[Adopted 12-30-1991 by Ord. No. 840]
The following words and terms used in this article
shall have the meanings as defined herein:
A partnership, limited partnership or any 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.
From the effective date of this article, January 30, 1992,
through December 31, 1992. In subsequent years, the "current year"
shall be the calendar year for which the tax is levied.
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 retired from
employment or payments commonly known as public assistance or unemployment
compensation payments 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, institution,
governmental body or unit or agency or any other entity employing
one or more persons for a salary, wage, commission or other compensation.
The person, public employee or private agency designated
by the Council of the Borough of Media 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 domiciled outside of the limits of the Borough of
Media or a partnership, association or other entity maintaining as
a center of its business affairs a place outside of the Borough of
Media.
A natural person.
A person, partnership, association or other entity domiciled
in the Borough of Media.
A person, partnership, corporation, fiduciary or association
subject to the tax imposed by this article.
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.
A.
A tax for general revenue purposes in the amount
of 1% is hereby imposed, effective January 30, 1992, and continuing
thereafter, on the following:
[Amended 3-16-1995 by Ord. No. 887]
(1)
Earned income earned by residents of the Borough of
Media.
(2)
Earned income earned by nonresidents of the Borough
of Media for work done or services performed or rendered within the
limits of the Borough of Media.
(3)
Net profits from unincorporated business activities
conducted by residents of the Borough of Media.
(4)
Net profits from unincorporated business activities
conducted by nonresidents within the limits of the Borough of Media.
B.
The tax levied hereunder shall relate to and be imposed
upon salaries, wages, commissions and other compensation herein defined
as earned income paid by an employer or on his behalf to a person
employed by him subject to the tax as well as upon any resident person
of the Borough of Media. The tax levied hereunder also relates to
and is imposed upon the net profits of any business, profession or
other activity carried on by any person or persons in the Borough
of Media.
[Amended 2-16-1995 by Ord. No. 886]
A.
Net profits.
(1)
Every taxpayer earning net profits shall, on or before
April 30 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 to 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 July 31, of the current year,
October 31 of the current year, and January 31 of the succeeding year,
respectively.
(2)
Any taxpayer who first anticipates any net profit
after April 30 of the current year shall make and file the declaration
hereinabove required on or before July 31 of the current year, October
31 of the current year or January 31 of the succeeding year, whichever
of these dates next follows the date on which the taxpayer first anticipates
such net profit, and pay to the Income Tax Officer in equal installments
the tax due thereon on or before the quarterly payment dates which
remain after the filing of the declaration.
(3)
Succeeding year. 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 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 Income Tax Officer the balance
of tax due or shall make demand for refund or credit in the case of
overpayment.
(4)
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 hereinabove required.
(5)
The Income Tax Officer is authorized to provide by
regulation for the making and filing of adjusted declarations of estimated
net profits, and for the payments of the estimated tax in cases where
a taxpayer who has filed the declaration hereinabove required anticipates
additional net profits not previously declared or finds that he has
overestimated his anticipated net profits.
(6)
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.
(1)
Annual earned income tax return. 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 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.
(2)
Earned income not subject to withholding. Every taxpayer
who is employed for a salary, wage, commission or other compensation
and who received any earned income not subject to the provisions hereunder
relating to collection at source shall make and file with the Income
Tax Officer on a form prescribed or approved by the Income Tax Officer,
a quarterly return on or before April 15 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 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.
[Amended 2-16-1995 by Ord. No. 886]
A.
Registration. Every employer having an office, factory,
workshop, branch, warehouse or other place of business within the
Borough of Media 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 Income Tax Officer his name and address
and such other information as the Income Tax Officer may require.
B.
Employer to withhold and remit.
(1)
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the Borough of
Media 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 employer shall show the name, address, 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
subdivision 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.
(2)
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 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.
C.
Succeeding year. 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.
(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 to the employee during said period, the amount
of tax deducted, the political subdivision 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.
D.
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.
E.
Every employer who willingly or negligently fails
or omits to make the deductions required by this section 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.
F.
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 article.
It shall be the duty of the Treasurer of the
Borough of Media to receive the taxes, fines and penalties imposed
by this article. It shall also be the duty of the Treasurer to keep
a record showing the amount received from each person paying the tax
and, if paid by an employer for a person, the name of such person
for whom the tax is paid and the date of such receipt.
A.
The Income Tax Officer is hereby charged with the collection of the tax and payment over to the Treasurer of the Borough of Media as well as the administration and enforcement of the provisions of this article dealing with the declaration and payment of tax as set forth in § 267-79 and of the collection at source as set forth in § 267-80. The Income Tax Officer 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, subject to the approval of the Council of the Borough of Media, 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 for reasonable extension of time, upon proper cause shown, for filing declarations or returns, and to prescribe the forms necessary for the administration of this article. Nothing herein is intended to prevent the Council of the Borough of Media from itself promulgating such rules and regulations.
B.
The Income Tax Officer and such agents as may be designated
in writing are hereby authorized to examine the books, papers and
records of any 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 person or taxpayer is hereby directed and required
to give to the Income Tax Officer or to any agent so designated by
him the opportunity for examination and investigations as are hereby
authorized.
C.
Information obtained by the Income Tax Officer or
his agents or by any other official or agent of the Borough of Media
as a result of any declaration, return, investigation, hearing or
verification required or authorized by this article shall be confidential
and shall not be disclosed except for official use in connection with
the administration or enforcement of this article or as otherwise
provided by law.
A suit may be brought to recover the tax imposed
by this article within three years after such tax is due or within
three years after a declaration or return has been filed, whichever
date is later; provided, however, that this limitation shall not prevent
the institution of suit for the collection of any tax due or determined
to be due in the following cases:
A.
Where no declaration or return was filed by any person
although a declaration or return was required to be filed under the
provisions of this article.
B.
In the case of a false or fraudulent declaration or
return with the intent to evade tax.
C.
Where any person or taxpayer required under this article
to deduct and pay over taxes has deducted taxes according to the provisions
of this article and has failed to pay the amount so deducted to the
Borough of Media.
[Amended 2-16-1995 by Ord. No. 885]
A.
If for any reason the tax is not paid when due, there
shall be added to the tax interest at the rate of 6% per annum on
the amount of said tax. In addition thereto, there shall be an added
penalty of one-half of one percent (1/2 of 1%) of the amount of the
unpaid tax for each month or fraction thereof during the time which
the tax remains unpaid. Where suit is brought for the recovery of
tax, penalty or interest, the taxpayer shall be liable for an additional
amount equal to the costs of collection.
B.
The Income Tax Officer, or his authorized agent, shall
be authorized to waive interest, or penalty, or both, in whole or
in part, under the following circumstances only:
(1)
Where litigation of the amount of taxes due is pending
or threatened and waiver of interest, or penalty, or both, on past
amounts owed is proposed as part of an overall settlement of the litigation.
(2)
Where the waiver of interest, or penalty, or both,
is part of an agreement under which the entire principal amount of
the taxes due shall be paid to the borough whether litigation is pending
or threatened or not.
A.
Payment of any tax on salaries, wages, commissions,
other compensation or on net profits of businesses, professions or
other activities to a political subdivision by residents thereof pursuant
to an ordinance or resolution passed or adopted under the authority
of the Act known as the "Local Tax Enabling Act"[1] shall be credited to and allowed as a deduction from the
liability of such person for any other like tax respectively on salaries,
wages, commissions or other compensation or on net profits of businesses,
professions or other activities imposed by any other political subdivision
of this commonwealth under the authority of this Act.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
B.
Payment of any tax on income to any political subdivision
by residents thereof pursuant to an ordinance or resolution passed
or adopted under the authority of the Act known as the Local Tax Enabling
Act[2] shall, to the extent that such income includes salaries,
wages, commissions, other compensation or net profits of businesses,
professions or other activities, but in such proportion as hereinafter
set forth, be credited to and allowed as a deduction from the liability
of such persons for any other tax on salaries, wages, commissions,
other compensation or net profits of businesses, professions or other
activities imposed by any other political subdivision of this commonwealth
under the authority of said Act.
[2]
Editor's Note: See 53 P.S. § 6901
et seq.
C.
Residents of political subdivisions other than the Borough of Media who are subject to this tax and who have paid tax to the Borough of Media pursuant to the collection at source, as provided in § 267-80 of this article, shall, upon application by the taxpayer on the appropriate form, cause to be forwarded to said political subdivision for credit the appropriate amount of tax or shall be entitled to repayment after submission of an appropriate application and proofs, as required by the Borough of Media.
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 payments of the whole or any part of the tax imposed by this article
shall, upon conviction thereof before any proper District Justice
or court of competent jurisdiction in the County of Delaware, be sentenced
to pay a fine of not more than $500 for each offense and costs and,
in default of payment of said fine and costs, 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 District Justice or court of competent jurisdiction in
the County of Delaware, be sentenced to pay a fine of not more than
$500 for each offense and costs and, in default of payment of said
fines and costs, 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.
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.
This article shall become effective on the 30th day of January, AD 1992, and shall remain in full force and effect for the fiscal year 1992. Thereafter, this article shall remain in full force and effect on a calendar-year basis without annual reenactment until the specific repeal of this article by the Council of the Borough of Media. In subsequent years, however, both the declaration and payment of the tax, as set forth in § 267-79, and the collection of the tax at the source, as provided in § 267-80, shall be upon the calendar year, and the tax imposed thereafter shall be upon the taxable subject of this article for the entire taxable year.
This article is intended to repeal Ordinance
No. 820. If, for any reason, this article is ineffective so as not
to allow the borough to collect the earned income tax from residents
or nonresidents as herein provided, the prior Ordinance No. 820 shall
then be deemed not to have been repealed and shall remain in full
force and effect as though this article had never been passed, in
which case this article shall then be of no effect and no tax shall
be imposed under this article.
