[Adopted 11-10-1966 by Ord. No. 108]
In pursuance of the authority granted to Boroughs in the Commonwealth of Pennsylvania by an Act of the General Assembly known as the "Local Tax Enabling Act," approved the 31st day of December 1965 (Act No. 511, RL. 1257),[1] be it enacted and ordained by the Borough Council of the Borough of Economy, County of Beaver and Commonwealth of Pennsylvania, and it is hereby enacted and ordained by the authority of same.
[1]
Editor's Note: See 53 P.S. § 6901 et seq.
A. 
The following words and phrases, when used in this article, shall have the meanings ascribed to them in this section, except if the context clearly indicates or requires a different meaning:
ASSOCIATION
A partnership or any other form of unincorporated enterprise, owned by two or more persons.
BUSINESS
Includes any enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, copartnership or association.
COLLECTOR OF THIS TAX
The collector of this tax for the Borough of Economy.
COMPENSATION EARNED or COMPENSATION PAID OR EARNINGS
All salaries, wages, commissions, bonuses, incentive payments or other forms of compensation or remuneration, in cash or in kind, received by an individual and paid, directly or through an agent, by an employer for services rendered.
EMPLOYER
Any individuals, copartnership, association, corporation, government body or unit or agency or any other entity, who or that employs one or more persons on a salary, wage, commission or other compensation basis.
NET PROFITS
The net gain from the operation of a business, profession or enterprise, after provision for all costs and expenses incurred in the conduct thereof, either paid or accrued in accordance with the accounting system used and without deduction of taxes based on income.
NONRESIDENT
An individual, copartnership, association or other entity domiciled outside the Borough of Economy.
PERSON
Includes every natural person, copartnership, association, firm or fiduciary. Whenever used in any clause 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.
RESIDENTS
An individual, copartnership, association or other entire, domiciled in the Borough of Economy.
TAXPAYER
A person, whether an individual, copartnership or association, required hereunder to file a return on earnings or net profits or to pay a tax thereon.
B. 
The singular shall include the plural, and the masculine shall include the feminine and neuter.
A. 
An annual tax for general revenue purposes at the rate of 1/2% is hereby imposed on the following:
[Amended 2-10-1987 by Ord. No. 274]
(1) 
Salaries, wages, commissions and other compensation earned or paid after January 1, by residents of the Borough of Economy.
(2) 
Salaries, wages, commissions and other compensation earned or paid after January 1, by nonresidents of the Borough of Economy for work done or services performed or rendered in the Borough of Economy.
(3) 
The net profits earned after January 1, of businesses, professions or other activities conducted by such residents.
(4) 
Net profits earned after January 1, of businesses, professions or other activities conducted in the Borough of Economy by nonresidents.
B. 
The tax levied under Subsection A(l) and (2) of this section shall relate to and be imposed upon salaries, wages, commissions and other compensation paid by an employer or on his behalf to any person who is employed by or renders services to him. The tax levied under Subsection A(3) and (4) of this section shall relate to and be imposed on the net profits of any business, profession or enterprise carried on by any person as owner or proprietor, either individually or in association with some other person or persons.
C. 
Said tax shall first be levied, collected and paid with respect to the salaries, wages, commissions and other compensation and the net profits of businesses, professions or other activities earned during the period between January 1, and December 31; provided, however, that, where the fiscal year of the business, profession or other activity differs from the calendar year, the tax shall be applied to that part of the net profits for the fiscal year as shall be earned from and after January 1.
[Amended 2-10-1987 by Ord. No. 274]
A. 
Each taxpayer whose earnings or profits are subject to the tax imposed by this article shall, on or before April 15, make and file a return with the collector of this tax on a form furnished by or obtainable from him, setting forth the aggregate amount of salary, wages and other compensation or net profits earned by him during the preceding year and subject to said tax, together with such other pertinent information as the collector of this tax may require; provided, however, that, when the return is made for the fiscal year or other period different from the calendar year, the return shall be made within 75 days from the end of the said fiscal year or other period.
[Amended 2-10-1987 by Ord. No. 274]
B. 
The return shall also show the amount of the tax imposed by this article on such earnings and profits. The taxpayer making said return shall, at the time of filing thereof, pay to the collector of this tax the amount of taxes shown as due thereon; provided, further, however, that, where any portion of the tax so due shall have been deducted at the source and shall have been paid to the collector of this tax by the person making such deduction pursuant to the provisions of § 170-47 of this article or where any portion of said tax shall have been paid by such taxpayer pursuant to the provisions of § 170-48 of this article, credit for the amount so paid shall be deducted from the amount to be due, and only the balance, if any, shall be due and payable at the time of filing said return.
C. 
The collector of this tax is hereby authorized to provide, by regulation, subject to the approval of the Borough Solicitor, that the return of any employer or employers showing the amount of tax deducted by said employer or employers from the salaries, wages or commissions of any employee and paid by him or them to the collector of this tax shall be accepted as the return required of any employee whose sole income subject to the tax or taxes under this article is such salary, wages or commissions.
A. 
Each employer within the Borough of Economy who employs one or more persons on a salary, wage, commission or other compensation basis shall deduct, monthly or more often than monthly, at the time of the payment thereof, the tax of one-half per centum (1/2%) of salaries, wages, commissions or other compensation due by said employers to the said employee and shall file with the collector of this tax, on a form or forms furnished by or obtainable from him, a quarterly return on dates specified herein and pay to him the amount of taxes deducted during said quarters. The quarterly returns shall be made on or before April 30 for the quarter beginning January I and ending March 31 and on or before July 31 for the quarter beginning April 1 and ending June 30 and on or before October 31, for the quarter beginning July 1 and ending September 30 and on or before January 31 for the quarter beginning October 1 and ending December 31 of the preceding year.
B. 
On or before February 15 of each year, each employer shall file a return on a form or forms prescribed by the Collector of this tax, setting forth names and residences of each employee of said employer during all or any part of the preceding year, the amounts of salaries, wages, commissions or other compensation earned during such preceding year by each of such employees, the amount of taxes deducted and paid to the collector of this tax, together with such other pertinent information as the collector of this may require; provided, however, that the failure or omission by any employer, either residing within or outside of the Borough to make such return and/or pay such tax, shall not relieve the employee from the payment of such tax and the compliance with such regulations with respect to making returns and payment thereof as may be fixed in this article or established by the collector of this tax.
A. 
Every taxpayer who anticipates any income which is not subject to the provisions of § 170-46 hereof shall file a declaration of the estimated tax for that part of the taxable year beginning January 1, and ending December 31. Such declaration shall be filed on or before April 15 by all such taxpayers. Such declaration shall be filed upon a form furnished by the collector of this tax, which form may simply state that the figures used in making such declaration are the figures used in making the declaration of the estimate for the federal income tax, provided that it is understood that such figures may be modified according to the provisions of this article so that the declaration required by this section shall set forth only such income as taxable under the provisions of this article.
[Amended 2-10-1987 by Ord. No. 274]
B. 
Such declaration of the estimated tax to be paid to the Borough of Economy shall be accompanied by a payment of at least one-fourth (1/4) of the estimated annual tax, and at least a similar amount for such year shall be paid on or before June 30, September 30 and December 31 of such year; provided, however, that such estimate may be amended at the time of the making of any quarterly payments, and further, provided, that on or before April 15 of the year following that for which such declaration was filed, final return shall be filed, and any balance which may be due the Borough of Economy shall be paid therewith. Should it then appear that such taxpayer has paid more than the amount of tax to which the Borough of Economy would be entitled under the provisions of this article, a refund of the amount of overpayment shall be made.
It shall be the duty of the collector of this tax, who shall be designated by resolution of the Borough Council, to collect and receive the taxes and penalties imposed by this article for payment over to the Borough Treasurer and to enforce the provisions of this article. It shall also be his duty, in addition to keeping such records as are now required by law or ordinance, to keep a record showing the amount received by him for each taxpayer and the date of such receipts.
A. 
The Borough Council may prescribe, adopt, promulgate and enforce rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this article, including provisions for the reexamination and correction of returns and payments alleged or found to be incorrect or as to which an overpayment or underpayment is claimed or found to have occurred.
B. 
The collector of this tax or any agent or employee designated in writing by the Borough Council is hereby authorized to examine the books, papers and records of any employer or supposed employer or of any taxpayer or supposed taxpayer in order to verify the accuracy of any return made or, if no return was made, to ascertain the tax imposed by this article. Every such employer or supposed employer or taxpayer or supposed taxpayer is hereby directed and required to give to said collector or any other person designated by the Borough Council the means, facilities and opportunity for such examination and investigation as are hereby authorized. The collector of this tax is hereby authorized to examine any person concerning any income which was or should have been returned for taxation and, to this end, may compel the production of books, papers and records and the attendance of all persons before him, whether as parties or witnesses, whom he believes to have knowledge of such income.
C. 
Any information gained by the collector of this tax or any other official or agent designated by the Borough Council as a result of any returns, investigations, hearings or verifications required or authorized by this article shall be confidential, except for official purposes and except in accordance with proper judicial order or as otherwise provided by law; and any person, official or agent divulging such information shall be dismissed forthwith and shall be subject to a fine or penalty of not more than $300, plus costs of prosecution, for each offense, or in default thereof, to undergo imprisonment for not more than 90 days.
[Amended 2-10-1987 by Ord. No. 274]
All taxes imposed by this article remaining unpaid after they become due shall bear interest, in addition to the amount of the unpaid tax, at the rate of 6% per annum, and the persons upon whom said taxes are imposed shall be further liable to a penalty of one-half of one per centum (1/2 of 1%) of the amount of said unpaid tax for each month or fraction of a month of the first six months of nonpayment.
All taxes imposed by this article, together with all interest and penalties, shall be recoverable by the collector of this tax as other debts of like amount are recoverable.
[Amended 2-10-1987 by Ord. No. 274]
Any person convicted before the Mayor or any District Justice of violating any of the provisions or requirements of this article or who shall fail, neglect or refuse to make any return required by this article or any employer who shall fail, neglect or refuse to deduct the tax from the employee at the source and apply the same to the collector as required by this article or any taxpayer who shall fail, neglect or refuse to pay the tax, penalties and interest imposed by this article or any person who shall refuse to permit the collector of this tax or any person designated by the Borough Council, in writing, to examine his books, records and papers or who shall knowingly make any incomplete, false or fraudulent return or who shall attempt to do anything whatever to avoid the full disclosure of the amount of earnings or profits to avoid the payment of the whole or any part of the tax shall be summarily subject to a fine or penalty of $300, plus costs of prosecution, for each such offense or to undergo imprisonment for not more than 90 days for the nonpayment of such fine or penalty and the costs within 10 days from the imposition thereof. Such fine or penalty shall be in addition to any other penalty imposed by any other section of this article. The failure of anyone required to file a return to receive or procure a return form shall not excuse him from paying the tax.
This Article shall not apply to which it is beyond the legal power of the Council to impose the tax or duties herein provided.