Township of Penn, PA Earned Income Tax

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.

NONRESIDENT

An individual, copartnership, association or other entity domiciled outside Penn Township.

PERSON

Includes natural person, copartnership, association, corporation, firm or fiduciary. Whenever used in any clause prescribing and imposing a penalty, the term "person" as applied to associations shall mean the partners or members thereof, and as applied to corporations shall mean the officers thereof.

RESIDENT

An individual, copartnership, association or other entity domiciled in Penn Township.

SPECIAL TAX COLLECTOR

A person to be designated and/or appointed by the Township Commissioners of Penn Township, Westmoreland County, Pennsylvania.

TAXPAYER

A person, whether an individual, copartnership, association or other entity, required hereunder to file a return of earnings or net profits or to pay a tax thereon.

Editor's Note: The former definition of “compensation earned or compensation paid or earnings,” which immediately followed this definition, was amended 6-16-2003 by Ord. No. 777 to become “earned income.”

In this article, the singular shall include the plural and the masculine shall include the feminine and neuter.

§ 172-2 Imposition of tax.

The following taxes are hereby imposed for general township purposes, under the authority of Act No. 511 of December 31, 1965, and its amendments[1]:

One-half of one percent of all salaries, wages, commissions and other compensation earned after the first day of January 1967, to and including December 31, 1967, by residents of Penn Township.

One-half of one percent on all salaries, wages, commissions and other compensation earned after the first day of January 1967, to and including December 31, 1967, by nonresidents of Penn Township for work done or services performed or rendered in the township.

One-half of one percent on all net profits earned after the first day of January 1967, to and including December 31, 1967, of businesses, professions or other activities conducted and earned by residents of Penn Township.

One-half of one percent on all net profits earned after the first day of January 1967, to and including December 31, 1967, of all businesses, professions and other activities conducted in Penn Township by nonresidents.

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

The taxes levied under Subsection A(1) and (2) of this section shall relate to and be imposed upon compensation paid by an employer or on his behalf to any person who is employed by or renders service to him. The taxes levied under Subsection A(3) and (4) of this section shall relate to and be imposed upon the net profits of any business, profession or enterprise carried on by any person or owner or proprietor, either individually or in association with any other person or persons.

Such taxes shall be levied with respect to the compensation or net profits levied during the calendar year for which such tax is levied, provided that where the fiscal year of a business, profession or other activity differs from the calendar year, the tax shall be applicable to the net profits of the fiscal year.

§ 172-3 Special Tax Collector.

The Special Tax Collector is hereby designated receiver of the taxes imposed by this article. He shall be bonded by a good and reliable bonding company at all times for all money coming into his hands for township purposes under this article, the cost of which bonds shall be paid by the township. He shall collect and receive all such taxes, shall furnish a receipt for their payment when requested to do so by any taxpayer and shall keep a record showing the amount received by him from each taxpayer under this article and the date of the receipt of such payment. The Township Solicitor 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; such rules and regulations shall be inscribed by the Special Tax Collector into a book kept for that purpose and open to the inspection of the public. Such rules and regulations shall have the same force and effect as if they had been incorporated into this article.

The Special Tax Collector shall be appointed for the collection of the taxes assessed under this article.

[Amended 11-24-1997 by Ord. No. 689]

§ 172-4 Declaration and payment of tax.

[Amended 11-24-1997 by Ord. No. 689; 1-7-2008 by Ord. No. 843[1]]

Net profits.

Every taxpayer making net profits may, on or before April 15 of the current year, make and file with the Special Tax Collector, on a form prescribed or approved by the Special Tax Collector, 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 Special Tax Collector 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.

Any taxpayer who first anticipates any net profit after April 15 of the current year may 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 Special Tax Collector in equal installments the tax due thereon on or before the quarterly payment dates which remain after the filing of the declaration.

Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Special Tax Collector, on a form prescribed or approved by the Special 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 Special Tax Collector the balance of tax due or shall make demand for refund or credit in the case of overpayment.

Any taxpayer may, in lieu of paying the four quarterly installments of the estimated tax, elect to make and file with the Special Tax Collector, on or before April 15 of the succeeding year, the final return as hereinabove required.

[Amended 2-18-2008 by Ord. No. 846]

(5)

The Special Tax Collector 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.

(6)

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.

Earned income.

Annual earned income tax return. Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Special Tax Collector, on a form prescribed or approved by the Special Tax Collector, 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.

Earned income not subject to withholding. 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 Special Tax Collector, on a form prescribed or approved by the Special 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 earned 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 Special Tax Collector may require. Every taxpayer making such return shall at the time of filing thereof pay to the Special Tax Collector the amount of tax shown as due thereon. Any taxpayer may, in lieu of paying the four quarterly installments of the estimated tax, elect to make and file with the Special Tax Collector, on or before April 15 of the succedding year, the final return as hereinabove required.

[Amended 2-18-2008 by Ord. No. 846]

Editor's Note: The provisions of this ordinance have an effective date of 1-1-2008.

§ 172-5 Deductions by employer.

Every employer within the Township of Penn shall deduct monthly or more frequently than monthly, at the time of compensation due by him to any employee, the tax of 1/2 of 1% of the amount of the compensation for such period. Such employer shall, on or before the 15th day of the month next following such deduction, make a return and pay over to the Special Tax Collector the amount of tax so deducted. Such return shall be on a form prescribed by the Township Solicitor, procured at the expense of the township and furnished by or obtainable from the Special Tax Collector; it shall set forth the name and residence of each employee of such employer during all or part of the preceding month, the amount of compensation earned by such employee during the preceding month and any other pertinent information that may be required.

It shall be provided, however, that the failure or omission by an employer either residing within or outside of Penn Township to deduct such tax and to make such return to the Special Tax Collector shall not relieve an employee from the payment of such tax and the compliance with such regulations, with respect to making returns and payment thereof, as may be established under this article.

§ 172-6 Investigation of records.

The Special Tax Collector or any other person designated by the Township Commissioners for the purpose is hereby authorized to examine the books, papers and records of any employer or supposed employer or of any 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 or supposed employer or taxpayer or supposed taxpayer is hereby directed and required to give the Special Tax Collector or such other authorized person the means, facilities and opportunity for such examinations and investigations as are hereby authorized. The Special Tax Collector is hereby authorized to examine any person under oath covering any income which was or should have been returned for taxation, and to this end the Township Commissioners may compel the production of books, papers and records and the attendance of all persons before such Special Tax Collector, whether as parties or witnesses, whom the Special Tax Collector believes to have knowledge of such income.

Any information gained by the Special Tax Collector or any other official or agent of the township as a result of any returns, investigations hearings or verifications required or authorized by this article shall be confidential, except for official purposes and 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.

§ 172-7 Interest and penalties.

[Amended 6-15-1998 by Ord. No. 701]

If for any reason that tax is not paid when due, interest at the rate of 6% per annum on the amount of the tax, and an additional penalty of 0.5% of the amount of the unpaid tax for each month or fraction thereof during which the tax remains unpaid, shall be added and collected. When 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.

§ 172-8 Suit for collection of tax.

[Amended 1-7-2008 by Ord. No. 843[1]]

The Special Tax Collector may sue in the name of the Township of Penn for the recovery of taxes due and unpaid under this article.

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:

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.

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 Special Tax Collector 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 this article and has failed to pay the amount so deducted to the Special Tax Collector, or where any person has willfully failed to make or omitted to make the deductions required by § 172-5, there shall be no limitation.

This section shall not be construed to limit the Township of Penn from recovering delinquent taxes by any other means provided by law.

The Special Tax Collector may sue for recovery of an erroneous refund, provided such suit is begun within 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.

Editor's Note: This ordinance provided an effective date of 1-1-2008.

§ 172-9 Violations and penalties.

[Amended 11-24-1997 by Ord. No. 689]

Any person convicted before any District Justice of Penn Township of violating any of the provisions or requirements of this article or of failing, neglecting or refusing to permit the Special Tax Collector or any other person authorized under this article to examine his books, records and papers; or of knowingly making any incomplete, false or fraudulent returns; or of attempting to do anything whatever to avoid the payment of the whole or any part of the tax imposed under this article shall be liable to a fine or penalty not exceeding $600 for each and every offense and costs of prosecution thereof and, in default of payment thereof, to undergo imprisonment in the county jail for a period not exceeding 30 days.

It shall be provided that such fine or penalty shall be in addition to any other penalty imposed by any other section of this article. The failure of any employer or taxpayer to receive or procure a return shall not excuse him from making a return.

§ 172-10 Applicability.

This article shall not apply to any person or property as to whom or which it is beyond the legal power of the Township Commissioners to impose a tax or duties herein provided for.

§ 172-11 Collection expenses.

The expenses of collection and compensation of the Tax Collector shall be paid and allowed as provided in the Local Tax Collection Law of 1945, as amended and supplemented,[1] which compensation shall be the same as fixed from time to time by Penn Township for the collection of other township taxes.

Editor's Note: See 72 P.S. § 5511.1 et seq.

§ 172-12 Powers and duties of Special Tax Collector.

[Amended 1-7-2008 by Ord. No. 843[1]]

The Special Tax Collector, before entering upon his official duties, shall give and acknowledge a bond to the Township of Penn in such amount and with such surety as designated from time to time by the Board of Commissioners of the Township of Penn.

The Special Tax Collector 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 have occurred and to make refunds in case 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 of the Board of Commissioners of the Township of Penn. A copy of such rules and regulations currently in force shall be available for public inspection.

The Special Tax Collector shall refund, on petition of and proof 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.

The Special Tax Collector and agents designated by him are hereby authorized to examine the books, papers and records of any employer or of any person whom the Special Tax Collector 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 Special Tax Collector reasonably believes to be an employer or taxpayer is hereby directed and required to give to the Special Tax Collector or to any agent designated by him the means, facilities and opportunity for such examination and investigations as are hereby authorized.

Any information gained by the Special Tax Collector, his agents or by any other official or agent of the Township of Penn 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.

The Special Tax Collector is authorized to establish different filing, reporting and payment dates for taxpayers whose fiscal years do not coincide with the calendar year.

The Special Tax Collector shall distribute earned income taxes to the appropriate political subdivisions within 60 days of the deadline for payment by an employer as set forth in § 172-5. The political subdivisions shall not be required to request the Special Tax Collector to distribute the funds collected but shall at least annually reconcile their receipts with the records of the Special Tax Collector and return to or credit the Special Tax Collector with any overpayment. A political subdivision shall not be required to pay a fee or commission to the other political subdivision or its tax officer for tax revenue distributed under this subsection. If the Special Tax Collector, within one year after receiving a tax payment, cannot identify the taxing jurisdiction entitled to a tax payment, he shall make payment to the municipality in which the tax was collected. If earned income taxes are not distributed to the appropriate political subdivision within one year of receipt, the political subdivision may make a written demand on a tax officer or political subdivision for tax revenues collected and attributable to residents of the political subdivision making the demand. If the taxes attributable to residents of the political subdivision making the demand are not paid within 30 days from the date of the demand, the political subdivision, person, public employee or private agency designated by the political subdivision may enter into an arbitration agreement with the officer under 42 Pa.C.S.A. Chapter 73, Subchapter A (relating to statutory arbitration) or bring an action in an appropriate court of common pleas in the name of the taxing district for the recovery of taxes not distributed in accordance with this subsection. The action must be brought within seven years of the collection of the taxes.