This article shall be known as the "West Manchester Township
Earned Income and Net Profits Tax Ordinance," referred to herein as
"ordinance."
All words and phrases shall have the meanings as set forth in
Act 32, as amended. The following words and phrases, when used in
this ordinance, shall have the meanings ascribed to them as follows:
BUSINESS
An enterprise, activity, profession or any other undertaking
of an unincorporated nature conducted for profit or ordinarily conducted
for profit, whether by a person, partnership, association or any other
entity.
BUSINESS ENTITY
A sole proprietorship, corporation, joint-stock association
or company, partnership, limited partnership, limited liability company,
association, business trust, syndicate or other commercial or professional
activity organized under the laws of this commonwealth or any other
jurisdiction.
CORPORATION
A corporation or joint-stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania or
any other state, territory, foreign country or dependency. This term
shall include an entity which is classified as a corporation for federal
income tax purposes.
DEPARTMENT
The Pennsylvania Department of Community and Economic Development
or successor agency charged with any duties under the Act, as may
be amended and supplemented.
DOMICILE
The place where one lives and has his permanent home and
to which he has the intention of returning whenever he is absent.
Actual residence is not necessarily domicile, for domicile is the
fixed place of abode which, in the intention of the taxpayer, is permanent
rather than transitory. Domicile is the place in which a man has voluntarily
fixed the habitation of himself and his family, not for a mere special
or limited purpose, but with the present intention of making a permanent
home, until some event occurs to induce him to adopt some other permanent
home. In the case of businesses or associations, the domicile is that
place considered as the center of business affairs and the place where
its functions are discharged.
EARNED INCOME
The compensation as required to be reported to or as determined by the Pennsylvania Department of Revenue under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and rules and regulations promulgated under that section. For purposes of earned income, employee business expenses are allowable deductions as determined under Article
III of the Tax Reform Code of 1971. The term does not include offsets for business losses. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
EMPLOYER
A person, business entity or other entity employing one or
more persons for a salary, wage, commission or other compensation.
The term includes the commonwealth, a political subdivision and an
instrumentality or public authority of either. For purposes of penalties
hereunder, this term includes a corporate officer.
HE, HIS or HIM
The singular and plural number as well as male, female and
neuter gender.
MUNICIPALITY
A city of the second class, city of the second class A, city
of the third class, borough, town, township of the first class or
township of the second class. For purposes of this ordinance, such
term shall mean the Township of West Manchester, York County, Pennsylvania.
NET PROFITS
A.
The net income from the operation of a business, except corporations
as required to be reported to or as determined by the Department of
Revenue under Section 303 of the Act of March 4, 1971 (P.L. 6, No.
2), known as the "Tax Reform Code of 1971," and rules and regulations
promulgated under such section.
B.
The term does not include income:
(1)
Which is not paid for services provided; and
(2)
Which is in the nature of earnings from an investment.
C.
Further, the term shall not include:
(1)
Any gain on the sale of farm machinery;
(2)
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
(3)
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside of the municipality.
RESIDENT
A person, partnership, association or other entity domiciled
in the municipality.
TAX BUREAU
A public nonprofit entity established by a TCC for the administration
and collection of earned income and net profits tax.
TAX OFFICER
A political subdivision, public employee, tax bureau, county,
excluding a county of the first class, or private agency which administers
and collects earned income and net profits for one or more tax collection
districts. Unless otherwise specifically provided, for purposes of
the obligations of an employer, the term shall mean the Tax Officer
or tax collector for the tax collection district within which the
employer is located or, if an employer maintains workplaces in more
than one tax collection district, the Tax Officer or tax collector
for the tax collection district within which the employer is located,
or if an employer maintains workplaces in more than one tax collection
district, the Tax Officer for each such tax collection district with
respect to employees principally employed therein.
TAXPAYER
A person or business required hereunder to file a return
of earned income or net profits or to pay a tax thereon.
This ordinance shall not apply to any person or property as
to whom or which it is beyond the legal power of the municipality
to levy, assess and impose the tax or duties as herein provided.
The provisions of this ordinance are severable, and, if any
of its provisions are determined by a court of competent jurisdiction
to be invalid or unconstitutional, such determination shall not affect
or impair any of the remaining provisions of this ordinance. It is
hereby declared to be the intention of the Board of Supervisors of
West Manchester Township that this ordinance would have been adopted
if such invalid or unconstitutional provision had not been included.
The primary purpose of this ordinance is to conform the local
income tax currently levied on earned income and net profits by the
municipality with the Act and to do so within the time frame set forth
in the Act. Any prior ordinance levying such tax is hereby amended
and restated in its entirety to read as set forth in this ordinance.
To the extent that any previous ordinance or portion thereof is inconsistent
or conflicts with this ordinance, such ordinance(s) or portion(s)
thereof shall be repealed to the extent of such inconsistency and/or
conflict. To the extent the same or any prior ordinance levying such
tax is in force immediately prior to enactment of this ordinance,
this ordinance is intended as a continuation of such prior Ordinance
and not as the enactment of an ordinance imposing a new tax. In the
event this ordinance or any portion thereof is determined to be unconstitutional
or otherwise invalid, the prior ordinance, or portion thereof, levying
a similar tax shall remain in full force and effect and shall not
be affected by the adoption of this ordinance. Nothing contained herein
shall affect, impair or otherwise abrogate any act done or liability
incurred, nor shall any provision of this ordinance affect, impair
or preclude any suit or prosecution pending, whether or not currently
initiated, to enforce any right, penalty or violation under the authority
of any previous ordinance in force prior to adoption of this ordinance.
The effective date of this ordinance and beginning of the initial
current year shall be January 1, 2012.