[Adopted 11-19-1973 by Ord. No. 76]
A.
The singular shall include the plural, and the masculine
gender shall include the feminine and neuter.
B.
ASSOCIATION
BUSINESS
CORPORATION
CURRENT YEAR
DOMICILE
EARNED INCOME
EARNED INCOME TAX COLLECTOR or OFFICER
EMPLOYER
NET PROFITS
NONRESIDENT
PERSON or INDIVIDUAL
PRECEDING YEAR
RESIDENT
SUCCEEDING YEAR
TAXPAYER
TOWNSHIP
Unless otherwise expressly stated, the following words
and phrases shall be construed throughout this article to have the
meanings indicated in this section:
A partnership, limited partnership or any other 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 taxpayer, is permanent
rather than transitory. Domicile is the place 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.
Salaries, wages, commission, 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 pension 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 a governmental agency or payments to
reimburse expenses or payments made by 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.
Person, public employee or private agency designated by the
Supervisors of Franconia Township to collect and administer the tax
on earned income and net profits.
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 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 of Franconia Township.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in Franconia Township.
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.
Township of Franconia.
A.
A tax for general Township revenue purposes of 1%
is hereby imposed on the following:
(1)
Salaries, wages, commissions and other compensation
earned on and after January 1, 1974, by residents of the Township
and nonresidents of the Township within the confines of the Township.
(2)
Net profits, earned on and after August 1, 1974, of
businesses, professions and other activities conducted by residents
of the Township and by nonresidents of the Township within the confines
of the Township.
B.
The tax levied under this article shall be applicable
to earned income received and to net profits earned by residents of
the Township and by nonresidents of the Township, within the confines
of the Township, for the period commencing January 1 of the current
year and ending December 31, or for taxpayer's fiscal year beginning
in 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 is subsequently changed. The Township may, by ordinance,
change the rate. Such change shall become effective on the date specified
in that ordinance.
A.
Net profits.
(1)
Beginning with the calendar year January 1, 1974,
every taxpayer who makes any net profits shall, on or before April
15 of the then-current year and each year thereafter, make and file
with the Tax Collector, on a form prescribed by 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 determined to be due
under the estimate in four equal payments as follows:
(2)
Any taxpayer who first anticipates any net profit
after April 15 of the current year shall make and file the declaration
hereinabove required on or before June 15, September 15 and December
31 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 or before April 15 of the succeeding year, every
taxpayer shall make and file with the Tax Collector on a form prescribed
or approved by the Tax Collector 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 or shall make demand for refund
or credit in the case of over payment.
(4)
The Township shall provide by resolution regulations
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
additional net profits not previously declared or finds that he has
over estimated his anticipated profits.
(5)
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
Earned Income Tax Collector a final return on a form prescribed, prepared
and supplied by the Earned Income Tax Collector, showing the total
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 over payment.
(2)
Earned income not subject to withholding. Every taxpayer
who is employed for salary, wage, commission or other compensation
who received any earned income not subject to the provisions of this
article 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 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 Earned Income Tax
Collector shall require. Every taxpayer who makes such a return shall
at the filing of the return with the Earned Income Tax Collector pay
to the Collector the amount of tax shown as due thereon.
A.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business within the Township,
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 information as
the officer may require.
B.
Every employer having an office, factory, workshop,
branch, warehouse or other place of business or employment within
the Township, 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 the preceding three-month period, the tax deducted therefrom,
the political subdivision imposing such tax, the total earned income
of all such employees during the preceding three-month period and
the total tax deducted therefrom and paid with the return.
C.
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 Township of Franconia, 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.
D.
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; 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.
E.
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 statements
hereinabove required and pay the tax due.
F.
Every employer who willfully or negligently fails
to 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.
G.
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 the article to the filing of declarations and returns.
A.
The office of Earned Income Tax Collector is hereby
created by this article, and the Board of Supervisors shall from time
to time by separate resolution appoint a person or company to administer
the provisions of this taxing resolution, who shall be designated
the "Earned Income Tax Collector."
B.
The Earned Income Tax Collector shall be bonded as
the Supervisors may determine, said bond to cover all moneys coming
into his hands on behalf of the Township. Before entering upon his
official duties, the Earned Income Tax Collector shall give and acknowledge
the bond to the taxing district appointing him. Said bond shall be
in compliance with Act 511[1] in all respects and subject to the approval of the Taxing
District Solicitor.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
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 Board of
Supervisors of the Township. Such rules and regulations shall be inscribed
by the Earned Income Tax Collector into a book kept for that purpose
and open to the inspection of the public and thereupon shall have
the same force and effect as if it had been incorporated into this
article.
E.
The Earned Income Tax Collector 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 is 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 Board of Supervisors 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 Township 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 section shall constitute a violation of this
article.
(1)
Any person who, except as permitted by the provisions of the foregoing Subsection G of this section, divulges any information which is confidential under the provisions of this article shall, upon conviction thereof before any District Justice or Alderman or court of competent jurisdiction, be sentenced to pay a fine of not more than $500 for each offense and costs or suffer imprisonment for a period of 30 days or both.
A.
The Earned Income Tax Collector may sue in the name
of the Township for the recovery of taxes due and unpaid under this
article.
B.
Any suit brought to recover the taxes 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 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
provisions of this article, there shall be no limitation.
(2)
Where an examination of the declaration on return
filed by any person or other evidence relating to such declaration
or return in the possession of the officer reveals a fraudulent evasion
of taxes, there shall be no limitation.
(3)
In the case of substantial understatement of tax liability
of 25% or more, and there is 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
officer, or where any person has willfully failed or omitted to make
the deductions required by this article, there shall be no limitation.
(5)
This article shall not be construed to limit Franconia
Township from recovering the delinquent taxes by any other means provided
in the Local Tax Enabling Act.
C.
The officer may sue for recovery of an erroneous refund,
provided that 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 the costs of collection and the 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 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 payment of the whole of any part of the tax imposed by this article
shall, upon conviction thereof before any District Justice or court
of competent jurisdiction in the county in which the political subdivision
imposing the tax is located, be sentenced to pay a fine of not more
than $500 for each offense, and costs, or imprisonment for a period
not exceeding 30 days, or both.
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 declarations or returns required by this article
shall not excuse him from making such declarations or return.
This article shall not apply to personal property
or persons to whom or which is beyond the legal power of the Township
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
section shall not operate to relieve or exempt any such entity from
collection at source of earned income of its employees and remittance
of such collection to the officer.
This article shall become effective the first
day of January 1974, for the period of January 1, 1974, to December
31, 1974, and for all calendar years thereafter.
