Chapter A145 Rules and Regulations for Tax on Earned Income and Net Profits

LIMITED LIABILITY COMPANY

Editor's Note: This resolution also stated:

"The following regulations authorized under the authority of Pennsylvania Act 511 and the Home Rule Act, are hereby prescribed, adopted and promulgated pursuant to the Code of the Township of Pine, Chapter 128, Article I, originally adopted December 28, 1967, by Ordinance No. 60, and amended at adoption of Code on December 21, 1988, by Ordinance No. 173, relating to the imposition of a tax on earned income and net profits as more precisely described therein.

"These regulations amending Official Resolution No. 289 are to be read in conjunction with the aforementioned ordinance and are intended to elaborate upon and interpret said ordinance. In the event a situation should arise which is not specifically covered by these regulations, the Township reserves the right to make a determination of liability.

"All residents, applicable nonresidents and employers within the Township of Pine are subject to these rules and regulations and to the earned income tax resolutions/ordinances of the Pine Richland School District and the Township of Pine levying a tax on earned income and net profits and requiring resident employers to withhold the tax from their employees."

§ A145-1 Definitions.

The following words and phrases used in the tax resolutions/ordinances and in these rules and regulations have the following meanings unless the context clearly indicates a different meaning:

ACT

Act 511 Tax, the Local Tax Enabling Act.[1]

ASSESSMENT

The determination by a local taxing authority of the amount of underpayment by a taxpayer.

[Added 12-7-1998 by Res. No. 564]

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 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.

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 a domicile, for domicile is the fixed place of abode which, in the intention of the taxpayer, is permanent rather than transitory. Domicile is the voluntary fixed place of habitation of a person, 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 Section 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 Pt. 1, Subpt. B, Art. V (relating to personal income tax). Employee business expenses are allowable deductions as determined under Article III of the Tax Reform Code of 1971. The term shall not include offsets for business losses. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.

[Amended 12-1-2003 by Res. No. 686; 6-15-2009 by Res. No. 801]

EMPLOYEE

A natural person employed by an employer on a salary, wage, commission or other compensation basis.

EMPLOYER

A natural person, partnership, association, corporation, governmental body/bodies or unit or agency or any other entity employing one or more persons on a salary, wage, commission or other compensation basis.

INCOME TAX OFFICER(S)

A person, public employee or private agency designated by the governing body to collect and administer the tax on earned income and net profits. For purposes of these regulations, said person will be referred to as the "tax officer(s)" or "officer(s)."

An association that is a limited liability company organized and existing under Act 106 of 1994, known as the "Limited Liability Company Act,"[2] or the laws of another state.

[Added 4-17-1995 by Res. No. 489]

LIMITED LIABILITY PARTNERSHIP

A general or limited partnership which has elected limited liability partnership status under Act 106 of 1994, known as the "Limited Liability Company Act"[3] or the laws of another state.

[Added 4-17-1995 by Res. No. 489]

LOCAL TAXING AUTHORITY

A political subdivision levying an eligible tax. The term shall include any officer, agent, agency, Clerk, income tax officer, collector, employee or other person to whom the governing body has assigned responsibility for the audit, assessment, determination or administration of an eligible tax. The term shall not include a tax collector or collection agency who has no authority to audit a taxpayer to determine the amount of an eligible tax or whose only responsibility is to collect an eligible tax on behalf of the governing body.

[Added 12-7-1998 by Res. No. 564]

NET PROFITS

The net income from the operation of a business, profession, or other activity, except corporations, determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971,"[4] and regulations in 61 Pa. Code Pt. I, Subpt. B, Art. 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:

[Amended 4-17-1995 by Res. No. 489; 12-1-2003 by Res. No. 686]

Any interest earnings generated from any monetary accounts or investment instruments of the farming business;

Any gain on the sale of farm machinery;

Any gain on the sale of livestock held 12 months or more for draft, breeding or dairy purposes;

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. A nonresident subject to the tax under § A145-2D hereof is hereinafter referred to as an "applicable nonresident."

ORDINANCE

The legislation enacting the tax.

OVERPAYMENT

Any payment of tax which is determined in the manner provided by law not to be legally due.

[Added 12-7-1998 by Res. No. 564]

PERSON or INDIVIDUAL

A natural person.

PRECEDING YEAR

The calendar year before the current year.

REGULATIONS

The Township of Pine and Pine Richland School District Rules and Regulations for Tax on Earned Income and Net Profits, as may be amended from time to time, promulgated pursuant to the ordinance and resolution.

RESIDENT

A person, partnership, association or other entity domiciled in the taxing district.

RESOLUTION

The official School Board or municipal governing body's action, by resolution or ordinance, levying the earned income and net profits tax and adopting applicable tax regulations.

RESTRICTED PROFESSIONAL COMPANY

A limited liability company that renders one or more restricted professional services.

[Added 4-17-1995 by Res. No. 489]

SUCCEEDING YEAR

The calendar year following the current year.

TAX

The Township of Pine and Pine Richland School District earned income and net profits tax.

TAXING DISTRICT or DISTRICT

The Township of Pine and Pine Richland School District, levying the earned income and net profits tax and requiring resident employers to withhold the tax.

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.

UNDERPAYMENT

The amount or portion of any tax determined to be legally due in the manner provided by law for which payment or remittance has not been made.

[Added 12-7-1998 by Res. No. 564]

Editor's Note: See 53 P.S. § 6901 et seq.

Editor's Note: See 15 Pa.C.S.A. § 8901 et seq.

Editor's Note: See 15 Pa.C.S.A. § 8901 et seq.

[4]

Editor's Note: See 72 P.S. § 7101 et seq.

§ A145-2 Imposition of tax.

The tax levied by the district shall be applicable to earned income received and to net profits earned in the period beginning January l of the current year and ending December 31 of the current year or for taxpayer fiscal years beginning in the current year, except that taxes imposed for the first time shall become effective from the date specified in the ordinance or resolution, and the tax shall continue in force on a calendar-year or taxpayer-fiscal-year basis, without annual reenactment, unless the rate of the tax is subsequently changed. Changes in rate shall become effective on the date specified in the ordinance.

The entire earned income and net profits received and/or earned by a resident or applicable nonresident of the taxing district is subject to the tax. Neither the source of the earned income or net profits nor the place where it is received and/or earned exempts a resident or applicable nonresident from the tax.

Resident taxation.

All residents of the Township of Pine are subject to the tax. A "resident" is an individual who is domiciled in the taxing district as evidenced by one or more of the following:

By customarily being physically present, sleeping and eating there.

By maintaining religious, civic and club affiliations there.

By holding oneself out as residing there, i.e., giving address or registration for licenses, voting or payment of per capita, personal property or income taxes.

By spouse and minor children living there.

By the center of affairs appearing to be there.

Normally it is not difficult to determine the residence or domicile of an individual because most of the determining factors usually point to one conclusion. If a person has the foregoing factors occurring in one district, he is a resident of the district. In more difficult situations, each case must be determined solely on its own facts.

Nonresident taxation.

[Amended 4-17-1995 by Res. No. 489]

Nonresidents who are employed or who reside temporarily in the Township of Pine are subject to the tax on earned income and net profit received while employed or temporarily residing in the district. Appropriate credit will be given to such nonresidents for similar taxes paid to the jurisdiction in which they are domiciled to the extent that such similar taxes are not used as a credit against any other taxes payable by the nonresident.

Nonresidents are not subject to taxation by the school district.

Taxable income. The tax is imposed on earned income and net profits as both are defined in § A145-1 of these rules and regulations. These items are subject to the tax whether a taxpayer receives them directly or through an agent.

Earned income. Examples of earned income (without intending in any way to limit the provisions of the resolutions/ordinances to these examples) are:

Salaries.

Wages.

Commissions.

Bonuses.

Contributions to deferred income plans, i.e., 401K, IRA, SEP and other plans deferred from federal tax but subject to Pennsylvania tax.

Court awards to the extent that they represent back wages.

Director's fees.

(8)

Distributions (including interest earned) from a pension plan, deferred payment programs and individual retirement accounts other than by reason of death, disability, retirement upon reaching a specific age or rollover to another deferred payment program to the extent that they have not been previously taxed and as included in compensation of the Pennsylvania tax return.

[Amended 12-1-2003 by Res. No. 686]

(9)

Drawing accounts. (If amounts received as a drawing account exceed the salary or commissions earned, the tax is payable on the amounts received. If the employee subsequently repays to the employer any amounts not in fact earned, the tax shall be adjusted accordingly but not below zero.)

(10)

Early retirement payment incentives.

(11)

Employer contributions to a cafeteria plan to the extent the employee could have elected taxable benefits as included in Pennsylvania wages, but excluding those contributions within a qualified Section 125 Plan for hospitalization benefits; sickness, disability, or death benefits; supplemental unemployment benefits; or strike benefits. Contributions for payment of care for employee's dependents shall be included within the definition of "earned income."

[Amended 12-1-2003 by Res. No. 686]

(12)

Executor's fees.

(13)

Exercised stock options.

(14)

Fees.

(15)

Fellowships and stipends paid as regular wages for services rendered unless excluded in Subsection H.

(16)

Honoraria.

(17)

Incentive payments.

(18)

Jury and witness fees.

(19)

Nonactive military duty pay; active military duty pay if earned within the Commonwealth of Pennsylvania.

[Amended 12-1-2003 by Res. No. 686]

(20)

Noncompetition payments; payments received as consideration for refraining from the performance of services (covenant not to compete).

(21)

(Reserved)[1]

Editor's Note: Former Subsection F(21), Parsonage/housing allowance, was repealed 12-1-2003 by Res. No. 686.

(22)

Proceeds from profit-sharing and stock-option plans unless qualifying as a sole retirement plan and excluded from Pennsylvania tax in the year received.

(23)

Regular wages received during a period of sickness or disability.

(24)

Reimbursed moving expense in excess of allowable expense on Pennsylvania Schedule UE or Federal Schedule 3903 as stated in § A145-2J.

(25)

Severance pay.

(26)

Taxes assumed by the employer for the employee.

(27)

Tips and gratuities.

(28)

Vacation/holiday pay.

(29)

All other forms of compensation for an employee's services, including supplemental wage plans. Neither the kind nor rate of payment nor the manner of employment exempts an employee from the tax except as stated in § A145-2H.

[Amended 12-1-2003 by Res. No. 686]

Net profits.

Net profits include any item correctly reportable on the net profits from business, profession or farm and net income from rents, royalties, patents and copyrights lines of Form PA 40, or as reported on Schedule C, F, E and K-1, excluding those things not taxed by the ordinance as set forth in § A145-2H.

(Reserved)[2]

Editor's Note: Former Subsection G(2), dealing with income as reported on Federal Schedule K-1 (1120S), was repealed 4-17-1995 by Res. No. 489.

Examples of net profits (without intending in any way to limit the provisions of the resolution/ordinances to these examples) are:

Joint-venture income as may be reported on Federal or Pennsylvania Schedule K-1 or any other form acceptable as part of the federal or Pennsylvania tax return of the individual.

Partnership income as reported on Federal or Pennsylvania Schedule K-1.

Sole proprietorship as reported on Federal or Pennsylvania Schedule C.

Farm profit as reported on Federal or Pennsylvania Schedule F.

[Amended 4-17-1995 by Res. No. 489]

Income from a limited liability company, limited liability partnership or restricted professional company which is reported to a taxpayer.

[Added 4-17-1995 by Res. No. 489[3]]

Editor's Note: This resolution also provided for the repeal of former Subsection G(3)(e), which dealt with Subchapter S corporation income.

(f)

Royalties received by authors, inventors, copyrights, etc., except from natural resource production, i.e., oil, gas and lumber, etc.

(g)

Income from the operation of hotels, motels, trailer camps, tourist homes, boardinghouses and other similar businesses.

(h)

Income from the business of renting personal property.

(i)

(Reserved)[4]

[4]

Editor's Note: Former Subsection G(3)(i), which provided that income or net profits from renting or leasing property be an example of net profits, was repealed 11-20-2000 by Ord. No. 613.

(j)

Income from the business of gambling.

(k)

All other net profits of an individual enterprise, venture or other activity, whether such activities are conducted within or outside the taxing district.

Exclusions from taxable income. The following are not considered to be earned income and are not subject to the tax:

Active military duty pay earned outside of the Commonwealth of Pennsylvania.

[Amended 12-1-2003 by Res. No. 686]

Alimony.

Capital gains.

Child support.

Damages for personal injury.

Death benefit payments to an employee's beneficiary or estate, whether payable in a lump sum or otherwise.

Disability or sick pay paid by a third-party insurance company.

(8)

Distributions from pensions, deferred-income plans and individual retirement accounts excluded from compensation on the Pennsylvania tax return in the year received.

(9)

Dividend income.

(10)

Federally taxed but not Pennsylvania taxed noncash fringe benefits, i.e., personal use of employer's automobile, airplane or group term life insurance premiums.

(11)

Fellowship based on need or academic achievement and therefore not a benefit to the institution as documented by the institution and not paid as regular wages or reported as compensation on the Pennsylvania tax return.

(12)

Gifts of cash or property made from detached or disinterested generosity are not taxable. However, transfers of cash or property made pursuant to an obligation to provide payment for compensable services are taxable and not gifts.

(13)

Interest income.

(14)

Life insurance policy proceeds.

(15)

Lottery and gambling winnings unless in the active business of gambling.

(16)

Public assistance.

(17)

Income or net profits from the rental or lease of commercial or residential real estate.

[Amended 11-20-2000 by Ord. No. 613]

(18)

Scholarships.

(19)

S corporation net profit.

[Added 4-17-1995 by Res. No. 489]

(20)

Social security.

(21)

Strike benefits.

(22)

SUB pay, when received periodically during a period of unemployment continuing only for that period.

(23)

(Reserved)[5]

[5]

Editor's Note: Former Subsection H(22), which contained provisions on S corporation investment income, was repealed 4-17-1995 by Res. No. 489.

(24)

Workman's compensation.

(25)

Unemployment compensation.

(26)

Value of meals and lodging furnished to domestics or other employees by the employer for the latter's convenience.

(27)

Housing allowance provided to a member of the clergy.

[Added 12-1-2003 by Res. No. 686]

(28)

Royalty income received from natural resource production, i.e. oil, gas and lumber etc.

[Added 12-1-2003 by Res. No. 686]

Credit for tax paid to other states/municipalities.

Where district residents are employed in another state and subject to a state or local income tax at their place of employment, the district will credit against their liability for any local taxes the amount of tax paid out of state. The same dollar of the out-of-state tax cannot be claimed as credit against liability for both state and local taxes in Pennsylvania, but the credit can be divided and apportioned against Pennsylvania state and local tax liability. Tax payments made voluntarily to another state do not qualify for the credit; there must be evidence that the taxpayer was legally liable for the out-of-state taxes. This credit does not extend to taxes paid to foreign countries. Credit for taxes paid to other states and localities is limited to the amount payable to the district on that portion of the taxpayer's income which was subject to taxation by the other state.

Taxpayers who wish to take credit for taxes paid to other jurisdictions must complete a supplemental final return form, which can be obtained from the tax office. Documentation must include a notarized list of income earned in all jurisdictions along with the respective taxes paid, a copy of the Pennsylvania individual tax return and additional documentation as required.

Deductions.

Employee's unreimbursed business expense. Business expenses for which an employee has not been reimbursed are allowed as a deduction from gross wages, provided that such expenses are necessary (required by the employer) in order for the taxpayer to keep his present job, to the extent that they are allowable for state income tax purposes on Pennsylvania Schedule UE which must be submitted to allow deduction.

Employee unreimbursed moving expense. Pennsylvania Schedule UE or Federal Schedule 3903 must be submitted to allow deduction.

Losses.

[Amended 12-7-1998 by Res. No. 564]

A business loss cannot be offset against earned income (W-2 wages).

[Amended 6-15-2009 by Res. No. 801[6]]

[6]

Editor's Note: This resolution also provided that it shall be effective for the tax year commencing on 1-1-2009.

A business profit can be offset by a business loss.

[Amended 6-15-2009 by Res. No. 801]

Subchapter S corporation losses cannot be used as an offset as they are not taxable items under the code.

§ A145-3 Declaration and payment of tax.

Rental losses cannot be used as an offset against earned income unless the taxpayer is in the business of renting property.

(5)

A net loss in any year may not be carried over to any other year.

Annual return of taxpayers.

On or before April 15 of each year, every person who was a resident or nonresident subject to the tax of the Township of Pine for all or any part of the preceding calendar year shall file with the Tax Officer an annual tax return showing all earned income and net profits received and/or earned for the previous year. Proof of earnings is required. A copy of the Commonwealth of Pennsylvania income tax return, W-2 statements and net profit schedules must be submitted. Failure to submit the required attachments and schedules shall result in the annual tax return being invalid and therefore considered not filed.

If a person has no earned income to report, the word "none" shall be entered on the annual tax return, and the return shall be signed, dated and returned to the officer with an explanation (military service, retired, disability income only, etc.).

If self-employment profit is incurred, the type of business, profession or enterprise shall be indicated on the annual tax return, and the amount of the profit shall be shown on the appropriate line of the return.

When a return is made for a fiscal year, the return shall be filed within 105 days from the end of said fiscal year.

(5)

Such return shall also show the taxpayer's name, address, place or places of employment or business, the amount of tax due, the amount of any credit claimed for tax withheld by an employer (with a copy of the withholding statement showing the amount of tax withheld) and such other information as may be indicated on the return form or as may be required by the Officer(s). Every person subject to the tax shall file such return, regardless of the fact that his wages may have been subject to withholding of the tax by his employer and regardless of whether or not tax is due.

At the time of filing the annual return, the taxpayer shall pay any tax due. Total balances less than $1 need not be paid. In the case of overpayment, request for refund of amounts over $10 or a credit for amounts of $1 or more to the succeeding year may be made.

Tax returns must be signed and dated by the taxpayer(s) in the space(s) provided.

Quarterly returns of taxpayers.

Quarterly filing, declaration and payment, if any due, shall be made to the Tax Officer. One percent of the gross earnings and/or 1% of the estimated net profit shall be paid to the Tax Officer at the following times:

[Amended 4-17-1995 by Res. No. 489]

January, February and March: by April 30.

April, May and June: by July 31.

July, August and September: by October 31.

October, November and December: by January 31.

Quarterly filing is required, whether or not tax is due, with the following exceptions:

[Amended 4-17-1995 by Res. No. 489]

Tax payers who work part-time, i.e., students and retirees; who anticipate earnings of $5,000 per year or less may be excused from filing of quarterly returns upon approval of the Tax Officer(s). Filing of the annual return is required.

Calendar years. Normally, taxpayers shall use the calendar-year method for reporting and paying tax.

Extensions.

A taxpayer who receives an extension for filing federal and state tax returns shall present proof of such extension to the tax officer(s). A copy of the federal or Pennsylvania application for extension of time to file shall be required, along with payment of any estimated additional tax due, by the annual filing due date. Upon filing of the federal and state tax returns, the taxpayer shall file a final tax return with the appropriate local officer with any additional tax plus penalty and interest due.

[Amended 4-17-1995 by Res. No. 489]

A taxpayer who receives an extension on federal and state taxes shall present proof of such extension to the Tax Officer(s), file and pay an estimated tax return and, upon final filing of federal and state tax returns, then file and pay (if additional tax is due) a final tax return with the appropriate local officer(s).

Changes in taxable income. If the amount of a taxpayer's earned income or net profits reported on his annual federal or Pennsylvania tax return is changed or corrected, either by action of the Internal Revenue Service or the Pennsylvania Department of Revenue or by the individual's filing of an amended annual federal or state return, the taxpayer shall report to the appropriate officer such change or correction within 30 days after the date when the final such change or correction was determined.

§ A145-4 Collection at source.

Employers required to withhold. Every employer having an office, factory, workshop, branch, warehouse or other place of business located within the taxing district and who employs one or more persons (other than domestic servants in a private home) for a salary, wage, commission or other compensation shall deduct the tax from the resident and applicable nonresident employee's wages at the time of payment thereof.

Voluntary withholding. Any employer located outside the taxing district may voluntarily withhold the tax from employees who are residents or applicable nonresidents of the taxing district but who are employed outside the district.

Registration of employers.

Each employer withholding or required to withhold tax pursuant to Subsection A or B shall register with the Tax Officer(s) such employer's name, address and such other information as the Officer(s) may require after becoming a withholding employer.

Any employers who have a place of business located within the taxing district shall maintain complete records of all employees for a period of six years in such form as to enable the Officer to determine the employer's liability to withhold for each employee, the amount of taxable income for each employee, the actual amount withheld, the actual amount transmitted to the Officer(s) and such other information available to such employers as will enable the Officer(s) to carry out his responsibilities.

Liability of employee. Failure of any employer to withhold tax shall not relieve the employee from payment of such tax.

Returns of employers and payment of withheld tax.

Every employer required to withhold the tax shall file a return on the proper form, setting forth the name, social security number, address and amount of tax withheld for each employee who is a resident or applicable nonresident of the district and shall remit the total sum thereof to the appropriate officer(s) at the following times:

[Amended 12-7-1998 by Res. No. 564]

	For Quarter Comprising the Following Months in Which Wages Are Paid	Employers' Quarterly Return and Payment Due on or Before
	January, February and March	April 30
	April, May and June	July 31
	July, August and September	October 31
	October, November and December	January 31

Every employer who discontinues business prior to the completion of the taxable year shall, within 30 days after discontinuance of business, file and furnish the returns required by this section covering periods between the last such returns and the date of discontinuing business and transmit to the Officer(s) all tax remaining due.

§ A145-5 Administration and enforcement.

The willful or negligent failure of any employer to withhold and/or transmit the tax shall subject the employer to liability and penalties as provided by the Act.

Tax received from an employer for individuals who are not domiciled or temporarily domiciled in the Township will be returned to the employer.

[Added 12-7-1998 by Res. No. 564]

Income Tax Officer(s)/Collector(s). The Officer(s) is charged with the administration and enforcement of the resolutions/ordinances and these rules and regulations and is authorized to act on behalf of the Township of Pine and the Pine Richland School District in such administrative and enforcement matters.

Administrative appeals. Any taxpayer or employer may file a petition in the form and under the requirements of the Township of Pine and Pine Richland School District tax disclosure statement to appeal the assessment, determination or refund of an eligible tax.

[Amended 12-7-1998 by Res. No. 564]

Examination of books and records.

The Officer(s) and agents designated in writing by him are authorized to examine the books, papers and records of any taxpayer or supposed taxpayer or of any employer or supposed employer in order to verify the accuracy of any return or, if no return was filed, to ascertain the tax due, if any. Every taxpayer or supposed taxpayer and every employer or supposed employer is required to give the Officer(s) or any agent so designated by him the means, facilities and opportunity for such examination and investigations as are authorized.

Information obtained by the Officer(s) or his agent, as a result of any returns, investigations, hearings or verifications required or authorized, is confidential and may not be disclosed to any person, except for official use in connection with administration or enforcement of the resolutions/ordinances or as otherwise provided by law.

Records to be kept by taxpayers. Taxpayers and employers subject to the resolutions/ordinances are required to keep such records as will enable the filing of true and accurate returns, whether of taxes withheld at source or of taxes payable upon earned income or net profits, or both; and such records shall be preserved for a period of not less than six years in order to enable the Tax Officer(s) or his agent to verify the correctness of the returns filed.

Refunds and credits. A completed annual tax return and all necessary documentation must be filed before a request for refund or credit can be considered. Depending upon the nature of the refund or credit, additional documentation to substantiate the request may be required. Amounts less than $10 will not be refunded unless tax is withheld by employer or taxpayer has moved out of the district or retired. Refunds shall not be made unless a written claim is filed within three years of the annual return due date. Overpayment greater than $1 will be credited to the succeeding year if a refund has not been issued.

Interest on refunds. The district will pay interest on any tax money which has been collected but to which it is not legally entitled. The rate of interest shall be the same as the commonwealth's variable rate. The interest shall be allowed and paid for the period during which the district retained the overpayment, beginning with the date of the overpayment, except that if any overpayment of tax is refunded or credited within 75 days of either April 15 of the succeeding year if the final return and full verification is filed by then or the date of filing a final return and full verification if it occurs after April 15 of the succeeding year, then no interest shall be allowed on the overpayment.

Interest and penalties. 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 recovery of any such tax, the person liable therefor shall, in addition, be liable for the cost of collection and interest and penalties herein imposed.

Suit for collection of tax.

The Officer(s) may sue in the name of the taxing district for the recovery of taxes due and unpaid under the ordinance.

Any suit brought to recover the tax imposed pursuant to the regulations 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:

Where no declaration or return or an incomplete declaration or return was filed by any person although a declaration or return was required to be filed by him under provisions of the ordinance or resolution, there shall be no limitation.

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 Officer reveals a fraudulent evasion of taxes, there shall be no limitation.

In the case of substantial understatement of tax liability of 25% or more and no fraud, suit shall be begun within six years.

Where any person has deducted taxes under the provisions of the ordinance or resolution and has failed to pay the amounts so deducted to the Officer(s) or where any person has willfully failed or omitted to make the deductions required by the regulations, there shall be no limitation.

This section shall not be construed to limit the governing body from recovering delinquent taxes by any other means provided by Pennsylvania Act 511.

(f)

The Officer(s) may sue for the 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.

Fines and penalties for violations. Any person who violates any provisions of the resolutions, ordinances and regulations shall, upon conviction, be sentenced to pay a fine of not more than $500 for each offense, plus costs, and in default of payment thereof, to be imprisoned for a time not exceeding 30 days. Some of the violations which may result in such conviction are:

Revelation for unauthorized purposes by any officer(s) or employee of any confidential information acquired as a result of the operation of the resolutions, ordinances or regulations.

Failure, neglect or refusal on the part of any person, any partner of a partnership or any officer of a corporation or association to file any report or return or to pay, deduct from wages or transmit any tax, penalty or interest required of such person, partnership, corporation or unincorporated association.

Failure, neglect or refusal to maintain or to reveal to the Officer(s) or his authorized representative or to permit the latter to examine books, records or papers relevant to tax imposed hereunder.

Knowingly making any incomplete, false or fraudulent report or return or attempting to do any other thing to avoid payment of the tax in whole or in part.

Concurrent remedies. Imposition of any fine or imprisonment shall not bar either the liability for tax, penalty or interest or prosecution for embezzlement, fraudulent conversion, theft or other offense under the Pennsylvania Crimes Code.

Failure to receive forms. Failure of a taxpayer or employer to receive forms or returns required by the resolutions, ordinances or regulations shall not excuse any failure to file any reports or returns required or to pay any tax due.

Nonsufficient-funds checks. Any taxpayer or employer who submits a nonsufficient-funds check for payment of taxes due under resolutions, ordinances or regulations shall be charged a fee of $20 for administrative processing of such check.

§ A145-6 Tax disclosure statement.

[Added 12-7-1998 by Res. No. 564]

The Township of Pine and the Pine Richland School District shall prepare, utilize and distribute a tax disclosure statement in the form set forth in Attachment 1,[1] the provisions of which are hereby incorporated herein by reference, to these rules and regulations which shall, in simple and nontechnical terms, set forth: the rights of taxpayers and obligations of the local taxing authority during an audit or administrative review; the administrative and judicial procedures by which a taxpayer may appeal or seek judicial review of any adverse decision of the local taxing authority; the procedure for filing and processing refund claims and taxpayer complaints; and enforcement procedures. The local taxing authority shall notify (with such notification to be in the form provided by Act 50 of 1998[2]) any taxpayer contacted regarding the assessment, audit, determination, review or collection of an eligible tax of the availability of such tax disclosure statement and shall make copies available to taxpayers upon request at no charge to the taxpayer, including mailing costs.

Editor's Note: Attachment 1 is included at the end of this chapter.

§ A145-7 Volunteer Service Credit Program.

Editor's Note: See 53 Pa.C.S.A. § 8423.

[Added 11-6-2017 by Ord. No. 381[1]]

Definitions. The following words and phrases, when used in this section, shall have the meanings given to them in this subsection unless the context clearly indicates otherwise.

ACTIVE VOLUNTEER

An individual who volunteers at a volunteer fire company and has satisfied the following conditions:

Completes the activities of the Volunteer Service Credit Program set forth in Subsection B;

Receives certification as an active volunteer by the Chief or his/her designee of a volunteer fire company; and

AUTHORIZED EARNED INCOME TAX COLLECTOR

Receives approval as an active volunteer by the Board of Supervisors of the Township of Pine.

APPLICATION

A form provided by the Township of Pine to a volunteer applying for certification under the Volunteer Service Credit Program.

Keystone Collections Group or the current regional earned income tax collector for the Township of Pine.

COMMISSIONER

The State Fire Commissioner of the Commonwealth.

EARNED INCOME TAX

A tax on earned income and net profits levied under Chapter 3 of the Act of December 31, 1965 (P.L. 1257, No. 511), known as the "Local Tax Enabling Act."[2]

ELIGIBILITY PERIOD

The timeframe when volunteers may earn credit under the Volunteer Service Credit Program.

EMERGENCY RESPONDER

A volunteer who responds to an emergency call with one of the entities listed under Subsection B(3).

EMERGENCY RESPONSE CALL

Any emergency call to which a volunteer responds, including travel directly from and to a volunteer's home, place of business or other place where he/she shall have been when the call was received.

VOLUNTEER

A member (including a business member) of a volunteer fire company.

Editor's Note: See 53 P.S. § 6924.101 et seq.

Program established; criteria; general provisions.

Establishment. The Township of Pine hereby establishes a volunteer service credit program. The goal of the program is to encourage membership and service in volunteer fire companies providing invaluable services to the Township of Pine and its residents.

Program criteria. The Board of Supervisors of the Township of Pine shall establish, by resolution, the annual criteria that must be met to qualify for credits under the program based on the following:

The number of emergency response calls to which a volunteer responds.

The level of training and participation in formal training and drills for a volunteer.

The total amount of time expended by a volunteer on administrative and other support services, including but not limited to:

Fund-raising.

Providing facility or equipment maintenance.

Financial bookkeeping.

The involvement in other events or projects that aid the financial viability, emergency response, or operational readiness of a volunteer fire company.

The total number of years the volunteer has served.

Eligible entities. The Volunteer Service Credit Program is available to residents of the municipality who are volunteers of the following volunteer fire companies:

Wexford volunteer fire company.

Eligibility period. A volunteer must meet the minimum criteria, set by separate resolution authorized under this section, during the eligibility period to qualify for the local earned income tax credits authorized under Subsection C.

For Tax Year 2017, the eligibility period under the Volunteer Service Credit Program shall run from January 20, 2017, until October 31, 2017.

For Tax Year 2018, and each subsequent tax year thereafter, the eligibility period shall run from the prior November 1 until October 31 of the year for which the tax credit will apply.

(5)

Recordkeeping. The Chief (or his/her designee) of each volunteer fire company listed under Subsection B(3) shall keep specific records of each volunteer's activities in a service log to establish necessary credits under the Volunteer Service Credit Program. Service logs shall be subject to audit/review by:

The Township Manager of the Township of Pine or his/her designee;

The State Fire Commissioner; and

The State Auditor General.

Volunteer application. On or before the first Monday in November of each year, volunteers who have met the minimum criteria of the Volunteer Service Credit Program shall sign and submit an application for certification (as provided by the Township of Pine) to their Chief or his/her designee. The Chief or his/her designee shall sign the application, if the volunteer has met the minimum criteria of the Volunteer Service Credit Program, and shall forward said application to the Township Manager of the Township of Pine, together with the notarized list required by Subsection B(7), within the timeframe specified herein.

Notarized list. On or before November 15 of each year, the Chief, or his/her designee, shall deliver to the Township Manager of the Township of Pine a notarized eligibility list of all volunteers that have met the minimum criteria for the Volunteer Service Credit Program and have applied for certification pursuant to Subsection B(6). The Chief, or his/her designee, shall also post a copy of the notarized eligibility list in an accessible area of the volunteer fire company's facilities.

(8)

Municipal review. The Township Manager of the Township of Pine shall review the applications for credit under the Volunteer Service Credit Program and shall cross-reference them with the notarized eligibility list. At the first regular meeting in December of each year, the Board of Supervisors of the Township of Pine shall approve or disapprove the volunteers that appear on the notarized list submitted pursuant to Subsection B(6). All applicants approved by the Board of Supervisors of the Township of Pine shall then be issued an earned income tax credit certificate by the Township Manager of the Township of Pine by no later than December 15 of each year.

(9)

Appeal of denial of certification. A volunteer who is denied certification as an active volunteer shall have the right to request a hearing before the Board of Supervisors of the Township of Pine within 30 days of the denial pursuant to the provisions of 2 Pa.C.S.A. Chapter 5, Subchapter B (relating to practice and procedure of local agencies), and 2 Pa.C.S.A. Chapter 7, Subchapter B (relating to judicial review of local agency action), also known as the "Local Agency Law."[3]

Editor's Note: See 2 Pa.C.S.A. § 551 et seq.

(10)

Official tax credit register. The Township of Pine shall keep an official tax credit register of all active volunteers that were issued earned income tax credit certificates. No later than December 31 of each year, the Township Manager of the Township of Pine shall issue updates, as needed, of the official tax credit register to the following:

The Board of Supervisors of the Township of Pine;

Chief of the Wexford Volunteer Fire Company; and

Authorized earned income tax collector.

(11)

Injured volunteers.

An emergency responder that is injured during an emergency response call may be eligible for future earned income tax credits. The injury must have occurred while responding to, participating in, or returning from an emergency response call with one of the entities listed under Subsection B(3).

An injured emergency responder shall provide documentation from a licensed physician with the application required under Subsection B(6) stating that their injury prevents them from performing duties to qualify as an active volunteer. In such a case, the injured emergency responder shall be deemed an active volunteer for that tax year.

An injured emergency responder with a continuing qualifying injury shall annually submit the application required under Subsection B(6), along with updated documentation from a licensed physician stating that the injury still exists and prevents them from qualifying as an active volunteer. The injured emergency responder shall again be deemed an active volunteer for that tax year. Such an injured emergency responder shall only be deemed an active volunteer for a maximum of five consecutive tax years.

Earned income tax credit.

Tax credit. Each active volunteer who has been certified under the Township of Pine's Volunteer Service Credit Program shall be eligible to receive a local earned income tax credit of up to $300 of the earned income tax levied by the Township of Pine. When an active volunteer's earned income tax liability is less than the amount of the tax credit, the tax credit shall equal the individual's earned income tax liability.

Claim. An active volunteer with a tax credit certificate may claim a tax credit on his (or her) Township of Pine earned income tax liability when filing a final return for the preceding calendar year with the authorized earned income tax collector.

Rejection of tax credit claim.

The tax officer shall reject a claim for a tax credit if the taxpayer is not on the official tax credit register issued by the Township Manager of the Township of Pine.

If the tax officer rejects the claim, the taxpayer shall be notified, in writing, of the decision. The notice shall include the reasons for the rejection and provide the method of appealing the decision pursuant to Subsection D.

Taxpayers shall have 30 days to appeal the decision of the tax officer pursuant to Subsection D.

Earned income tax credit appeals.

Any taxpayer aggrieved by a decision under Subsection C shall have a right to appeal said decision.

A taxpayer shall have 30 days to appeal a decision or rejection of claim.

All appeals of decisions under Subsection C shall follow the provisions of the Act of May 5, 1998, P.L. 301, No. 50, known as the "Local Taxpayers Bill of Rights,"[4] and Chapter A145 (Attachment 1) of the Code of the Township of Pine.

[4]

Editor's Note: See 53 Pa.C.S.A. § 8421 et seq.

Penalties for false reporting.

Any individual who knowingly makes or conspires to make a false report in an application for certification under this section commits a misdemeanor of the first degree punishable by a fine of $2,500.

Any individual who knowingly provides or conspires to provide false information that is used to compile a service log under this section commits a misdemeanor of the first degree punishable by a fine of $2,500.