[Adopted 11-14-1972 by Ord. No. 291, approved 11-14-1972]
[Added 7-8-1975 by Ord. No. 305]
A. 
This article is enacted under the authority of Act No. 511 approved December 31, 1965, P.L. 1257, known as the "Local Tax Enabling Act."[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
B. 
Any rules and regulations governing the earned income tax adopted subsequent hereto may be amended by either a resolution of the Council of the Borough of West Conshohocken or by an ordinance duly adopted by the Council of the Borough of West Conshohocken.[2]
[Added 2-10-2004 by Ord. No. 04-04, approved 2-10-2004]
[2]
Editor's Note: Said rules and regulations are on file in the Borough offices.
A. 
Unless otherwise expressly stated, the following terms shall have, for the purpose of this article, the meanings ascribed to them in this section:
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 a 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 county or dependency.
CURRENT YEAR
The calendar year for which the tax 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 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
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 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 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.
EARNED INCOME TAX COLLECTOR
The person, public employee or private agency designated by the Borough of West Conshohocken to collect and administer the tax on earned income and net profits.
EMPLOYER
A person, partnership, association, corporation, institution, governmental body or unit or agency or any other entity employing one or more persons for salary, wage, commission or other compensation.
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, without deduction of taxes based on income.
NONRESIDENT
A person, partnership, association or other entity domiciled outside the Borough of West Conshohocken.
PERSON OR INDIVIDUAL
A natural person.
PRECEDING YEAR
The calendar year before this current year.
RESIDENT
A person, partnership, association or other entity domiciled in the Borough of West Conshohocken.
SUCCEEDING YEAR
The calendar year following the current year.
TAXPAYER
A person, partnership, association or other entity required hereunder to file a return of earned income or net profits or to pay a tax thereon.
B. 
In this article the singular shall include the plural, and the masculine shall include the feminine and the neuter.
A. 
A tax for general business purposes is hereby imposed on:
[Amended 8-8-1989 by Ord. No. 401, approved 8-8-1989; 1-2-2001 by Ord. No. 00-23, approved 1-2-2001]
(1) 
One percent of all earned income on and after January 3, 2001, by residents and nonresidents of the Borough of West Conshohocken.
(2) 
One percent of the net profits earned on and after January 3, 2001, of businesses, and nonresidents of the Borough of West Conshohocken.
B. 
The tax levied under this article shall be applicable to earned income received and to net profits earned by residents and nonresidents for the period beginning January 1 of the current year and ending December 31 of the current year or for taxpayers fiscal year which extends into the current year, and the tax shall continue in force on a calendar year basis or taxpayer fiscal year basis without annual reenactment, unless the rate of the tax is subsequently changed. The Borough of West Conshohocken may by ordinance change the rate. Such change shall become effective on the date specified in the ordinance.
A. 
Net profits.
(1) 
Beginning with the calendar year January 1, 1973, every taxpayer who makes any net profits shall, on or before April 30 of the then current year and each year thereafter, make and file with the Tax Collector a declaration of his estimated net profits during the period beginning January 1 and ending December 31 of the then current year. The taxpayer shall pay to the Tax Collector the total amount of tax determined to be due under the estimate as follows:
(a) 
First payment on or before April 30 with declaration.
(b) 
Second payment on or before July 31.
(c) 
Third payment on or before October 31.
(d) 
Final payment with final return between January 1 and April 15.
(2) 
If a taxpayer during the calendar year 1973 anticipates net profits after April 30 of the calendar year, then he shall make and file a declaration on or before July 31, October 31 or April 15 of the then current year, whichever of these dates next follows the date on which the taxpayer first anticipates such net profits. The taxpayer shall pay to the Tax Collector in equal installments the amount of tax due thereon on or before the quarterly payment dates which remain after the filing of his first declaration.
(3) 
On April 15 of each calendar year, every taxpayer shall file with the Tax Collector a final income tax return showing the amount of the net profits earned during the period beginning January 1 of the preceding year and ending December 31 of the preceding year, the total amount of tax due thereon and the total amount of tax theretofore paid with the estimated return. At the time of filing a final return, the taxpayer shall pay to the Earned Income Tax Collector the balance of tax due or shall make demand for a refund or credit in the case of any overpayment. Any taxpayer may, in lieu of paying the fourth quarterly installment of his estimated tax, elect to make and file with the Tax Collector his final return on or before January 31 of the succeeding year and to pay the tax in full at that time.
(4) 
The Borough of West Conshohocken shall 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.
(5) 
Discontinuance of business. If a taxpayer discontinues his business before September 30 of the current year, he shall, within 30 days after the discontinuance of the business, file his final return as hereinabove required and pay the tax due or make demand for a refund or credit in the case of an overpayment.
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 Earned Income Tax Collector, on a form prescribed, prepared and supplied by the Earned Income Tax Collector, a final return showing the total amount of earned income received during the period beginning January 1 and ending December 31, and for each year thereafter during the period beginning January 1 and ending December 31, the total amount of tax due thereon, the amount of the tax paid thereon, the amount of the tax thereon that has been withheld in the event the provisions relating to withholding hereinafter set forth have been invoked by the Borough of West Conshohocken and the balance of the tax due. At the time of the filing of the final return, the taxpayer shall pay the balance of the tax due or may make a demand for refund or credit in the case of an overpayment.
(2) 
Beginning with the calendar year 1973, every taxpayer who is employed for salary, wage, commission or other compensation and who received any earned income not subject to the provisions relating to collection at the source shall make and file with the Earned Income Tax Collector, on a form prepared, supplied and prescribed by the Earned Income Tax Collector, 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 by him during the three-month period ending March 31 of the current year, June 31 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 Earned Income Tax Collector shall require. Every taxpayer who makes such a return shall, at the time of the filing of the return with the Earned Income Tax Collector, pay to the Collector the amount of the tax shown as due thereon.
C. 
Registration.
[Added 6-14-1983 by Ord. No. 357, approved 6-15-1983]
(1) 
Each individual resident 18 years of age or over who has not previously registered shall, within 15 days of attaining the age of 18 years, register with the Earned Income Tax Collector with forms provided by said Collector.
(2) 
The registration form shall include, among other things, the name, address, social security number, current occupation, employer, employer's address and any additional information required by the Earned Income Tax Collector.
(3) 
The failure to register by any individual resident 18 years of age or over who has not previously registered, within 15 days of attaining the age of 18 years, shall constitute a summary offense and shall be subject to the penalties as are provided for in this article.
(4) 
Any resident, individual or other entity that makes application for a building permit or use and occupancy permit for any residential dwelling located within the Borough of West Conshohocken shall include in their application an earned income tax registration form providing information regarding the residents of that dwelling.
[Added 4-11-2000 by Ord. No. 00-1, approved 4-11-2000]
D. 
No income.
[Added 6-14-1983 by Ord. No. 357, approved 6-15-1983]
(1) 
In the event that a resident taxpayer had no earned income or net profits as defined herein, said taxpayer nevertheless must file the appropriate earned income tax return at the time specified herein setting forth the fact that he or she had no earned income or net profits during the previous year.
(2) 
The failure to file an earned income tax return, regardless of whether or not a resident taxpayer had earned income or net profits, shall constitute a summary offense and shall be subject to the penalties as are provided for in this article.
A. 
Every employer, as hereinbefore described and defined, shall be obligated, from January 1, 1973, and thereafter so long as this article is in effect, to withhold from wages of employees subject to the tax imposed by this article the amount of tax due, in accordance with the withholding procedure set forth hereinafter.
B. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the Borough of West Conshohocken, who employs one or more persons, other than servants, for salary, wage, commission or other compensation, who has not previously registered, shall, within 15 days after becoming an employer, register with the Earned Income Tax Collector his name and address and such other information as the officer may require.
C. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the Borough of West Conshohocken, who employs one or more persons, other than domestic servants, for 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 Earned Income Tax Collector 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 Earned Income Tax Collector and employer, shall show the name and social security number or identification number supplied by the Tax Collector 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, 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.
D. 
Monthly reporting. 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 Borough of West Conshohocken, may be required by the Earned Income Tax Collector to file his return and pay the tax monthly. In such cases, payments of tax shall be made to the Earned Income Tax Collector on or before the last day of the month succeeding the month for which the tax was withheld.
E. 
On or before February 28 of the succeeding year, every employer shall file with the Earned Income Tax Collector:
(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 Earned Income Tax Collector 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, social security number or identification number supplied by the Tax Collector, the amount of earned income paid to the employee during said period, the amount of tax deducted, the political subdivisions imposing the tax upon such employee and the amount of tax paid to the Earned Income Tax Collector. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.
F. 
Termination of business. Every employer who discontinues business for any reason prior to December 31 of the current year shall, within 30 days after the discontinuance of business, file the returns and withholding statement hereinabove required and pay the tax due.
G. 
Every employer who willfully or negligently fails or omits to make the deductions required by this section shall be liable for the payments of the taxes which he was required to withhold, to the extent that such taxes have not been recovered from the employee.
H. 
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 as to the filing of declarations and returns.
I. 
Any application for a building permit or use and occupancy permit for any commercial or business structure within the Borough of West Conshohocken shall include proof the employers located in such structure have registered with the Earned Income Tax Collector as required by § 105-47A, B and C.
[Added 4-11-2000 by Ord. No. 00-1, approved 4-11-2000]
A. 
The office of Earned Income Tax Collector is hereby created by this article, and the Borough of West Conshohocken shall from time to time by separate ordinance appoint a person or company to administer the provisions of this article, who will be designated the "Earned Income Tax Collector."
B. 
The Earned Income Tax Collector shall be bonded as the Borough Council may determine, said bond to cover all moneys coming into his hands on behalf of the Borough of West Conshohocken and the costs of the bond to be paid by the Borough of West Conshohocken. Before entering upon his official duties, the Earned Income Tax Collector shall give and acknowledge the bond to the Borough appointing him. Said bond shall be in compliance with Act No. 511 in all respects and subject to the approval of the Borough Solicitor.
C. 
The Earned Income Tax Collector shall collect and receive all such taxes, shall furnish a receipt for payment when requested to do so by a taxpayer and shall keep a record showing the amount received by him for each taxpayer under this article, together with the date of the receipt of such payment.
D. 
The Earned Income Tax Collector is hereby empowered to prescribe rules and regulations relating to any matter or thing pertaining to the administration and enforcement of the provisions of this article, subject, however, to the approval of the Borough Council of the Borough of West Conshohocken. Such rules and regulations shall be inscribed by the Earned Income Tax Collector into a book kept for that purpose and open to inspection by the public and thereupon shall have the same force and effect as if they had been incorporated into this article.
E. 
The Earned Income Tax Collector or any other person designated by the Borough of West Conshohocken is hereby authorized to examine any of the books, papers and records of any employer, supposed employer, taxpayer or supposed taxpayer in order to verify the accuracy of any return made or, if no return was made, to ascertain the amount of tax due by any person under this article. Every such employer, supposed employer, taxpayer or supposed taxpayer shall give to the Earned Income Tax Collector or such other authorized person the means, facilities and opportunities for such examination and investigations hereby authorized.
F. 
The Earned Income Tax Collector is authorized to examine any person under oath concerning any income which was or should have been returned for taxation, and shall have the power and is hereby authorized to issue subpoenas to compel the attendance of persons whom he deems necessary to examine as witnesses and to compel the production of books, records and papers relating to any account being examined.
G. 
The Earned Income Tax Collector or any other official or agent so designated by the Borough of West Conshohocken shall have the power to reexamine returns, correct erroneous returns, consent to make refunds and authorize the refunding of taxes erroneously or improperly collected from or paid by the taxpayers for any period of time not to exceed six years subsequent to the date of payment of the sum involved.
H. 
Any information gained by the Earned Income Tax Collector or any other official or agent of the Borough of West Conshohocken as a result of any return, investigation, hearing or examination required or authorized by this article shall become confidential, except for official purposes or except in accordance with proper judicial order or as otherwise provided by law. Any disclosure of any such information contrary to the provisions of this subsection shall constitute a violation of this article.
I. 
Any person who, except as permitted by the provisions of the foregoing Subsection H of this section, 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, be sentenced to pay a fine of not more than $500 for each offense and costs, and in default thereof, shall be imprisoned for a period not exceeding 30 days.
A. 
The Earned Income Tax Collector may sue in the name of the Borough 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 return was filed by any person although a declaration or return was required to be filed by him under the 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 Earned Income Tax Collector reveals a fraudulent evasion of taxes, there shall be no limitation.
(3) 
In the case of substantial understatement of tax liability, 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 amount so deducted to the Earned Income Tax Collector, or where any person has willfully failed or omitted to make the deductions required by this article, there shall be no limitation.
C. 
This section shall not be construed to limit the Borough Council from recovering the delinquent taxes by any other means provided in the Local Tax Enabling Act.
D. 
The Earned Income Tax Collector may sue for recovery of an erroneous refund, provided 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.
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 1/2 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 legal costs of collection and for interest and penalties herein imposed.
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 taxes deducted from his employees, or fails, neglects or refuses to deduct withholding taxes from his employees; any person who refuses to permit the Earned Income Tax Collector 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 does 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 before any District Justice or Magistrate or court of competent jurisdiction, be sentenced to pay a fine of not more than $500 for each offense and costs, and in default of payment of such fine and costs shall be imprisoned for a period not exceeding 30 days.
B. 
The penalties imposed under this section shall be in addition to any other penalty imposed by any other section of this article.
C. 
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 not apply to: personal property or persons to whom or which it is beyond the legal power of the Borough of West Conshohocken to impose the tax herein provided; the net profits of any institution, organization, trust, association or foundation operated for public, religious, educational or charitable purposes; provided that this provision shall not operate to relieve or exempt any such entity from collection at source of earned income of its employees and remittance of such collections to the Earned Income Tax Collector.