880.01 DEFINITIONS
The following terms shall have, for the purposes of this chapter, the meanings indicated in this section:
(a) “Association” means a partnership, limited partnership, or any other unincorporated group of two or more persons.
(b) “Business” means 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.
(c) “Corporation” means 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.
(d) “Current year” means the calendar year for which the tax is levied.
(e) “Domicile” means the place where one lives and has his or her permanent home, and to which he or she has the intention of returning whenever he or she 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 person has voluntarily fixed the habitation of himself or herself and his or her 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 or her 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.
(f) “Earned income” means salaries, wages, commissions, bonuses, incentive payments, fees, tips and other compensation received by a person or his or her 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 workers’ 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 made by any governmental agency, 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.
(g) “Employer” means 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.
(h) “Income Tax Officer” or “Officer” means a person, public employee, or private agency designated by the Board of Township Commissioners to collect and administer the tax on earned income and net profits.
(i) “Net profits” means 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.
(j) “Nonresident” means a person, partnership, association, or any other entity domiciled outside of the Township of Lawrence Park.
(k) “Person” or “Individual” means a natural person.
(l) “Preceding year” means the calendar year before the current year.
(m) “Resident” means a person, partnership, or other entity domiciled in the Township of Lawrence Park.
(n) “Succeeding year” means the calendar year following the current year.
(o) “Taxpayer” means 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.
880.02 IMPOSITION OF TAX
(a) A tax not exceeding one percent is hereby imposed for general revenue purposes on:
(1) Earned income of residents received in the period beginning January 1 of the current year and ending December 31 of the current year;
(2) Net profits earned by residents in the period beginning January 1 of the current year and ending December 31 of the current year;
(3) Earned income of nonresidents received in the period beginning January 1 of the current year and ending December 31 of the current year for work done or services performed or rendered within the Township of Lawrence Park; and
(4) Net profits earned in the period beginning January 1 of the current year and ending December 31 of the current year by nonresidents on business conducted in the Township of Lawrence Park.
(b) Where a taxpayer is on a fiscal-year basis, the tax imposed by subsection (a) hereof shall be paid on earned income received and on net profits earned during the fiscal year beginning in the current year.
(c) The tax hereby imposed shall continue in force on a calendar-year basis or taxpayer fiscal-year basis without annual re-enactment.
880.03 DECLARATION AND PAYMENT OF TAX
(a) With respect to net profits of residents and nonresidents:
(1) Every taxpayer making net profits shall, on or before April 15 of the current year, make and file with the Income Tax Officer on a form prescribed or approved by the Officer, a declaration of his or her estimated net profits earned in 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.
(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 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.
(3) (A) Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Income Tax 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 Income Tax Officer the balance of tax due or shall make demand for refund or credit in the case of overpayment.
(B) Any taxpayer may, in lieu of paying the fourth quarterly installment of his or her estimated tax, elect to make and file with the Income Tax Officer on or before January 31 of the succeeding year, the final return as hereinabove required.
(4) The Income Tax Officer shall, by regulation approved by the Board of Township Commissioners, provide for the making and filing of adjusted declarations of estimated net profits, quarterly installments, and a final return by any taxpayer who is on a fiscal-year basis.
(5) Every taxpayer who discontinues business prior to December 31 of the current year shall, within thirty days after the discontinuance of business, file his or her final return as hereinabove required and pay the tax due.
(b) With respect to earned income of residents and nonresidents:
(1) Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the Income Tax 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.
(2) 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 the collection at source, shall make and file with the Income Tax 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. Such return shall set forth the aggregate amount of earned income not subject to withholding received by him or her 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 Officer may require. Every taxpayer making such return shall, at the time of filing thereof, pay to the Income Tax Officer the amount of tax shown as due thereon.
880.04 COLLECTION AT SOURCE
(a) Every employer having an office, factory, workshop, branch, warehouse, or other place of business within the Township of Lawrence Park, 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 fifteen days after becoming an employer, register with the Income Tax Officer his or her 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 Township of Lawrence Park, 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 chapter on the earned income due to his or her 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 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 subdivision 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.
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 taxing authority, may be required by the Officer to file his or her return and pay the tax monthly. In such cases, payments of the 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.
(c) 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. Any employer who is filing for ten or more employees for the tax year in question shall supply a summary setting forth the name, address, Social Security number, and the amount of earned income tax withheld for every employee.
(d) Every employer who discontinues business prior to December 31 of the current year shall, within thirty days after discontinuance of business, file the returns and withholding statements hereinabove required and pay the tax due.
(e) 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 or she was required to withhold to the extent that such taxes have not been recovered from the employee.
(f) 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 chapter relating to the filing of declarations and returns.
880.05 POWERS AND DUTIES OF INCOME TAX OFFICER
(a) It shall be the duty of the Income Tax Officer to collect and receive the taxes, fines and penalties imposed by this chapter. It shall also be his or her duty to keep a record showing the amount received by him or her from each person or business paying the tax, and the date of receipt.
(b) The Income Tax Officer, before entering upon his or her official duties, shall give and acknowledge a bond to the Township of Lawrence Park. Such bond shall be joint and several, with one or more corporate sureties, which shall be surety companies authorized to do business in the Commonwealth of Pennsylvania and duly licensed by the Insurance Commissioner of the Commonwealth. The bond shall be conditioned upon the faithful discharge by the Income Tax officer, his or her clerks, assistants and appointees, of all trusts confided in him by virtue of his or her office, upon the faithful execution of all duties required by him or her by virtue of his or her office, upon the just and faithful accounting or payment over, according to law, of all moneys and all balances thereof paid to or received or held by him or her by virtue of his or her office and upon the delivery to his or her successor or successors in office of all books, papers, documents, or other official things held in right of his or her office.
The bond shall be taken in the name of the Township of Lawrence Park and shall be for the use of the Township and such other political subdivision appointing said officer as a mutual tax collector, and for the use of such other person or persons for whom money shall be collected or received, or as his or her interests shall otherwise appear, in case of a breach of any of the conditions thereof by the acts or neglect of the principal on the bond. The Township of Lawrence Park, such other political subdivision appointing the Officer, or any person, may sue upon the said bond in its, or his or her own name for its, his, or her own use. The bond shall contain the name or names of the surety company or companies bound thereon.
The Township of Lawrence Park shall fix the amount of the bond from time to time at an amount equal to the maximum amount of taxes which may be in the possession of the Income Tax Officer at any given time.
The Township may, at any time, upon cause shown and with due notice to the Income Tax Officer and his or her surety or sureties, require or allow the substitution or the addition of a surety company acceptable to the Township for the purpose of making the bond sufficient in amount, without releasing the surety or sureties first approved from any accrued liability or previous action on such bond.
The bond shall be delivered by the Income Tax Officer to the Secretary of the Township, who shall hold the same until the Income Tax Officer is discharged from his or her responsibilities.
(c) The Income Tax Officer is hereby empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to any matter pertaining to the administration and enforcement of this chapter, including provisions for the re-examination 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 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 chapter. No such rule or regulation shall be enforceable until it has been approved by resolution of the Board of Commissioners of the Township of Lawrence Park. A copy of such rules and regulations currently in force shall be available for public inspection at the office of the Income Tax Officer.
(d) The Income Tax Officer 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.
(e) The Income Tax Officer and agents designated by him or her are hereby authorized to examine the books, papers, and records of any employer, or of any taxpayer, or of any person whom the Officer 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 or her, the means, facilities and opportunity for such examination and investigation as are hereby authorized.
(f) Any information gained by the Income Tax Officer, by his or her agents, or by any other official or agent of the Township of Lawrence Park, as the result of any declarations, returns, investigations, hearings or verifications required or authorized by this chapter, shall be confidential, except for official purposes and except in accordance with a proper judicial order or as otherwise provided by law.
(g) The Income Tax Officer is authorized to establish different filing, reporting and payment dates for taxpayers whose fiscal years do not coincide with the calendar year.
880.06 COMPENSATION OF INCOME TAX OFFICER
The Income Tax Officer shall receive such compensation for his or her services and expenses as may be determined from time to time by the Board of Township Commissioners.
880.07 SUIT FOR COLLECTION OF TAX
(a) The Income Tax Officer may sue in the name of the Township of Lawrence Park for the recovery of taxes due and unpaid under this chapter.
(b) Any suit brought to recover the tax imposed by this chapter 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 or her under provisions of this chapter, 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 or return in the possession of the Income Tax Officer, reveals a fraudulent evasion of taxes, there shall be no limitation.
(3) In the case of substantial understatement of tax liability of twenty-five percent or more, and no fraud, suit shall be begun within six years.
(4) Where any person has deducted taxes under the provisions of this chapter 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 Township of Lawrence Park from recovering delinquent taxes by any other means provided by the Local Tax Enabling Act, being Act. No. 511 of 1965, as amended.
(c) The Officer may sue for recovery of an erroneous refund, provided 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.
880.08 INTEREST AND PENALTIES
If for any reason the tax is not paid when due, interest at the rate of six percent per annum on the amount of said tax, and an additional penalty of one-half of one percent 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.
880.09 TAX RATE
The tax for general revenue purposes imposed on earned income and net profits of residents and earned income and net profits of nonresidents for work done or business or services performed or rendered within the Township of Lawrence Park is hereby fixed at one percent.
880.10 APPLICABILITY
This chapter shall not apply to any person, association, business, corporation, or employer, as to whom it is beyond the legal power of the Township of Lawrence Park to levy, assess, and impose the tax or duties herein provided for.
880.11 INCORPORATION OF STATUTE
The provisions of Section 13 of the Local Tax Enabling Act, being Act No. 511 of 1965, as amended, to the extent not provided herein, are incorporated herein by reference. In the event any provision of this chapter conflicts with any mandatory provision of Section 13 of the Local Tax Enabling Act, said Act shall control.
880.12 VIOLATIONS
(a) No person shall fail, neglect, or refuse to make any declaration or return required by this chapter, and no employer shall fail, neglect, or refuse to register or to pay the tax deducted from his or her employees, or fail, neglect, or refuse to deduct or withhold the tax from his or her employees, and no person shall refuse to permit the Income Tax Officer or any agent designated by him or her to examine his or her books, records and papers, and no person shall knowingly make any incomplete, false or fraudulent return, or attempt to do anything whatsoever to avoid the full disclosure of the amount of his or her net profits or earned income in order to avoid the payment of the whole or any part of the tax imposed by this chapter.
(b) No person shall divulge any information which is confidential under the provisions of this chapter.
880.99 PENALTY
Whoever violates or fails to comply with any of the provisions of this chapter shall be fined not less than one hundred dollars ($100.00) nor more than five hundred dollars ($500.00) and costs, and, in default of the payment thereof, for any reason other than indigency, shall be imprisoned not more than thirty days for each offense. Such fine or penalty shall be in addition to any other penalty or surcharge imposed by any other section of this chapter.
The failure of any person to receive or procure forms required for making the declaration or returns required by this chapter shall not excuse him or her from making such declaration or return.