[Adopted 4-26-1966 by Ord. No. 488]
As used in this article, the following terms shall have the
meanings indicated:
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, commission, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent and whether in cash or in property, not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workmen's compensation acts, occupational disease
acts and similar legislation, or payments commonly recognized as "old-age
benefits," "retirement pay" or "pensions" paid to persons retired
from service after reaching a specific age or after a stated period
of employment, or payments commonly known as "public assistance,"
or unemployment compensation payments made by any governmental agency
or payments to reimburse expenses or payments made by employers or
labor unions for wage and salary supplemental programs, including
but not limited to programs covering hospitalization, sickness, disability
or death, supplemental unemployment benefits, strike benefits, social
security and retirement.
A person, partnership, association, corporation, constitution,
governmental body or unit or agency or any other entity employing
one or more persons for a salary, wage, commission other compensation.
Person, public employee or private agency designated by governing
body to collect and administer the tax on earned income and net profits.
The net income from the operation of a business, profession
or other activity, except corporations, after provisions 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 natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the taxing district.[1]
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.
[1]
Editor's Note: The former definition of "nonresident"
was repealed 12-22-1981 by Ord. No. 624.
[Amended 12-22-1981 by Ord. No. 624]
The tax levied under this article of the Borough of Cheswick
shall be applicable to earned income received and to net profits earned
in the period beginning June 1 of the current year and ending December
31 of the current year, or for the taxpayer fiscal year beginning
in the current year, and the tax shall continue in force on a calendar-year
(beginning with the calendar year January 1967 through December 1967)
or the taxpayer fiscal-year basis, without annual reenactment, but
as if levied for each succeeding calendar year, unless the rate of
the tax is subsequently changed. The tax shall be at the rate of 1%
for 1966 and each subsequent calendar year (or taxpayer fiscal year,
as the case may be), upon all residents of the Borough of Cheswick.
A.
Net profits.
(1)
Every taxpayer making net profits shall, on or before April 15 of
the current year, make and file with the Officer, on a form prescribed
or approved by the Officer, a declaration of his estimated net profits
during the period beginning January 1 and ending December 31 of the
current year and pay to the Officer in four equal quarterly installments
the tax due thereon as follows: the first installment at the time
of filing the declaration, and the other installments on or before
June 15 and September 15 of the current year, and January 15 of the
succeeding year, respectively.
(2)
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.
(3)
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 net profits earned
during the period beginning January 1 of the current year and ending
December 31 of the current year the total amount of tax due thereon
and the total amount of tax paid thereon. At the time of filing the
final return, the taxpayer shall pay to the Officer the balance of
tax due or shall make demand for refund or credit in the case of overpayment.
Any taxpayer may, in lieu of paying the fourth quarterly installment
of his estimated tax, elect to make and file with the Officer on or
before January 31 of the succeeding year the final return as hereinabove
required.
(4)
The Officer is authorized to provide by regulation for the making
and filing of adjusted declarations of estimated net profits, or 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 underestimated
his anticipated net profits.
(5)
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.
B.
Earned income; annual return. Every taxpayer shall, on or before
April 15 of the succeeding year, make and file with the Officer on
a form prescribed or approved by the Officer a final return showing
the amount of earned income received during the period beginning January
1 of the current year and ending December 31 of the current year,
the total amount of tax due thereon, the amount of tax paid thereon,
the amount of tax thereon that has been withheld pursuant to the provisions
relating to the collection at source and the balance of tax due. At
the time of filing the final return, the taxpayer shall pay the balance
of the tax due or shall make demand for refund or credit in the case
of overpayment.
C.
Earned income not subject to withholding. Each taxpayer who is employed
for a salary, wage, commission or other compensation and who received
any earned income not subject to the provisions relating to collection
at source shall make and file with the Officer, on a form prescribed
or approved by the Officer, a quarterly return on or before April
30 of the current year, July 31 of the current year, October 31 of
the current year and January 31 of the succeeding year, setting forth
the aggregate amount of earned income not subject to withholding by
him during the three-month periods ending March 31 of the current
year, June 30 of the current year, September 30 of the current year
and December 31 of the current year, respectively, and subject to
the tax, together with such other information as the Officer may require.
Every taxpayer making such return shall, at the time of filing thereof,
pay to the Officer the amount of tax shown as due thereon.
A.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the taxing jurisdiction imposing
a tax on earned income or net profits within the taxing district or
doing business therein, 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.
B.
Every employer having an office, factory, workshop, branch, warehouse
or other place of business within the taxing jurisdiction imposing
a tax on earned income or net profits, within the taxing district,
or doing business therein, who employs one or more persons, other
than domestic servants, for a salary, wage, commission or other compensation,
shall deduct at the time of payment thereof the tax imposed by this
article on the earned income due to his employee or employees and
shall, on or before April 30 of the current year, July 31 of the current
year, October 31 of the current year and January 31 of the succeeding
year, file a return and pay to the Officer the amount of taxes deducted
during the preceding three-month periods ending March 31 of the current
year, June 30 of the current year, September 30 of the current year
and December 31 of the current year, respectively. Such return, unless
otherwise agreed on between the Officer and employer, shall show the
name and social security number of each such employee, the earned
income of each 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 each 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.
C.
On or before February 28 of the succeeding year, every such employer
shall file with the Officer:
(1)
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.
(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 and social security number, the amount of earned income
paid 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.
D.
Every such 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.
E.
Except as otherwise provided in Section 9 of the Local Tax Enabling
Act,[1] every such employer who willfully or negligently fails
or omits to make the deductions required by this article shall be
liable for payment of the taxes which he was required to withhold
to the extent that such taxes have not been recovered from the employee.
[1]
Editor's Note: See now 53 P.S. §§ 6924.101
to 6924.312..
F.
The failure or omission of any such employer to make the deductions
required by this article 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.
A.
It shall be the duty of the Officer to collect and receive the taxes,
fines and penalties imposed by this article. It shall also be his
duty to keep a record showing the amount received by him from each
person or business paying the tax and the date of such receipt.
B.
Bonding of Officer.
(1)
The Officer, before entering upon his official duties, shall give
and acknowledge a bond to the Borough of Cheswick and those other
political subdivisions also appointing him. If such political subdivisions
shall by resolution or ordinance designate any bond previously given
by the Officer as adequate, such bond shall be sufficient to satisfy
the requirements of the resolution or ordinance.
(2)
Each 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 Commission
of this commonwealth.
(3)
Each 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.
(4)
Each such bond shall be taken in the name of the Borough of Cheswick
and any other appointing authority or authorities and shall be for
the use of the Borough of Cheswick and any other political subdivision
appointing the officers, 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.
(5)
The Borough of Cheswick and/or other political subdivisions appointing
the Officer, or any person, may sue upon said bond in its or his own
name for its or his own use.
(6)
Each such bond shall contain the name or names of the surety company
or companies bound thereon. The Borough of Cheswick and other political
subdivisions appointing the Officer 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.
(7)
The Borough of Cheswick and other political subdivisions appointing
the Officer 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 Cheswick
and such other political subdivisions 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.
(8)
The Officer's bond shall be held in the custody of the Secretary
of the Borough of Cheswick.
C.
The Officer charged with the administration and enforcement of the
provisions of this article is hereby empowered to prescribe, adopt,
promulgate and enforce rules and regulations relating to any matter
pertaining to the administration and enforcement of this article,
including provisions for the reexamination and correction of declarations
and returns, and of payments alleged or found to be incorrect, or
as to which an overpayment is claimed or found to have occurred, and
to make refunds in case of overpayment, for any period of time not
to exceed six years subsequent to the date of payment of the sum involved,
and to prescribe forms necessary for the administration of this article.
No rule or regulation of any kind shall be enforceable unless it has
been approved by resolution by the Council of the Borough of Cheswick.
A copy of such rules and regulations currently in force shall be available
for public inspection.
D.
The Officer shall arrange for refund and proof by the taxpayer, on
petition of 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.
E.
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.
F.
Any information gained by the Officer, his agents or by any other
official or agent of the taxing district, as a result of any declarations,
returns, investigations, hearings or verifications required or authorized
by this article or proper rules and regulations issued thereunder,
shall be confidential, except for official purposes and except in
accordance with a proper judicial order, or as otherwise provided
by law.
G.
The Officer is authorized to establish different filing, reporting
and payment dates for taxpayers whose fiscal years do not coincide
with the calendar year.
The Income Tax Officer shall receive such compensation for his
services and expenses as determined by the Council of the Borough
of Cheswick.
A.
The Officer may sue in the name of taxing district, Borough of Cheswick.
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 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 of return in the
possession of the Officer, reveals a fraudulent evasion of taxes,
there shall be no limitation.
(3)
In the case of substantial understatement of tax liability of 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 amounts so deducted to the Officer,
or where any person has willfully failed or omitted to make the deductions
required by this article, there shall be no limitation.
C.
The Officer may sue for recovery of an erroneous refund, provided
that 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.
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 imposed
herein.
A.
Any person who fails, neglects or refuses to make any declaration
or return required by this article, 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 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 District Justice or court
of competent jurisdiction in Allegheny County, be sentenced to pay
a fine of not less than $50 nor more than $600 for each offense, and
costs, or, in default of payment of said fine and costs, to be imprisoned
for a period not exceeding 30 days.
[Amended 5-17-1988 by Ord. No. 663-C]
B.
Any person who divulges any information which is confidential under
the provisions of this article shall, upon conviction thereof before
any District Justice or court of competent jurisdiction, be sentenced
to pay a fine of not less than $50 nor more than $600 for each offense,
and costs, or, in default of payment of said fines and costs, to be
imprisoned for a period not exceeding 30 days.
[Amended 5-17-1988 by Ord. No. 663-C]
C.
The penalties imposed under this section shall be in addition to
any other penalty imposed by any other section of this article.
D.
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 from making such declaration or return.
A.
The Officer shall have power, in case of the neglect or refusal of
any person, copartnership, association or corporation, to make payment
of the amount of any tax due by him, after two months from the date
of the tax notice, to levy the amount of such tax, any penalty due
thereon, and costs, not exceeding costs and charges allowed constables
for similar services by distress and sale of the goods and chattels
of such delinquent, wherever situate or found, upon giving at least
10 days' public notice of such sale, by posting 10 written or
printed notices and by one advertisement in a newspaper of general
circulation published in the county.
B.
No failure to demand or collect any taxes by distress and sale of
goods and chattels shall invalidate any return made or lien filed
for nonpayment of taxes, or any tax sale for the collection of taxes.
A.
The Officer shall demand, receive and collect from all corporations,
political subdivisions, associations, companies, firms or individuals
employing persons owing delinquent earned income taxes, or whose wife
owes delinquent earned income taxes, or having in possession unpaid
commissions or earnings belonging to any person or persons owing delinquent
earned income taxes, or whose wife owes delinquent earned income taxes,
upon the presentation of a written notice and demand under oath or
affirmation, containing the name of the taxable, or the husband thereof,
and the amount of tax due. Upon the presentation of such written notice
and demand, it shall be the duty of any such corporation, political
subdivision, association, company, firm or individual to deduct from
the wages, commissions or earnings of such individual employees then
owing or that shall, within 60 days thereafter, become due, or from
any unpaid commissions or earnings of any such taxable in its or his
possession or that shall, within 60 days thereafter, come into its
or his possession, a sum sufficient to pay the respective amount of
the delinquent earned income taxes and penalties, interest and costs,
shown upon the written notice or demand, and to pay the same to the
Officer within 60 days after such notice shall have been given. Such
corporation, political subdivision, association, firm or individual
shall be entitled to deduct from the moneys collected from each employee
the costs incurred from the extra bookkeeping necessary to record
such transactions, not exceeding 2% of the amount of money so collected
and paid over to the Officer. Upon the failure of any such corporation,
political subdivision, association, company, firm or individual to
deduct the amount of such taxes or to pay the same over to the Officer,
less the cost of bookkeeping involved in such transaction, as herein
provided, within the time hereby required, such corporation, political
subdivision, association, company, firm or individual shall forfeit
and pay the amount of such tax for each taxable whose taxes are not
withheld and paid over or that are withheld and not paid over, together
with a penalty of 10% added thereto, to be recovered by an action
of assumpsit in a suit to be instituted by the Officer or by the proper
authorities of the taxing district, as debts of like amount are now
by law recoverable, except that such person shall not have the benefit
of any stay of execution or exemption law.
B.
Upon presentation of a written notice and demand under oath or affirmation
to the State Treasurer or any other fiscal officer of the state, or
its boards, authorities, agencies or commissions, it shall be the
duty of the Treasurer or Officer to deduct from the wages then owing,
or that shall within 60 days thereafter become due, to any employee
a sum sufficient to pay the respective amount of the delinquent earned
income taxes and penalty, interest and costs shown on the written
notice. The same shall be paid to the Officer within 60 days after
such notice shall have been given.
The Officer shall have power to collect unpaid taxes from the
persons owing such taxes by suit in assumpsit or other appropriate
remedy. Upon each such judgment, execution may be issued without any
stay or benefit of any exemption law. The right of each such taxing
district to collect unpaid taxes under this provision shall not be
affected by the fact that such taxes have been entered as liens in
the office of the prothonotary.
Any provisions of Section XIII of Act 511 of 1965, known as
the "Local Tax Enabling Act," which are not hereinbefore specifically
set forth are nevertheless hereby made a part of this article.[1]
[1]
Editor's Note: Former Section 13 was repealed by Act
32 of 2008, effective 6-30-2012. See now 53 P.S. § 6924.101
et seq.
