Every taxpayer is obligated to pay all taxes by the School District to which the taxpayer is subject. When taxes are not paid or a school district has questions about whether a taxpayer has fulfilled all tax obligations, the school district has legal rights to enforce taxpayer obligations. In conjunction with taxpayer obligations and school district rights, the Commonwealth of Pennsylvania has enacted a Local Taxpayers Bill of Rights which grants legal rights to taxpayers, and creates obligations for school districts so that equity and fairness control how school districts collect taxes. This document is the School District Disclosure Statement required by the Bill of Rights. This document is merely a summary of your rights. For a complete statement of your rights and the obligations of the School District, see 53 P.S. Subch. C.

APPLICABILITY/ELIGIBLE TAXES

This Disclosure Statement applies to earned income taxes levied by the participating School Districts and Municipalities of the Municipal and School Earned Income Tax Office. For this purpose, eligible taxes include any earned income tax levied by the School Districts and Municipalities. This Disclosure Statement does not apply to real estate taxes. Unless expressly provided in the Local Taxpayers Bill of Rights, the failure of any Municipal and School Tax Office representative to comply with any provision of this Disclosure Statement, related regulations or the Local Taxpayers Bill of Rights will not excuse the taxpayer from paying the taxes owed.

TAXPAYER RIGHTS AND MUNICIPAL AND SCHOOL TAX OFFICE OBLIGATIONS WHEN THE MUNICIPAL AND SCHOOL TAX OFFICE REQUESTS INFORMATION OR AUDITS TAXPAYER RECORDS

Minimum Time Period For Taxpayer Response
* The taxpayer has 30 calendar days from the mailing date to respond to the Municipal and School Tax Office requests for tax information.
* Upon written request, the Municipal and School Tax Office will grant reasonable time extensions for good cause.
* The Municipal and School Tax Office will notify the taxpayer of the procedures to obtain an extension in its initial request for tax information.
Requests For Prior Year Returns
* An initial Municipal and School Tax Office request may cover only taxes to be paid or tax returns required to be filed no more than 3 years prior to the mailing date of the request.
* The Municipal and School Tax Office may make a subsequent request relating to other taxes or returns if, after the initial request, the Municipal and School Tax Office determines that the taxpayer failed to file a tax return, underreported income, or failed to pay a tax for one or more of the tax periods covered by the initial request.
Use of Federal Tax Information
* The Municipal and School Tax Office may require a taxpayer to provide copies of federal tax returns if the Municipal and School Tax Office can show that the information is reasonably necessary for enforcement or collection of a tax and the information is not available from the Pennsylvania Department of Revenue or other sources.

A taxpayer may file a written request with the Municipal and School Tax Office for a refund or credit. The filing of a written request will not preclude a taxpayer from later filing a tax appeal petition as discussed below. The request must be made within 3 years of the due date for filing the return or 1 year after payment of the tax, whichever is later. If no return is required, the request must be made within 3 years after the payment due date, or within 1 year after payment, whichever is later. A tax return filed by the taxpayer showing a tax overpayment will be considered a written request for a cash refund unless the return indicates otherwise. If the taxpayer pays a tax as a result of receiving a notice of underpayment, the taxpayer must file a written request for a refund within 1 year of the payment date. Subject to certain exceptions, the Municipal and School Tax Office will pay interest, at a rate determined pursuant to state law, from the date of overpayment until the date of resolution.

TAX ASSESSMENT/UNDERPAYMENT/REQUIRED NOTICE

The Municipal and School Tax Office must notify the taxpayer in writing of the basis for any underpayment determined by the Municipal and School Tax Office.

Tax Appeal Petition
* To appeal a tax assessment or denial of a refund request, the taxpayer must file a Tax Appeal Petition with the Tax Appeals Board. The petition must be mailed or delivered to the attention of Tax Office Manager at the following address:
Municipal & School Income Tax Office
203 West Third Street
Williamsport, PA 17701

* Tax Appeal Petitions requesting a refund must be filed within the time set forth above under "Tax Overpayment Refunds."
* Tax Appeal Petitions appealing a tax or notice of underpayment must be filed within 90 days after the date of the tax or underpayment notice.
* Regulations regarding the form and content of petitions, as well practice and procedures for tax appeals may be obtained in person, or by mailing a request to the above address, or by calling the Municipal and School Tax Office at 570-327-5500 ext. 3540 during the hours of 8:00 a.m. to 4:00 p.m.

Municipal and School Tax Office Decision

* The Municipal and School Tax Office will issue a decision on Tax Appeal Petitions within 60 days after receipt of a complete and accurate petition.
* If the petition was complete and accurate when filed, the Municipal and School Tax Office's failure to render a decision within 60 days will result in the petition being deemed approved.

Appeals To Court

* Any person aggrieved by a decision of the Municipal and School Tax Office who has a direct interest in the decision has the right to appeal to the County Court of Common Pleas.
* Appeals to court must be filed with the court within 30 days after the date of the Municipal and School Tax Office's adverse decision.

SCHOOL DISTRICT ENFORCEMENT PROCEDURES

If a taxpayer has not paid an Earned Income Tax liability determined to be due or which the Municipal and School Tax Office has reason to believe might be due, possible Municipal and School Tax Office enforcement options include:
* Inquiry by Municipal and School Tax Office to taxpayer.
* The Municipal and School Tax Office may contact the taxpayer and attempt to resolve the liability through payment in full, an installment payment plan, or compromise.
* The Municipal and School Tax Office may employ private collection agencies to collect the tax.
* The Municipal and School Tax Office may file a lien against the taxpayer, and in some cases, against an employer or other person responsible for payment of the tax.
* The Municipal and School Tax Office may attach or require an employer to make reductions in the wages or earnings of the taxpayer.
* The Municipal and School Tax Office may file suit against the taxpayer before a district justice or in the County Court of Common Pleas.
* The Municipal and School Tax Office may execute and attach taxpayer bank accounts, sell taxpayers vehicles, other personal property or real estate, based on a judgement or lien obtained through legal proceedings.
* The Municipal and School Tax Office may seek criminal prosecution of the taxpayer.

TAX INFORMATION CONFIDENTIALITY

Information gained by the Municipal and School Tax Office as the result of any audit, return, report, investigation, hearing or verification shall be confidential. However, confidentiality will not preclude disclosure for official purposes, whether in connection with legal proceedings or otherwise, and will not preclude disclosure to the extent required by any applicable law.

TAXPAYER COMPLAINTS

If a taxpayer has a complaint about a Municipal and School District Earned Income Tax Office action relating to taxes, The Tax Officer may be contacted in writing at 203 West Third Street, Williamsport, PA 17701. The Tax Officer or another person designated by the Williamsport Area School Board will facilitate resolution of the complaint by working with the appropriate Municipal and School Tax Office personnel.

You are entitled to receive a written explanation of your rights with regard to the assessment, audit, appeal, enforcement, refund, and collection of the earned income taxes. The written explanation is entitled Municipal and School District Earned Income Taxpayers Bill of Rights Disclosure Statement. Upon receiving a request from you, the Municipal and School District Earned Income Tax Office will give you a copy of the Disclosure Statement at no charge. You may request a copy in person, or by mailing a request to the following address:

A copy will also be mailed to you if you call the Municipal and School District Earned Income Tax Office at the following number:

You may call the above telephone number or appear in person at the above address to request a copy during the hours of 8:00 a.m. to 4:00 p.m. on any weekday other than a holiday.

Under Pennsylvania Law (53 P.S. # 8424, Act 50), you have 30 calendar days from the mailing date of this information request to respond by: (1) providing the Municipal and School Earned Income Tax Office with the requested information: or (2) requesting an extension of time in which to provide the requested information. If you need an extension, send a written request, specifying the reasons for the extension and the facts supporting those reasons, to the following address:

Reasonable time extensions will be granted for good cause. The Municipal and School Earned Income Tax Office will notify you in writing of whether a time extension has been granted. If your request is granted, the Municipal and School Earned Income Tax Office will inform you of the amount of the time Extension. If your request is denied, the Municipal and School Earned Income Tax Office will inform you of the basis for its denial and that you must immediately provide the requested information.

I. TAX BASE

A. "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 in property. Compensation as determined under Section 303 of the Act of March 4, 1971 (P.L.6 No. 2) known as the “Tax Reform Code of 1971” and regulations in 61 Pa. Code PT I Subpt. B Art. V (relating to personal income tax).

B. "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 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. Each business or profession is taxed separately and net profits are to be determined with reference only to the gross income and expenses of that business, without mixing the income of one enterprise with the expenses of another. (See Aronson V. City of Pittsburgh, Commonwealth Court, 485 A 2d 890 (1985). 555 A. 2d 1288 (1989). A loss in the "Net Profits" class of income may be offset against "earned income." (See O'Reilly V. Foxchapel School District PA Supreme Court 555 A 2nd 1288 (1989). Net profits shall be determined under Section 303 of the Act of March 4, 1971 Code PT I Subpt. B Art. V (relating to personal income tax).

**ACTIVE DUTY PAY, MILITARY-IF PERFORMED IN THE STATE OF PENNSYLVANIA

AWARDS

BACK PAY AWARDS

BONUSES

CAFETERIA PLAN :
(The Tax Office will follow Pennsylvania State Income Tax Regulations.) A plan which allows pre-tax employee deductions for a given benefit.

CASH FOR OPTING OUT OF A BENEFIT PLAN:
Ex. - employee does not elect employer provided coverage for medical, he then receives a pre-determined amount of cash for electing no coverage.
FLEXIBLE SPENDING ACCOUNTS:
Dependent Care, $5,000 limit 401 (K):
Employee deductions for a 401 (K) plan

GROUP LEGAL ASSISTANCE:
Employee deductions for Group Legal.

VACATION:
Employee buys extra days.
Employee sells extra days.

CAPITAL GAINS if on PA Schedule C

COMMISSIONS

COURT AWARDS:
to the extent that they represent back wages.

COVENANTS NOT TO COMPETE (3/12/98)

DEFERRED COMPENSATION PLAN CONTRIBUTION:
(401K, 403B, pure annuity, 408K6, 414H2, 457, 501C, TSA)

DEPENDENT CARE ASSISTANCE

DIRECTORS FEES:
unless in the business of being a director.

EMPLOYEE DISCOUNTS:
if Federally Taxable (20 percent or more).

EMPLOYEE STOCK OPTIONS:
(when exercised). (See Marchlen V. The Township of Mt. Lebanon)

EMPLOYERS CONTRIBUTION TO A "CAFETERIA PLAN":
to the extent employee could have elected taxable benefits.

EXECUTOR'S FEES

FELLOWSHIP:
if the recipient is required to provide a substantial service, e.g., Advance Research/Teaching, unless excluded below.

FINANCIAL PLANNING AND COUNSELING FEES:
provided by outside consultant.

GIFTS FROM EMPLOYER

GOLDEN PARACHUTE PAYMENTS:
regular salary or those deemed excess compensation subject to 20% Federal Excess Tax.

GRATUITIES

GROUP LEGAL SERVICES

HOLIDAY PAY

HONORARIA

INCENTIVE PAYMENTS

INTEREST EARNED ON BUSINESS ACCOUNTS

INTEREST:
on below market loans.

JURY DUTY

MEALS AND LODGING:
not for employers convenience.

MORTGAGE ASSISTANCE IN LIEU OF OTHER COMPENSATION

NATIONAL GUARD/RESERVE:
**including active duty within Pennsylvania.

NON-CASH PAYMENT FOR SERVICES RENDERED

NON-QUALIFIED RETIREMENT PLAN WITHDRAWALS

NON QUALIFIED STOCK BONUS INCENTIVE PLAN:
employer contributions: forfeitable and non-forfeitable.

PAYMENT INCENTIVES FOR EARLY RETIREMENT

PAYMENTS IN LIEU OF BENEFITS:
(ex: employee receives cash for not participating in health insurance plan)

PAYMENTS REALIZED IN THE FORM OF DEBT FORGIVENESS:
as payment for compensable services.

PREMATURE PROFIT DISTRIBUTION:
not rolled over into a qualified pension plan, individual retirement account or an annuity plan.

PREMATURE WITHDRAWAL OR EARLY DISTRIBUTION:
from retirement or pension plan on the contributions not taxed when earned, including employer contributions, interest earned and employee contributions actually received by the taxpayer from a regular IRA or from a Roth IRA to the extent not previously taxed, according to Pennsylvania State Tax regulations.

PRE-TAX ITEMS :
under Sec 125 Cafeteria Plan. (The tax office will follow Pennsylvania State Income Tax Regulations)

PRIZES

PROCEEDS FROM PROFIT SHARING PLANS:
unless qualifying as the sole retirement plan.

REIMBURSED MOVING EXPENSES:
in excess of allowable expenses on Schedule.(The tax office will follow Pennsylvania State Income Tax Regulations)

REIMBURSEMENTS AND ALLOWANCES:
in excess of allowable business expenses on Schedule UE.

RESERVE MILITARY SERVICE PAY:
**including active duty within Pennsylvania.

SALARIES

SCHOLARSHIPS STIPENDS, GRANTS AND FELLOWSHIPS:
if services are rendered in connection therewith.

SEVERANCE PAY

SICK PAY (if wage continuation)

STIPENDS:
paid to medical interns and residents pursuant to an internship or residency program that conforms with the "Essentials of an Approved Internship" or the "Essentials of an Approved Residency" as established by the American Medical Association are taxable.

STOCK BONUS PLANS

STOCK OPTIONS (WHEN EXERCISED BY EMPLOYEE)

TAXES:
paid by employer on behalf of employee.

TERMINATION / SEVERANCE PAY

TIPS (allocated or not)

TUITION FORGIVENESS / REDUCTION:
to Federal limit and not for employers benefit.

VACATION / HOLIDAY PAY

WAGES

A. Income from rentals and/or sales of Real Estate. For the purpose of this regulation the following terms shall have the definitions hereinafter given. "Real Estate" shall embrace lots, buildings, apartments, hotels, hotel buildings, office buildings, apartment houses, single dwellings, duplex apartments, garages and similar structures.

"Labor" is intended to apply to janitor, maid or supervisory service, whether performed by the owner, his agents or employees.

"Service" shall include elevator, heat, light, power and the like.

1. Income from rental of real estate: Rental income received from the operation by persons, trust companies or real estate agents, acting for or on behalf of persons or estates, is subject to the tax if the owner, either himself or through agents or servants, actively manages and supervises the real estate by providing labor and service in connection therewith.

2. The furnishing of labor and service signify "activity" and participation on the part of the taxpayer and classifies him as conducting or carrying on a "business" as defined for this tax.

3. If a person owns several parcels of real estate from which he receives rental income and provides services as to some of the properties, he is only liable for the tax on the net rentals of those properties in connection with which services are furnished.

4. Where, however, the rental income is derived merely from the passive ownership of real estate, it is not taxable even though the owner or his agents may make repairs or do such other acts which an owner normally does to preserve his property.

5. When any property falls within the taxable classification above given, the manner of its acquisition, i.e., purchase, gift, inheritance, fiduciary, or as fiduciary mortgagee in possession, etc. does not affect the taxability of the income derived there from.

6. Where a taxpayer is in doubt as to the taxable status of rental income, or the gain or profit from sale of real estate he shall submit a detailed written statement to the Officer for a ruling.

B. Fiduciaries: A fiduciary is a person who holds in trust, property, monies or properties to which another has a beneficial title or interest, or who received and controls income for another person or persons. Commissions or fees received by a fiduciary constitute taxable income, where a fiduciary is regularly engaged in a business or profession as a fiduciary, or is engaged in a business or profession commonly regarded as being incidental or collateral thereto, for example, an attorney-at-law, real estate agent, etc., or if such commission or fees represent a substantial portion of the earnings or income of the fiduciary; or, when the administration of the trust requires a substantial portion of the fiduciary's available working time.

C. Royalties: Income received as a "royalty" is considered taxable under this tax. This type of income includes monies received by the owner of a patent or private formula for the use of it, or the right to act under it; or by the author of a book; or by the owner of a mine for permitting another to remove materials from it.

D. Payments received from government in support of agriculture including payments for not farming.

E. Income received from an LLC (Limited Liability Company) if income is subject to Social Security Tax.

F. “Bonus Depreciation” and Section 179 Deduction amounts are to be calculated for local income tax purposes in the same manner calculated for Pennsylvania personal income purposes and not as according to federal income tax provisions.

ACTIVE DUTY PAY, **MILITARY-PERFORMED OUTSIDE OF PENNSYLVANIA

AGENT ORANGE AND VIETNAM herbicide litigation awards.

AIR TRAVEL - Fair Market value of employer provided.

ALIMONY

BONUSES:
by a state or the United States for active military service.

CAFETERIA PLAN:
(The Tax Office will follow Pennsylvania State Income Tax Regulations.)

AD&D:
Employee deductions for an accidental death and dismemberment plans.

DENTAL:
Employee deductions for Dental Plan.

LIFE INSURANCE:
Employee deductions for Whole Life Group Term Life.

LTD:
Employee deductions for Long Term Disability.

MEDICAL:
Employee deductions for Health Insurance Programs, Hospitalizations, and HMO's.
Flexible medical spending accounts.

VISION:
Employee deductions for a vision care plan.

CAPITAL GAINS--Unless on PA Schedule C

CHILD SUPPORT

DEATH BENEFITS:
wages earned through date of death and gifts paid to family.

DEPENDENT CARE FACILITY PROVIDED BY EMPLOYER

DISABILITY

DIVIDENDS

EMPLOYER PAID MEDICAL, DENTAL, AND LIFE INSURANCE PREMIUMS

FELLOWSHIPS:
based on need or academic achievement.

FINANCIAL PLANNING AND COUNSELING FEES:
provided by company employee.

GAMBLING/LOTTERY WINNINGS

GIFTS

HEALTH INSURANCE PAID BY S-CORP FOR SHAREHOLDER

INHERITANCE

IRA PAYMENTS RECEIVED UPON RETIREMENT

INSURANCE PAYMENTS

INTEREST

LIFE INSURANCE PREMIUMS:
group term life and other.

LIFE INSURANCE PROCEEDS

LONG TERM DISABILITY

LOTTERY WINNINGS

MEALS AND LODGING:
employer's convenience.

CONTRIBUTIONS TO NON-QUALIFIED RETIREMENT PLANS 

OCCUPATIONAL DISEASE ACTS

PARSONAGE/ HOUSING/ RENT/ UTILITIES PAYMENTS received by member of clergy

PENSIONS (received under normal retirement conditions)

PERSONAL INJURY AWARDS

PERMANENT LOSS OF BODY FUNCTION:
disfigurement or medical expense reimbursement- amounts received.

PRIZES AND AWARDS

PROFITS APPLICABLE TO LIMITED PARTNERS WITHIN A LIMITED PARTNERSHIP ENTITY

PROFIT FROM THE CASUAL EXCHANGE OR SALE OF PROPERTY

PUBLIC ASSISTANCE

RELOCATION:
up to Pennsylvania State allowance.

RENT RECEIVED WITHOUT THE PROVISION OR SERVICES

RETIREMENT

SCHOLARSHIPS

S CORPORATION INCOME

SICK PAY, THIRD PARTY

SOCIAL SECURITY

STRIKE BENEFITS

TIMBER, SALE OF--If on PA Schedule C

TUITION:
for employers benefit.

UNEMPLOYMENT COMPENSATION

VETERANS RETIREMENT OR DISABILITY

WORKER'S COMPENSATION

A. No reimbursement is made by the employer.

B. They are reasonable and actual.

C. They are recognized as deductions by the State of Pennsylvania for income for tax purposes.

1. Illustration of expense which may be deducted:

(a). Transportation while on the employer's business. If you lease a car for 30 days or more, you may have to include an "inclusion amount", as required by IRS regulations, in your income for each year you lease the car.
(b). Meals, lodging and tips if away at least overnight.
(c). Business phone calls.

2. Examples of expenses which may not be deducted:

(a). Personal, family or living expenses.
(b). Commuting to and from work.
(c). Old age benefit taxes.
(d). Federal Income Tax, Gift, Inheritance and Estate Taxes.
(e). Group Insurance.
(f). Hospitalizations.
(g). Telephone for convenience of employee.
(h). Pension plan payments, including IRA's, Keogh, Section 401 (K) plans.
(i). Personal Taxes
(j). Contributions to deferred compensation plans.

VI RETURNS WHICH MUST BE FILED

A. WITHHOLDING RETURN: An individual, co-partnership, LLC, LLP association, corporation, trust, estate, or governmental body or unit (other than the Federal Government), or any other entity who or that employs one or more persons on a salary, wage, commission or other compensation, must file a quarterly return of tax withheld and an annual return (w-2 is preferred, list acceptable) showing total gross wages and local tax withheld.

B. NET PROFIT RETURN: An individual, co-partnership, association, or joint venture, must file a return on Net Profits Earned from the conduct of a business, profession or other activity.

C. PARTNERSHIP RETURN: A co-partnership, association or joint venture is not considered to be a taxable unit. The return is filed by the partnership as an entity, however, the co-partners are individually liable for payment of their tax. Every partnership domiciled or maintaining a place of business within the taxing district shall make a return for each taxable period, stating specifically, the items of its gross earned income and the deductions allowed and shall include in the return the names and addresses of the individuals who should be entitled to share in the net profits, if distributed (or net loss if applicable) and the distributive share of each individual. The return shall be sworn to by any one of the partners.

D. S. CORPORATION RETURN: An S Corporation is not required to file a return nor is the share holder's share of profits taxable to the individual. Officers of S Corps must pay tax on salaries and wages received or on an amount that represents compensation for services performed for the corporation.

E. LIMITED LIABILITY COMPANY (LLC): An LLC is not considered to be a taxable unit, however, if the LLC elects to be taxed as a partnership, the members are to be individually liable for the payment of their tax. Every LLC, which has been elected partnership, status shall make a return for each taxable period stating specifically the items of its gross earned income and the deductions allowed and shall include in the return the names and addressed of the individuals who shall be entitled to share in the net profits (or net loss). The return shall be sworn to by any one of the members.

F. INDIVIDUAL RETURNS: Every individual resident (no joint returns permitted) of the taxing district who has "earned income" or “net profits” shall file a tax return. Such return shall set forth the items of "earned income" and "net profits"; the individual's name, address, social security number and taxing district. Copies of W-2 forms, 1099's and appropriate income (1040 C, F, K-1, etc.) and expense (2106, UE1, UE2, etc.) schedules, must be attached. With regard to "net profits" each business or profession is taxed separately, see Section I (B) of these regulations, and a loss in "net profits" may be offset against "earned income."

VII. NON-RESIDENT TAXATION

For Districts that levy a non-resident tax, the entire earned income/compensation and net profits received and/or earned by a non-resident of the Taxing District who is employed in the Taxing District or engaged in the operation of a business, profession, or other activity for income or profit in the Taxing District, and is not required to pay a similar tax elsewhere, is subject to this tax; provided, however, that non-residents are not subject to taxation by school districts.

Any person claiming non-residency status must provide proof of non-residency such as a passport with a valid student or exchange visitor’s visa, a driver’s license, a local tax return from his or her resident municipality, voter registration card, or other acceptable documen- tation. Any person claiming non-residency exemption status must provide proof of payment of the local earned income/compensation and net profits tax elsewhere for the concurrent time period.

The earned income/compensation tax, as levied on non-residents by the Ordinances and Resolutions of the municipalities, shall relate to and is imposed at the rate of one percent (1%) upon the salaries, wages, commissions and other compensation paid by an employer or on his or her behalf to a person who is employed by him or her. Therefore, if an employer has its place of business within the municipality employs an individual, and all salaries, wages, etc., are paid to the employee from said employer, then wages, salaries, etc. are taxable at the rate of one percent (1%). It makes no difference that the employee spends a significant amount of time outside the municipality on business. The critical factor is whether the salaries, wages, etc. are paid to the employee from the employer or business located within out taxing jurisdiction(s). If this is the case, then the TAX is properly levied and no refunds should be issued.

VIII. ESTIMATED TAX

A. Every taxpayer of the taxing district, having a tax liability of $100.00 or more shall make payment of estimated income tax. The quarterly installments shall be due April 15, June 15, September 15 of the tax year and January 15 of the tax year following. Failure to make estimated payment will result in the imposition of interest and penalty as set forth in section XIII.

IX. WAGE ATTACHMENTS

The Municipal and School Earned Income Tax Office will issue wage attachments for unpaid taxes in accordance with Pennsylvania laws.

X. BAD CHECKS

The Municipal and School Earned Income Tax Office may charge a fee for collection on any check that is returned.

XI. CHANGES IN THE LANGUAGE OF ACT 511 BY THE PENNSYLVANIA GENERAL ASSEMBLY

Should the Pennsylvania General Assembly amend Act 511 language, the amended language shall be incorporated into these rules and regulations.

XII. ACCOUNTING, PAYMENT AND RECORDS, ACCOUNTING METHODS

No uniform method of accounting is prescribed. Each taxpayer shall adopt such forms and methods of accounting as in his judgment are best suited for his purpose. The two principal methods of accounting are: (1) the cash receipts and disbursement method and (2) the “accrual basis” method. If the method employed does not clearly reflect the net income, the computation shall be made by the Income Tax Officer, in accordance with generally accepted accounting principals, to clearly reflect the net income.

ACCOUNTING PERIOD

If the taxpayer has no annual accounting period of does not keep books, the net income shall be computed on the basis of the calendar year.

NET LOSS

“Net Loss” in any year may not be carried to another year.

PAYMENT BY EMPLOYERS

Employers who withhold tax must file a return and pay any balance due by the last day of the month following the end of the quarter. The return must contain the names, addresses, social security numbers, gross wages and amount withheld for all employees. Employers who withhold a tax amounting to more than fifty dollars ($50.00) during the first or second months of any calendar quarter, shall remit the actual amount of the tax so withheld to the Municipal and School Income Tax Officer on or before the fifteenth (15th) of the month next following the month during which the tax was deducted. Employers have the option of filing quarterly returns on 3.5 disks. Formatting instructions are available by calling the office at (570)327-5500 ext 3540.

WITHHOLDING BY AGREEMENT

Employers although not required to withhold a tax from the earnings of Domestic Servants, Farm Labor or Casual Labor not in the usual course of business may voluntarily agree with such employees to withhold the tax and remit it to the tax officer.

PLACE AND MANNER OF PAYMENT

All Income tax shall be paid at the Municipal and School Income Tax Office. All checks for the tax shall be made payable to the Income Tax Officer. Taxpayers are not required to remit amounts of $1.00 or less. The tax office will not refund or credit amounts of $1.00 or less.

RECORDS TO BE KEPT BY TAXPAYERS

Taxpayers and employers are required to keep such records as will enable the filing of true and accurate declarations and returns, whether of taxes withheld at source or of taxes payable upon earnings or net profits, or such records shall be preserved for a period of not less than six (6) years in order to enable the Income Tax Officer or any agent designated by him to verify the correctness of the declarations or returns filed.

XIII. INTEREST,PENALTIES, & FEES

If for any reason the tax is not paid when due, interest and penalty at the rate of one percent (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 for any return, declaration or payment required by the tax enactment. 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 penalty herein imposed. Penalty on estimated tax payments will not be assessed if the total estimated payment equals the total tax for the preceding tax year or 90% of the current tax year.

XIV. TAXPAYER BILL OF RIGHTS

In accordance with Act 50 of 1998 the Municipal and School Income Tax Office has adopted a Taxpayer's Bill of Rights. A copy may be obtained in person or by mail at: 203 West Third Street, Williamsport, PA 17701, by calling 570-327-5500 ext. 3540, or by fax 570-327-0650. The Bill of Rights may also be accessed on our web site.

NOTE: In accordance with House Bill 1535, effective January 30, 2005, the Tax Office shall impose reasonable fees to provide notices of delinquency or to implement similar procedures utilized to collect delinquent taxes. A fee in the amount of $20.00 will be assessed on all mailings, except the initial notice. This includes, but is not limited to, second notice for no payment or schedule, certified notice, payment plans, audit letter, examination letter, failure to file letter. The tax office shall prepare, and from time to time update, the fee schedule viewable at our Latest News. The fee schedule shall be posted at the tax office.

*In accordance to HB 1206 of 2003 all active duty is exempt.*

Send questions or comments to: Jeanette Bower