Town of McCandless, PA
Allegheny County
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Table of Contents
Table of Contents
[Ord. 133, passed 11-14-1956]
This article shall be known as "The McCandless Income Tax Ordinance", and such term shall be its short title and full identification thereof.
[Ord. 133, passed 11-14-1956; Ord. 1294, passed 12-15-2003]
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:
ASSOCIATION
A partnership, limited partnership or any other form of unincorporated enterprise, owned by two or more persons.
BUSINESS
An enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, partnership, association or any other entity.
COLLECTOR
That person or agency duly authorized to collect the tax imposed herein. The singular shall include the plural, and the masculine shall include the feminine and the neuter.
CORPORATION
A corporation or joint stock association organized under the laws of the United States, the State of Pennsylvania, or any other state, territory, foreign country or dependency.
EARNED INCOME
Compensation as determined under Section 303 of the act of March 4, 1971 (P.L. 6, No. 2.), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Pt. I Subpt. B Art. V (relating to personal income tax). Employee business expenses are allowable deductions as determined under Article III of the "Tax Reform Code of 1971." The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
EMPLOYER
An individual, partnership, association, corporation, governmental body or unit or agency, or any other entity employing one or more persons on a salary, wage, commission or other compensation basis.
NET PROFITS
The net income from the operation of a business, profession, or other activity, except corporations, determined under Section 303 of the act of March 4, 1971 (P.L. 6, No. 2) known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Pt. 1 Subpt. B Art. V (relating to personal income tax). The term does not include income which is not paid for services provided and which is in the nature of earnings from an investment. For taxpayers engaged in the business, profession or activity of farming, the term shall not include:
(a) 
Any interest earnings generated from any monetary accounts or investment instruments of the farming business;
(b) 
Any gain on the sale of farm machinery;
(c) 
Any gain on the sale of livestock held 12 months or more for draft, breeding or dairy purposes; and
(d) 
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
An individual, partnership, association or other entity domiciled outside the Town of McCandless.
PERSON
A natural person, partnership, corporation, fiduciary or association. Whenever used in any section prescribing and imposing a penalty, the term "person", as applied to associations, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
RESIDENT
An individual, partnership, association, or other entity domiciled in the Town of McCandless.
SALARIES, WAGES, COMMISSIONS AND OTHER COMPENSATION
Includes salaries, wages, commissions, bonuses, incentive payments, fees and tips that may accrue or be received by an individual for services rendered, whether directly or through an agent and whether in cash or in property, but shall not include periodic payments for sick or disability benefits and those 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, nor any wages or compensation paid by the United States to any person for active service in the Army, Navy or Air Force of the United States nor any bonus or additional compensation paid by the United States or the Commonwealth of Pennsylvania or any other state for such service.
TAXPAYER
A person, whether an individual, partnership, association or any other entity, required hereunder to file a return of earnings or net profits, or to pay a tax thereon.
[Ord. 1402, passed 1-1-2012]
(a) 
A tax for Town of McCandless general revenue purposes of 0.5% is hereby imposed on the following:
(1) 
Salaries, wages, commissions and other compensation earned on and after the first day of the year following the enactment or re-enactment of this article, by residents of the Town.
(2) 
Net profits, earned on and after the first day of the year following the enactment or re-enactment of this article, of businesses, professions and other activities conducted by residents of the Town.
(b) 
A tax for Town of McCandless general revenue purposes of 1.0% is hereby imposed on the following:
(1) 
Salaries, wages, commissions and other compensation earned on and after the first day of the year following the enactment or re-enactment of this article, by nonresidents of the Town for work done or services performed or rendered in the Town.
(2) 
Net profits, earned on and after the first day of the year following the enactment or re-enactment of this article, of businesses, professions and other activities conducted in the Town by nonresidents.
The tax levied under subsections (a)(1) and (b)(1) hereof shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by an employer or on his behalf to any person who is employed by or renders services to him. The tax levied under subsections (a)(2) and (b)(2) hereof shall relate to and be imposed on the net profits of any business, profession or enterprise carried on by any person as owner or as proprietor, either individually or in association with some other person or persons.
This article hereby imposes upon all persons designated herein the duty to pay the tax to the Collector at times designated, and to file the proper returns and declarations in accordance with the requirements herein, regardless of whether or not there is a duty upon the employer of the taxpayer to withhold the same from the taxpayer's salaries, wages, commissions or other compensation. In the event that an employer fails to withhold moneys of the taxpayer, the taxpayer is, nevertheless required to pay the same.
[Ord. 133, passed 11-14-1956; Ord. 599, passed 3-6-1972; Ord. 1246, passed 5-21-2001]
(a) 
Every taxpayer who anticipates any net profits, or any earnings not subject to the provisions of Section 329.05, relating to collection at source, shall, on or before April 15 of the year following the enactment or re-enactment of this article, make and file with the Collector on a form prescribed by the Collector, a declaration of his estimated net profits or earnings during the period beginning January 1 and ending December 31 of the year following the enactment or re-enactment of this article, setting forth the estimated amount of net profits or earnings anticipated by him during such period and subject to the tax, together with such other information as the Collector may require.
(b) 
The declaration shall show the estimated amount of tax imposed by this article on such estimated net profits or earnings, the estimated amount of tax which will be collected at source in accordance with Section 329.05, and the balance due. The taxpayer making the declaration shall, at the time of filing thereof, pay the Collector the estimated amount of tax shown as due thereon. However, the taxpayer shall have the right to pay the estimated tax, or the balance of estimated tax due, as shown on his return, in four quarterly installments as follows: the first installment at the time of filing the declaration on or before April 15, and the other installments on or before July 15, October 15 and December 31, respectively, of the year following the enactment or re-enactment of this article.
(c) 
Any taxpayer, who first anticipates any net profits, or any earnings not subject to the provisions of Section 329.05 relating to collection at source, after April 15 of the year following the enactment or re-enactment of this article, shall make and file the declaration hereinabove required on or before July 15, October 15 or December 31 of the year following the enactment or re-enactment of this article, whichever of these dates next follows the date on which the taxpayer first anticipates such net profits or earnings.
The taxpayer making the declaration shall, at the time of filing thereof, pay to the Collector the estimated amount of tax shown due thereon. However, the taxpayer shall have the right to pay the estimated tax, or the balance of the estimated tax due, as shown on his return, in equal installments on or before the quarterly installment payment dates which remain after the filing of the declaration.
(d) 
On or before April 15 of the year succeeding the taxable year, every taxpayer who receives earnings or net profits shall make and file with the Collector on a prescribed form a final return showing all net profits or earnings for the period beginning January 1 and ending December 31 of the taxable year, the total amount of tax due, the amount of estimated tax paid under the provisions of this section, the amount of tax deducted under the provisions of Section 329.05, and the balance due. However, any taxpayer may, in lieu of paying the fourth quarterly installment of his estimated tax, elect to make and file with the Collector on or before January 31 of the year following the taxable year, the final return as hereinabove required. At the time of filing the final return each taxpayer shall pay the balance of the tax due or shall make demand for refund or credit in the case of overpayment.
(e) 
Every taxpayer who discontinues business prior to December 31 of the year following the enactment or re-enactment of this article shall, within seven days after the discontinuance of business, file his final return as hereinabove required and pay the tax due.
(f) 
Every employee receiving any earnings which are not subject to the provisions of Section 329.05 relating to collection at source, who terminates his employment prior to December 31 of the year following the enactment or re-enactment of this article shall, within seven days after such termination, file his final return as hereinabove required and pay the tax due.
(g) 
The Collector may, upon proper application by the taxpayer, and in accordance with regulations set therefor, grant extensions of time for payments of tax as provided in this section.
(h) 
Under the authority of Act No. 511 of the General Assembly of the Commonwealth of Pennsylvania, approved December 13, 1965, P.L. 1189 as amended, the Collector is hereby directed to require all township residents who receive any earned income not subject to the provisions of the Income Tax Ordinance relating to collection at source to make and file with the 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 made 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, together with such other information as the collector may require. Every taxpayer making such return shall, at the time of filing thereof, pay to the collector the amount of tax shown as due thereon.
[Ord. 133, passed 11-14-1956]
(a) 
Every person within the Town who employs one or more persons on a salary, wage, commission or other compensation basis, other than domestic servants, shall immediately, or within 15 days after becoming an employer, register with the Collector his name, address and such other information as the Collector may require.
(b) 
Every person within the Town who employs one or more persons on a salary, wage, commission or other compensation basis, other than domestic servants, shall deduct monthly, or more often than monthly, at the time of payment thereof, the tax imposed by this article on the salaries, wages, commissions and other compensations due to his employee or employees, and shall, on or before January 15 of the year following the enactment or reenactment of this article, and on or before the 15th day of each succeeding calendar month, file a return of taxes deducted on a form prescribed by the Collector and pay to the Collector the amount of tax deducted for the preceding month.
(c) 
On or before January 31 of the year succeeding the year this tax was due, every such employer shall file with the Collector on forms prescribed by him:
(1) 
An annual return showing the total amount of salaries, wages, commissions and other compensation paid, the total amount of tax deducted, and the total amount of tax paid to the Collector during the period beginning January 1 and ending December 31 of the year following the enactment or re-enactment of this article.
(2) 
A return for each employee employed during all or any part of the period beginning January 1 and ending December 31 of the year following the enactment or re-enactment of this article, setting forth the employee's name, address and social security number, the amount of salaries, wages, commissions or other compensation paid to the employee during such period, the amount of tax deducted, the amount of tax paid to the Collector, and such other information as the Collector may require, and every employer shall furnish a copy of the individual return to the employee for whom it is filed.
(d) 
Every employer who discontinues business prior to December 31 of the year following the enactment or re-enactment of this article shall, within seven days after the discontinuance of business, file the returns hereinabove required and pay the tax due.
(e) 
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. 133, passed 11-14-1956; Ord. 511, passed 11-25-1968; Ord. 1403, passed 11-28-2011]
Council, by resolution, may appoint any person or agency, so designated, to collect the tax imposed herein, and Council may set the compensation of such person or agency who shall be known as "The McCandless Income Tax Collector" or "Collector".
The Collector shall act in accordance with this article and regulations adopted pursuant thereto.
(a) 
It shall be the duty of the Collector 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 person paying the tax and the date of such receipt.
(b) 
The Collector is hereby charged with the administration and enforcement of the provisions of this article. Council 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 re-examination 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) 
The Collector, and agents designated by him, are hereby authorized to examine the books, papers and records of any employer or supposed employer or of any 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 or supposed employer and every taxpayer or supposed taxpayer is hereby directed and required to give to the Collector or to any agent designated by him the means, facilities and opportunity for such examinations and investigations as are hereby authorized.
(d) 
Any information gained by the Collector, his agents, or by any other official or agent of the Town of McCandless 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.
(e) 
Any person aggrieved by any action of the Collector shall have the right to appeal as provided by law.
The Town Tax Office is empowered and authorized to require all owners of rental property which is located within the Town to submit the names and addresses of all persons occupying such property. The Town Tax Office shall prepare forms for such purposes and shall advise all such owners of their duty to report the identity of their tenants within 15 days of occupancy. This information will then be forwarded to the Town's Earned Income Tax Collector.
[Ord. 133, passed 11-14-1956]
All unpaid taxes imposed by this article together with interest and penalties shall be recoverable by the Town Attorney as other debts of like amount are recoverable, provided, that any suit brought to recover the tax imposed by this article shall be begun within six years after such tax is due or within six years after a declaration or return has been filed, whichever date is later. However, 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 the provisions of this article.
(b) 
Where an examination of the declaration or return in the possession of the Collector reveals a fraudulent evasion of taxes, including, but not limited to, substantial understatement of taxes deducted and of actual or estimated net profits or earnings.
(c) 
Where any person has deducted taxes under the provisions of this article and has failed to pay the amounts so deducted to the Collector.
[Ord. 133, passed 11-14-1956]
If for any reason the tax is not paid when due, interest at the rate of 6% per annum on the amount of such tax, and an additional penalty of 1/2 of 1% 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 the costs of collection and the interest and penalties herein imposed.
[Ord. 133, passed 11-14-1956]
The Collector is hereby authorized to accept payment under protest of the amount of tax claimed by the Town in any case where any person disputes the validity or amount of the Town'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 Collector, the amount of the overpayment with legal interest shall be refunded to the person who paid under protest.
[Ord. 133, passed 11-14-1956]
The tax imposed by this article shall not apply:
(a) 
To any person as to whom it is beyond the legal power of the Town to impose the tax herein provided for under the Constitution of the United States and the Constitution and laws of the Commonwealth of Pennsylvania.
(b) 
To institutions or organizations operated for public, religious, educational or charitable purposes, to institutions or organizations not organized or operated for private profit, or to trusts and foundations established for any of those purposes.
This section shall not be construed to exempt any person who is an employer from the duty of collecting the tax at source from his employees and paying the amount collected to the Collector under the provisions of Section 329.05.
[1]
Editor's Note: Former § 329.11, Credit, was repealed 11-24-2003 by Ord. No. 1290.
[Ord. 133, passed 11-14-1956; Ord. 1211, passed 2-22-1999; Ord. 1403, passed 11-28-2011]
(a) 
Any person who fails, neglects or refuses to make any declaration or return or to pay the tax required by this article; any employer who fails, neglects or refuses to register or to pay the tax deducted from his employees; any person who refuses to permit the Collector or any agent designated by him to examine his books, records and papers; and any person who 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 earnings to avoid the payment of the whole or any part of the tax imposed by this article, shall be fined not more than $500 for each offense and costs, and, in default of payment shall be imprisoned for not more than 30 days.
(b) 
Any failure to file a quarterly return within the proper time limit and any failure to make quarterly payment within the proper time limit by those subject to the provisions of this article shall be deemed a violation of this article and a violator may be fined not more than $500 and in default of payment be imprisoned for not more than 30 days.
(c) 
Any owner of rental property who fails to comply with the provisions of Section 329.06 of this article shall be fined not more than $500 for each offense and costs.
(d) 
Any person who divulges any information which is confidential under the provisions of subsection (d) of Section 329.06 shall, be fined not more than $500 for each offense and costs, and in default of payment shall be imprisoned for not more than 30 days.
(e) 
The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this article.
(f) 
The failure of any person to receive or procure the forms required for making the declarations or returns required by this article shall not excuse him from making such declaration or return.