[Adopted 11-28-1973 by Ord. No. 73-4[1]]
[1]
Editor's Note: The title of this ordinance
stated that it was adopted under the authority of the Local Tax Enabling
Act (53 P.S. § 6901 et seq.).
Unless otherwise expressly stated, the following
words and phrases shall be construed throughout this article to have
the meaning indicated in this section. The singular shall include
the plural, and the masculine gender shall include the feminine and
neuter.
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.
An actual residence is not necessarily a domicile, for a domicile
is the fixed place of abode which, in the intention of the taxpayer,
is permanent rather than transitory. A 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.
All salaries, wages, commissions, bonuses and incentive payments, whether based on profits or otherwise, fees, tips and similar remuneration received for services rendered, whether directly or through an agent and whether in cash or in property, except income derived from the United States government for active duty outside the Commonwealth of Pennsylvania as a member of its armed forces and other compensation as determined under Section 303 of the Tax Reform Code of 1971 and regulations in 61 Pa. Code Pt. I 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.[1] The amount of any housing allowance provided to a member
of clergy shall not be taxable as earned income. The term "compensation"
shall not mean or include periodic payments for sickness and disability
other than regular wages received during a period of sickness or disability;
or disability, retirement or other payments arising under workmens'
compensation acts, occupational disease acts and similar legislation
by any government; or payments commonly recognized as old age or retirement
benefits 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 by any
governmental agency; or payments to reimburse actual expenses; or
payments made by employers or labor unions, including payments made
pursuant to a cafeteria plan qualifying under Section 125 of the Internal
Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 125)
for employee benefit programs covering hospitalization, sickness,
disability or death, supplemental unemployment benefits or strike
benefits, provided that the program does not discriminate in favor
of highly compensated individuals as to eligibility to participate,
payments or program benefits; or any compensation received by United
States servicemen serving in a combat zone; or payments received by
a foster parent for in-home care of foster children from an agency
of the commonwealth or a political subdivision thereof or an organization
exempt from Federal tax under Section 501(c)(3) of the Internal Revenue
Code of 1954 which is licensed by the commonwealth or a political
subdivision thereof as a placement agency; or payments made by employers
or labor unions for employee benefit programs covering social security
or retirement; or personal use of an employer's owned or leased property
or of employer-provided services.
[Amended 6-19-2003 by Ord. No. 2003-6]
A person, public employee or private agency designated by
the Supervisors of Lower Salford 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 accepted accounting principles and practices but without deduction of taxes based on income or as otherwise determined under Section 303 of The Tax Reform Code of 1971 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 6-19-2003 by Ord. No. 2003-6]
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; and
Any gain on the sale of other capital assets
of the farm.
A person, partnership, association or other entity domiciled
outside of Lower Salford Township.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in Lower Salford 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 Lower Salford.
[1]
Editor's Note: See 72 P.S. § 7301
et seq.
A tax for general Township revenue purposes
of 1% is hereby imposed on the following:
A.
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.
B.
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.
C.
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 the 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 of the tax 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 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 overpayment.
(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
overestimated 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 overpayment.
(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, and 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 30 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 Lower Salford 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 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.
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 this article pertaining 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 article who will 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 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.
D.
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 the Earned
Income Tax Collector or such other authorized person the means, facilities
and opportunities for such examination and investigations hereby authorized.
E.
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.
F.
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.
G.
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.
H.
Any person who, except as permitted by the provisions of the foregoing Subsection F of this article, divulges any information which is confidential under the provisions of this article shall, upon conviction thereof before any justice of the peace, alderman or magistrate 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 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
provisions of this article, there shall be no limitation.
(2)
Where an examination of the declaration or 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.
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 pay a civil penalty not to exceed $600 per violation. When the
penalty imposed for the violation of this article is not voluntarily
paid to the Township, the Township shall initiate a civil enforcement
proceeding before a District Justice. The civil enforcement proceeding
shall be initiated by a complaint or by such other means as may be
provided by the Pennsylvania Rules of Civil Procedure. In addition
to or in lieu of civil actions before a District Justice, the Township
may enforce the ordinance in equity. In any case where a penalty for
a violation of this article had not been timely paid and the person
upon whom the penalty was imposed is found to have been liable therefor
in civil proceedings, a violator shall be liable for the penalty imposed,
including additional daily penalties for continuing violations, plus
court costs and reasonable attorney's fees incurred by the Township
in the enforcement proceedings.
[Amended 9-19-1996 by Ord. No. 96-3; 6-3-1998 by Ord. No.
98-4; 11-18-1999 by Ord. No. 99-16]
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 returns.
This article shall not apply to personal property
or persons who or which are beyond the legal power of the Township
to impose the tax herein provided or 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 the source of earned income of its employees and remittance
of such collections to the officer.
This article shall become effective the first
day of January 1974, for the period January 1, 1974, to December 31,
1974, and for all calendar years thereafter.
