[Adopted 12-15-1966 by Ord. No. 6-66; amended in its entirety 6-6-2011 by Ord. No. 03-2011]
Pursuant to the authority granted by the Local Tax Enabling Act (53 P.S. § 6901 et seq.[1]), the Borough Council of the Borough of Boyertown hereby imposes an earned income tax for general revenue purposes, to be levied and assessed as hereinafter provided.
[1]
Editor's Note: Pursuant to P.L. 197, No. 32, enacted 7-2-2008, sections of the Local Tax Enabling Act formerly codified in 53 P.S. § 6901 et seq. have been revised and renumbered. See now 53 P.S. § 6924.101 et seq.
A. 
As used in this article, the following terms shall have the meanings indicated:
COLLECTOR
The person or entity appointed as tax officer pursuant to the Local Tax Enabling Act to collect tax.
CURRENT YEAR
The calendar year for which the tax is levied.
EARNED INCOME
Salaries, wages, commissions, bonuses, incentive payments, fees, tips and other compensation received by a person or his personal representative for services rendered, whether directly or through an agent, and whether in cash or in property; not including, however, wages or compensation paid to persons on active military service, periodic payments for sickness and disability other than regular wages received during a period of sickness, disability or retirement or payments arising under workmen's compensation acts, occupational disease acts and similar legislation or payments commonly recognized as old age benefits, retirement pay or pensions paid to persons retired from service after reaching a specific age or after a stated period of employment or payments commonly known as "public assistance" or unemployment compensation payments made by any governmental agency or payments to reimburse expenses or payments made by employers or labor unions for wage and salary supplemental programs, including but not limited to programs covering hospitalization, sickness, disability or death, supplemental employment benefits, strike benefits, social security and retirement.
EFFECTIVE DATE
January 1, 2012.
EMPLOYER
A person, partnership, association, corporation, institution, governmental body or unit or agency or any other entity employing one or more persons for a salary, wage, commission or other compensation.
ENACTMENT
This Chapter 174, Article II, Earned Income Tax.
GOVERNING BODY
The Council of the Borough of Boyertown, Berks County, Pennsylvania.
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.
NONRESIDENT
A person, partnership, association or other entity domiciled outside the taxing district.
PERSON or INDIVIDUAL
A natural person.
PRECEDING YEAR
The calendar year before the current year.
TAX
The tax imposed by this article.
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 article or the Local Tax Enabling Act.
TAX YEAR
The period from January 1 to December 31.
TAXING AUTHORITY
Borough of Boyertown.
TAXPAYER
A person, partnership, association or any other entity required hereunder to file a return of earned income or net profits or to pay a tax thereon.
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
Any tax collection district to which the taxing authority or any part of the taxing authority is assigned under the Local Tax Enabling Act.
B. 
Wherever in this article the singular is used, the plural shall be included; when the masculine gender is used, the feminine and neuter shall be included.
A. 
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.
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 article is repealed or the rate is changed.
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 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 tax 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) 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.
Although credits and deductions against tax are permitted under certain circumstances as provided in applicable law and regulations, no individuals are exempt from tax based on age, income, or other factors.
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 provisions of this article 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 article. It is declared to be the intention of the governing body that this article would have been adopted if such invalid or unconstitutional provision had not been included.
A. 
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.
B. 
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 article. 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 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.
C. 
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 offense under the authority of any enactment in force prior to adoption of this article.
D. 
Subject to the foregoing provisions of this section, 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.