[Adopted 2-11-2003 by Ord. No. 2003-1]
This article shall be known as the "New Hope Borough Earned Income Tax Ordinance."
This article is enacted and adopted under and by virtue of the authority of the Act of December 31, 1965, P.L. 1257, 53 P.S. § 6901 et seq., the Local Tax Enabling Act, and its supplements and amendments. This Act is incorporated herein by reference except that where options are provided in Sections 13 and 14 of the Act (53 P.S. §§ 6913 and 6914), this article designates the options selected.
[Amended 5-9-2007 by Ord. No. 2007-04]
A. 
Except as provided in Subsection B below, the following taxes are hereby imposed for general revenue purposes and for the financing of the purchase of open space, under the authority of the Local Tax Enabling Act beginning July 1, 2003 and annually thereafter:
(1) 
A tax of 1.0% of all earned income received in the period beginning January 1 and ending December 31 of the calendar year by residents of New Hope Borough.
(2) 
A tax of 1.0% of all net profits earned in the period beginning January 1 and ending December 31 of the calendar year of businesses, professions and other activity conducted by residents of New Hope Borough.
(3) 
A tax of 1.0% of all earned income received in the period beginning January 1 and ending December 31 of the calendar year by all other persons employed in New Hope Borough.
(4) 
A tax of 1.0% of all net profits earned in the period beginning January 1 and ending December 31 of the calendar year of businesses, professions and other activity conducted by all other persons in New Hope Borough.
B. 
Residents of New Hope Borough whose total earned income and net profits from all sources for a specific calendar year is $5,000 or less shall be exempt from this tax for the applicable calendar year.
A. 
Net profits.
(1) 
For 2003: Every taxpayer making net profits shall, on or before September 30, 2003, make and file with the Officer on a form prescribed or approved by the Officer, a declaration of his or her estimated net profits for the period beginning July 1, 2003, and ending December 31, 2003, and pay to the Officer in quarterly installments on or before September 30, 2003, and December 31, 2003, the tax due thereon. On or before April 15, 2004, every taxpayer shall file a final return showing the amount of net profits received during the period beginning July 1, 2003, and ending December 31, 2003, the total amount of tax due thereon and the total amount of tax paid. At the time of filing the final return, the taxpayer shall pay to the Officer the balance of tax due or shall make demand for refund or credit in the case of overpayment.
(2) 
After 2003: Every taxpayer making net profits in any year succeeding 2003 shall, on or before April 15 of the current year, make and file with the Officer, on a form prescribed and approved by the Officer, a declaration of his estimated net profits during the period beginning January 1, and ending December 31, of the current year, and pay to the Officer the tax due thereon in four equal quarterly installments, as follows: the first installment at the time of the filing of the declaration, and the other installments on or before June 15 of the current year, September 15 of the current year, and January 15 of the succeeding year, respectively, as provided in 53 P.S. § 6913(III)(A)(1) of the Local Tax Enabling Act, as amended, and 53 P.S. § 6913(III)(A)(2) and (3), where applicable.
B. 
Earned income.
(1) 
For 2003: Every taxpayer shall, on or before April 15, 2004, make and file with the Officer a final tax return showing the amount of earned income, including, inter alia, salaries, wages, commissions, bonuses, incentive payments, fees, tips and other compensation (other than net profits) received during the period beginning July 1, 2003, and ending December 31, 2003, the total tax due thereon, the amount of tax paid that has been withheld pursuant to the provisions relating to collection at the source, and the balance of tax due, or shall make demand for refund or credit in the case of overpayment.
(2) 
After 2003: For the 2004 tax year and each subsequent tax year, every taxpayer shall make and file final returns and pay the taxes due, as provided in 53 P.S. § 6913(III)(B)(1) of the Local Tax Enabling Act, as amended.
(3) 
Quarterly returns for 2003: Every taxpayer who is employed for a salary, wage or other compensation and who received any earned income not subject to the provisions relating to collection at source, shall make and file with the Officer on a form prescribed or approved by the officer, quarterly return on or before October 31 of the current year and January 31 of the succeeding year, setting forth the aggregate amount of the earned income not subject to withholding by him during the three-month periods ending September 30 of the current year and December 31 of the current year, respectively, and subject to the tax, together with such information as the officer may require, and shall pay quarter-annually the amount of tax shown as due on such returns, as provided in 53 P.S. § 6913(III)(B)(2) of the Local Tax Enabling Act, as amended.
(4) 
Quarterly returns for the 2004 tax year and each subsequent tax year: Every taxpayer who is employed for a salary, wage or other compensation and who received any earned income not subject to the provisions relating to collection at source, shall make and file with the Officer on a form prescribed or approved by the officer, a quarterly return on or before April 30 of the current year, July 31 of the current year, October 31 of the current year and January 31 of the succeeding year, setting forth the aggregate amount of the earned income not subject to withholding by him 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 the tax, together with such information as the officer may require at the time of the filing. At the time of the filing, the taxpayer shall pay quarter-annually the amount of tax shown as due on such returns, as provided in 53 P.S. § 6913(III)(B)(2) of the Local Tax Enabling Act, as amended.
A. 
Every employer having an office, factory, workshop, branch, warehouse or other place of business within the corporate limits of New Hope Borough shall deduct the tax imposed by this article on the earned income due to his employee or employees and shall file quarterly returns and final returns and pay quarterly to the Officer, the amount of taxes deducted, as set forth in 53 P.S § 6913(IV) of the Local Tax Enabling Act, as amended, except that:
(1) 
On or before April 15, 2004, and each succeeding year, every employer shall file with the Officer:
(a) 
For 2003: An annual return showing the total amount of earned income paid, the total amount of tax deducted and the total amount of tax paid to the Officer for the period beginning July 1, 2003, and ending December 31, 2003. For the tax years 2004 and beyond, the annual return will show the total amount of earned income paid, the total amount of tax deducted and the total amount of tax paid to the Officer for the previous year.
(b) 
A return withholding statement for each employee employed during all or any part of the period beginning July 1, 2003, and ending December 31, 2003 or the current year, setting forth the employee's name, address and social security number, the amount of earned income paid to the employee during said period, the amount of tax deducted, the political subdivisions imposing the tax upon such employee and the amount of tax paid to the Officer. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.
B. 
Every employer who discontinues business prior to December 31 of the current year shall within 30 days after discontinuance of business file the returns and withholding statements hereinabove required and pay the tax due.
The Income Tax Officer shall be selected from time to time by resolution of the Borough Council of New Hope Borough and shall receive such compensation for the services and expenses as determined from time to time by the New Hope Borough Council. Such Officer shall have the powers and duties, and be subject to the penalties, provided in the Local Tax Enabling Act, as amended.
The tax imposed in § 240-44 of this article shall not be levied on net profits, or earned income, of any person, institution, or organization as to whom it is beyond the power of the Borough Council of New Hope Borough to impose said tax under the Constitution of the United States of America or the constitution and laws of the Commonwealth of Pennsylvania.
A. 
Payments of any tax on income to any state other than Pennsylvania or to any political subdivision thereof by residents thereof pursuant to any state or local law, to the extent that such income includes salaries, wages, commissions, bonuses, incentive payments, fees, tips and other compensation or net profits of businesses, professions or other activities but in such proportions as hereinafter set forth, shall be credited to and allowed as a deduction from the liability of such person for the tax imposed by this article on salaries, wages, commissions, bonuses, incentive payments, fees, tips and other compensation or net profits of businesses, professions or other activities, if residents of New Hope Borough receive credits and deduction of a similar kind to a like degree from the tax on income imposed by the other state or political subdivision thereof.
B. 
Where a credit or a deduction is allowable, it shall be allowed in proportion to the concurrent periods for which taxes are imposed by the other state or respective political subdivisions, but not in excess of the amount previously paid for a concurrent period.
Enforcement and penalties for the nonpayment of any tax imposed hereunder may be pursued and imposed by New Hope Borough as authorized in the Local Tax Enabling Act, 53 P.S. § 6913(VII), (VIII) and (IX).