[1]
Editor's Note: This ordinance also changed the title
of Art. II from "Earned Income Tax" to "Earned Income and Net Profits
Tax."
Except as otherwise specified in this section, all terms used
in this article which are also defined in the Local Tax Enabling Act
shall have the same meanings when used in this article, and the definitions
contained in the Local Tax Enabling Act are incorporated herein by
reference. However and notwithstanding the foregoing, the following
words and phrases, when used in this article, shall have the meanings
ascribed to them in this section:
The Board of Supervisors of the Township of Washington, Berks
County, Pennsylvania.
The person or entity appointed as the tax officer pursuant
to the Local Tax Enabling Act to collect the tax.
January 1, 2012.
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 may be amended in the future.
The tax imposed by this article.
The tax collection committee established to govern and oversee
the collection of earned income tax within the tax collection district
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.
The Township of Washington, Berks 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 article or the Local Tax Enabling Act.
The period from January 1 to December 31.
The primary purpose of this article 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.
A.
General purpose resident tax. The taxing authority hereby imposes
a tax for general revenue purposes at the rate of 1/2 of 1% 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.
D.
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 the municipality in which the individual
resides, is 1%.
E.
Municipal tax rate applicable to nonresidents. Currently the total
rate applicable to nonresidents working within the taxing authority
based on the municipal nonresident rate is 1%.
F.
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
article. 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 article upon the effective
date of such amendment, without the need for formal amendment of this
article, to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
G.
Applicable laws, regulations, policies and procedures. The tax shall
be collected and administered in accordance with: 1) all applicable
laws and regulations; and 2) regulations, policies and procedures
adopted by the Tax Collection Committee 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.
Although credits and deductions against the 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 individual receiving earned income or earning net profits
in any tax year shall file a tax return and pay the 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.
Any prior enactment imposing a tax on earned income or net profits
of individuals is amended and restated in its entirety so as to read
as set forth in this article.
The provisions of this article are severable, and if any of
its provisions are ruled by a court to be invalid or unconstitutional,
such decision shall not affect or impair any of the remaining provisions
of this article. It is declared to be the intention of the Board of
Supervisors that this article would have been adopted if such invalid
or unconstitutional provision had not been included.
Any other prior enactment or part of any prior enactment conflicting
with the provisions of this article is rescinded insofar as the conflict
exists. To the extent this article is the same as any enactment in
force immediately prior to adoption of this article, the provisions
of this article are intended as a continuation of such prior enactment
and not as a new enactment. If this article 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 article. If any
part of this article 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 article. The provisions of this
article 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 an offense under the
authority of any enactment in force prior to adoption of this article.
Subject to the foregoing provisions of this article, this article
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.
