[Adopted 11-16-1995 by Ord. No. 95-18 as Ch. 217, Art. V, of the 1995 Code]
As used in this article, the following terms shall have the meanings indicated:
ASSOCIATION
A partnership, limited partnership or any other unincorporated group of two or more persons.
BUSINESS
An enterprise, activity, profession or any other undertaking of an unincorporated nature conducted for profit or ordinarily conducted for profit, whether by a person, partnership, association or any other entity.
CORPORATION
A corporation or joint-stock association organized under the laws of the United States, the Commonwealth of Pennsylvania or any other state, territory, foreign country or dependency.
CURRENT YEAR
The calendar year for which the tax imposed by this article is levied.
DOMICILE
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 voluntary fixed place of habitation of a person, 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.
EARNED INCOME
Salaries, wages, commissions, bonuses, incentive payments, fees, tips and other compensation received by a person, or his personal representative, for services rendered, whether directly or through an agent, and whether in cash or in property; not including, however, wages or compensation paid to persons on active military service, periodic payments for sickness and disability other than regular wages received during a period of sickness, disability or retirement or payments arising under worker'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 state 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.
EMPLOYER
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.
INCOME TAX OFFICER or OFFICER
The person, public employee or private agency designated by the City Council to collect and administer the tax on earned income and net profits.
NET PROFITS
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.
NONRESIDENT
A person, partnership, association or other entity domiciled outside the taxing district.
PERSON or INDIVIDUAL
A natural person.
PRECEDING YEAR
The calendar year before the current year.
RESIDENT
A person, partnership, association or other entity domiciled in the taxing district.
SUCCEEDING YEAR
The calendar year following the current year.
TAXING MUNICIPALITY
The City of Hazleton.
TAXPAYER
A person, partnership, association or any other entity required under this article to file a return of earned income or net profits or to pay a tax thereon.
[Last amended 12-19-2023 by Ord. No. 2023-16; further amended 12-17-2024 by Ord. No. 2024-24; 12-16-2025 by Ord. No. 2025-16[1]]
A. 
The following annual taxes are hereby imposed for general municipal purposes:
(1) 
Commencing on January 1, 2026, the taxing authority hereby imposes a tax rate of 0.50% on the earned income and net profits of residents, and a tax rate of 1.0% on the earned income and net profits of nonresidents.
B. 
The following annual taxes are hereby imposed for the sole purpose of defraying the additional costs required to be paid pursuant to Act 205, known as the "Municipal Pension Plan Funding Standard and Recovery Act,"[2] which is directly related to the pension plan of the City of Hazleton.
(1) 
Commencing on January 1, 2026, the taxing authority hereby imposes a tax rate of 0.625% on the earned income and net profits of residents, and a tax rate of 0.50% on the earned income and net profits of nonresidents.
[2]
Editor's Note: See 53 P.S. § 895.101 et seq.
C. 
The taxes levied under this section shall be applicable to earned income, earned or received, and to net profits, earned or received, in the period beginning January 1 of the current year and ending December 31 of the current year or for taxpayer fiscal years beginning in the current year, and the tax shall continue in force on a calendar year or taxpayer fiscal year basis without annual reenactment unless the rate of the tax is subsequently changed. Changes in rate shall become effective on the date specified in the ordinance making the change.
[1]
Editor's Note: This ordinance provided that "this reenactment of the Code of Ordinances of the City of Hazleton, Part II, Chapter 490, Taxation, Article IV Earned Income and New Profits shall embody all parts thereof of said Article IV of said Ordinance and shall remain in full force and effect, beginning January 1, 2026, and shall continue in force on a calendar year basis."
A. 
Every taxpayer making or receiving net profits shall, on or before April 15 of the current year, make and file with the income tax officer, on a form prescribed or approved by the income tax officer, a declaration of his estimated net profits during the period beginning January 1 and ending December 31 of the current year and shall pay to the income tax 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 required by Subsection A 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 shall pay to the income tax officer, in equal installments, the tax due thereon 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 income tax officer, on a form prescribed or approved by the income tax officer, a final return showing the amount of net profits earned or 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 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 income tax officer, on or before January 31 of the succeeding year, the final return as required in this subsection.
D. 
The income tax officer or the City Council may provide, by regulation, for the making and filing of adjusted declarations of estimated net profits and for the payment of the estimated tax in cases where a taxpayer who has filed the declaration required by this section 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 required by this section and pay the tax due.
A. 
Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the income tax officer, on a form prescribed or approved by such officer or the City Council, 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 of this article relating to collection at the 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. 
Every taxpayer who is employed for a salary, wage, commission or other compensation and who received any earned income not subject to the provisions of this article relating to collection at the source shall make and file with the income tax 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 received 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 imposed by this article, together with such other information as the income tax officer may require. Every taxpayer making such return shall, at the time of filing thereof, pay to the income tax officer the amount of tax shown as due thereon.
If, for any reason, the tax imposed by this article is not paid when due, interest at the rate of 6% per year 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.
A. 
The income tax officer may sue in the name of the City 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 returned 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 or return in the possession of the income tax 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 income tax officer or where any person has willfully failed or omitted to make the deductions required by this article, there shall be no limitation.
C. 
Where suit is brought for the recovery of any tax under this article, the person liable therefor shall, in addition, be liable for the costs of collection and the interest and penalties imposed by this article.
D. 
This section shall not be construed to limit the City from recovering delinquent taxes by any other means provided by law.
The income tax officer may sue for recovery of an erroneous refund made under this article, 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.
In the event of the death of a taxpayer during the taxable period, his personal representative or, in the absence of a personal representative, his heirs, as designated by 20 Pa.C.S.A. § 2101 et seq., as amended or as hereafter amended or supplemented, shall file the final return required by this article within 90 days after the taxpayer's death and pay the tax due or demand refund in the case of overpayment.
The failure of any person to receive or procure forms required for making any declaration or returns required by this article shall not excuse him from making such declaration or return.
It is the intention of the City Council, in enacting this article, that all applicable provisions of the Local Tax Enabling Act shall be included herein by reference thereto; and, in the event of any conflict between this article and the provisions of such Act whereby any provision of this article shall be rendered inoperable or ineffective, then the provisions of such Act shall be deemed to control.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
Any information gained by the income tax officer or his agents or by any other official or agent of the City, 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.
The income tax officer charged with the administration and enforcement of the provisions of this article, as well as the City 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 make refunds in cases or 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 an ordinance of the City. A copy of such rules and regulations currently in force shall be available for public inspection.[1]
[1]
Editor's Note: Such regulations are on file in the Tax Office.
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 income tax 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, be sentenced to pay a fine of not more than $2,500 for each offense, plus costs. In default of payment of such fine and costs, such person shall be imprisoned for a period not exceeding six months.
[Amended at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
B. 
Any person who divulges any information which is confidential under the provisions of this article shall, upon conviction thereof, be sentenced to pay a fine of not more than $500 for each offense, plus costs. In default of payment of such fine and costs, such person shall be imprisoned for a period not exceeding 30 days.
C. 
The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this article.
A. 
The income tax officer, before entering upon his official duties, shall give and acknowledge a bond to the City. If the City shall, by ordinance, designate any bond previously given by the income tax officer as adequate, such bond shall be sufficient to satisfy the requirements of this subsection.
B. 
The bond required by this section 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.
C. 
The bond required by this section shall be conditioned upon the faithful discharge by the income tax 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 by him by virtue of his office, upon the just and faithful accounting or payment over, according to law, of all moneys and balances thereof paid to, received or held by him by virtue of his office and upon the delivery to his successor in office of all books, papers, documents or other official things held in right of his office.
D. 
The bond required by this section shall be taken in the name of the City and shall be for the use of the City and for the use of such other person for whom money shall be collected or received, or as his 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.
E. 
The City may sue upon the bond provided for in this section, in its own name or for its own use.
F. 
The bond required by this section shall contain the name of the surety company bound thereon. The City 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 income tax officer at any given time.
G. 
The City may, at any time, upon cause shown and due notice to the income tax officer and his surety, require or allow the substitution or the addition of a surety company acceptable to the City for the purpose of making the bond required by this section sufficient in amount, without releasing the surety first approved from any accrued liability or previous action on such bond.
H. 
The City shall designate the custodian of the bond required to be given by the income tax officer.
The income tax officer and his staff shall receive such compensation for services and expenses as determined by the City. In the event that the City enters into an agreement with other municipalities for a single income tax officer as provided by law, the City shall share in the compensation and expenses of the income tax officer and his staff as provided by law.
It shall be the duty of the income tax 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.
A. 
The income tax 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 income tax officer reasonably believes to be an employer or taxpayer, in order to verify the accuracy of any declaration or return required by this article or, if no such declaration or return was filed, to ascertain the tax due.
B. 
Every employer and every taxpayer and every person whom the income tax officer reasonably believes to be an employer or taxpayer is hereby directed and required to give to the income tax officer or to any agent designated by him the means, facilities and opportunity for such examination and investigations, as are authorized by this section.
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the taxing jurisdiction of the City, who employs one or more persons, other than domestic servants, for a salary, wage, commission or other compensation, shall register, with the income tax officer, his name and address and such other information as such officer may require. Every employer who has not previously registered shall, within 15 days after becoming an employer, register with the income tax officer his name and address and such other information as the income tax officer may require.
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the taxing jurisdiction of the City 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 income tax 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 income tax officer and the 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 fact that the City is imposing the tax upon such employee, 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.
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 City as required by this article, may be required by the income tax officer to file his return and pay the tax monthly. In such cases, payments of tax shall be made to the income tax officer on or before the last day of the month succeeding the month for which the tax was withheld.
A. 
On or before February 28 of the succeeding year, every employer shall file with the income tax 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 income tax officer for the period beginning January 1 of the current year and ending December 31 of the current year and each succeeding year thereafter.
(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 and each succeeding year, setting forth the employee's name, address and social security number, the amount of earned income paid to the employee during such period, the amount of tax deducted, the fact that the City is imposing the tax upon such employee and the amount of tax paid to the income tax officer. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.
B. 
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.
Every 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 employees.