-204 of this Part 2A.
[Ord. 141-66, 1/3/1966, § 11; as amended by Ord. 145-66, 2/3/1966, § 11]
The Board of Commissioners may enter into reciprocal agreements with other municipalities pertaining to the collection of tax moneys from nonresidents and payment to the respective municipalities of residence which have a tax which would preempt the tax herein imposed on nonresidents.
[Ord. 141-66, 1/3/1966, § 12; as amended by Ord. 145-66, 2/3/1966, § 12; by Ord. 387-80, --/--/----; and by Ord. 757-2009, 7/1/2009]
1. 
Any person who fails, neglects or refuses to make any declaration or return required by this Part 2A; any employer who fails, neglects or refuses to pay the tax deducted from his employees; and any person who refuses to permit the Income Tax Officer or any agent properly designated by him to examine his books, records and papers; and any person who makes any incomplete, false or fraudulent return to avoid the payment of the whole or any part of the tax imposed by this Part 2A, upon conviction thereof, shall 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 2A continues shall constitute a separate offense.
2. 
Any person, employer or corporation who, except as permitted by the provisions of § 24-205, Subsection 5, of this Part 2A, divulges any information which is confidential under the provisions of said section, upon conviction thereof, shall 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 2A continues shall constitute a separate offense.
3. 
The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this Part 2A or other laws. 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.
4. 
The failure of any taxpayer or employer to receive or procure the forms required for making any declaration or return required by this Part 2A shall not excuse him from making such declaration or return.
[Ord. 400-81, 5/15/1981, § 1]
The amount of payment of any tax on income to any state other than Pennsylvania or to any political subdivision located outside the boundaries of Pennsylvania by residents of said other state or said political subdivision shall, to the extent that such income includes salaries, wages, commissions, or other compensation or net profits of business, professions or other activities, be credited to and allowed as a deduction from the liability of such person for any other tax on said compensation or net profits imposed by this Part 2A. The manner and amount of the credit shall be governed by § 24-214 of this Part 2A.
[Ord. 400-81, 7/15/1981, § 1]
The out-of-state resident entitled to the credit or deduction provided in § 24-213 hereof, shall be entitled to have the local earned income tax that is imposed by this Part 2A deducted from said person's earned income by said person's employer, and said out-of-state resident who receives net profits from businesses, professions or other activities shall file a quarterly return together with an appropriate tax payment for said quarter. When the said out of state resident files his or her final return together with evidence of having paid a similar tax to the jurisdiction of his or her residence, a credit or deduction shall be allowed in proportion to the concurrent periods for which the taxes are imposed by or for the political subdivision of the other state, but not in excess of the amount previously paid for the concurrent period.
[Ord. 709-2006, 3/1/2006, § 1]
The provisions of § 6913 of the Local Tax Enabling Act, P.L. 1257, No. 511, December 31, 1965, 53 P.S. § 6901-24, 1982, as hereinafter amended, supplemented, modified or reenacted by the General Assembly of Pennsylvania, are incorporated herein by reference thereto; except to the extent that options are provided in said § 6913, this Part 2B designates the option selected, and except as and where hereinafter specifically provided otherwise.
[Ord. 709-2006, 3/1/2006, § 2]
The Income Tax Officer is hereby authorized to do that which is necessary to implement the waiver of interest and penalties as provided by § 13 VIII(b) of the Local Tax Enabling Act, 53 P.S. § 6913b.
[Ord. 709-2006, 3/1/2006, § 5]
This Part 2B shall become effective March 1, 2006 and shall continue on a calendar year basis, thereafter, without annual reenactment.