This ordinance shall be known as the "Mount Joy Township Earned
Income and Net Profits Tax Ordinance," referred to herein as "this
ordinance."
This ordinance is adopted pursuant to and under the enabling
authority of the Local Tax Enabling Act, 53 P.S. § 6924.101
et seq. and the Act of General Assembly of July 2, 2008 (P.L. 197)
known as Act No. 32.
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.
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 Mount Joy Township, Adams County, Pennsylvania.
NET PROFITS
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. The term does not include income which
is not paid for services provided; and which is in the nature of earnings
from an investment. Further, the term shall not include:
A.
Any gain on the sale of farm machinery;
B.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
C.
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 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.
Except as provided in §
98-33C, taxpayers shall declare and pay income taxes as follows:
A. Taxable income. Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the resident Tax Officer, a final return showing the amount of taxable income received during the period beginning January 1 of the current year and ending December 31 of the current year, the total amount of tax due on the taxable income, the amount of tax paid, the amount of tax that has been withheld under §
98-36 below and the balance of tax due. All amounts reported shall be rounded to the nearest whole dollar. At the time of filing the final return, the taxpayer shall pay the Tax Officer the balance of the tax due or shall make demand for refund or credit in the case of overpayment.
B. Net profits.
(1) Every taxpayer making net profits shall, by April 15 of the current
year, make and file with the Tax Officer a declaration of the taxpayer's
estimated net profits during the period beginning January 1 and ending
December 31 of the current year, and shall pay to the Tax Officer
in four equal quarterly installments the tax due on the estimated
net profits. The first installment shall be paid at the time of filing
the declaration, and the other installments shall be paid on or before
June 15 of the current year, September 15 of the current year and
January 15 of the succeeding year, respectively.
(2) Any taxpayer who first anticipates any net profit after April 15
of the current year shall make and file the declaration required on
or before June 15 of the current year, September 15 of the current
year or December 31 of the current year, whichever date next follows
the date on which the taxpayer first anticipates such net profit,
and shall pay to the Tax Officer in equal installments the tax due
on or before the quarterly payment dates that remain after the filing
of the declaration.
(3) Every taxpayer shall, on or before April 15 of the succeeding year,
make and file with the Tax Officer a final return showing the amount
of net profits earned or received based on the method of accounting
used by the taxpayer during the period beginning January 1 of the
current year, and ending December 31 of the current year, the total
amount of tax due on the net profits and the total amount of tax paid.
At the time of filing the final return, the taxpayer shall pay to
the Tax Officer the balance of tax due or shall make demand for refund
or credit in the case of overpayment. Any taxpayer may, in lieu of
paying the fourth quarterly installment of the estimated tax, elect
to make and file with the Tax Officer on or before January 31 of the
succeeding year, the final return.
(4) The Department, in consultation with the Department of Revenue, shall
provide by regulation for the filing of adjusted declarations of estimated
net profits and for the payments of the estimated tax in cases where
a taxpayer who has filed the declaration required under this subsection
anticipates additional net profits not previously declared or has
overestimated anticipated net profits.
(5) Every taxpayer who discontinues business prior to December 31 of
the current year shall, within 30 days after the discontinuance of
business, file a final return as required under this ordinance and
pay the tax due.
C. Other taxable income. Every taxpayer who receives any other taxable
income not subject to withholding under Section 512(3) of the Act
shall make and file with the resident Tax Officer a quarterly return
on or before April 15 of the current year, June 15 of the current
year, September 15 of the current year, and January 15 of the succeeding
year, setting forth the aggregate amount of taxable income not subject
to withholding by the taxpayer 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 income tax, together with such other information as
the Department may require. Every taxpayer filing a return shall,
at the time of filing the return, pay to the Tax Officer the amount
of income tax due. The Department shall establish criteria under which
the Tax Officer may waive the quarterly return and payment of the
income tax and permit a taxpayer to file the receipt of taxable income
on the taxpayer's annual return and pay the income tax due on
or before April 15 of the succeeding year.
D. Waiver. The TCC may, by regulation, waive the requirements for a
quarterly return and payment of income tax under specified circumstances,
including those instances where a taxpayer's annual taxable income
is less than a specified amount.
This ordinance shall not apply to any employer or person 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.
As stated in §
98-31, the primary purpose of this ordinance is to conform the local income tax currently levied on earned income and net profits by Mount Joy Township 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 thereof shall be repealed to the extent of such inconsistency and/or conflict. To the extent the 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.