[Adopted 5-31-1968 by Ord. No. 4]
The following words and phrases, when used in
this article, shall have the meanings ascribed to them in this section,
except where the context clearly indicates or requires a different
meaning.
A partnership, limited partnership or any other unincorporated
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 the taxpayer, is
permanent rather than transitory. Domicile is the place in which a
man has voluntarily fixed the habitation of himself and his family,
not for a mere special or limited purpose, but with the present intention
of making a permanent home, until some event occurs to induce him
to adopt some other permanent home. In the case of businesses or associations,
the domicile is that place considered as the center of business affairs
and the place where its functions are discharged.
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent, and whether in cash or in property; not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workmen's compensation acts, occupational disease
acts and similar legislation, or payments commonly recognized as old
age benefits, retirement pay or pensions paid to persons retired from
service after reaching a specific age or after a stated period of
employment or payments commonly known as "public assistance," or unemployment
compensation payments by any governmental agency or payments to reimburse
expenses or payments made by employers or labor unions for wage and
salary supplemental programs, including but not limited to programs
covering hospitalization, sickness, disability or death, supplemental
unemployment benefits, strike benefits, social security and retirement.
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 Supervisors of the Township of Middle Smithfield, Monroe
County, Pennsylvania.
Person, public employee or private agency designated by governing
body to collect and administer the tax on earned income and net profits.
The net income from the operation of a business, profession,
or other activity, except corporations, after provision for all costs
and expenses incurred in the conduct thereof, determined either on
a cash or accrual basis in accordance with the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
A person, partnership, association or other entity domiciled
outside the taxing district.
A natural person.
The calendar year before the current year.
A person, partnership, association or other entity domiciled
in the taxing district.
The calendar year following the current year.
The Supervisors of the Township of Middle Smithfield, Monroe
County, Pennsylvania.
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.
A.
A tax for general revenue purposes is hereby imposed
at the rate of 1% on the following:
(1)
Earned income received in the current year by residents
of the taxing district.
(2)
Earned income received in the current year within
the taxing district by nonresidents thereof.
(3)
Net profits earned during the current year by residents
of the taxing district.
(4)
Net profits earned during the current year within
the taxing district by nonresidents thereof.
B.
The tax levied under this article shall be applicable
to earned income received and to net profits earned in the period
beginning January 1 of the current year and ending December 31 of
the current year or for taxpayer fiscal years beginning in the current
year, 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. Regardless of the fiscal year of
any taxpayer, such taxpayer shall be liable for payment of the tax
imposed from July 1, 1968.
A.
Every taxpayer making net profits shall on or before
April 15 of the current year make and file with the officer on a form
prescribed or approved by the officer a declaration of his estimated
net profits during the period beginning January 1 and ending December
31 of the current year and pay to the officer in four equal quarterly
installments the tax due thereon as follows: the first installment
at the time of filing the declaration, and the other installments
on or before June 15 of the current year, September 15 of the current
year and January 15 of the succeeding year, respectively.
B.
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 of the current year, September
15 of the current year or December 31 of the current year, whichever
of these dates next follows the date on which the taxpayer first anticipates
such net profit, and pay to the officer in equal installments the
tax due thereon on or before the quarterly payment dates which remain
after the filing of the declaration.
C.
Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with the officer on a form prescribed
or approved by the officer 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.
D.
Any taxpayer may, in lieu of paying the fourth quarterly
installment of his estimated tax, elect to make and file with the
officer on or before January 31 of the succeeding year, the final
return as hereinabove required.
E.
The officer is hereby authorized to provide by regulation
for the making and filing of adjusted declarations of estimated net
profits and for the payments of the estimated tax in cases where a
taxpayer who has filed the declaration hereinabove required anticipates
additional net profits not previously declared or finds that he has
overestimated his anticipated net profits.
F.
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.
A.
Every taxpayer shall, on or before April 15 of the
succeeding year, make and file with the officer on a form prescribed
or approved by the officer a final return showing the 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.
B.
Every taxpayer who is employed for a salary, wage,
commission or other compensation and who received any earned income
not subject to the provisions relating to collection at source shall
make and file with the officer on a form prescribed or approved by
the officer 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 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 officer may require. Every taxpayer making such
return shall, at the time of filing thereof, pay to the officer 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 taxing jurisdiction
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 or within
15 days after the effective date of this article, whichever shall
first occur, 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 within the taxing jurisdiction
who employs one or more persons, other than domestic servants, for
a 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 officer 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 officer and employer shall show the name and social
security number of each such employee, the earned income of such employee
during such preceding three-month period, the tax deducted therefrom,
the political subdivisions imposing the tax upon such employee, the
total earned income of all such employees during such preceding three-month
period and the total tax deducted therefrom and paid with the return.
C.
Any employer who for two of the preceding four quarterly
periods has failed to deduct the proper tax or any part thereof or
who has failed to pay over the proper amount of tax to the taxing
authority may be required by the officer to file his return and pay
the tax monthly. In such cases, payments of tax shall be made to the
officer 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 officer:
(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 officer 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 and social security number, 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 officer. Every employer
shall furnish two copies of the individual return to the employee
for whom it is filed.
E.
Every employer who discontinues business 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.
Except as otherwise provided in Section 9 of the Act,[1] every employer who willfully or negligently fails or omits
to make the deductions required by this section shall be liable for
payment of the taxes which he was required to withhold to the extent
that such taxes have not been recovered from the employee.
[1]
Editor's Note: See 53 P.S. § 6913,
Subdivision IX.
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 relating to the filing of declarations and returns.
H.
If an employer makes a deduction of tax as required
by this article, the amount deducted shall constitute in the hands
of such employer a trust fund held for the account of the governing
body as beneficial owner, and the employee from whose earned income
such tax was deducted shall be deemed to have paid such tax.
A.
It shall be the duty of the officer to collect and
receive the taxes, fines and penalties imposed by this article. It
shall also be his duty to keep a record showing the amount received
by him from each person or business paying the tax and, if paid by
such taxpayer or employer in respect of another taxpayer, the name
of such other taxpayer and the date of such receipt.
B.
The officer is hereby charged with the administration
and enforcement of the provisions of this article and is hereby empowered
to prescribe, adopt, promulgate and enforce rules and regulations
relating to any matter pertaining to the administration and enforcement
of this article, including provisions for the reexamination and correction
of declarations and returns and of payments alleged or found to be
incorrect or as to which an overpayment is claimed or found to be
incorrect or as to which an overpayment is claimed or found to have
occurred, and to make refunds in cases of overpayment for any period
of time not to exceed six years subsequent to the date of payment
of the sum involved and to prescribe forms necessary for the administration
of this article. No rule or regulation of any kind shall be enforceable
unless it has been approved by resolution by the governing body. A
copy of such rules and regulations currently in force shall be available
for public inspection.
C.
The officer shall refund, on petition of and profit
by the taxpayer, earned income tax paid on the taxpayer's ordinary
and necessary business expenses to the extent that such expenses are
not paid by the taxpayer's employer.
D.
The officer and agents designated by him are hereby
authorized to examine the books, papers and records of any employer
or of any taxpayer or of any person whom the office reasonably believes
to be an employer or taxpayer, in order to verify the accuracy of
any declaration or return or, if no declaration or return was filed,
to ascertain the tax due. Every employer and every taxpayer and every
person whom the officer reasonably believes to be an employer or taxpayer
is hereby directed and required to give to the officer, or to any
agent designated by him, the means, facilities and opportunity for
such examination and investigations as are hereby authorized.
E.
Any information gained by the officer, his agents
or by any other official or agent of the taxing district as a result
of any declarations, returns investigations, hearings or verifications
required or authorized by this article shall be confidential, except
for official purposes and except in accordance with a proper judicial
order or as otherwise provided by law.
F.
The officer is authorized to establish different filing,
reporting and payment dates for taxpayers whose fiscal years do not
coincide with the calendar year.
A.
The officer may sue in the name of the taxing district
for the recovery of taxes due and unpaid under this article.
B.
Any suit brought to recover the tax imposed by this
article shall be begun within three years after such tax is due or
within three years after the declaration or return has been filed,
whichever date is later; provided, however, that this limitation shall
not prevent the institution of a suit for the collection of any tax
due or determined to be due in the following cases:
(1)
Where no declaration or return was filed by any person
although a declaration or return was required to be filed by him under
the provisions of this article, there shall be no limitation.
(2)
Where an examination of the declaration or return
filed by any person or of other evidence relating to such declaration
of 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 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 amounts so deducted to the
officer or where any person has willfully failed or omitted to make
the deductions required by this section, there shall be no limitation.
(5)
This section shall not be construed to limit the governing
body from recovering delinquent taxes by any other means provided
by this article.
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 mouth 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 or any part of the tax imposed by this article
shall, upon being found liable therefor in a civil enforcement proceeding,
pay a fine of not more than $600, plus all court costs, including
reasonable attorney's fees, incurred by the Township in the enforcement
of this chapter. No judgment shall be imposed until the date of the
determination of this violation by the District Justice and/or Court.
If the defendant neither pays nor timely appeals the judgment, the
Township may enforce the judgment pursuant to the applicable rules
of civil procedure. Each day a violation exists shall constitute a
separate offense. Further, the appropriate officers or agents of the
Township are hereby authorized to seek equitable relief, including
injunction, to enforce compliance herewith.
B.
Any person who divulges any information which is confidential
under the provisions of this article shall, upon being found liable
therefor in a civil enforcement proceeding, pay a fine of not more
than $600, plus all court costs, including reasonable attorney's fees,
incurred by the Township in the enforcement of this chapter. No judgment
shall be imposed until the date of the determination of this violation
by the District Justice and/or Court. If the defendant neither pays
nor timely appeals the judgment, the Township may enforce the judgment
pursuant to the applicable rules of civil procedure. Each day a violation
exists shall constitute a separate offense. Further, the appropriate
officers or agents of the Township are hereby authorized to seek equitable
relief, including injunction, to enforce compliance herewith.
C.
The penalties imposed under this section shall be
in addition to any other penalty imposed by any other section of this
article.
D.
The failure of any person to receive or procure forms
required for making the declaration or returns required by this article
shall not excuse him from making such declaration or return.
A.
The officer shall have power, in case of the neglect
or refusal of any person, copartnership or association to make payment
of the amount of any tax due by him, after two months from the date
of the tax notice, to levy the amount of such tax, any penalty due
thereon and costs, not exceeding costs and charges allowed Constables
for similar services, by distress and sale of the goods and chattels
of such delinquent wherever situate or found, upon giving at least
10 days' public notice of such sale, by posting 10 written or printed
notices and by one advertisement in a newspaper of general circulation
published in the county.
B.
No failure to demand or collect any taxes by distress
and sale of goods and chattels shall invalidate any return made or
lien filed for nonpayment of taxes or any tax sale for the collection
of taxes.
The officer shall demand, receive and collect
from all corporations, political subdivisions, associations, companies,
firms or individuals employing persons owing delinquent earned income
taxes or whose wife owes delinquent earned income taxes, or having
in possession unpaid commissions or earnings belonging to any person
or persons owing delinquent earned income taxes or whose wife owes
delinquent earned income taxes, upon the presentation of a written
notice and demand certifying that the information contained therein
is true and correct and containing the name of the taxpayer or the
husband thereof and the amount of tax due. Upon the presentation of
such written notice and demand, it shall be the duty of any such corporation,
political subdivision, association, company, firm or individual to
deduct from the wages, commissions or earnings of such individual
employees then owing or that shall within 60 days thereafter become
due or from any unpaid commissions or earnings of any such taxpayer
in its or his possession or that shall within 60 days thereafter come
into its or his possession a sum sufficient to pay the amount of the
delinquent earned income taxes and costs shown upon the written notice
or demand and to pay the same to the officer within 60 days after
such notice shall have been given. Such corporation, political subdivision,
association, firm or individual shall be entitled to deduct from the
moneys collected from each employee the costs incurred from the extra
bookkeeping necessary to record such transactions, not exceeding 2%
of the amount of money so collected and paid over to the officer.
Upon the failure of any such corporation, political subdivision, association,
company, firm or individual to deduct the amount of such taxes or
to pay the same over to the officer, less the cost of bookkeeping
involved in such transaction, as herein provided, within the time
required, such corporation, political subdivision, association, company,
firm or individual shall forfeit and pay the amount of such tax for
each such taxpayer whose taxes are not withheld and paid over or that
are withheld and not paid over together with a penalty of 10% added
thereto, to be recovered by an action of assumpsit in a suit to be
instituted by the officer or by the proper authorities of the taxing
district, as debts of like amount are now by law recoverable, except
that such person shall not have the benefit of any stay of execution
or exemption law.
A.
Payment of any tax to any other political subdivision
pursuant to an ordinance or resolution passed or adopted prior to
the effective date of the Act[1] shall be credited to and allowed as a deduction from the
liability of taxpayers for any tax imposed under this article.
[1]
Editor's Note: See 53 P.S. § 6901
et seq.
B.
Payment of any tax on salaries, wages, commission,
other compensation or net profits of business, professions or other
activities to any other political subdivision by residents thereof
pursuant to any ordinance or resolution passed or adopted under the
authority of the Act shall be credited to and allowed as a deduction
from the liability of such persons for any tax imposed under this
article.
C.
Payment of any tax on income to any other political
subdivision by residents thereof pursuant to an ordinance or resolution
passed or adopted under the authority of the Act shall, to the extent
that such income includes salaries, wages, commissions, other compensation
or net profits or business, professions or other activities, but in
such proportion as hereinafter set forth, be credited to and allowed
as a deduction from the liability of such persons for any tax imposed
under this article.
D.
Payment of any tax on income to any state or to any
other political subdivision thereof by residents thereof, pursuant
to any state or local law, shall, to the extent that such income includes
salaries, wages, commissions or other compensation or net profits
of business, professions or other activities but in such proportions
as hereinafter set forth, be credited to and allowed as a deduction
from the liability of such person for any tax imposed under this article,
if residents of the political subdivision in Pennsylvania receive
credits and deductions of a similar kind to a like degree from the
tax on income imposed by the other state or political subdivision
thereof.
E.
Payment of any tax on income to any state other than
Pennsylvania or to any political subdivision located outside the boundaries
of this commonwealth by residents of a political subdivision located
in Pennsylvania shall, to the extent that such income includes salaries,
wages, commissions or other compensation or net profits of business,
professions or other activities but in such proportions as hereinafter
set forth, be credited to and allowed as a deduction from the liability
of such person for any tax imposed under this article.
F.
Where a credit or a deduction is allowable in any
of the several cases hereinabove provided, it shall be allowed in
proportion to the concurrent periods for which taxes are imposed by
other state or respective political subdivisions, but not in excess
of the amount previously paid for a concurrent period.