[Adopted 11-9-1967 by Ord. No. 182 (Ch. 24, Part 2, of the 1983 Code of Ordinances)]
A. 
Unless otherwise expressly stated, the following terms shall have, for the purpose of this article, the meanings herein indicated:
ASSOCIATION
A partnership, limited partnership, or any other form of unincorporated enterprise owned by two or more persons.
BUSINESS
Any enterprise, activity, agency, profession, trust or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual agent, broker, copartnership, association or other entity.
COMPENSATION EARNED or COMPENSATION PAID or EARNINGS
All salaries, wages, commissions, bonuses, incentive payments, and/or other forms of compensation or remuneration, in cash or in property, received by an individual and paid, directly or through an agent, by an employer for services rendered.
CORPORATION
Any corporation or joint-stock association organized under the laws of the United States of America, the Commonwealth of Pennsylvania, or any other state, territory or foreign country or dependency.
EMPLOYER
Any individual, copartnership, association, corporation, governmental body or unit or agency or any other entity who or that employs one or more persons on a salary, wage, commission, or other compensation basis.
INCOME TAX ADMINISTRATOR
Such person as may be empowered by said Council to administer the provisions of this article.
NET PROFITS
The net gain from the operation of a business, profession, or enterprise after provisions 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, copartnership, association or other entity domiciled outside Catawissa Borough.
PERSON
Includes any natural person, copartnership, association, firm or fiduciary (except any corporation which is exempt from this tax under the Act of Assembly approved December 31, 1965, P.L. 1257, as amended, known as "The Local Tax Enabling Act"[1]). Whenever used in any clause 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.
RESIDENT
An individual, copartnership, association or other entity domiciled in Catawissa Borough.
TAXPAYER
A person, whether an individual, copartnership, association, or any other entity required hereunder to file a return on earnings or net profits or to pay a tax thereon.
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
B. 
The singular shall include the plural and the masculine shall include the feminine and the neuter.
A. 
The following taxes are hereby imposed annually for general Borough purposes:
(1) 
One percent of all compensation earned by residents.
(2) 
One percent of all compensation earned by nonresidents for work done or services performed or rendered in Catawissa Borough.
(3) 
One percent of the net profits of businesses, professions and other activities engaged in or conducted by residents.
(4) 
One percent of the net profits of businesses, professions and other activities engaged in or conducted in Catawissa Borough by nonresidents.
B. 
The taxes levied under Subsection A(1) and (2) of this section shall relate to and be imposed upon compensation paid by an employer or on his behalf to any person who is employed by or renders services to him. The taxes levied under Subsection A(3) and (4) of this section shall relate to and be imposed upon the net profits of any business, profession, or enterprise carried on by any person or owner or proprietor, either individually or in association with some other person or persons.
C. 
Such taxes shall be levied with respect to the compensation or net profits earned during each calendar year.
D. 
Provided, however, that where the fiscal year of a business, profession, or other activity differs from the calendar year, the tax shall be applicable to the net profits of the portion of the fiscal year ending during the current calendar year and to the profits earned during the balance of the calendar year.
A. 
Every taxpayer who can reasonably be expected to earn taxable net profits during the taxable period or who is employed on a salary, wage, or commission or other compensation basis and can reasonably be expected to earn, during the taxable period, taxable earnings not subject to the provisions of § 301-4 of this article, relating to collection at source, shall make and file with the Income Tax Administrator on or before April 15 of each year, on a form prescribed by the Income Tax Administrator, a declaration of the estimated tax imposed thereon by this article, the amount of the estimated tax to be withheld at source and such other relevant information as the Income Tax Administrator may require.
B. 
Every taxpayer who, during the year, can reasonably be expected to earn a taxable net profit during the taxable period, or who is employed on a salary, wage, commission or other compensation basis and can reasonably be expected to earn, during the taxable period, taxable earnings not subject to the provisions of § 301-4 of this article, relating to collection at source, and who could not reasonably know on or before April 15 that he could be expected to earn such net profits or earnings during the year shall make and file on or before July 15 or October 15 of the current calendar year, or January 15 of the succeeding calendar year, whichever of these dates next follows the date on which such taxpayer could first reasonably be expected to earn such net profit or earnings during the taxable period, a declaration similar to that required under § 301-3A.
C. 
The taxpayer making the declaration required hereinabove by § 301-3A shall, at the time of the filing thereof, pay to the Income Tax Administrator on behalf of the Borough the estimated tax shown as due thereon; provided, however, that he shall have the right to pay the same in four equal installments, the first payment to be made with the filing of the declaration and the remaining payments to be made on or before July 15 and October 15 of the current calendar year and January 15 of the succeeding calendar year.
D. 
The taxpayer making the declaration required hereinabove by § 301-3B shall, at the time of the filing thereof, pay to the Income Tax Administrator on behalf of the Borough the estimated tax shown as due thereon; provided, however, if said declaration is filed subsequent to April 15 and on or before July 15 of the current calendar year, he shall have the right to pay 1/3 the tax thereof on the date of filing and the balance in two equal installments on October 15 of the current calendar year and January 15 of the succeeding calendar year, and if such declaration is filed subsequent to October 15 of the current calendar year, and on or before January 15 of the succeeding calendar year, the whole of said estimated tax shall be paid with the filing of the declaration.
E. 
Where the taxpayer who has filed a declaration required hereinabove shall thereafter reasonably be expected to earn, during the taxable period, additional taxable net profits or earnings not subject to collection at source, or finds that he has overestimated his net profits or earnings, he may file an amended declaration with the Income Tax Administrator setting forth such relevant information as the Income Tax Administrator may require.
F. 
Every taxpayer who, during the taxable period, has earned taxable net profits or who has received taxable earnings shall make and file with the Income Tax Administrator, on a form prescribed by the Income Tax Administrator, on or before the 15th day of April of each year a final return showing all such net profits and earnings during the preceding taxable period, the total amount of tax due thereon, the amount of the estimated tax paid under the provisions of this section, the amount of the tax that has been withheld pursuant to the provisions of § 301-4 of this article and the balance of the tax due.
G. 
When the taxpayer's return of net profits or net earnings is made on a fiscal year basis, differing from the calendar year, the final return for such portion of the fiscal year as shall come within the calendar year shall be made and filed with the Income Tax Administrator on or before the 15th day of April of the succeeding calendar year.
H. 
The percentage of the total net profits of any fiscal year of a taxpayer beginning or ending within the taxable year to which the tax imposed by this article shall be applicable shall be equal to the same percentage of such total net profits as the number of days in such fiscal year bears to the total number of days in such calendar year.
I. 
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.
J. 
In the event of the death of the taxpayer during the taxable period, his personal representative, or in the absence of a personal representative, his heirs as designated by the Pennsylvania Probate, Estates and Fiduciary Act, as amended, or as hereafter amended or supplemented,[1] shall file his final return within 90 days after the taxpayer's death and pay the tax due or demand refund in the case of overpayment.
[1]
Editor's Note: See now 20 Pa.C.S.A. § 101 et seq, Decedents, Estates and Fiduciaries.
K. 
Declaration of estimated tax required by the preceding subsections shall not be required from individuals whose estimated gross income from farming for the taxable year is at least 2/3 of the total estimated gross income from all sources for the taxable year.
A. 
Every employer within Catawissa Borough who employs one or more employees on a salary, wage, commission or other compensation shall deduct, at the time of the payment thereof, the tax imposed by this article on the earnings due to his employee or employees and within 30 days after April 15, and within 30 days after each quarter of a year thereafter, shall make and file a return with the Income Tax Administrator on a form prescribed by the Income Tax Administrator, setting forth the taxes so deducted and such other relevant information as the Income Tax Administrator may require, and shall pay to the Income Tax Administrator on behalf of Catawissa Borough the amount of taxes so deducted.
B. 
On or before the 15th day of April of each year, every such employer shall make and file with the Income Tax Administrator:
(1) 
A return similar to form W-3 of the Internal Revenue Service of the United States Treasury Department showing the total amount of the earnings of his employees during the portion of the preceding calendar year embraced within the taxable period, the total amount of tax deducted and the total amount of tax paid to the Borough.
(2) 
A return for each employee similar to form W-2 of the Internal Revenue Service of the United States Treasury Department showing the total amount of the employee's earnings during the preceding taxable year and such other relevant information as the Income Tax Administrator may require. Such employer, on or before April 15 of each year, shall furnish a copy of such return to the employee named in the return.
C. 
Every employer who discontinues business prior to the close of the taxable year shall, within 30 days after the discontinuance of business, file the returns hereinabove required and pay the tax due. Where discontinuance of business is due to the death of the employer, his personal representative, or in the absence of a personal representative, his heirs, as designated by the Pennsylvania Probate, Estates and Fiduciary Act, as amended, or as hereafter amended or supplemented, shall within 90 days after the death of the employer file his return and pay the tax due or demand refund in the case of overpayment.
D. 
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 article relating to the filing of declarations and returns.
E. 
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 Borough as beneficial owner thereof, and the employee from whose earnings such tax was deducted shall be deemed to have paid such tax.
F. 
The withholding of earnings and the payment and return thereof by the employer under the provisions of this section shall not be required in respect to earnings of domestic servants, farm labor and casual labor not in the course of the employer's business. This subsection shall not be construed to exempt such employees from the requirements of filing a declaration and a return of such earnings and the payment of tax thereon under the provisions of § 301-3.
A. 
It shall be the duty of the Income Tax Administrator to collect and receive the taxes, fines and penalties imposed by this article. 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 payment.
B. 
The Income Tax Administrator shall account monthly to the Borough the amount of money received by him and shall monthly pay over to the Borough the money so received.
C. 
The Income Tax Administrator is hereby charged with the administration and enforcement of the provisions of this article and is hereby empowered, subject to approval by those responsible for his appointment, to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of this article, including provisions for the reexamination and correction of declarations and of 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 article.
D. 
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 means, facilities and opportunity for such examinations and investigations as are hereby authorized.
E. 
Any information gained by the Income Tax Administrator, his agents, or by any other official, agent or employees of the Borough as a result of any declarations, returns, investigations, hearings or verifications required or authorized by this article shall be confidential and shall not be disclosed to any person except for official use in connection with the administration or enforcement of this article or as otherwise provided by him.
F. 
Any person aggrieved by any action of the Income Tax Administrator shall have the right of appeal as provided by law.
A. 
The Income Tax Administrator may sue in the name of the Borough for the recovery of taxes due and unpaid under this article.
B. 
No assessment may be made of any tax imposed under this article more than five years after the date on which such tax should have been paid, except where a fraudulent return or no return has been filed.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
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; if not paid within four months of the date the tax notice is mailed, an additional penalty of 10% may be added to the bill, as provided by Section 10 of the Local Tax Collection Law, 72 P.S. § 5511.10. 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.
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 overpayment to the Income Tax Administrator, the amount of the overpayment shall be refunded to the person who paid; in which event there shall be repaid to the Borough by the Income Tax Administrator any commissions or fees which have been received for the collection of the amount refunded.
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 Borough to impose the tax herein provided for under the constitution and laws of the Commonwealth of Pennsylvania.
(2) 
To any institution or organization operated for public, religious, education, or charitable purposes, to any institution or organization not organized or operated for private profit or to a trust or a foundation established for any of the said purposes.
(3) 
To the net profits of any corporation which is subject to the Pennsylvania corporate net income tax, and any foreign corporation which is subject to the Pennsylvania franchise tax or exempt from the Pennsylvania franchise tax.
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 his employees and paying the amount collected to the Borough under the provisions of § 301-4 of this article.
A. 
Any person who fails, neglects, or refuses to keep the necessary records and supply the information required by this article, or the rules and regulations pertaining thereto, or to make any declaration or return required by this article; any employer who fails, neglects or refuses to deduct and/or to pay 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 article shall, upon conviction thereof in a summary proceeding before any Magisterial District Judge, be sentenced to pay a fine of not more than $300 for each offense and costs and/or to be imprisoned for a period not exceeding 90 days.
B. 
Any person who, except as permitted by the provisions of § 301-5A through F, inclusive, of this article, divulges any information which is confidential under the provisions of said subsections shall, upon conviction thereof in a summary proceeding before any Magisterial District Judge, be sentenced to pay a fine of not more than $300 for each offense and costs, and/or to be imprisoned for a period not exceeding 90 days.
C. 
The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this article.
D. 
The failure of any person to receive or procure the forms required for making any declaration or return required by this article shall not excuse him from making such declaration or return.
This article shall become effective on January 1, 1968, and shall continue in effect on a calendar year basis without annual reenactment.