(a) Each taxpayer who engages in business or whose salaries, wages, commissions, rents, gambling or gaming winnings, lottery winnings, tips, gratuities, money or anything of value gained or acquired as a result of illegal activities and/or other compensation are subject to the tax imposed by this chapter shall, whether or not a tax be due thereon, make and file a return (also known as a Sunbury Income Tax Return) with the office of the Director on a form furnished by or obtainable from the office of the Director on or before April 30 of each year, setting forth the aggregate amount of salaries, wages, commissions, rents, gambling or gaming winnings, lottery winnings, tips, gratuities, money or the value of anything gained or acquired as a result of illegal activities, and/or other compensation earned and/or net profits earned and/or gross income from any business less allowable expenses in the acquisition of such gross income earned during the preceding year and subject to the tax, together with such other pertinent information as the Director may require. Each person who resides in Sunbury who is eighteen years of age or older, shall file the return as set forth in this section. When the return is made for a fiscal year or other period different from the calendar year, the return shall be filed within four months from the end of such fiscal year or other period. The Director is hereby authorized to provide that the return to an employer, showing the amount of tax deducted by the employer from the salary, wages, commissions, bonuses, vacation pay or other compensation of an employee and paid by the employer to the Director shall be accepted as the return required of any employee whose sole income, subject to tax under this chapter is such salary, wages, commissions, bonuses, vacation pay or other compensation. A husband and wife, in any tax year, may elect to file separate or joint returns. Each resident of Sunbury who does not make and file an annual income tax return shall make and file an annual exemption certificate on the form prescribed by the Director; this exemption certificate shall be filed on or before the fifteenth day of May of each year; each resident who is required to file an annual exemption certificate and who violates this requirement shall be subject to a fine of ten dollars ($10.00) for each violation; the fine shall be separate for each day the person remains and is in violation. Each taxpayer who does not file an annual return as required herein shall be liable for a penalty of twenty-five dollars ($25.00) for each year or portion thereof that the annual return is not filed, until filed and the penalty paid in full.
(b) The return shall be filed with the Director on a form or forms furnished by or obtainable upon request from such Director setting forth:
(1) The aggregate amounts of salaries, wages, commissions, rents and other compensation, including but not limited to vacation pay, accrued benefits and bonuses earned and/or net profits earned and/or gross income from such business less allowable expenses in the acquisition of such gross income earned during the preceding year and subject to the tax, together with such other pertinent information as the Director may require. When the return is made for a fiscal year or other period different from the calendar year, however, the return shall be made on or before the last day of the fourth month after the close of such fiscal year or other period.
(2) The amount of the tax imposed by this chapter on such earnings and profits; and
(3) Such other pertinent statements, information returns, or other information as the Director may require.
(4) Each taxpayer who resides within Sunbury is accountable for taxes on all his or her income whether earned in or out of Sunbury.
A nonresident's income is only subject to the Sunbury Income Tax to the extent that income was earned within Sunbury and therefore the taxpayer can deduct only those losses by his or her business within Sunbury.
These same provisions shall apply to joint returns filed by husband and wife.
(5) The election amount taken as IRS Section 179 expense (or any amendment thereto) is not an allowable deduction for corporations or partnerships against income subject to tax under this chapter.
(6) No deduction is permitted against income subject to tax under this chapter for any Form 1040, Schedule A itemized deduction.
(c) The Director may extend the time for filing of the annual return upon the request of the taxpayer for a period of not to exceed six months, or one month beyond any extension requested of or granted by the Internal Revenue Service for the filing of the Federal income tax return. All requests for an extension of time to file an annual return shall be in writing and filed with the Director by April 30. Requests for extensions shall be accompanied by copies of the federal extension form where a federal extension has been requested. In addition, the request for extension shall also be accompanied with a tentative return, accompanied by payment of the amount of tax shown to be due thereon. Requests for extension of the time to file an annual return does not extend the time required to file quarterly estimated returns. No penalty or interest shall be assessed in those cases in which the annual return is filed and the final tax paid within the period as extended.
(d) (1) The taxpayer making a return shall, at the time of the filing thereof, pay to the Director the amount of taxes shown as due thereon; provided, however, that where any portion of the tax so due shall have been deducted at the source pursuant to the provisions of Section 181.06 of this chapter, or where any portion of the tax shall have been paid by the taxpayer pursuant to the provisions of Section 181.07, or where an income tax has been paid to another municipality credit for the amount so paid in accordance with Section 181.14 hereof, shall be deducted from the amount shown to be due and only the balance, if any, shall be due and payable at the time of filing such return.
(2) A taxpayer who has overpaid the amount of tax to which Sunbury is entitled under the provisions of this chapter may have such overpayment applied against any subsequent liability hereunder or, at his election indicated on the return, such overpayment (or part thereof) shall be refunded, provided further that no amount of less than one dollar ($1.00) will be refunded or collected.
(e) (1) Amended Returns. Where necessary an amended return must be filed in order to report additional income and pay any additional tax due, or claim or refund of tax overpaid, subject to the requirements and/or limitations contained in Sections 181.11 and 181.14. Such amended returns shall be on a form obtainable on request from the Director. A taxpayer may not change the method of accounting or apportionment or net profits after the due date for filing the original return.
(2) Within three months from the final determination of any federal tax liability affecting the taxpayer's Sunbury tax liability, such taxpayer shall make and file an amended Sunbury return showing income subject to the Sunbury tax based upon such final determination of Federal tax liability, and pay any additional tax shown due thereon or make claim for refund of any overpayment.
(3) Within thirty days of receiving a tax refund from another municipality for which credit has been claimed on a taxpayer's Sunbury return, as permitted by Section 181.14, such taxpayer shall make and file an amended Sunbury return and pay any additional tax shown thereon. No refund shall be allowed unless a written request is presented to the Director or his delegate within three years of the date the taxes were due.
(f) (1) Commencing with taxable years beginning subsequent to December 31, 1995 the net loss from an unincorporated business activity may not be used to offset salaries, wages, commissions or other compensation. However, if a taxpayer is engaged in two or more taxable business activities to be included in the same return, the net loss of one unincorporated business activity (except any portion of a loss separately reportable for municipal tax purposes to another taxing entity) may be used to offset the profits of the other unincorporated business activity(ies) for purposes of arriving at overall net profits.
(2) A nonresident's income is only subject to the Sunbury income tax to the extent it was earned within Sunbury.
(g) Affiliated corporations may not deduct a loss from any other corporation having a taxable profit and operations of any affiliated corporation having a loss may not be taken into consideration in computing net profits or business allocation percentage formula.
(h) A taxpayer who pays their business expenses from their commissions or other compensation, without reimbursement from their employer, may deduct from their gross commissions or other compensation business expenses allowed by the Internal Revenue Service for Federal Income Tax purposes, but only to the extent that such expenses are incurred in earning commissions or other compensation subject to the tax imposed by this section.
(Ord. 98-032. Passed 10-21-98.)