[Ord. 1969-6, 12/4/1969, § 1]
The following words and phrases, when used in this Part 1, shall have the meanings ascribed to them in this section, except where the context clearly indicates or requires a different meanings.
A partnership, limited partnership, or any other unincorporated
group of two or more persons.
An enterprise, activity, profession or undertaking of any
nature conducted for profit or ordinarily conducted for profit, whether
by an individual, 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 country or dependency.
Salaries, wages, commissions and other compensation as defined
in this Part 1.
An individual, 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 designated by the Borough Council of Watsontown to
administer the provisions of the Earned Income Tax Ordinance.
The net income from the operation of a business, profession
or other activity, after provision for all costs and expenses incurred
in the conduct thereof, either paid or accrued in accordance with
the accounting system used in such business, profession or other activity,
but without deduction of taxes based on income.
An individual, partnership, association, or other entity
domiciled outside the Borough of Watsontown.
A natural person, partnership, corporation, fiduciary or
association. Whenever used in any section prescribing and imposing
a penalty the term "person" as applied to associations, shall mean
the partners or members thereof, and as applied to corporations, the
officers thereof.
An individual, partnership, association or other entity domiciled
in the Borough of Watsontown.
Salaries, wages, commissions, bonuses, incentive payment,
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; not including 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, or
public assistance or unemployment compensation payments made by any
governmental agency, or 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 or any bonus or additional compensation paid
by the United States or the Commonwealth of Pennsylvania or any other
state for such service.
Subject to the tax imposed by this Part 1.
A person, whether an individual, partnership, association,
or any other entity, required hereunder to file a return of earnings
or net profits, or to pay a tax thereon.
[Ord. 1969-6, 12/4/1969, § 2; as amended by Ord.
1988-1, 8/1/1988]
1.
A tax for general revenue purposes of 1% is hereby imposed on the
following:
A.
Salaries, wages, commissions and other compensation earned on and
after January 1, by individual residents of the Borough of Watsontown.
B.
Salaries, wages, commissions and other compensation earned on and
after January 1, by the individual residents of the Borough of Watsontown.
C.
Net profits, earned on and after January 1, by residents of the Borough
of Watsontown.
D.
Net profits, earned on and after January 1, in the Borough of Watsontown
by nonresidents of the Borough of Watsontown.
2.
The tax levied under Subsections 1A and 1B herein shall related to
and be imposed upon salaries, wages, commissions and other compensation
paid by an employer or on his behalf to a person who is employed by
him. The tax levied under Subsections 1C and 1D herein shall relate
to and be imposed on the net profits of any business, profession or
other activity carried on by any person or persons.
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 1.
4.
The tax levied by this Part 1, shall be applicable to salaries, wages,
commissions and other compensation and to net profits earned in the
period beginning January 1, and ending December 31.
[Ord. 1969-6, 12/4/1969, § 3; as amended by Ord.
1988-1, 8/1/1988]
1.
Net Profits.
A.
Every person hereinafter called "taxpayer," who reasonably expects
that he will earn any taxable net profits during the period between
January 1, and December 31, shall on or before April 15, make and
file with the Income Tax Administrator on a form prescribed by the
Income Tax Administrator, a declaration of his estimated net profits
for the period beginning January 1, and ending December 31, 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 1 on such estimated net profits, and such
other relevant information as the Income Tax Administrator may require.
The taxpayer making the declaration shall at the time of filing thereof,
pay the Borough of Watsontown 1/2 of the estimated tax shown as due
thereon and such taxpayer shall thereafter pay 1/2 of the estimated
tax on or before July 15.
B.
A person who on April 15, did not reasonably expect that he would
earn any taxable net profits during the period between January 1 -
December 31, and who subsequent to April 15, reasonably expects that
he will earn taxable profits on or before December 31, shall make
and file on or before January 15, 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 Borough of Watsontown
the estimated tax shown as due thereon.
C.
The Income Tax Administrator 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 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, every taxpayer who has earned taxable net profits shall make and file with the Income Tax Administrator, on a form prescribed by him, a final return showing all of such 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. 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 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 January 1, and ending December 31, to which the tax imposed by this Part 1 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. 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.
E.
Every taxpayer who discontinues business prior to December 31, shall
within 30 days after the discontinuance of business, file his final
return as hereinabove required and pay the tax due, or demand refund
or credit in the case of overpayment.
2.
Salaries, Wages, Commissions and Other Compensation.
A.
Every taxpayer who is employed on a salary, wage commission or other compensation basis and who reasonably expects to earn any taxable earnings not subject to the provisions of § 24-104 of this Part 1 relating to the collection at source shall on or before April 15, make and file with the Income Tax Administrator, a declaration of his estimated total amount of taxable salaries, wages, commissions and other compensation for the period beginning January 1, and ending December 31, the estimated amount of the tax thereon that will be deducted therefrom pursuant to § 24-104 of this Part 1, the estimated amount of tax imposed by this Part 1 that will not be deducted therefrom pursuant to § 24-104 and such other relevant information as the Income Tax Administrator may require. In preparing his declaration of estimated taxable salaries, wages, commissions and other compensation taxable under this Part 1, 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 for federal income tax purposes, if such taxpayer shall be required to file any such last-mentioned declaration.
B.
A person who on April 15, did not reasonably expect that he would earn any salaries, wages, commissions and other compensation not subject to the provisions of § 24-104 of this Part 1 relating to the collection at source, during the period between January 1, and December 31, and who subsequent to April 15, reasonably expects that he will earn salaries, wages, commissions and other compensation, not subject to the provisions of § 24-104 of this Part 1, on or before period December 31, shall make and file on or before January 15, a declaration similar to that required under the immediately foregoing Subsection 2A. The taxpayer making the declarations shall at the time of filing thereof pay to the Borough of Watsontown the estimated tax shown as due thereon.
C.
The Income Tax Administrator is hereby authorized to provide by regulation
for the making and filing of adjusted declarations of estimated salaries,
wages, commissions and other compensation, 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
salaries, wages, commissions and other compensation not previously
declared or find that he has overestimated his salaries, wages, commissions
and other compensation.
D.
On or before April 15, every taxpayer who has received taxable salaries, wages, commissions and other compensation shall make and file with the Income Tax Administrator on a form prescribed by him a final return showing all such salaries, wages, commissions and other compensation earned during the period beginning January 1, and ending December 31, 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 § 24-104 of this Part 1 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.
[Ord. 1969-6, 12/4/1969, § 4; as amended by Ord.
1988-1, 8/1/1988]
1.
Every person within the Borough of Watsontown who employs one or
more 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 1 on the salaries, wages, commissions
and other compensation due to his employee or employees, and shall
on or before April 30, July 30, October 30, and January 30, respectively,
make and file with the Income Tax Administrator on a form prescribed
by the Income Tax Administrator a return setting forth the taxes so
deducted and pay to the Borough of Watsontown the amount of taxes
deducted for the preceding quarterly periods ending March 31, June
30, September 30, and December 30, respectively.
2.
On or before February 15, every such employer shall file with the
Income Tax Administrator on forms prescribed by him:
A.
An annual return showing the total amount of salaries, wages, commissions,
and other compensation earned by his employee or employees, on which
a tax is imposed by this Part 1, the total amount of tax deducted
and the total amount of tax paid to the Borough of Watsontown in respect
of salaries, wages, commissions and other compensation earned by his
employee or employees during the period beginning January 1, and ending
December 31, and
B.
A return in respect of each person who was an employee during all
or any part of the period beginning January 1, and ending December
31, and who earned during such period any salaries, wages, commissions,
or other compensation subject to the tax imposed by this Part 1, setting
forth the employee's name, address and Social Security number,
the amount of such salaries, wages, commissions or other compensation
earned by the employee during said period; the amount of tax deducted
therefrom and such other relevant information as the Income Tax Administrator
may require. Every employer shall furnish a copy of the individual
return to the employee in respect of whom it was filed.
3.
Every employer who discontinues business prior to December 31, 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 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 1 relating to the filing of declarations and returns.
5.
If an employer makes a deduction of tax as required by this § 24-104, the amount deducted shall constitute in the hands of such employer a trust fund held for the account of the Borough of Watsontown as beneficial owner thereof and the employee from whose salaries, wages, commission or other compensation such tax was deducted shall be deemed to have paid such tax.
[Ord. 1969-6, 12/4/1969, § 5]
1.
It shall be the duty of the Income Tax Administrator to collect and
receive the taxes, fines and penalties imposed by this Part 1. It
shall also be his duty to keep a record showing the amount received
by him from each person paying the tax and, if paid by such person
in respect of another person, the name of such other person, and the
date of such receipt.
2.
The Income Tax Administrator is hereby charged with the administration
and enforcement of the provisions of this Part 1, 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 1, 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 prescribe forms necessary for the administration
of this Part 1.
3.
The Income Tax Administrator, and agents designated in writing by
him, are hereby authorized to examine the books, papers and records
of any person 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 person is hereby directed and required to give to the
Income Tax Administrator or to any agent so designated by him the
opportunity for such examination and investigations as are hereby
authorized.
4.
Any information gained by the Income Tax Administrator, his agents,
or by any other official, agent or employee of the Borough of Watsontown
as a result of any declarations, returns, investigations, hearings,
or verifications required or authorized by this Part 1 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 1 or
as otherwise provided by law.
5.
Any person aggrieved by any action of the Income Tax Administrator
shall have the right of appeal as provided by law.
[Ord. 1969-6, 12/4/1969, § 6]
1.
The Income Tax Administrator may sue in the name of the Borough of
Watsontown for the recovery of taxes due and unpaid under this Part
1.
2.
Any suit brought to recover the tax imposed by this Part 1 shall
be begun within six years after such tax is due or within six 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 1.
B.
In the case of a false or fraudulent declaration or return with the
intent to evade tax.
C.
Where any person had deducted taxes under the provisions of this
Part 1 and has failed to pay the amounts so deducted to the Borough
of Watsontown.
[Ord. 1969-6, 12/4/1969, § 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 0.5% 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
the costs of collection.
[Ord. 1969-6, 12/4/1969, § 8]
The Income Tax Administrator is hereby authorized to accept
payment of the amount of tax claimed by the Borough in any case where
any person disputes the validity or amount of the Borough's claim
for the tax. If it is thereafter judicially determined by a court
of competent jurisdiction that there has been an over-payment to the
Income Tax Administrator, the amount of the over-payment shall be
refunded to the person who paid.
[Ord. 1969-6, 12/4/1969, § 10; as amended by Ord.
1988-1, 8/1/1988]
1.
Any person who fails, neglects or refuses to make any declaration
or return required by this Part 1; any employer who fails, neglects
or refuses to deduct the amount of tax imposed by this Part 1, or
pays the tax deducted from his employees, any person who refuses to
permit the Income Tax Administrator 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 1, shall,
upon conviction thereof before any Magisterial District Judge be sentenced
to pay a fine of not more than $600 for each offense and costs, and
in default of payment of said fine and costs to be imprisoned in the
Northumberland County Jail for a period not exceeding 30 days.
2.
Any person who, except as permitted by the provisions of § 24-105, Subsection 4, of this Part 1, divulges any information which is confidential under the provisions of said subsection shall, upon conviction therefor before any Magisterial District Judge be sentenced to pay a fine of not more than $600 for each offense and costs, and in default of payment of said fine and costs to be imprisoned in the Northumberland County Jail for a period not exceeding 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 1.
4.
The failure of any person to receive or procure the forms required
for making any declaration or return required by this Part 1 shall
not excuse him from making such declaration or return.
