[Adopted 10-10-2011 by Ord. No. 1476[1]]
[1]
Editor's Note: This ordinance also repealed former Art. II,
Earned Income Tax, adopted 12-29-1980 by Ord. No. 1075, amended in
its entirety 12-13-1999 by Ord. No. 1332. For additional information
on the purpose of Ord. No. 1476 and its effect on prior legislation,
see Section 3 of the ordinance, on file in the Borough offices.
This article shall be known and may be cited as the "Borough
of Ephrata Earned Income Tax Ordinance."
All terms defined in the Local Tax Enabling Act shall have the
meanings set forth therein. The following terms shall have the meanings
set forth herein:
The person or entity appointed as tax officer pursuant to
the Local Tax Enabling Act to collect the tax.
January 1, 2012.
The Council of the Borough of Ephrata.
The Local Tax Enabling Act, as set forth in 53 P.S. § 6901
et seq. while such numbering and provisions remain in effect under
Act 32 of 2008, and as set forth in 53 P.S. § 6924.101 et
seq. when such numbering and provisions become effective under Act
32, and as amended in the future.
The tax imposed by this article.
The Borough of Ephrata, Lancaster County, Pennsylvania.
A form prescribed by the collector for reporting the amount
of tax or other amount owed or required to be withheld, remitted or
reported under this enactment or the Local Tax Enabling Act.
The period from January 1 to December 31.
The Tax Collection Committee established to govern and oversee
the collection of earned income tax within the TCD under the Local
Tax Enabling Act.
Any tax collection district to which the taxing authority
or any part of the taxing authority is assigned under the Local Tax
Enabling Act.
This article.
A.
General purpose resident tax. The taxing authority hereby imposes
a tax for general revenue purposes at the rate of 0.5% on earned income
and net profits of individual residents of the taxing authority.
B.
General Purpose Municipal Nonresident Tax. The taxing authority also
imposes a tax for general revenue purposes at the rate of 1% on earned
income and net profits derived by an individual who is not a resident
of the taxing authority from any work, business, profession or activity
of any kind engaged in within the boundaries of the taxing authority.
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until this enactment is repealed or the rate is changed.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
enactment. 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 enactment upon the effective
date of such amendment, without the need for formal amendment of this
enactment, to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
This governing body finds that minors of various age groups
have traditionally, and with judicial sanction, been considered as
comprising separate classes for many legislative purposes; and minors
under the age of 16 are generally unemancipated and subject to compulsory
school attendance and child labor laws, and therefore have limited
earned income and net profits and control of money such that enforcement
of reporting and collection of tax hereunder against them would yield
inconsequential amounts and be unduly difficult, expensive, and not
in the public interest. For these reasons, individuals under the age
of 16 years are exempt from liability for the tax.
A.
Individuals who are residents of a state other than Pennsylvania
are exempt from liability for the tax, but only if all local governments
of the locality where the individual resides either:
B.
In addition to this exemption from municipal nonresident tax, certain
credits and deductions against the tax are permitted under certain
circumstances as provided in applicable law and regulations.
Every individual 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.
Every employer shall register, withhold and remit the tax, and
file tax returns in accordance with the Local Tax Enabling Act.
The tax will be collected from individuals and employers by
the collector.
Individuals and employers are subject to interest, penalties,
costs and fines in accordance with the Local Tax Enabling Act, including
costs imposed by the collector in accordance with the Local Tax Enabling
Act.
