[Ord. 343, 11/7/1966; as amended by Ord. 825, 10/3/2016]
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:
ASSOCIATION
A partnership or limited partnership or any other unincorporated
group of two or more persons.
BUSINESS
An enterprise, activity or 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.
DOMICILE
The place where one lives and has his permanent home 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.
EARNED INCOME
Compensation as determined under §303 of the Act of
March 4, 1971, P.L. 6, No. 2, known as the “Tax Reform Code
of 1971,” and regulations in 61 Pa.Code, Part. I, Subpart. B,
Article V (relating to personal income tax), not including, however,
wages or compensation paid to individuals on active military service.
Employee business expenses are allowable deductions as determined
under Article III of the Tax Reform Code of 1971. The amount of any
housing allowance provided to a member of the clergy shall not be
taxable as earned income.
EMPLOYER
An individual, fiduciary, association, corporation, 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
Person, public employee or private agency designated by the
Borough 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, determined under §303
of the Act of March 4, 1971, P.L. 6, No. 2, known as the “Tax
Reform Code of 1971,” and regulations in 61 Pa.Code, Part I,
Subpart B, Article V (relating to personal income tax). The term does
not include income which is not paid for services provided and which
is in the nature of earnings from an investment. For taxpayers engaged
in the business, profession or activity of farming, the term shall
not include:
1.
Any interest earnings generated from any monetary accounts or
investment instruments of the farming business.
2.
Any gain on the sale of farm machinery.
3.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes.
4.
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the taxing district.
PERSON
An individual, fiduciary, association, corporation or other
entity. Whenever used in any section prescribing and imposing a penalty,
the term “person,” as applied to associations, shall mean
the partners or members thereof and as applied to corporations, the
officers thereof.
RESIDENT
A person, partnership, association or other entity domiciled
in the taxing district.
SALARIES, WAGES, COMMISSIONS AND OTHER COMPENSATION
Salaries, wages, commissions, bonuses, incentive payments,
fees and tips that may be paid to or received by an individual for
services rendered or that may accrue to such individual in accordance
with an established accounting procedure, whether directly or through
an agent and whether in cash or in property, not including periodic
payments for sick or disability benefits and those commonly recognized
as old-age benefits, retirement pay, pensions paid to persons retired
from service after reaching a specific age or after a stated period
of employment, public assistance or unemployment compensation payments
made by any governmental agency.
TAXABLE PERIOD
The period beginning the effective date of this Part and
ending the 31st day of December of the calendar year.
TAXPAYER
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.
[Ord. 343, 11/7/1966; as amended by Ord. 825, 10/3/2016]
1. Every taxpayer who during the taxable period can reasonably be expected to earn net profits or earnings not subject to the provisions of §
24-104 relating to collection at source, shall make and file with the Income Tax Administrator, on a form prescribed by the Income Tax Administrator, a declaration setting forth the amount of net profits anticipated by him for such taxable period and subject to tax, the amount of estimated tax imposed thereon by this Part and such other relevant information as the Income Tax Administrator may require.
2. The declaration
of estimated tax shall be filed and the tax shall be paid at the following
times:
A. If said
net profits or earnings can reasonably be expected on or before the
15th day of January of the taxable period the taxpayer shall file
a declaration on or before said date and shall pay the estimated tax
shown thereon in equal quarterly installments on or before the said
15th day of January and on or before the 15th day of the following
April, July and October.
B. If said
net profits or earnings cannot reasonably be expected on or before
January 15 of the taxable period, but can be reasonably expected subsequent
to said date, the taxpayer shall file his declaration on or before
the first of said remaining quarterly installment dates on which the
taxpayer can first reasonably be expected to earn such net profits
or earnings and shall pay the estimated tax shown thereon in equal
installments on or before said remaining quarterly installment dates.
C. If the
taxpayer elects to file a declaration on a calendar year basis setting
forth his estimated net profits or earnings for the current calendar
year, then, in lieu of filing his declaration and making payments
therefore at the times set forth in Paragraphs A and B immediately
hereinabove, he may, on or before the 15th day of January of the taxable
period, pay the quarterly installment of the estimated tax according
to the declaration filed and, on or before the 15th day of April of
the taxable period, file a declaration of the estimated tax for the
portion of the taxable period included in the new calendar year, and
pay said tax in equal installments on or before said 15th day of April
and the 15th day of July.
D. If the
taxpayer elects to file a declaration on a fiscal year basis different
from the taxable period, setting forth his estimated net profits or
earnings for a period included in the taxable period, then in lieu
of filing his declaration and making payments thereon at the times
set forth in Paragraphs A and B immediately hereinabove, he may pay
the quarterly installments of the estimated tax according to the declaration
filed from the portion of the taxable period included in said fiscal
year and, on or before the 105th day after the close of the fiscal
year, file a declaration of the estimated tax for the portion of the
taxable period included in the said succeeding fiscal year and pay
said tax in equal quarterly installments, beginning with the due date
of the filing and ending with the first quarterly installment due
after the close of the taxable period.
3. Where
the taxpayer who has filed a declaration required hereinabove shall
thereafter reasonably be expected to earn, during the taxable period,
additional net profits or earnings not subject to collection at source
or finds that he has overestimated his net profits or earnings, he
may file an amended declaration with the Income Tax Administrator,
setting forth such relevant information as the Income Tax Administrator
may require.
4. Every taxpayer who is required to file a declaration of estimated tax under the provision of this Section shall make and file with the Income Tax Administrator, on a form prescribed by the Income Tax Administrator, a final return showing all net profits and earnings during the taxable period, the total amount of tax due thereon, the amount of the estimated tax paid under the provisions of this Section, the amount of the tax that has been withheld pursuant to the provisions of §
24-104 and the balance of the tax due.
5. The final
return shall be filed at the following times:
A. If the
taxpayer’s declaration is filed on a calendar year basis, he
shall file his final return on or before the 15th day of April after
the close of such calendar year.
B. If the
taxpayer’s declaration is filed on a fiscal year basis the same
as the taxable period, he shall file his final return on or before
the 15th day of the month after the close of the taxable period.
C. If the
taxpayer’s declaration is not filed on a calendar year basis
or on a fiscal year basis the same as the taxable period, he shall
file his final return on or before the 105th day after the close of
the fiscal year.
6. The percentage
of the total net profits of any calendar or fiscal year of a taxpayer
beginning or ending within the taxable year to which the tax imposed
by this Part shall be applicable shall be equal to the same percentage
of such total net profits as the number of days in any such year within
such period bears to the total number of days in any such year.
7. 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.
8. 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 the Pennsylvania Probate, Estates and Fiduciaries Code, Chapter
21, “Intestate Succession,” 20 Pa.C.S.A. §2101
et seq., as amended, or as hereafter amended
or supplemented, shall file his final return within 60 days after
the taxpayer’s death and pay the tax due or demand refund in
the case of overpayment.
9. In the
event the taxpayer’s taxable net earned income consists solely
of salary, wage, commission or other compensation, the tax on which
has been withheld by his employer and returned to the Income Tax Administrator,
such taxpayer shall be relieved of the necessity of filing a return.
10. The
final return shall include net profits and earnings taxable under
any other ordinance of the said Borough of Selinsgrove for the same
calendar or fiscal year so that but one inclusive return shall be
filed by every taxpayer for any one calendar or fiscal year.
[Ord. 343, 11/7/1966; as amended by Ord. 825, 10/3/2016]
1. Every
employer within the Borough of Selinsgrove who employs one or more
on a salary, wage, commission or other compensation basis shall deduct,
at the time of the payment thereof, the tax imposed by this Part on
the earnings due to his employee or employees and, within 30 days
after each quarter of a year, shall make and file a return with the
Income Tax Administrator on a form prescribed by the Income Tax Administrator,
setting forth the taxes so deducted and such other relevant information
as the Income Tax Administrator may require, and shall pay to the
Borough of Selinsgrove the amount of taxes so deducted.
2. On or
before the 15th day of February of the taxable period, every such
employer shall make and file with the Income Tax Administrator on
a form prescribed by the Income Tax Administrator:
A. A return
showing the total amount of the earnings of his employee or employees
during the portion of the preceding calendar year ending December
31 and embraced within the taxable period, the total amount of tax
deducted and the total amount of tax paid to the Borough of Selinsgrove.
B. A return
for each employee showing the total amount of the employee’s
earnings during the portion of the preceding calendar year ending
December 31 and embraced within the taxable period; the amount of
tax deducted therefrom; the employee’s social security number,
name and address; and such other relevant information as the Income
Tax Administrator may require. Such employer, on or before February
15 of each of said years, shall furnish a copy of such return to the
employee named in the return.
C. The said
returns shall include the earnings taxable under any other ordinance
of the Borough of Selinsgrove for the same calendar year so that one
return shall be filed by an employer for any one calendar year.
3. Every employer who discontinues business prior to the close of the taxable year shall, within 30 days after the discontinuance of business, file the returns hereinabove required and pay the tax due. Where discontinuance of business is due to the death of the employer, his personal representative or, in the absence of a personal representative, his heirs, as designated by the Pennsylvania Probate, Estates and Fiduciaries Code, Chapter
21, “Intestate Succession,” 20 Pa.C.S.A. §2101
et seq., as amended, or as hereafter amended or supplemented,
shall within 60 days after the death of the employer file his return
and pay the tax due or demand refund in the case of overpayment.
4. 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.
5. If an
employer makes a deduction of tax as required by this Section, the
amount deducted shall constitute in the hands of such employer a trust
fund held for the account of the Borough of Selinsgrove as beneficial
owner thereof, and the employee from whose earnings such tax was deducted
shall be deemed to have paid such tax.
6. The withholding of earnings and the payment and return thereof by the employer under the provisions of this Section shall not be required in respect to earnings of domestic servants, farm labor and casual labor not in the course of the employer’s business. This subsection shall not be construed to exempt such employees from the requirements of filing a declaration and a return of such earnings and the payment of tax thereon under the provisions of §
24-103.
[Ord. 343, 11/7/1966]
If for any reason the tax is not paid when due, interest at
the rate of 6% per annum of the amount of said tax and an additional
penalty of ½% 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 therefore shall, in addition, be liable for
the costs of collection and the interest and penalties herein imposed.
[Ord. 343, 11/7/1966]
The Income Tax Administrator is hereby authorized to accept
payment of the amount of tax claimed by the Borough of Selinsgrove
in any case where any person disputes the validity or amount of the
Borough of Selinsgrove’s claim for the tax. If it is thereafter
judicially determined by a court of competent jurisdiction that there
has been an overpayment to the Income Tax Officer, the amount of the
overpayment shall be refunded to the person who paid.
[Ord. 343, 11/7/1966; as amended by Ord. 825, 10/3/2016]
1. Any person
who fails, neglects or refuses to make any declaration or return required
by this Part; any employer who fails, neglects or refuses to pay the
tax deducted from his employees; any person who refuses to permit
the Income Tax Administrator or any agent properly designated by him
to examine his books, records and papers; and any person who makes
any incomplete, false or fraudulent return to avoid the payment of
the whole or any part of the tax imposed by this Part shall, upon
being found liable therefor in a civil enforcement proceeding commenced
by the Borough, shall pay a judgment of not more than $600 plus all
court costs and reasonable attorney fees. No judgment shall commence
or be imposed, levied or payable until the date of the determination
of a violation by a magisterial district judge. If the defendant neither
pays nor timely appeals the judgment, the Borough may enforce the
judgment pursuant to the applicable rules of civil procedure. Each
day that a violation continues or each Section of this Part which
shall be found to have been violated shall constitute a separate violation.
2. Any person who, except as permitted by the provisions of §
24-105.4, divulges any information which is confidential under the provisions of said subsection shall, upon being found liable therefor in a civil enforcement proceeding commenced by the Borough, shall pay a judgment of not more than $600 plus all court costs and reasonable attorney fees. No judgment shall commence or be imposed, levied or payable until the date of the determination of a violation by a magisterial district judge. If the defendant neither pays nor timely appeals the judgment, the Borough may enforce the judgment pursuant to the applicable rules of civil procedure. Each day that a violation continues or each Section of this Part which shall be found to have been violated shall constitute a separate violation.
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 the forms required for making
any declaration or return required by this Part shall not excuse him
from making such declaration or return.