Departments & Services

Upper Southampton Township

Administration Building
939 Street Road
Southampton, PA 18966

Phone: (215) 322-9700
Fax: (215) 322-0405
administration@ustwp.org

Hours: Mon-Fri, 8:00 AM-4:30 PM

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Taxes

New Tax Collector for 2011 Earned Income Tax (EIT)
and 2011 Local Service Tax (LST)

A notification letter of recent changes has been sent to Township taxpayers from Keystone Collections Group. Any authenticity concerns can be alleviated by verifying the correct remittance address:

Keystone Collections Group
546 Wendel Road
Irwin, PA 15642

724-978-0300
724-978-0328 Employer Help Line
866-539-1100 (Toll Free)

Website: http://www.keystonecollects.com/

NOTE:

2010 EIT and 2010 LST are still collected by

Berkheimer Tax Administrator
P. O. Box 25130
Lehigh Valley, PA 18002-5130

http://www.hab-inc.com

EFFECTIVE 1/01/11

Frequently Asked Questions

What is the "Earned Income Tax?"

The Earned Income Tax, commonly called a "Wage Tax," is usually a tax of one percent (1%) on gross wages and/or net profits froma business or profession. Typically, individuals who receive "earned income," including dsalaries, wages, commissions, bonuses, incentive payments, fees, tips and/or other compensation for services rendered, whether in cash or property, are subject to the tax. In addition, those who conduct businesses, professions and other activities for profit must pay tax on the net profit derived from their operation after deductions have been made of all costs and expenses incurred in conducting said business.

What income is specifically exempt from the earned income tax?

Unearned income such as dividends, interest, income from trusts, bonds, insurance and stocks is exempt. Also exempt are payments for third party sick or disability benefits, old age benefits, retirement pay, pensions - including social security payments, public assistanceor unemployment compensation payments made by any governmental agency, and any wages or compensation paid by the United States for active service in the forces of the United States including bonuses or additional compensation for such service. In addition, net profits of corporations are exempt under state law.

If the tax is withheld in another community where I work, do I also pay the district in which I live?

No, the tax withheld by your employer will be remitted to your resident taxing jurisdiction. It is still required that our Registration Form be answered by all residents.

Whose earned income tax will be withheld by their employer?

Any individual working in a jurisdiction that levies the tax on residents and non-residents will have the tax withheld by their employer. If you work in a jurisdiction that does NOT tax non-residents, your employer is only required to withhold for those individuals who live in that jurisdiction. Occasionally, employers located in a jurisdiction where the tax is not levied will volunteer to withhold if your resident jurisdiction levies the tax.

From whom will the earned income tax be collected directly?

The earned income tax will be collected directly from those who are: (1) self-employed; (2) salaried but self-employed in a side business; or (3) work in a municipality where the tax is not in place. Those persons must file a declaration of the total of such estimated net profits or income, together with the total estimated tax due, with the Earned Income Tax Collector. Proper forms for reporting the quarterly payments will be sent to each person so liable.

Must all taxpayers file a return?

Yes. Even if all tax is withheld, or quarterly payments are made, a Local Earned Income Tax Return must be filed by April 15 each year.

What happens if I neither file a return nor pay the tax due?

State law, as well as the local tax resolutions and/or ordinances, make it a summary criminal offense if a taxpayer fails to file a tax return as required, and subjects the taxpayer to a fine not to exceed $500.00 per offense, plus the cost of prosecution; in default of payment of said fine and costs, the taxpayer may be imprisoned for a period not exceeding thirty (30) days per offense. In addition, distress sale, wage attachment and/or civil suit proceedings may be used to collect any unpaid tax found to be due, and penalties and interest may also be assessed.

ORDINANCE

163-41. Incorporation of statute.

The provisions of Section 6913 of the Local Tax Enabling Act, P.L. 1257, No. 511, December 31, 1965, 53 P.S. Sections 6901 through 6924 (1982), as hereafter amended, supplemented, modified or reenacted by the General Assembly of Pennsylvania, are incorporated herein by referencehereto; except to the extent that options are provided in said Section 6913, this article designates the option selected and except as and where hereinafter specifically provided otherwise.

163-42. Definitions.

As used in this article, the following terms shall have the meanings indicated:

ASSOCIATION - A partnership, limited partnership, or any other unincorporated group of two or more persons.

BUSINESS - An enterprise, activity, profession or any other undertaking of an unincorporated nature conducted for profit, or ordinarily conducted for profit, whether by persons, partnership, association or any other entity.

CORPORATION - 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.

CURRENT YEAR - The calendar year for which the tax is levied.

DOMICILE - 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 voluntary fixed place of habitation of a person, 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 association, the domicile is that place considered as the center of business affairs and the place where its functions are discharged.

EARNED INCOME - 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 property; not including , however, wages or compensation paid to persons on active military service, periodic payments for sickness, 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, 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, programscovering hospitalization, sickness, disability or death, supplmental unemployment benefits, strike benefits, Social Security and retirements.

EMPLOYER - A person, partnership, association, corporation, institution, governmental body or unit or agency, or any other entity employing one or more persons for a salary, or any other entity employing one or more persons for a salary, wage, commission or other compensation.

INCOME TAX OFFICER OR OFFICERS - A person, public employee or private agency designated by the governing bodyto collect and administer the tax on earnde income and net profits.

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 int he 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.

NONRESIDENT - A person, partnership, association or other entity domiciled outside the taxing district.

PERSONS or INDIVIDUALS - A natural person.

PRECEDING YEAR - The calendar year befoer the current year.

RESIDENT - A person, partnership, association or other entity domiciled in the taxing district.

SUCCEEDING YEAR - The calendar year following the current year.

TAXPAYER - 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.

163-43. Imposition of tax.

A tax at the rate of 1% on each dollar is hereby imposed on all earned income and net profits, as defined herein, earned by residents of the Township of Upper Southampton on all earned income and net profits earned by nonresidents of the Township of Upper Southampton for work done or services performed or rendered in said township. This tax shall become effective April 1, 1991, and shall remain in effect thereafter on a calendar year basis without annual reenactment unless the rate of tax is subsequantly charged.

163-44. Declaration and payment of tax.

A. Net profits.

1. Every taxpayer making net profits shall on or before April 15 of each year make and file with the officer, on a form prescribed 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 on or before April 15 of the current year, July 15 of the current year, and January 15 of the succeeding year.

2. On or before April 15 of the succeeding year, every taxpayer shall make and filea return on a form prescribed by the officer showing the amount of net profits earned, the total amount of tax due and the total amount of tax paid thereon. At the time of filing the return, the taxpayer shall pay to the officer the balance of the tax due, or shall make demand for refund or credit in the case of overpayment . An incomplete or impoperly completed tax return shall be considered as not having been filed. Each final return shall be substantiated and supported by such United States Federal Income Tax Return forms as required by the officer, which shall at least include a copy of the federal W-2 form in the case of an earned income taxable, and Schedule C of the federal return as to a net profits taxable.

B. Earned income. Every taxpayer shall, on or before April 15, of the succeeding year, make and file with 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 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. An incomplete or improperly completed tax return shall be considered as not having been filed. Each final return shall be submitted and supported by such United States Federal Income Tax Return forms as required by the officer, which shall include a copy of the federal W-2 form in the case of an earned income taxable, and Schedule C of the federal return as to a net profit taxable.

C. 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 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, and January 31 of the succeeding year, setting forth the aggregate amount of earned income not subject to withholding 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 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.

163-45. Collection at source.

A. Every employer having an office, factory, workshop, branch, warehouse, or other placeof business within Upper Southampton Township 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 Upper Southampton Township 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 1 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 Decmeber 31 of the current year, respectively. Such return, unless otherwise agreed upon between the officer and employers, 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 and the political subdivision in which the employee resides, 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.

B. An employer who, for two of the preceding four quarterly returns, has failed to deduct the proper tax, or any part thereof, or has failed to pay over the proper amount of taxto 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.

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 showing withholding statement for each employee employed during all or 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 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.

D. 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 withholdingstatements hereinabove required and pay the tax due.

E. Except as otherwise provided, every employer who willfully or negligently fails or omitsto 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.

F. The failure or omission of any employer to make the deductions required by this sectionshall not relieve any employee from the payment of the tax or from complying with the requirement of the sections relating to the filing of declarations and returns.

163-46. Administration.

The earned income tax officer shall be selected from time to time by resolution thereof, and shall receive such compensation for his services and expenses as determined from time to time by, the Board of Supervisors. Such officer shall have the powers and duties, and shall be subject to the penalties, as provided in Section 6913, Subdivisions V, VI, and VII, of the Local Tax Enabling Act.

163-47. Powers and duties of officer; bond.

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 the date of such receipt.

B. Each officer, before entering upon his official duties, shall give and acknowledge a bond to the Township of Upper Southampton. If the Board of Sueprvisors shall, by ordinance, designate any bond previously given by the officer as adequate, such bond shall be sufficient to satisfy the requirements of this subsection.

1. Each bond shall be joint and several, with one or more corporate sureties which shall be surety companies authorized to do business in this commonwealth and duly licensed by the Insurance Commission of this commonwealth.

2. Each bond shall be conditioned upon the faithful discharge by the officer, his clerks, assistants and appointees of all trusts confided in him by virtue of his office, upon the faithful execution of all duties required by him according to law, of all moneys and all balances thereof paid to, received or held by virtue of his office, and upon the delivery to his successor or successors in office of all books, papers, documents or other official things held in right of his office.

Each such bond shall be taken in the name of the appointing authority or authorities, and shall be for the use of the political subdivision or political subdivisions appointing the officer, and for the use of such other person or persons for whom money shall otherwise appear, in case of a breach of any of the conditions thereof by the acts or neglect of the principle on the bond.

C. The officer charged with the adminsitration and enforcement of the provisions of this article 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 declarationsand 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 refundsin 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 rules or regulations of any kind shall be enforceable unless it haas been approved by the Board of Supervisors of Upper Southampton Township. A copy of such rules and regulations currently in force shall be available for public inspection.

D. The 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 authority.

E. The officer and agents designated by him are hereby authorized to examine the books, papers and records of any employer or of any taxpayeror 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, us 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.

F. 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.

G. The officer is authorized to establish different filing, reporting and payment date for taxpayers whose fiscal years do not coincide with the calendar year.

163-48. Suit for collection of tax.

A. The officer may sue in the name of the Township of Upper Southampton for recovery of taxes due and unpaid under this article.

B. Any suit brought to recover the tax imposed by this article shall begin 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 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 or return in the possession of the officer, revealsa 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 begin 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 Township of Upper Southampton from recovering delinquent taxes by any other means provided by law.

C. The officer may sue for recovery of an erroneous refund provided such suit is begun two years after making after making such refund, except that th esuit may be brought within five years if it appears that any part of the refund was induced by fraud or misrepresentation of material fact.

D. Compliance with other ordinances. Compliance with the requirements of this section shall not relieve any individual or entity of the necessity of compliance with the requirements of Chapter 134 of the Upper Southampton Township Code of Ordinances which sets forth requirements for certificates of occupancy.

163-49. Notification of occupancy.

A. No person, corporation, or entity shall move into or cause his personal property to be moved into any residential or nonresidential building without first having notified the township of the intent to do so. Said notification shall be made in duplicate on forms prepared by the township.

B. Notification forms. Notification forms shall be available at the township office during normal business hours. The forms shall set forth the name of the applicant, the location of the premises, the name of the owner, the address of the owner, the nature of the proposed use of the building by the previous owner, and the length of time that the prior use had been conducted by prior owners, and, if the property is used for residential purposes, the name and ages of all occupants.

C. Tenant reporting. In addition to the notification required above, the pwners of all tenant occupied property shall file with the township, on or before July 15 of each year, reports identifying any lessor or sublessor of property in Upper Southampton Township. This requirement shall apply to the owners of all residential, commercial, institutional, and/or industrial property. The reporting shall be in duplicate on forms prepared by the township, and shall set forth the name and mailing address of the owner, the names and mailing addresses of all occupants of the leased premises, the use proposed for the building, and the nature of the use conducted by the previous owner/tenant. The annual reporting shall be supplemented within 15 days of any change in occupancy of the leased premises.

D. Compliance with other ordinances. Compliance with the requirements of this section shall not relieve any individual or entity of the necessity of compliance with the requirements of Chapter 134 of the Upper Southampton Township Code of Ordinances which sets forth requirements for certificates of occupancy.

163-50. Interest and penalties.

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 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 therefore shall, in addition, be liable for the costs of collection and the interest and penalties herein imposed.

163-51. Violations and penalties; fines.

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 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 conviction thereof before any District Justice, or court of competent jurisdiction in the county, be sentenced to pay a fine of not more than $500 for each offense, and costs, and, in default of payment of said fine and costs, to be imprisoned for a period not exceeding 30 days. Each violation shall constitute a separate offense, punishable by a like fine or imprisonment for each day of continued violation.

B. Any person who divulges any information which is confidential under the provisions of this article shall, upon conviction thereof before any District Justice, or court of competent jurisdiction, be sentenced to pay a fine of not more than $500 for each offense, and costs, and, in default of payment of said fines and costs, to be imprisoned for a period not exceeding 30 days.

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.

E. Any person or entity which fails to comply with the reporting requirements of Section 163-49 of this article, shall, upon conviction thereof before any District Justice or court of competent jurisdiction, be sentenced to pay a fine of not more than $500 for each offense, and costs, and, in default of payment of said fines and costs, to be imprisoned for a period not exceeding 30 days.