[Adopted 10-14-1974 as Ch. 88, Art. II, of the 1974 Code
(Ch. 236, Art. II, of the 1999 Code)]
The following words and phrases, when used in
this Part, 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 compensations 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.
Payments commonly known as "public assistance,"
or unemployment compensation payments made by a governmental agency.
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.
The person, public employee or private agency designated
by the Borough of Homestead to collect and administer the tax on earned
income and net profits.
Any natural person domiciled in the Borough of Homestead
or employed therein upon whose earned income, as above defined, a
tax is imposed by this Part.
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.
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 natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Borough of Homestead.
The calendar year following the current year.
A person, partnership, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
[Amended 1-13-1994 by Ord. No. 1052; 1-12-1995 by Ord. No.
1066; 1-20-2005 by Ord. No. 1164]
1.
A tax for general
revenue purposes of 1% is hereby assessed, levied and imposed on:
A.
Earned income
received, beginning January 1, 2005, and ending December 31, 2005,
by residents of the Borough of Homestead.
B.
The net profits
earned, beginning January 1, 2005, and ending December 31, 2005, of
businesses, professions or other activities conducted in the Borough
of Homestead by such residents regardless of where the same were earned.
2.
A tax for general
revenue purposes of 1% is hereby assessed, levied and imposed on:
A.
Earned income
received, beginning January 1, 2005, and ending December 31, 2005,
by nonresidents of the Borough of Homestead for work done or services
performed or rendered in the Borough of Homestead.
B.
The net profits
earned, beginning January 1, 2005, and ending December 31, 2005, of
businesses, professions or other activities conducted in the Borough
of Homestead by nonresidents.
3.
The tax herein
assessed, levied and imposed shall continue in force on a calendar-year
basis or a taxpayer-fiscal-year basis following December 31, 2005,
without annual reenactment so long as the Borough of Homestead remains
a distressed municipality under the provisions of the Municipalities
Financial Recovery Act, Act 47 of 1987, as amended, and until such
time as the Council of the Borough of Homestead shall change the rate
of tax or by appropriate ordinance repeal such tax.
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, 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 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
may 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, held 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 returns shall, at the time of filing thereof, pay to the
Officer the amount of tax shown as due thereon.
1.
Every employer
having an office, factory, workshop, branch, warehouse or other place
of business within the Borough of Homestead, 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, branch, warehouse or other place
of business within the Borough of Homestead, 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 Part 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 the preceding three-month period,
and the total tax deducted therefrom and paid with the return. 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 taxing authority, 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 before the
last day of the month succeeding the month for which the tax was withheld.
3.
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 and 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.
4.
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.
5.
Except as otherwise
provided in this section, 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 has required to withhold
to the extent that such taxes have not been recovered from the employee.
6.
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 Part relating to the filing
of declarations and returns.
1.
It shall be the
duty of the Officer to collect and receive the taxes, fines and penalties
imposed by this Part. It shall also be his duty to keep a record showing
the amount received by him from each person or business paying the
tax and the date of such receipt.
2.
The Officer,
before entering upon his official duties, shall give and acknowledge
a bond to the Borough of Homestead. If the Council of the Borough
of Homestead shall, by resolution, designate any bond previously given
by the Officer as adequate, such bond shall be sufficient to satisfy
the requirements of this subsection.
[Amended 1-13-1994 by Ord. No. 1052]
A.
Such bond shall
be joint and several, with one or more corporate sureties, which shall
be surety companies authorized to do business in this commonwealth
and duly licensed by the Insurance Commissioner of this commonwealth.
B.
Such bond shall
be conditioned upon the faithful discharge by the Officer, his clerks,
assistants and appointees of all trusts confided in him by virtue
of his office, upon the faithful execution of all duties required
of him by virtue of his office, upon the just and faithful accounting
or payment over, according to law, of all moneys and all balances
thereof paid to, received or held by him by virtue of his office and
upon the delivery to his successor or successors in office of all
books, papers, documents or other official things held in right of
his office.
C.
Such bond shall
be taken in the name of the Borough of Homestead or in the name of
the Borough of Homestead and Steel Valley School District and shall
be for the use of such political subdivision or subdivisions appointing
the Officer, where the same Officer is appointed by the School District
and the Borough, and for the use of such other person or persons for
whom money shall be collected or received, or as his or her interest
shall otherwise appear, in case of a breach of any of the conditions
thereof by the acts or neglect of the principal on the bond.
D.
The Borough
of Homestead or, if a joint bond is provided to the Borough of Homestead
and the Steel Valley School District, either political subdivision
or any person may sue upon said bond in its or his own name for its
or his own use.
E.
Such bond shall
contain the name or names of the surety company or companies bound
thereon. The Borough of Homestead or the Borough of Homestead and
Steel Valley School District, if a combined bond is provided, shall
fix the amount of the bond at an amount equal to the maximum amount
of taxes which may be in the possession of the Officer at any given
time.
F.
The Borough
of Homestead or the Borough of Homestead and the Steel Valley School
District, if a combined bond is provided, may, at any time, upon cause
shown and due notice to the Officer and his surety or sureties, require
or allow the substitution or the addition of a surety company acceptable
to the Borough of Homestead or to the Borough of Homestead and Steel
Valley School District, as the case may be, for the purpose of making
the bond sufficient in amount, without releasing the surety or sureties
first approved from any accrued liability or previous action on such
bond.
G.
The Borough
of Homestead or the Borough of Homestead and Steel Valley School District,
as the case may be, shall designate the custodian of the bond required
to be given by the Officer.
3.
The Officer charged
with the administration and enforcement of the provisions of this
Part is hereby empowered to prescribe, adopt, promulgate and enforce
rules and regulations relating to any matter pertaining to the administration
and enforcement of this Part, including provisions for the reexamination
and correction of declarations and returns and all payments alleged
or found to be incorrect or to which an overpayment is claimed or
found to have occurred, and to make refunds in cases 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 Part. No rule or regulation of any kind
shall be enforceable unless it has been approved by resolution of
the Borough Council of the Borough of Homestead. A copy of such rules
and regulations currently in force shall be available for public inspection.
4.
With the prior
approval of the Council of the Borough of Homestead, 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 agent or by any other official or agent
of the taxing district, as the result of any declarations, returns,
investigations, hearings or verifications required or authorized by
this Part 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.
8.
The Officer is
authorized to direct and require all owners or operators of rental
income property within the Borough of Homestead to furnish to said
Officer, in writing, current names and addresses of all occupants
of rental income property within the Borough of Homestead owned or
operated by him, her or it and, moreover, to keep the same current
by furnishing to said Officer, within 10 days of any change in occupancy,
written notice of such change with the name and address of such new
occupant or occupants.
[Amended 1-13-1994 by Ord. No. 1052]
The Income Tax Officer shall receive such compensation
for his services and expenses as shall be determined by the Council
of the Borough of Homestead from time to time. In the case of a single
collector established by the Council of the Borough of Homestead and
the Board of Directors of Steel Valley School District, such taxing
jurisdictions shall share in the compensation and expenses of a single
Officer according to the proportionate share that the total annual
collections for each jurisdiction bears to the total annual collection
for all political subdivisions in a single collector district, except
that with the agreement of 2/3 of all participating political subdivisions,
a different manner of sharing may be substituted.
1.
The Officer may
sue in the name of the Borough of Homestead for the recovery of taxes
due and unpaid under this Part.
2.
Any suit brought
to recover the tax imposed by this Part 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 the provisions of this Part,
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 Part 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 section, there shall be no limitation.
E.
This section
shall not be construed to limit the governing body from recovering
delinquent taxes by any other means provided by the Enabling Act.
3.
The Officer may
sue for the 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 inducted by fraud or misrepresentation of material fact.
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 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.
1.
Any persons who
fails, neglects or refuses to make any declaration or return required
by this Part, any employer who fails, neglects or refuses to register
or to pay the tax deducted from his employees, or fails, neglects
or refuses to deduct or withhold the tax from his employees, any person
who refuses to permit the Officer or any agent designated by him to
examine his books, records and papers and any person who knowingly
makes any incomplete, false or fraudulent return, or attempts to do
anything whatsoever to avoid the full disclosure of the amounts 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 Part shall, upon
conviction thereof, before any Magisterial District Judge or court
of competent jurisdiction in Allegheny County, be sentenced to pay
a fine of not more than $500 for each offense, and costs, and in default
of payment of said fine and costs, to be imprisoned for a period of
not exceeding 30 days in the Allegheny County Jail.
[Amended 1-13-1994 by Ord. No. 1052]
2.
Any person who
divulges any information which is confidential under the provisions
of this Part, 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 said fines and costs, to be imprisoned for
a period not exceeding 30 days in the Allegheny County Jail.
[Amended 1-13-1994 by Ord. No. 1052]
3.
The penalties
imposed under this section shall be in addition to any other penalty
imposed by any other section of this Part.
4.
The failure of
any person to receive or procure forms required for making the declaration
or returns required by this Part shall not excuse him from making
such declaration or return.
[Added 6-9-1994 by Ord. No. 1060]
1.
All fees, fines
and penalties imposed by this Part shall be recoverable by the Borough
of Homestead as other debts are recoverable.
2.
Collection costs
as added costs. If, for any reason, the tax or fee (whichever is applicable)
is not paid when due, in addition to any interest and penalties applicable
thereto, the person or persons liable therefor shall also be liable
for all costs of collection, including but not limited to attorney's
fees, collection fees, whether a flat fee, percentage fee or hourly
fee, administrative costs of collection and billing, and all other
fees and costs charged to or incurred by the Borough of Homestead.
[Amended 1-13-1994 by Ord. No. 1052; 1-12-1995 by Ord. No.
1066]
This Part and the tax imposed hereunder is adopted
under and by virtue of the authority contained in the:
1.
Act of the General
Assembly of the Commonwealth of Pennsylvania numbered 511 approved
the 31st day of December 1965, entitled the "Local Tax Enabling Act
of 1965," its supplements and amendments,[1] the provisions of which are hereby accepted and adopted
by the Council of the Borough of Homestead, and where the interpretation
or terms or provisions of this Part are not in accord with or in compliance
with the provisions of said Act of Assembly, the provisions of said
Act of Assembly are intended to be ordained and enacted by this Part
as fully as though incorporated, set forth and made part of this Part;
and
[1]
Editor's Note: See now 53 P.S. § 6924.101
et seq.