[Adopted 5-25-2004 by Ord. No. 2004-350[1]; amended in its entirety 6-13-2011 by Ord. No. 2011-397]
[1]
Editor’s Note: This ordinance also replaced and repealed former Art. II, Earned Income Tax, adopted 12-19-1966 by Ord. No. 83, with the expressed purpose of ensuring "proper, logical and accurate notice of regulations pertaining to earned income taxes."
For purposes of this ordinance, all terms defined in the Local Tax Enabling Act, 53 P.S. § 6924.101 et seq., shall have the meanings set forth therein, except as modified below. The following terms shall have the meanings set forth herein:
EFFECTIVE DATE
January 1, 2012.
LOCAL TAX ENABLING ACT
The Local Tax Enabling Act, 53 P.S. § 6924.101 et seq., and as amended in the future, including any regulations adopted by the Department of Community and Economic Development thereunder.
TAX OFFICER
The person or entity appointed as tax officer pursuant to the Local Tax Enabling Act to collect the tax in the TCD.
TAXPAYER
A person or business required under this ordinance or the Local Tax Enabling Act to file a return of an income tax or to pay an income tax.
TAX RETURN
A form prescribed by the tax officer, and approved by the TCC, for reporting the amount of tax or other amount owed or required to be withheld, remitted, or reported under this ordinance or the Local Tax Enabling Act.
TAX YEAR
The period from January 1 to December 31.
TCC
The Tax Collection Committee established to govern and oversee the collection of earned income tax within the TCD under the Local Tax Enabling Act.
TCD
The Northampton Tax Collection District, or any future tax collection district, to which the Township of Palmer or any part of the Township of Palmer is assigned under the Local Tax Enabling Act.
A. 
General purpose resident tax. The Township of Palmer hereby imposes a tax for general revenue purposes at the rate of 1% on earned income and net profits of individual residents of the Township of Palmer.
B. 
General purpose municipal nonresident tax. The Township of Palmer also imposes a tax for general revenue purposes at the rate of 1% on earned income and net profits derived by an individual nonresident from any work, business, profession, or activity of any kind engaged in within the boundaries of the Township of Palmer.
C. 
Ongoing tax. The tax shall continue at the above rates during the current tax year and each tax year thereafter, without annual reenactment, until this ordinance is repealed or the rate is changed.
D. 
Local Tax Enabling Act applicable. The tax is imposed under authority of the Local Tax Enabling Act, and all provisions thereof that relate to a tax on earned income or net profits are incorporated into this ordinance. Any future amendments to the Local Tax Enabling Act that are required to be applied to a tax on earned income or net profits will automatically become part of this ordinance upon the effective date of such amendment, without the need for formal amendment to this ordinance, to the maximum extent allowed by 1 Pa. C.S.A. § 1937.
E. 
Applicable laws, regulations, policies, and procedures.
(1) 
The tax shall be collected and administered in accordance with:
(a) 
All applicable laws and regulations; and
(b) 
Rules, regulations, policies and procedures adopted by the TCC or by the tax officer in conformity with the Local Tax Enabling Act.
(2) 
This includes any regulations, policies, and procedures adopted in the future to the maximum extent allowed by 1 Pa. C.S.A. § 1937.
Although credits and deductions against tax are permitted under certain circumstances as provided in applicable law and regulations, no individuals are exempt from the tax based on age, income or other factors.
Every taxpayer receiving earned income or earning net profits in any tax year shall file tax returns and pay tax in accordance with the Local Tax Enabling Act and the rules, regulations, policies and procedures of the TCC and the tax officer. A taxpayer is required to file a return even if no tax payment is due and owing.
Every employer shall register, withhold and remit tax, and file tax returns in accordance with the Local Tax Enabling Act and the rules, regulations, policies and procedures of the TCC and tax officer.
A. 
Collection of tax. The tax will be collected from individuals and employers by the tax officer. The tax officer is authorized to file an action in the name of the Township of Palmer for the recovery of income taxes due to the Township of Palmer and unpaid. Nothing in this section shall affect the authority of the Township of Palmer to file an action in its own name for collection of income taxes under the Local Tax Enabling Act.
B. 
Criminal complaints for violations. The tax officer is authorized to file criminal complaints on behalf of the Township of Palmer for violation of this ordinance or the Local Tax Enabling Act. Nothing in this section shall affect the authority of the Township of Palmer to file a criminal complaint on its own behalf for violation of this ordinance or the Local Tax Enabling Act.
Individuals and employers are subject to interest, penalties, costs, and fines in accordance with the Local Tax Enabling Act, including costs of collection imposed by the tax officer in accordance with authorization by the TCC. The tax officer may retain reasonable costs of collection in accordance with Local Tax Enabling Act and as approved by the TCC.
The provisions of this ordinance are severable; and if any of its provisions are ruled by a court invalid or unconstitutional, such decision shall not affect or impair any of the remaining provisions of this ordinance. It is declared to be the intention of the governing body of the Township of Palmer that this ordinance would have been adopted if such invalid or unconstitutional provision had not been included.
A. 
The primary purpose of this ordinance is to confirm the earned income and net profits tax currently imposed pursuant to the Local Tax Enabling Act, as amended and restated by Act 32 of 2008, and to do so within the time frame required by Act 32.
B. 
Any prior ordinance or part of any ordinance conflicting with the provisions of this ordinance is rescinded insofar as the conflict exists. To the extent the same as any ordinance in force immediately prior to adoption of this ordinance, the provisions of this ordinance are intended as a continuation of such prior ordinance and not as a new ordinance. If this ordinance is declared invalid, any prior ordinance levying a similar tax shall remain in full force and effect and shall not be affected in any manner by adoption of this ordinance. The provisions of this ordinance shall not affect any act done or liability incurred, nor shall such provision affect any suit or prosecution pending or to be initiated to enforce any right or penalty or to punish offenses under the authority of any ordinance in force prior to adoption of this ordinance. Subject to the foregoing provisions of this section, this ordinance shall supersede and repeal on the effective date any ordinance levying a tax on earned income or net profits in force immediately prior to the effective date.
This ordinance is intended to be consistent with the Local Tax Enabling Act and to include all necessary authorizations to permit the tax officer to take such tax collection, administration, disbursement, enforcement and other activities as authorized by the Local Tax Enabling Act, subject to the policies and procedures of the TCC.
The provisions of this ordinance shall become effective on January 1, 2012, and shall apply to earned income received or earned income and net profits earned or made by a taxpayer during the calendar year 2012 and each year thereafter without annual reenactment unless the rate of tax is subsequently changed. Changes in the rate of tax shall become effective on the date specified in the ordinance imposing such change.