1. Tax Collection. The collection and administration of the tax provided for in this Part shall be performed by the Tax Officer appointed by the Tax Collection Committee. It shall be the duty of the Tax Officer:
A. To collect, reconcile, administer and enforce income taxes imposed on residents and nonresidents in the Township included in the Tax Collection District.
B. To receive and distribute income taxes and to enforce withholding by employers located in the Tax Collection District.
C. To receive income taxes distributed by Tax Officers for other Tax Collection Districts.
D. To invest all income taxes in the custody of the Tax Officer in authorized investments, subject to the approval of the Tax Collection Committee. The Tax Officer shall observe the standard of care that would be observed by a prudent person dealing with property of another. For the purposes of this paragraph, the term “authorized investment” shall include those investments as provided in § 509(a) of the LTEA, 53 P.S. § 6924.509(a).
2. Monthly Reports. The Tax Officer shall, within 20 days after the end of each month, provide a written report, on forms prescribed by the Department, to the Secretary of the Tax Collection Committee and to the Secretary of the Township for which taxes were collected during the previous month. The report shall include a breakdown of all income taxes, income generated from investments under subsection .1.D, penalties, costs and other money received, collected, expended and distributed for each political subdivision served by the Tax Officer and of all money distributed to Tax Officers for other Tax Collection Districts.
3. Overpayments. A Tax Officer shall refund under 53 Pa.C.S. § 8425 (relating to refunds of overpayments) and § 8426 (relating to interest on overpayment), on petition of and proof by the taxpayer, income taxes paid in excess of income taxes rightfully due.
4. Bonds. Prior to initiating any official duties, each Tax Officer shall give and acknowledge a bond to the appointing Tax Collection Committee as provided in § 509(d) of the LTEA, 53 P.S. § 6924.509(d).
5. Records. It shall be the duty of the Tax Officer to keep a record showing the amount of income taxes received from each taxpayer or other Tax Officer, the date of receipt, the amount and date of all other monies received or distributed and any other information required by the Department. All tax records shall be the property of the Township and the Tax Collection District in which the taxes were collected. The Tax Collection District and Tax Officer shall retain all tax records as directed by the Tax Collection Committee and, when applicable, in accordance with Retention and Disposition Schedules established by the Local Government Records Committee of the Pennsylvania Historical and Museum Commission under 53 Pa.C.S., Ch. 13, Subch. F (relating to records). Tax records under this subsection may be retained electronically as permitted by law.
6. Employer and Taxpayer Audits.
A. In order to verify the accuracy of any income tax declaration or return, or if no declaration or return was filed, to ascertain the income tax due, the Tax Officer and the Tax Officer’s designated employees may examine or audit the records pertaining to income taxes due of any of the following:
(1) An employer.
(2) A taxpayer.
(3) A person whom the Tax Officer reasonably believes to be an employer or taxpayer.
B. The examination of audit conducted by the Tax Officer or the Tax Officer’s designated employees shall conform to the requirements set forth in the Local Taxpayer’s Bill of Rights, 53 Pa.C.S. § 8421 et seq.
C. Every employer or taxpayer or other person whom the Tax Officer reasonably believes to be an employer or taxpayer shall provide to the Tax Officer and the Tax Officer’s designated employees the means, facilities and opportunity for the examination and investigation authorized under subsection .6.A.
D. For purposes of this subsection, the term “records” shall include any books, papers and relevant Federal or State tax returns and accompanying schedules, or supporting documentation for any income taxable under this Part.
7. Exchange of Information.
A. The Tax Officer shall ensure that the Tax Collection District enters into an agreement with the Department of Revenue for the exchange of information necessary for the collection of income taxes.
B. The Department of Revenue may enter into agreements with each Tax Collection District and shall establish procedures under which tax collection, filing and other taxpayer and locality information in its custody will be made available to Tax Officers for purposes of collection, reconciliation and enforcement no later than 1 year after the deadline for filing returns for the tax year in question.
8. Actions for Collection of Income Taxes. The Tax Officer may file an action in the name of the Township for the recovery of income taxes due to the Township and unpaid. Nothing in this subsection shall affect the authority of the Township to file an action in its own name for collection of income taxes under this Part. This subsection shall not be construed to limit a Tax Officer, a Tax Collection District, or the Township from recovering delinquent income taxes by any other means provided by this Part or by law. Actions for collection of income taxes shall be subject to the following:
A. Except as set forth in subsections .8.B and .8.D, an action brought to recover income taxes must be commenced within 3 years of the later of the date:
(1) The income taxes are due.
(2) The declaration or return has been filed.
(3) Of a re-determination of compensation or net profits by the Department of Revenue.
B. If there is substantial understatement of income tax liability of 25% or more and there is no fraud, an action must be commenced within 6 years.
C. Except as set forth in subsection .8.D(2), (3) or (4), an action by a Tax Officer for recovery of an erroneous refund must be commenced as follows:
(1) Except as set forth in subsection .8.C(2), within 2 years after making the refund.
(2) If it appears that any part of the refund was induced by fraud or misrepresentation of material fact, within 5 years after making the refund.
D. There is no limitation of action if any of the following apply:
(1) A taxpayer fails to file a declaration or return required under this Part.
(2) An examination of a declaration or return or of other evidence in the possession of the Tax Officer relating to the declaration or return reveals a fraudulent evasion of income taxes.
(3) An employer has deducted income taxes under § 512 of the LTEA, 53 P.S. § 6924.512, and has failed to pay the amount deducted by the Tax Officer.
(4) An employer has intentionally failed to make deductions required by this Part.
9. Interest and Penalties.
A. Except as provided in subsection .9.B, if the income tax is not paid when due, interest at the rate the taxpayer is required to pay to the Commonwealth under § 806 of the Act of April 9, 1929 (P.L. 343, No. 176), known as the Fiscal Code, 72 P.S. § 806, on the amount of the income tax, and an additional penalty of 1% of the amount of the unpaid income tax for each month or fraction of a month during which the income tax remains unpaid shall be added and collected but the amount shall not exceed 15% in the aggregate. Where an action is brought for the recovery of the income tax, the taxpayer liable for the income tax shall, in addition, he liable for the costs of collection, interest and penalties.
B. The Department may establish conditions under which a Tax Officer, with the concurrence of the Tax Collection Committee, may abate interest or penalties that would otherwise be imposed for the non-reporting or under-reporting of income tax liabilities or for the non-payment of income taxes previously imposed and due if the taxpayer voluntarily files delinquent returns and pays the income taxes in full.
C. The provision of subsection .9.C shall not affect or terminate any petitions, investigations, prosecutions or other proceedings pending under this Part, or prevent the commencement or further prosecution of any proceedings by the proper authorities for violations of this Part. No proceeding shall, however, be commenced on the basis of delinquent returns filed pursuant to subsection .8 if the returns are determined to be substantially true and correct and the income taxes are paid in full within the prescribed time.
10. Fines and Penalties for Violations.
A. Any taxpayer who fails, neglects or refuses to make any declaration or return required by this Part, any employer who fails, neglects or refuses to register, keep or supply records or returns required by § 512 of the LTEA, 53 P.S. § 6924.512, or to pay the income tax deducted from employees, or fails, neglects or refuses to deduct or withhold the income tax from employees, any taxpayer or employer who refuses to permit the Tax Officer appointed by a Tax Collection Committee or an employee or agent of the Tax Officer to examine books, records and papers, and any taxpayer or employer who knowingly make any incomplete, false or fraudulent return, or attempts to do anything whatsoever to avoid the full disclosure of the amount of income in order to avoid the payment of income taxes shall, upon conviction thereof, be sentenced to pay a fine of not more than $2,500 for each offense and reasonable accosts, and in default of payment of said fines and costs, to imprisonment for not more than 6 months.
B. Any employer required under this Part to collect, account for and distribute income taxes who willfully fails to collect or truthfully account for and distribute income taxes, commits a misdemeanor and shall upon conviction, be sentenced to pay a fine not exceeding $25,000 or to imprisonment not exceeding 2 years, or both.
C. The penalties imposed under this subsection shall be in addition to any other costs and penalties imposed by this Part.
D. The failure of any person to obtain forms required or making the declaration or returns required by this Part shall not excuse the person from making the declaration or return.
11. Costs. The Tax Officer shall be entitled to impose and collect the reasonable costs incurred to provide notices of delinquency or to implement similar procedures utilized to collect delinquent taxes from a taxpayer as approved by the Tax Collection Committee. Reasonable costs collected may be retained by the Tax Officer. An itemized accounting of all costs collected shall be remitted to the Tax Collection Committee on an annual basis.
12. Appeals and Tax Officer Actions. A determination of the Tax Officer relating to the assessment, collection, refund, withholding, remittance or distribution of income taxes may be appealed to the Appeals Board established by the Tax Collection Committee by a taxpayer, employer, political subdivision or another Tax Collection District pursuant to the provisions of § 505(j) of Act 32, 53 P.S. § 6924.505(j). Pursuant to § 505(k) of Act 32, 53 P.S. § 6924.515(k), any dispute among the affected parties involving a 10% or greater deviation from taxes received in the previous tax year shall be subject to mandatory mediation in accordance with regulations and guidelines adopted by the Department. A dispute involving less than a 10% threshold may be subject of voluntary mediation in accordance with regulations and guidelines adopted by the Department.
13. Confidentiality.
A. General Rule. Any information gained by a Tax Officer or any employee or agent to a Tax Officer or of the Tax Collection Committee as a result of any declarations, returns, investigations, hearings or verifications shall be confidential tax information.
B. Prohibited Conduct. It shall be unlawful, except for official purposes or as provided by law, for the Commonwealth, the Township, Tax Collection Committee member, Tax Officer or employee or agent of a Tax Officer or Tax Collection Committee to do any of the following:
(1) Divulge or make known confidential tax information.
(2) Permit confidential tax information or a book containing an abstract or particulars of the abstract to be seen or examined by another person.
(3) Print, publish or otherwise make known any confidential tax information.
C. Penalties. A person who violates subsection .13.B commits a misdemeanor of the third degree and shall, upon conviction, be sentenced to pay a fine of not more than $2,500 or to imprisonment for not more than 1 year, or both. If the offender is a member of the Tax Collection Committee the member shall be removed from the Tax Collection Committee. If the offender is an employee of a Tax Collection Committee or the Township the employee shall be discharged from employment. The offender shall pay the costs of prosecution.
(Ord. 12-05-2011.01, 12/5/2011, Art. I)