[Adopted by Ord. No. 12-22-1999; amended in is entirety 11-27-2013 by Ord. No. 2013-05]
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.
- EFFECTIVE DATE
- January 1, 2012.
- GOVERNING BODY
- The Board of Supervisors of the Township of East Hempfield.
- LOCAL TAX ENABLING ACT
- 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 enactment.
- TAXING AUTHORITY
- East Hempfield Township, Lancaster County.
- TAX RETURN
- 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.
- TAX YEAR
- 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 ENACTMENT
- This article.
General purpose resident tax. The taxing authority hereby imposes a tax for general revenue purposes at the rate of 1% on earned income and net profits of individual residents of the taxing authority.
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, or any kind engaged in within the boundaries of the taxing authority.
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rates during the current tax year and each tax year thereafter, without annual reenactment, until this enactment is repealed or the rate is changed.
Combined tax rate applicable to residents. Currently, the total rate applicable to residents of the taxing authority, including the tax imposed by the school district and municipality in which the individual resides, is 1%. This combined tax rate is included solely for the purpose of providing information applicable on the date of adoption of this article. This combined tax rate might change if the school district changes the tax rate imposed by the school district.
Municipal tax rate applicable to nonresidents. Currently, the total rate applicable to nonresidents working within the taxing authority based on the municipal nonresident tax rate is 1%.
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.
Applicable laws, regulations, policies, and procedures. The tax shall be collected and administered in accordance with all applicable laws and regulations, and with regulations, policies and procedures adopted by the TCC or by the collector. This includes any regulations, policies, and procedures adopted in the future to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
Individuals under age 16.
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.
Municipal nonresident tax; residents of other states if similar exemption in other state.
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:
In addition to this exemption from municipal nonresident tax, certain credits and deductions against 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.
The primary purpose of this enactment is to conform the earned income and net profits tax currently imposed 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. Any prior enactment imposing a tax on earned income or net profits of individuals is amended and restated in its entirety to read as stated in this enactment. Any other prior enactment or part of any prior enactment conflicting with the provisions of this enactment is rescinded insofar as the conflict exists. To the extent the same as any enactment in force immediately prior to adoption of this enactment, the provisions of this enactment are intended as a continuation of such prior enactment and not as a new enactment. If this enactment is declared invalid, any prior enactment levying a similar tax shall remain in full force and effect and shall not be affected by adoption of this enactment. If any part of this enactment is declared invalid, the similar part of any prior enactment levying a similar tax shall remain in effect and shall not be affected by adoption of this enactment. The provisions of this enactment shall not affect any act done or liability incurred, nor shall such provisions affect any suit or prosecution pending or to be initiated to enforce any right or penalty or to punish offense under the authority of any enactment in force prior to adoption of this enactment. Subject to the foregoing provisions of this section, this enactment shall amend and restate on the effective date any enactment levying a tax on earned income or net profits in force immediately prior to the effective date.
This enactment is adopted and enacted November 27, 2013. The provisions involving the nonresident tax are effective November 1, 2014. All the remaining provisions are currently effective under Ordinance No. 2011-15.
Editor's Note: A complete copy of said ordinance is on file in the Township offices.