[Adopted 2-12-1974 by Ord. No. 496 (Ch. 24, Part 2, of the 1990 Borough
Code of Ordinances)]
A.
ASSOCIATION
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EARNED INCOME TAX COLLECTOR
EMPLOYER
NET PROFITS
NONRESIDENT
PERSON or INDIVIDUAL
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
Unless otherwise expressly stated, the following terms shall have,
for the purpose of this article, the meanings ascribed to them in
this section.
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/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.
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.
Person, public employee or private agency designated by the
Borough of Royersford to collect and administer the tax on earned
income and net profits.
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.
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.
A person, partnership, association or other entity domiciled
outside of the Borough of Royersford.
A natural person.
The calendar year before this current year.
A person, partnership, association, or other entity domiciled
in the Borough of Royersford.
The calendar year following the current year.
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:
(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:
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.
