[Ord. No. 1-1966, § 1, 1/25/1966]
This article shall be known as the "South Hanover Township Earned
Income Tax Ordinance." The provisions hereof shall first become effective
March 1, 1966.
[Ord. No. 1-1966, § 2, 1/25/1966]
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, 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.
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 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.
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.
A person, employee or private agency designated by the Board
of Supervisors of South Hanover Township to collect and administer
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 Township of South Hanover.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Township of South Hanover.
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.
[Ord. No. 1-1966, § 3, 1/25/1966]
1.
A tax for general revenue purposes of 1% is hereby imposed and shall
be applied as follows:
A.
To earned income earned by residents of the Township of South Hanover
during the calendar year 1966 and during each calendar year thereafter.
B.
To earned income earned by nonresidents of the Township of South
Hanover in the Township of South Hanover during the calendar year
thereafter.
C.
To net profits earned by residents of the Township of South Hanover
during the calendar year 1966 or taxpayer fiscal year beginning in
the calendar year 1966, and during each calendar year or taxpayer
fiscal year thereafter.
D.
To net profits earned in the Township of South Hanover by nonresidents
of the Township of South Hanover during the calendar year 1966 or
taxpayer fiscal year beginning in the calendar year 1966, and during
each calendar year or taxpayer fiscal year thereafter.
[Ord. No. 1-1966, § 4, 1/25/1966]
1.
Net profits.
A.
Every taxpayer making net profits shall, on or before April 15 of
the current year 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, and ending December 31, of
the current year, and pay to the officer in four equal quarterly installments
the tax due thereon as follows: the first installment at the time
of filing the declaration, and the other installments on or before
June 15 of the current year, September 15 of the current year, and
January 15 of the succeeding year, respectively.
B.
Any taxpayer who first anticipates any net profit after April 15
of the current year shall make and file the declaration hereinabove
required on or before June 15 of the current year, September 15 of
the current year, or December 31 of the current year, whichever of
these dates next follows the date on which the taxpayer first anticipates
such net profit, and pay to the officer in equal installments the
tax due thereon on or before the quarterly payment dates which remain
after the filing of the declaration.
C.
Every taxpayer shall, on or before April 15 of the succeeding year,
make and file with the officer on a form prescribed or approved by
the officer a final return showing he amount of net profits earned
during the period beginning January 1 of the current year, and ending
December 31 of the current year, 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.
Any taxpayer may, in lieu of paying the fourth quarterly installment
of his estimated tax, elect to make and file with the officer, on
or before January 31 of the succeeding year, the final return as hereinabove
required.
D.
The officer 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 anticipates additional
net profits not previously declared or finds that he has overestimated
his anticipated net profits.
E.
Every taxpayer who discontinues business prior to December 31 of
the current year shall, within 30 days after the discontinuance of
business, file his final return as hereinabove required and pay the
tax due.
2.
Earned income.
A.
Annual earned income tax return. Every taxpayer shall, on or before
April 15 of the succeeding year, make and file with the officer on
a form prescribed or approved by the officer a final return showing
the amount of earned income received during the period beginning January
1 of the current year, and ending December 31 of the current year,
the total amount of tax due thereon, the amount of tax paid thereon,
the amount of tax thereon that has been withheld pursuant to the provisions
relating to the collection at source 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.
B.
Earned income not subject to withholding. Every taxpayer who is employed
for a salary, wage, commission, 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 on a form prescribed
or approved by the officer, a quarterly return 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, setting forth
the aggregate amount of earned income not subject to withholding by
him during the 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, and subject to
the tax, together with such other information as the officer may require.
Every, taxpayer making such return shall, at the time of filing thereof,
pay to the officer the amount of tax shown as due thereon.
[Ord. No. 1-1966, § 5, 1/25/1966]
1.
Every employer having an office, factory, workshop, branch, warehouse,
or other place of business within the Township of South Hanover 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.
2.
Every employer having an office, factory, workshop, ranch, warehouse
or other place of business within the Township of South Hanover 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.
3.
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 Township of South Hanover,
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 the last day of the month succeeding the month for which the
tax was withheld.
4.
On or before February 28 of the succeeding year, every employer shall
file with the officer:
A.
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 of the current year,
and ending December 31 of the current year.
B.
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, 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.
5.
Every employer who discontinues business prior to December 31 of
the current year shall, within 30 days after the discontinuance of
business, file the returns and withholding statements hereinabove
required and pay the tax due.
6.
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.
7.
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.
[Ord. No. 1-1966, § 6, 1/25/1966]
1.
It shall be the duty of the officer to collect and receive the taxes,
fines and penalties imposed by this article. It shall also be his
duty to keep a record showing amount received by him from each person
or business paying the tax and the date of such receipt.
2.
The Income Tax Officer, before entering upon his official duties
under this article, shall give and acknowledge a bond to the Township
of South Hanover such as will comply with the provisions of Section
13(V)(b) of Act 511 of the 1965 Session of the Pennsylvania General
Assembly, approved December 31, 1965.
3.
The officer charged with the administration and enforcement of the
provisions of this article 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 make refunds in case of overpayment, for any period of time not
to exceed six years subsequent to the date of payment of the sum involved,
and to prescribe forms necessary for the administration of this article.
No rule or regulation of any kind shall be enforceable unless it has
been approved by resolution by the Board of Supervisors of South Hanover
Township. A copy of such rules and regulations currently in force
shall be available for public inspection.
4.
The officer shall refund, on petition of, and proof by the taxpayer,
earned income tax paid on the taxpayer's ordinary and necessary
business expenses, to the extent that such expenses are not paid by
the taxpayer's employer.
5.
The officer and agents designated by him are hereby authorized to
examine the books, papers, and records of any employer or of any taxpayer
or of any person whom the officer reasonably believes to be an employer
or taxpayer, 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 employer and every taxpayer and every person whom the
officer reasonably believes to be an employer or taxpayer, is hereby
directed and required to give to the officer, or to any agent designated
by him, the means, facilities, and opportunity for such examination
and investigations, as are hereby authorized.
6.
Any information gained by the officer, his agents, or by any other
official or agent of the Township of South Hanover, as a result of
any declarations, returns, investigations, hearings or verifications
required or authorized by this article, shall be confidential, except
for official purposes and except in accordance with a proper judicial
order, or as otherwise provided by law.
7.
The officer is authorized to establish different filing; reporting
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
[Ord. No. 1-1966, § 7, 1/25/1966]
1.
The officer may sue in the name of the Township of South Hanover
for the recovery of taxes due and unpaid under this article.
2.
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 the 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 provisions
of this article, there shall be no limitation.
B.
Where an examination of the declaration or return filed by any person,
or of other evidence relating to such declaration or return in the
possession of the officer, reveals a fraudulent evasion of taxes,
there shall be no limitation.
C.
In the case of substantial understatement of tax liability of 25%
or more, and no fraud, suit shall be begun within six years.
D.
Where any person has deducted taxes under the provisions of this
article, and has failed to pay the amounts so deducted to the officer,
or where any person has willfully failed or omitted to make the deductions
required by this article, there shall be no limitation.
E.
This section shall not be construed to limit the Township of South
Hanover from recovering delinquent taxes by any other means provided
by law.
3.
The officer 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.
[Ord. No. 1-1966, § 8, 1/25/1966]
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 therefore shall, in addition, be liable for
the costs of collection and the interest and penalties herein imposed.
[Ord. No. 1-1966, § 9, 1/25/1966; Ord. No. 3-1995, 9/12/1995]
Any person who shall violate any provision of this article shall,
upon conviction thereof, be sentenced to pay a fine not exceeding
$600 and costs and, in default of payment thereof, shall be subject
to imprisonment for a term not to exceed 30 days. Each day that a
violation of this article continues shall constitute a separate offense.
[Ord. No. 1-1966, § 10, 1/25/1966]
Taxpayers under this article shall be allowed such credit or
deduction from their liability for the tax imposed by this article
for taxes paid to other taxing authorities as is provided by the Local
Tax Enabling Act, Act 511, of the 1965 Session of the Pennsylvania
General Assembly, approved December 31, 1965.
