[Adopted 11-21-1989 by Ord. No. 249-A (Ch. 24, Part 2, of the 2010 Code
of Ordinances)]
This article shall be known as the "Earned Income Tax Ordinance
of the Borough of Chalfont, Bucks County, Pennsylvania," hereinafter
called "Borough."
This article is enacted and adopted under and by virtue of the
authority of the Act of December 31, 1965, P.L. 1257, effective January
1, 1966, the Local Tax Enabling Act,[1] and the provisions of Sections 13 and 14 thereof (53 P.S.
§§ 6913 and 6914),[2] its supplements and amendments, which are incorporated
herein by reference except that where options are provided in Sections
13 and 14, this article designates the options selected.
A tax for general revenue purposes in the amount of 1% is hereby
imposed on earned income, including, inter alia, salaries, wages,
commissions, bonuses, incentive payments, fees, tips and other compensation
received by residents of the Borough, and on earned income, including,
inter alia, salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by nonresidents of the
Borough for work done or services performed or rendered in the Borough,
and the net profits received from businesses, professions or other
activities conducted in the Borough by nonresidents of the Borough,
beginning January 1, 1990, and continuing for each succeeding year.
A.
Net profits.
(1)
For 1990. Every taxpayer making net profits shall, on or before April
15, 1990, make and file with the Officer, on a form prescribed or
approved by the Officer, a declaration of his estimated net profits
during the period beginning January 1, 1990, and ending December 31,
1990, and pay to the Officer the tax due thereon, and on or before
April 15, 1991, shall file a final return showing the amount of net
profits received during the period beginning January 1, 1990, and
ending December 31, 1991, the total amount of tax due thereon 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 tax due
or shall make demand for refund or credit in the case of overpayment.
(2)
After 1990. Every taxpayer making net profits in any year succeeding
1990 shall, on or before April 15 of the current year, make and file
with the Officer a declaration of his estimated net profits for the
current year and pay to the Officer the tax due thereon in four equal
quarterly installments, all as provided in Section 13(III)(A)(1)(ii)
of the Local Tax Enabling Act, as amended, and Subsections (13)(III)(A)(2)
and (3), where applicable.[1] On or before April 15 of the year following every current
year, every taxpayer shall file a final return showing the amount
of net profits received during the current year, the total tax due
thereon and the total tax paid. At the time of filing the final return,
the taxpayer shall pay to the Officer the balance of tax due or shall
make demand for refund or credit in the case of overpayment.
[1]
Editor's Note: Former Section 13 was repealed without replacement
by Act 32 of 2008, effective 6-30-2012. See now 53 P.S. § 6924.101
et seq.
B.
Earned income.
(1)
For 1990. Every taxpayer shall, on or before April 15, 1991, make
and file with the Officer a final return showing the amount of earned
income, including, inter alia, salaries, wages, commissions, bonuses,
incentive payments, fees, tips and compensation (other than net profits),
received during the period beginning January 1, 1990, and ending December
31, 1990, the total tax due thereon, the amount of tax paid thereon
that has been withheld pursuant to the provisions relating to collection
at the source and the balance of the tax due. At the time of filing
said 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)
After 1990. For the years succeeding the year 1990, every taxpayer
shall make and file final returns and pay the taxes due all as provided
in Section 13(III)(B)(1) of the Local Tax Enabling Act, as amended.[2]
[2]
Editor's Note: Former Section 13 was repealed without replacement
by Act 32 of 2008, effective 6-30-2012. See now 53 P.S. § 6924.101
et seq.
(3)
Quarterly returns. Every taxpayer who is employed for a salary, wage
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 quarterly returns and shall pay quarter-annually
the amount of tax shown as due on such returns, all as provided in
Section 13(III)(B)(2) of the Local Tax Enabling Act, as amended.
A.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the corporate limits of the Borough
who employs one or more persons, other than domestic servants, for
a salary, wage, commission or other compensation, who has not previously
registered, shall, within 15 days after becoming an employer, register
with the Officer his name and address and such other information as
the Officer may require.
B.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the corporate limits of the Borough
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 article 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 return, 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 preceding three-month period,
the tax deducted therefrom, the political subdivisions imposing the
tax upon such employee, the total earned income of all such employees
during such preceding three-month period and the total tax deducted
therefrom and paid with the return. Any employer who, for two of the
preceding 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 Borough 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.
C.
On or before February 28, 1991, and in succeeding years, every employer
shall file with the Officer:
(1)
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, 1990, and ending
December 31, 1990, or the current year.
(2)
A return withholding statement for each employee employed during
all or any part of the period beginning January 1 of the current year
and ending December 31 of the current year, setting forth the employee's
name, address and social security number, the amount of earned income
paid to the employee during said period, the amount of tax deducted,
the political subdivisions 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.
D.
Every employer who discontinues business prior to December 31 of
the current year shall, within 30 days after discontinuance of business,
file the returns and withholding statements hereinabove required and
pay the tax due.
E.
Except as otherwise provided in § 384-12 of this article, every employer who willfully or negligently fails or omits 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.
F.
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.
The Income Tax Officer shall be selected, from time to time,
by resolution of the Borough Council and shall receive such compensation
for his services and expenses as determined, from time to time, by
the Borough Council. Such Officer shall have the powers and duties
and be subject to the penalties provided in the Local Tax Enabling
Act,[1] its supplements and amendments.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
The tax imposed in § 384-6 of this article shall not be levied on the net profits of any person, institution or organization as to whom it is beyond the power of the Borough Council to impose said tax under the Constitution of the United States of America or the Constitution and laws of the Commonwealth of Pennsylvania.
Payments of any tax on income to any state other than Pennsylvania
or to any political subdivision thereof by residents thereof pursuant
to any state or local law, to the extent that such income includes
salaries, wages, commissions, bonuses, incentive payments, fees, tips
and other compensation or net profits of businesses, professions or
other activities, but in such proportions as hereinafter set forth,
shall be credited to and allowed as a deduction from the liability
of such person for the tax imposed by this article on salaries, wages,
commissions, bonuses, incentive payments, fees, tips and other compensation
or net profits of businesses, professions or other activities, if
residents of the Borough receive credits and deductions of a similar
kind to a like degree from the tax on income imposed by the other
state or political subdivision thereof. Where a credit or a deduction
is allowable, it shall be allowed in proportion to the concurrent
periods for which taxes are imposed by the other state or respective
political subdivisions, but not in excess of the amount previously
paid for a concurrent period.
Enforcement and penalties for the nonpayment of any tax imposed
hereunder may be pursued and imposed by the Borough as authorized
in the Local Tax Enabling Act, Section 13(VII) and (IX).[1]
[1]
Editor's Note: Former Section 13 was repealed without replacement
by Act 32 of 2008, effective 6-30-2012. See now 53 P.S. § 6924.101
et seq.
