[Adopted 5-17-1966 by Ord. No. 257, approved 5-18-1966 (Ch. 93, Art.
I, of the 1977 Code)]
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.
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 a business or association, the
place considered as the center of business affairs and the place where
its functions are discharged.
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent, and whether in cash or in property: not including, however,
wages or compensation paid to persons on active military service;
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workmen's compensation acts, occupational disease
acts and similar legislation, or payments commonly recognized as old
age benefits, retirement pay or pensions paid to persons who retire
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 government 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.
[Amended 10-11-1993 by Ord. No. 452, approved 10-11-1993]
A person, partnership, association, corporation, institution,
governmental body or unit of agency, or any other entity employing
one or more persons for a salary, wage, commission or other compensation.
A person, public employee or private agency designated by
the 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 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 person, partnership, association or other entity domiciled
outside the limits of Athens Borough.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the Borough of Athens.
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.
The Borough of Athens, Bradford County, Pennsylvania.
There is hereby levied and imposed a tax upon
earned income and net profits earned for general revenue purposes
of this body as follows:
A.
One percent of
earned income received and net profits earned of and by all resident
taxpayers of Athens Borough, Bradford County, Pennsylvania.
B.
One percent of
earned income received and net profits earned of and by all nonresident
taxpayers for service rendered or work done within Athens Borough,
Bradford County, Pennsylvania, or arising or resulting from the operation
of a business, profession or other activity (except corporations)
conducted within or principally located within Athens Borough, Bradford
County, Pennsylvania.
The taxes levied and imposed by § 470-2 hereof shall be applicable to earned income received and net profits earned in the period beginning July 1, 1966, and ending December 31, 1966, (or for taxpayers on a fiscal year basis, beginning within said period of July 1,1966, and ending December 31,1966), and subsequently thereto, the taxes levied and imposed by § 470-2 shall continue in force on a calendar year or taxpayer fiscal year basis without annual reenactment.
The payment and declaration of the tax imposed
herein shall be made according to the following terms and conditions
hereof:
A.
Net profits. Every
taxpayer making net profits, shall:
(1)
Pay to the
officer an annual payment of tax due on or before April 15 of the
succeeding year with the period beginning January 1 and ending December
31 of the current year; or
(2)
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 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 current year, respectively.
B.
Estimated declaration.
Any taxpayer who first anticipates any net profit after April 15 of
the current year shall make and file a 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. A declaration of estimated tax will
not be required unless the anticipated taxable income for the current
year exceeds $7,999.
[Amended 10-11-1993 by Ord. No. 452, approved 10-11-1993]
C.
Final 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 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 and shall make demand for refund or credit in the case of
overpayment. Any taxpayer may, in lieu of making 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.
Regulations. The
Officer is hereby authorized to 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 hereinabove required anticipates an additional
net profit not previously declared or finds that he has overestimated
his estimated net profits.
E.
Discontinuance
of business. Every taxpayer who discontinues business prior to December
31 of the current year shall, within 30 days after the discontinuance
of such business, file his final return as hereinabove required and
pay the tax due.
Every taxpayer shall, on or before April 15
of the succeeding year, make and file with the office, 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.
Where the full amount of tax due and owing hereunder by a nonresident taxpayer is collected at source and remitted to the officer by such nonresident taxpayer's employer, such nonresident taxpayer need not file the annual earned income tax return required in § 470-5.
Every taxpayer who is employed for a salary,
wage, commission or other compensation and who received any earned
income not subject to provisions relating to collection at source
shall make and file with the office, on a form prescribed or approved
by the Officer, an annual return, setting forth the aggregate amount
of earned income not subject to withholding from him during the period
beginning January 1 and ending December 31 of the current year and
such other information as the Officer may require, and shall pay to
the Officer the amount of tax shown as due thereon on or before April
15 of the succeeding year.
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,
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 pertinent information
as the Officer may require.
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, 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 through the preceding
three-month period 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 such preceding three-month
period and the total tax deducted therefrom and paid with the return.
B.
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 the 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 office 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 Officer:
(1)
An annual
return joining 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 and ending December 31 of the current
year.
(2)
A return
withholding statement for each employee who was employed during all
or any part of the period ending 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 and the amount of earned
income paid to the employee during said period 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.
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
return and withholding statements, hereinabove required, and pay the
tax due.
C.
Except as otherwise
provided hereafter, every employer who willfully or negligently falls
or omits to make the declarations, required by this section, shall
be liable for payment of the taxes which he is required to withhold
to the extent that such taxes have not been recovered from the employee.
D.
The failure or
omission of any employer to make the deductions, required by this
section, shall not relieve such employee from the payment of the tax
or from complying with the requirements of this article relating to
the filing of declarations or returns.
E.
This regulation
shall exempt any employer from withholding this tax from any nonresident
employee who resides in a tax district which levies a 1% earned income
tax upon its residents under the Local Tax Enabling Act of 1965,[1] which is the same Act under which this chapter is adopted.
[Added 10-11-1993 by Ord. No. 452, approved 10-11-1993]
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
For the purposes hereunder, the word "Officer"
means that person or organization designated from time to time as
"Income Tax Officer," charged with the following powers and duties:
A.
Duty to receive
taxes, fines and penalties. The Officer shall collect and receive
the taxes, fines and penalties imposed by this article and shall keep
a record showing the amount received by him from each person or business
paying the tax and the date of such receipt.
B.
Bond.
(1)
Each Officer,
before entering upon his official duties, shall give and acknowledge
a bond to this Borough in the amount and form designated by Borough
resolution.
(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 the Commonwealth
of Pennsylvania and licensed by the Insurance Commissioners of the
Commonwealth of Pennsylvania.
(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 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 Athens and shall
be for the use of the Borough of Athens and for the use of such other
person or persons for whom money shall be collected or received, as
his or her interest shall appear, in case of breach of any of the
conditions hereof by the actual neglect of the principal on the bond.
The Borough of Athens or any person may sue upon said bond in its
or his own name for its or his own use.
(5)
Each such
bond shall contain the name or names of the surety company or companies
bound thereunder. The amount of said bond shall be not less than an
amount equal to the maximum amount of taxes which may be in the possession
of the officer at any given time.
(6)
The Borough
of Athens may, by resolution at any time, upon cause shown and due
notice to the Officer, and to his surety or sureties, require or allow
the substitution or addition of a surety company acceptable to the
Borough of Athens for the purpose of making the bond sufficient in
amount, without releasing the surety or sureties first approved from
any accrued liability or actions on such bond. The Borough Secretary
of Athens Borough shall be the custodian of the bond required to be
given hereunder.
C.
Regulations.
(1)
The Income
Tax Officer is hereby empowered to prescribe, adopt, promulgate and
enforce rules, regulations or other orders relating to any matter
pertaining to the administration and enforcement of this article,
including provisions for the reexamination or correction of declarations
and returns and of payment 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 of overpayment, for any period not to exceed
six years subsequent to the date of payment of the sum involved or
to prescribe forms necessary for the administration of the article.
No rule or regulation of any kind shall be enforced or enforceable
unless it has been approved by resolution of the Borough of Athens.
A copy of such rules and regulations currently enforced shall be available
for public inspection.
(2)
Employee
unreimbursed business expenses. Business expenses for which an employee
has not been reimbursed are allowed as a deduction from earned income
to the extent provided by Federal Form 2106 without the 20% meal exclusion.
[Added 10-11-1993 by Ord. No. 452, approved 10-11-1993]
(3)
Losses. Taxpayers
are not allowed to offset a gain in one business activity against
a loss in another business activity. However, a taxpayer who is employed
and receives a wage or salary may offset against such income the losses
incurred in the operation of a business, profession or farm as a sole
proprietor or partner. Losses may be applied only in the year in which
the loss was actually incurred and may not be carried over to subsequent
years or carried back to prior years. A taxpayer's losses may not
be deducted from the taxpayer's spouse's earnings.
[Added 10-11-1993 by Ord. No. 452, approved 10-11-1993]
(4)
Late filing
fee. A delinquent cost of $10 will be charged for each annual tax
return filed after its April 15 due date.
[Added 10-11-1993 by Ord. No. 452, approved 10-11-1993]
(5)
Balances
due and refunds. Payment is not required of balances due of less than
$1. Refund requests will not be honored for amounts less than $1.
[Added 10-11-1993 by Ord. No. 452, approved 10-11-1993]
D.
Refunds. The
Officer shall refund, upon 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.
E.
Inspection. The
Officer and agent designated by him are authorized to examine the
books, papers and records of any employer or of any taxpayer 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 is 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 the Officer or his agent designated by him the means, facilities
and opportunity for such an examination and investigation as are hereby
authorized.
F.
Information to
be confidential. Any information gained by the Officer, his agents
or any other official or agent of Athens Borough, as a result of any
declarations, returns, investigations, hearings and verifications
required or authorized by this article or resolution, shall be confidential,
except for official purposes and except in accordance with the proper
judicial order, or as otherwise provided by law.
G.
Fiscal years.
The Officer is authorized to establish different filings, reporting
and payment dates for taxpayers whose fiscal year does not coincide
with the calendar year.
The Income Tax Officer shall receive such compensation
for his services and expenses as determined by the Borough of Athens,
from time to time. In the case where such Income Tax Officer shall
also act as Income Tax Officer for any other taxing district, the
Borough of Athens shall share in the compensation and expenses of
said Income Tax Officer according to the proportionate share of the
total annual collections for each taxing district bears total annual
collection for all taxing districts employing said same Income Tax
Officer, except that with the agreement of 2/3 of all participating
political subdivisions or taxing districts, a different manner of
sharing may be substituted. The term of employment of the Income Tax
Officer shall be prescribed by resolution of Athens Borough from time
to time.
[1]
Editor's Note: For provisions pertaining to
salaries, see the current salary ordinance which is on file in the
office of the Borough Secretary.
The Officer may sue in the name of the Borough
of Athens for recovery of taxes due and unpaid under this article.
A.
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 has been filed by any person although a declaration
or return was required to be filed by him under the provisions of
this article, there should be no limitation.
(2)
For an examination
of the declaration or return filed by any person or where any other
evidence relating to such declaration or return in the possession
of the Officer reveals a fraudulent evasion of taxes, there should
be no limitation.
(3)
In the case
of substantial understatement of tax liability of 25% or more and
where there is no fraud, suit may be begun within six years.
(4)
Where any
person has deducted tax under the provisions of this article and has
failed to pay the tax so deducted to the Officer, or any person shall
willfully fail or admit to make the deduction required by this section,
there shall be no limitation.
B.
This section
shall not be construed to limit the Borough of Athens from recovering
delinquent taxes by any other means provided by this article.
The Officer may sue for recovery of an erroneous
refund, provided that such suit is begun two years after making such
refund, except that suit may be brought within five years if it appears
that any part of the refund has been 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% on the amount of unpaid tax for each
month or fraction thereof during which the tax remains unpaid, shall
be added and collected. Where suit is brought for any such tax, the
person liable therefor shall, in addition, be liable for costs of
collection and interest and penalties thereby imposed. Where, pursuant
to this article, the taxpayer is required to file declaration and
quarterly payments on any net profit anticipated or earned, or on
earned income not subject to withholding, the interest and penalties
imposed in this section shall commence only upon and after April 15
of the succeeding year.
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 agent designated by him to examine
his books, records and papers; any person who knowingly makes any
incomplete, false or fraudulent return, or attempts to do anything
whatsoever to avoid the full disclosure of his net profit 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 by any
Magisterial District Judge or court of competent jurisdiction within
Bradford County, Pennsylvania, be sentenced to pay a fine of not more
than $500 for each offense plus costs, and in default of payment of
said fine and costs, shall be imprisoned for a period not exceeding
30 days.
B.
Any person who
divulges any information which is confidential under the provisions
of this article shall, upon conviction thereof before any Magisterial
District Judge or court of competent jurisdiction within Bradford
County, Pennsylvania, be fined not more than $500 for each offense
and costs, and in default of payment of said fine and costs, shall
be imprisoned for a period not exceeding 30 days.
The failure of any person to receive or procure
forms required for making the declaration or returns required by the
article or a resolution shall not excuse him from making such declaration
or return.
The Officer is hereby authorized to exercise
any power given by law for the collection of delinquent taxes, including
the distress and sale of goods and chattels of taxpayers.
