Section 6924.502 - Declaration and payment of income taxes(a)Application.--(1) Income taxes shall be applicable to taxable income earned or received based on the method of accounting used by the taxpayer in the period beginning January 1 of the current year and ending December 31 of the current year, except that taxes imposed for the first time and changes to existing tax rates shall become effective on January 1 or July 1, as specified in the ordinance or resolution, and the tax shall continue in force on a calendar year or taxpayer fiscal year basis, without annual reenactment, unless the rate of the tax is subsequently changed.(2) For a taxpayer whose fiscal year is not a calendar year, the tax officer shall establish deadlines for filing, reporting and payment of taxes which provide time periods equivalent to those provided for a calendar year taxpayer.(b)Partial domicile.--The taxable income subject to tax of a taxpayer who is domiciled in a political subdivision for only a portion of the tax year shall be an amount equal to the taxpayer's taxable income multiplied by a fraction, the numerator of which is the number of calendar months during the tax year that the individual is domiciled in the political subdivision, and the denominator of which is 12. A taxpayer shall include in the numerator any calendar month during which the taxpayer is domiciled for more than half the calendar month. A day that a taxpayer's domicile changes shall be included as a day the individual is in the new domicile and not the old domicile. If the number of days in the calendar month in which the individual lived in the old and new domiciles are equal, the calendar month shall be included in calculating the number of months in the new domicile.(c)Declaration and payment.--Except as provided in subsections (a)(2) and (d), taxpayers shall declare and pay income taxes as follows: (1) Every taxpayer shall make and file with the resident tax officer, a final return showing the amount of taxable 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 on the taxable income, the amount of tax paid, the amount of tax that has been withheld under section 512 and the balance of tax due. All amounts reported shall be rounded to the nearest whole dollar. At the time of filing the final return, the taxpayer shall pay the resident tax officer the balance of the tax due or shall make demand for refund or credit in the case of overpayment. Taxpayers may use the Annual Local Earned Income Tax Return form available from the department's publicly accessible Internet website to file the final return.(2)(i) Every taxpayer making net profits shall, by April 15 of the current year, make and file with the resident tax officer a declaration of the taxpayer's estimated net profits during the period beginning January 1 and ending December 31 of the current year, and shall pay to the resident tax officer in four equal quarterly installments the tax due on the estimated net profits. The first installment shall be paid at the time of filing the declaration, and the other installments shall be paid on or before July 15 of the current year, October 15 of the current year and January 15 of the succeeding year, respectively.(ii) Any taxpayer who first anticipates any net profit after April 15 of the current year shall make and file the declaration required on or before July 15 of the current year, October 15 of the current year or January 15 of the succeeding year, whichever date next follows the date on which the taxpayer first anticipates such net profit, and shall pay to the resident tax officer in equal installments the tax due on or before the quarterly payment dates that remain after the filing of the declaration.(iii) Every taxpayer shall make and file with the resident tax officer a final return showing the amount of net profits earned or received based on the method of accounting used by the taxpayer during the period beginning January 1 of the current year, and ending December 31 of the current year, the total amount of tax due on the net profits and the total amount of tax paid. At the time of filing the final return, the taxpayer shall pay to the resident tax officer the balance of tax due or shall make demand for refund or credit in the case of overpayment. Any taxpayer may, in lieu of paying the fourth quarterly installment of the estimated tax, elect to make and file with the resident tax officer on or before January 31 of the succeeding year, the final return.(iv) The department, in consultation with the Department of Revenue, shall provide by regulation for the filing of adjusted declarations of estimated net profits and for the payments of the estimated tax in cases where a taxpayer who has filed the declaration required under this subsection anticipates additional net profits not previously declared or has overestimated anticipated net profits.(v) Every taxpayer who discontinues business prior to December 31 of the current year, shall, within 30 days after the discontinuance of business, file a final return as required under this paragraph and pay the tax due.(3) Every taxpayer who receives any other taxable income not subject to withholding under section 512(3) shall make and file with the resident tax officer a quarterly return on or before April 15 of the current year, July 15 of the current year, October 15 of the current year, and January 15 of the succeeding year, setting forth the aggregate amount of taxable income not subject to withholding by the taxpayer 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 income tax, together with such other information as the department may require. Every taxpayer filing a return shall, at the time of filing the return, pay to the resident tax officer the amount of income tax due. The department shall establish criteria under which the tax officer may waive the quarterly return and payment of the income tax and permit a taxpayer to file the receipt of taxable income on the taxpayer's annual return and pay the income tax due on or before April 15 of the succeeding year.(4) The filing deadline of a final return under paragraphs (1) and (2)(iii) shall coincide with the filing deadline for a tax return under section 330(a) of the act of March 4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971. If any date prescribed in this section for filing or payment of tax should fall on a Saturday, Sunday or legal holiday, the taxpayer may file or make payment on the next business day.(5) Every taxpayer subject to the declaration and payment provisions under this section shall be deemed to have met the requirements and therefore not be subject to a penalty so long as one of the following safe harbor exceptions is met: (i) Make four equal, timely estimated payments equal to 100% of the prior year's tax less any earned income tax withheld for the current year.(ii) Make four equal, timely estimated payments equal to 90% of the current year's tax less any earned income tax withheld for the current year.(d)Filing of estimated tax by taxpayers whose major source of gross income is from farming.--Notwithstanding any other provision of this section, a declaration of estimated tax of an individual having an estimated gross income from farming for the taxable year which is at least two-thirds of his total estimated gross income for the taxable year may be filed at any time on or before January 15 of the succeeding year, but if the farmer files a final return and pays the entire tax by March 1, the return may be considered as his declaration due on or before January 15.(e)Restrictions.--In administering the provisions of this section, no political subdivision, tax collection committee or tax officer may:(1) Prohibit a taxpayer from filing any return or declaration required under this section in person or by first class mail.(2) Prohibit a taxpayer from filing any local income tax return form, estimated tax return form or other form related to any filing required under this section that has been posted by the department on its publicly accessible Internet website.(3) Impose a penalty for failing to timely file a quarterly estimated tax return for which no payment of estimated tax was due, as shown in the taxpayer's annual income tax return.(4) Impose a penalty on a taxpayer unless it has issued a letter that notifies the taxpayer that the taxpayer is required to take corrective action within 30 days and failure to take corrective action will result in a penalty being imposed on the taxpayer.1965, Dec. 31, P.L. 1257, § 502, added 2008, July 2, P.L. 197, No. 32, § 23, imd. effective. Amended 2016, Nov. 4, P.L. 1154, No. 150, § 2, effective in 180 days [May 3, 2017]; 2018, May 4, P.L. 102, No. 18, § 5, effective in 60 days [July 3, 2018]; 2022, April 19, P.L. 59, No. 17, § 1, imd. effective.Section 2 of the 2022 amendment of section 502(c)(1), (2)(iii) and (4) of provides that the act shall apply to a final return first due after the effective date of this section [4/19/2022].Section 3 of the 2022 amendment provides that the act shall preempt and supersede any ordinance, resolution or rule of any political subdivision, tax collection officer or tax collection committee.