[Adopted 2-12-1974 by Ord. No. 496 (Ch. 24, Part 2, of the 1990 Borough Code of Ordinances)]
A. 
Unless otherwise expressly stated, the following terms shall have, for the purpose of this article, the meanings ascribed to them in this section.
ASSOCIATION
A partnership, limited partnership, or any other unincorporated group of two or more persons.
BUSINESS
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.
CORPORATION
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.
CURRENT YEAR
The calendar year for which the tax is levied.
DOMICILE
The place where one lives and has his permanent home and to which he/she has the intention of returning whenever he/she 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/her 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.
EARNED INCOME
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.
EARNED INCOME TAX COLLECTOR
Person, public employee or private agency designated by the Borough of Royersford to collect and administer the tax on earned income and net profits.
EMPLOYER
A person, partnership, association, corporation, institution, governmental body or unit or agency, or any other entity employing one or more persons for salary, wage, commission or other compensation.
NET PROFITS
The net income from the operation of the 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, without deduction of taxes based on income.
NONRESIDENT
A person, partnership, association or other entity domiciled outside of the Borough of Royersford.
PERSON or INDIVIDUAL
A natural person.
PRECEDING YEAR
The calendar year before this current year.
RESIDENT
A person, partnership, association, or other entity domiciled in the Borough of Royersford.
SUCCEEDING YEAR
The calendar year following the current year.
TAXPAYER
A person, partnership, association or other entity required hereunder to file a return of earned income or net profits or to pay a tax thereon.
B. 
In this article the singular shall include the plural and the masculine shall include the feminine and the neuter.
A tax for general Borough revenue purposes is hereby imposed and levied as follows:
A. 
One percent of all earned income earned on or after July 1, 1974, by residents and nonresidents of the Borough of Royersford.
B. 
One percent of the net profits earned on and after July 1, 1974, of businesses, professions, and other activities conducted by residents and nonresidents within the Borough of Royersford.
C. 
The tax levied under this article shall be applicable to earned income received and to net profits earned by residents in the period beginning July 1, 1974, and ending December 31, 1974, or for taxpayers fiscal year beginning in the current year, and the tax shall continue in force on a calendar year basis or taxpayer fiscal year basis without annual reenactment, unless the rate of the tax is subsequently changed. Borough of Royersford may be ordinance change the rate. Such change shall become effective on the date specified in the article.
[Amended 10-30-1990 by Ord. No. 715]
A. 
Tax on net profits.
(1) 
Every taxpayer making net profits shall file on or before October 31, 1974, a declaration of his estimated net profit during the period beginning July 1, 1974, and ending December 31, 1974. The income Tax Collector appointed by the Borough of Royersford shall supply the required declaration forms and the taxpayer upon filing the same shall pay to the Tax Collector 1/2 of the tax estimated to be due in accordance with the estimate which will be paid no later than October 31, 1974. The balance of any tax due for the above period July 1, 1974, to December 31, 1974, shall be paid to the Tax Collector between January 1, 1975 and April 15, 1975. At the time of making the final payment the taxpayer shall file with the income Tax Collector on a form prescribed by the income Tax Collector a final tax return showing the total amount of the net profits earned during the period July 1, 1974, and ending December 31, 1974, the total amount of the tax due thereon; the total amount of tax paid with the estimate; the balance of tax due. At the time of filing the return, taxpayer shall pay the balance of any tax due and owing to the Earned Income Tax Collector or shall make a demand for refund or credit in the case of any overpayment.
(2) 
Beginning with the calendar year January 1 of the following year, every taxpayer who makes any net profits shall on or before April 15 of the then current year and each year thereafter make and file with the Tax Collector a declaration of his estimated net profits during the period beginning January 1 and ending December 31 of the then current year. Taxpayer shall pay to the Tax Collector the total amount of tax determined to be due under the estimate as follows:
(a) 
First payment on or before April 15 of the current year, with declaration;
(b) 
Second payment on or before June 15 of the current year;
(c) 
Third payment on or before September 15 or the current year;
(d) 
Fourth payment on or before January 15 of the succeeding year.
(3) 
If a taxpayer after the calendar year of each year anticipates net profits after April 15 of the calendar year, then he/she shall make and file a declaration on or before June 15, September 15, and December 31 of the then current year whichever of these dates next follows the date on which the taxpayer first anticipates such net profits. Taxpayer shall pay to the Tax Collector in equal installments the amount of tax due thereon or before the quarterly payment dates which remain after the filing of his first declaration.
(4) 
On April 15 of each succeeding year every taxpayer shall make and file with the Tax Collector a final income tax return showing the amount of the net profits earned during the period beginning after January 1 of the then current year and ending December 31 of the then current year, the total amount of tax due thereon and the total amount of tax heretobefore paid with the estimated return. At the time of filing a final return taxpayer shall pay to the Earned Income Tax Collector the balance of tax due or shall make demand for a refund or credit in the case of any overpayment. Any taxpayer may in lieu of paying the fourth quarterly installment of his estimated tax elect to and make and file with the Tax Collector his final return on or before January 31 of the succeeding year and to pay the tax in full at that time.
(5) 
The Borough of Royersford shall 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/she has over-estimated his anticipated net profits.
(6) 
Discontinuance of business. If a taxpayer discontinues his business prior to December 31 of the current year, he/she shall, within 30 days after the discontinuance of the business, file his final return as hereinabove required and pay the tax due or make demand for the refund or credit in the case of an overpayment.
B. 
Earned income.
(1) 
Annual earned income tax return. Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Earned Income Tax Collector on a form prescribed, prepared and supplied by the Earned Income Tax Collector, a final return showing the total amount of earned income received during the period beginning July 1, 1974, and ending December 31, 1974, for the current year and for each year thereafter for the period beginning January 1 and ending December 31, the total amount of tax due thereon, the amount of tax paid thereon, the amount of the tax thereon that has been withheld in the event the provisions relating to withholding hereinafter set forth have been invoked by the Borough of Royersford and the balance of the tax due. At the time of the filing of the final return the taxpayer shall pay the balance of the tax due or may make a demand for refund or credit in the case of an overpayment.
(2) 
Earned income not subject to withholding. Every taxpayer who is employed for a salary, a wage, commission or other compensation and who has received any earned income not subject to the provisions relating to collection at the source, shall make and file with the Earned Income Tax Collector on a form prescribed or approved by the Earned Income Tax Collector, a quarterly return on or before October 31 of each year and January 31 of the following year setting forth the aggregate amount of earned income not subject to withholding earned by him/her during the period July 1 of each year to the including September 30 of each year and during the period October 1 of each year to and including December 31 of each year, respectively, together with such other information as shall be required on the form supplied by the Earned Income Tax Collector. Every taxpayer who files a return at this time shall also pay to the Earned Income Tax Collector the amount of tax estimated to be due thereon.
(3) 
After the calendar year every taxpayer who is employed for salary, wage, commission or other compensation who received any earned income not subject to the provisions relating to collection at the source shall make and file with the Earned Income Tax Collector on a form prepared, supplied and prescribed by the Earned Income Tax Collector 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/her 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 information as the Earned Income Tax Collector shall require. Every taxpayer who makes such a return shall, at the time of the filing of the return with the Earned Income Tax Collector pay to the collector the amount of the tax shown as due thereon.
A. 
Every employer, as hereinbefore described and defined, shall be obligated from July 1, 1974, and thereafter so long as this article is in effect to withhold from wages of employees subject to the tax imposed by this resolution, the amount of tax due in accordance with the withholding procedure set forth hereinafter.
B. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the Borough of Royersford, who employs one or more persons, other than domestic servants, for salary, wage, commission or other compensation, who has not previously registered, shall within 15 days after becoming an employer, register with the Earned Income Tax Collector his name and address and such other information as the officer may require.
C. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the Borough of Royersford who employs one or more persons other than domestic servants for salary, wage, commission of other compensation, shall deduct at the time of payment thereof, the tax imposed by this article on the earned income due to his 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 Earned Income Tax Collector 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 Earned Income Tax Collector and employer, shall show the name and social security number or identification 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, 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.
D. 
Monthly reporting. 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 of Royersford, may be required by the Earned Income Tax Collector to file his return and pay the tax monthly. In such cases, payments of tax shall be made to the Earned Income Tax Collector on or before the last day of the month succeeding the month for which the tax was withheld.
E. 
On or before February 28 of the succeeding year, every employer shall file with the Earned Income Tax Collector:
(1) 
An annual return showing the total of earned income paid, the total amount of tax deducted, and the total amount of tax paid to the Earned Income Tax Collector for the period beginning January 1 of the current year and ending December 31 of 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, social security number or identification 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 Earned Income Tax Collector. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.
F. 
Termination of business. Every employer who discontinues business for any reason 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.
G. 
Every employer who willfully or negligently fails or omits to make the deductions required by this section shall be liable for the payments of the taxes which he/she was required to withhold to the extent that such taxes have not been recovered from the employee.
H. 
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.
[Amended 6-10-1985 by Ord. No. 649]
A. 
The Office of Earned Income Tax Collector is hereby created by this article and the Borough of Royersford shall from time to time by separate ordinance appoint a person or company to administer the provisions of this taxing ordinance who will be designated the "Earned Income Tax Collector."
B. 
The Earned Income Tax Collector shall be bonded as the Borough Council may determine, said bond to cover all moneys coming into his hands on behalf of the Borough of Royersford, the costs of the bond to be paid by the Borough of Royersford. Before entering upon his official duties the Earned Income Tax Collector shall give and acknowledge the bond to the Borough appointing him/her. Said bond shall be in compliance with Act 511[1] in all respects and subject to the approval of the Borough Solicitor.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
C. 
The Earned Income Tax Collector shall collect and receive all such taxes, shall furnish a receipt for payment when requested to do so by the taxpayer, shall keep a record showing the amount received by him/her for each taxpayer under this article together with the date of the receipt of such payment, and shall account and pay over to the Borough, according to law, all moneys paid to, received or held by him/her by virtue of his office.
D. 
The Earned Income Tax Collector is hereby empowered to prescribe rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this article, subject, however, to the approval of the Borough Council of the Borough of Royersford. Such rules and regulations shall be inscribed by the Earned Income Tax Collector into a book kept for that purpose and open to the inspection of the public and thereupon shall have the same force and effect as if it had been incorporated into this article.
E. 
The Earned Income Tax Collector, or any other person designated by the Borough of Royersford, is hereby authorized to examine any of the books, papers, and records of any employer, supposed employer, taxpayer, or supposed taxpayer in order to verify the accuracy of any return made, or if no return is made, to ascertain the amount of tax due by any person under this article. Every such employer, supposed employer, taxpayer, or supposed taxpayer shall give to the Earned Income Tax Collector or such other authorized person the means, facilities and opportunities for such examination and investigation hereby authorized.
F. 
The Earned Income Tax Collector is authorized to examine any person under oath concerning any income which was or should have been returned for taxation, and shall have the power and is hereby authorized to issue subpoenas to compel the attendance of persons whom he/she deems necessary to examine as witnesses, and to compel the production of books, records and papers relating to any account being examined.
G. 
The Earned Income Tax Collector, or any other official or agent so designated by the Borough of Royersford, shall have the power to reexamine returns, correct erroneous returns, consent to make refunds, and authorize the refunding of taxes erroneously or improperly collected from, or paid by, the taxpayers, for any period of time not to exceed six years subsequent to the date of payment of the sum involved.
H. 
Any information gained by the Earned Income Tax Collector or any other official or agent of the Borough of Royersford as a result of any return, investigation, hearing or examination required or authorized by this article shall become confidential, except for official purposes, or except in accordance with proper judicial order, or as otherwise provided by law. Any disclosure of any such information, contrary to the provisions of this section, shall constitute a violation of this article.
I. 
Any person who, except as permitted by the provisions of the foregoing § 427-19H of this article, divulges any information which is confidential under the provisions of this article shall, upon conviction thereof before any Magisterial District Judge or court of competent jurisdiction be sentenced to pay a fine or not more than $500 for each offense and costs; and in default of payment of such fine and costs to be imprisoned for a period not exceeding 30 days.
J. 
The owners or managers of all residences containing two or more dwelling units shall provide to the Borough Manager and Earned Income Tax Collector the following information:
(1) 
On or before December 31 of each year, the names and addresses of all occupants of all leased or rented units or apartments;
(2) 
Within 30 days after any change of possession of any unit or apartment, the names and address of the new occupants.
A. 
The Earned Income Tax Collector may sue in the name of the Borough for the recovery of taxes due and unpaid under this article.
B. 
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:
(1) 
Where no declaration or return was filed by any person although a declaration or return was required to be filed by him/her under provisions of this article, there shall be no limitation.
(2) 
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 Earned Income Tax Collector, reveals a fraudulent evasion of taxes, there shall be no limitation.
(3) 
In the case of substantial understatement of tax liability, 25% or more, and no fraud, suit shall be begun within six years.
(4) 
Where any person has deducted taxes under the provisions of this article and has failed to pay the amount so deducted to the Earned Income Tax Collector, or where any person has failed or omitted to make the deductions required by this article, there shall be no limitation.
(5) 
This article shall not be construed to limit the Borough Council from recovering the delinquent taxes by any other means provided in the Local Tax Enabling Act.
C. 
The Earned Income Tax Collector 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. 
This article hereby incorporates by reference the provisions pertaining to the collection of delinquent earned income taxes as are set forth in the Local Tax Enabling 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, and an additional penalty of 1/2% 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 costs of collection and for the interest and penalties herein imposed.
[Amended 6-10-1985 by Ord. No. 649]
A. 
Any person who fails, neglects or refuses to make any declaration or return required by this article, any owner or manager of a residence containing two or more dwelling units who fails, neglects or refuses to provide to the Borough Manager and the Earned Income Tax Collector the names and addresses of all occupants of such units as required by this article, any employer who fails, neglects or refuses to register or to pay the taxes deducted from his employees, or fails, neglects or refuses to deduct withholding taxes from his employees, any person who refuses to permit the Earned Income Tax Collector or any agent designated by him/her to examine his books, records and papers, any person who knowingly makes any incomplete, false or fraudulent return, or attempts to do anything whatsoever to avoid the full disclosure of the amount of his net profits or earned income in order to avoid the payment of the whole or any part of the tax imposed by this article shall, upon conviction thereof, before any Magisterial District Judge or court of competent jurisdiction, be sentenced to pay a fine of not more than $500 for each offense and costs, and, in default of payment of such fine and cost, to be imprisoned for a period not exceeding 30 days.
B. 
The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this article.
C. 
The failure of any person to receive or procure forms required for making the declaration or returns required by this article shall not excuse him/her from making such declaration or return.
This article shall not apply to: personal property or persons to whom or which is beyond the legal power of the Borough of Royersford to impose the tax herein provided; the net profits of any institution, or organization, trust, association or foundation operated for public, religious, educational or charitable purposes, provided that this § 427-23 shall not operate to relieve or exempt any such entity from collection at source of earned income of its employees and remittance of such collection to the Earned Income Tax Collector.