[Adopted 3-3-1966 by Ord.
No. 415 (Ch. 24, Part 5, of the 1984 Code of Ordinances)]
The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates or requires 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 a person or partnership.
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 calendar year for which the tax is levied.
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.
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 case 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 required
from service after reaching a specific age or after a stated period
of employment or payments commonly known as "public assistance," or
unemployment compensation payment 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.
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.
Person, public employee or private agency designated by the
Borough Council of Lemoyne 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, 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.
A person, partnership, association or other entity domiciled
outside the Borough of Lemoyne.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Borough of Lemoyne.
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.
[Amended 12-1972 by Ord. No. 492[1]]
A.Â
A tax for general revenue purposes is hereby imposed at the rate
of 1% of the following:
(1)Â
Earned income received on and after February 1, 1966, by residents
of the Borough of Lemoyne;
(2)Â
Earned income received on and after February 1, 1966, by nonresidents
of the Borough of Lemoyne in the Borough of Lemoyne;
(3)Â
Net profits earned on and after February 1, 1966, by residents of
the Borough of Lemoyne; and
(4)Â
Net profits earned on and after February 1, 1966, in the Borough
of Lemoyne by nonresidents of the Borough of Lemoyne.
B.Â
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.
C.Â
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 article.
D.Â
The tax levied under this article shall be applicable to earned income
received and to net profits earned on and after February 1, 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.[2]
[2]
Editor's Note: Ord. No. 423, December 1, 1966, stated the
tax imposed by Ord. No. 415 on salaries, wages, commissions and other
compensation earned by residents of the Borough of Lemoyne, Pennsylvania,
is hereby reimposed for the calendar year 1967 and for all subsequent
calendar years, or fiscal year 1967 and subsequent years where applicable,
until such tax is repealed by law or Borough ordinance.
E.Â
Commencing with the year following 1966 and thereafter, whenever
February 1 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.[3]
[3]
Editor's Note: Ord. No. 423, December 1, 1966, stated the
tax imposed by Ord. No. 415 on salaries, wages, commissions and other
compensation earned by residents of the Borough of Lemoyne, Pennsylvania,
is hereby reimposed for the calendar year 1967 and for all subsequent
calendar years, or fiscal year 1967 and subsequent years where applicable,
until such tax is repealed by law or Borough ordinance.
[1]
Editor's Note: Ord. No. 492, December 1972, stated that Ord.
Nos. 415 and 423 were amended to provide that all residents of the
Borough of Lemoyne shall pay a tax of 1% on all salaries, commissions,
wages and other compensation earned by residents of the Borough of
Lemoyne. Collection of said tax would be made as provided for in the
aforesaid ordinances.
A.Â
Net profits.
(1)Â
Every taxpayer who reasonably expects that he will earn any taxable
net profits during the period between February 1, 1966, and December
31, 1966, shall on or before April 16, 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 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 article 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 1/4 of the estimated tax shown as due thereon
and such taxpayer shall thereafter pay 1/4 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.
(2)Â
A taxpayer who on April 15, 1966, did not reasonably expect that he would earn any taxable net profits during the period between February 1, 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 Subsection A(1). 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.
(3)Â
The Income Tax Officer or his agent is hereby authorized to provide
by regulation for the making and filing of adjusted declaration of
estimated net profits and for the payments of the estimated tax in
cases where a taxpayer who 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.
(4)Â
On or before April 16, 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 1, 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 1, 1966, and ending December 31, 1966, 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 any such year within such period bears to the total number
of days in any such year.
(a)Â
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.
(b)Â
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.
(5)Â
Every taxpayer who discontinues business prior to December 31, 1966,
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.
B.Â
Earned income.
(1)Â
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 § 488-4 of this article relating to 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 periods beginning February 1, 1966, and ending December 31, 1966, the estimated amount of tax thereon that will be deducted therefrom pursuant to § 488-4 of this article, the estimated amount of tax imposed by this article that will not be deducted therefrom pursuant to § 488-4 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 article, 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.
(2)Â
A taxpayer who on April 15, 1966, did not reasonably expect that he would receive any earned income not subject to the provisions of § 488-4 of this article relating to the collection at source, during the period between February 1, 1966, and December 31, 1966, and who subsequent to April 15, 1966 [see not 2] reasonably expects that he will receive not subject to the provisions of § 488-4 of this article 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 A. 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.
(3)Â
The Income Tax Officer or his agent is hereby authorized to provide
by regulation for 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.
(4)Â
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 1, 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 § 488-4 of this article 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.
C.Â
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.
A.Â
Every employer within the Borough of Lemoyne 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 article 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.
B.Â
On or before February 28, 1967, every such employer shall file with
the Income Tax Officer or his agent on forms prescribed by him:
(1)Â
An annual return showing the total amount of earned income received
by his employee or employees, on which a tax is imposed by this article,
the total amount of tax deducted and the total amount of tax paid
to the Borough of Lemoyne in respect of earned income received by
his employee or employees during the period beginning February 1,
1966, and ending December 31, 1966; and
(2)Â
A return in respect of each taxpayer who was an employee during all
or any part of the period beginning February 1, 1966, and ending December
31, 1966, and who received during such period any earned income subject
to the tax imposed of this article, 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.
C.Â
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.
D.Â
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.Â
If an employer makes a deduction of tax as required by this § 488-4, the amount deducted shall constitute in the hands of such employer a trust fund held for the account of the Borough of Lemoyne as beneficial owner thereof and the employee from whose earned income such tax was deducted shall be deemed to have paid such tax.
A.Â
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 article.
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.
B.Â
The Income Tax Officer or his agent is hereby charged with the administration
and enforcement of the provisions of this article 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 article, 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 article.
C.Â
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.
D.Â
Any information gained by the Income Tax Officer, his agents, or
by any other official, agent or employee of the Borough of Lemoyne,
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 law.
E.Â
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.
A.Â
The Income Tax Officer or his agent may sue in the name of the Borough
of Lemoyne for the recovery of taxes due and unpaid under this article.
B.Â
Any suit brought to recover the tax imposed by this article 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:
(1)Â
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 article.
(2)Â
In the case of a false or fraudulent declaration or return with the
intent to evade tax.
(3)Â
Where any employer has deducted taxes under the provisions of this
article and has failed to pay the amounts so deducted to the Borough
of Lemoyne.
(4)Â
In the case of substantial understatement of tax liability of 25%
or more, and no fraud, suit shall be begun within six years.
C.Â
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.
D.Â
This section shall not be construed to limit the Borough of Lemoyne
from recovering delinquent taxes by any other means provided by this
act.
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 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 taxpayer
or employer liable therefor shall, in addition, be liable for the
costs of collection and the interest and penalties herein imposed.
The Income Tax Officer or his agent 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 Officer or his agent, the amount of the overpayment
shall be refunded or credited to the taxpayer or employer who paid.
The Council 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 Council
and the Income Tax Officer may contract with an agent and delegate
thereto the powers and duties prescribed in this article for the Income
Tax Officer. The designated Income Tax Officer shall have the powers
and duties prescribed in this article.
A.Â
The tax imposed by this article shall not apply:
(1)Â
To any person as to whom it is beyond the legal power of the Borough
of Lemoyne to impose the tax herein provided for under the Constitution
of the United States and the Constitution and Laws of the Commonwealth
of Pennsylvania.
(2)Â
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.
The Council 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.
A.Â
Any person who fails, neglects or refuses to make any declaration
or return required by this article; 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 article,
shall, upon conviction before a Magisterial District Judge, be sentenced
to a fine not to exceed $500 for each offense and costs or to imprisonment
for a term not to exceed 30 days.
B.Â
Any person, employer or corporation who, except as permitted by the provisions of § 488-5D of this article, divulges any information which is confidential under the provisions of said subsection shall, upon conviction thereof before a District Justice be sentenced to pay a fine of not more than $500 for each offense and costs or to imprisonment for a term not to exceed 30 days.
C.Â
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section of this article 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.
D.Â
The failure of any taxpayer or employer 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.
[Amended 6-7-1984 by Ord.
No. 553]
The authority under which the tax enacted is the Act of June
25, 1947, P.L. 1145, as amended, and the authority of the Act of December
31, 1965, P.L., (Act 511), "The Local Tax Enabling Act."[1]
[1]
Editor's Note: See now 53 P.S. § 6924.101 et seq.
The provisions of this article are severable. If any sentence,
clause or section of this article is for any reason found to be unconstitutional,
illegal or invalid, such unconstitutionality, illegality or invalidity
shall not affect or impair any of the remaining provisions, sentences,
clauses or sections of this article. It is hereby declared to be the
intent of the Council of the Borough of Lemoyne that this article
would have been adopted had such unconstitutional, illegal or invalid
sentence, clause or section not been included herein.
