This article shall be known as the "Bonneauville Borough Earned
Income and Net Profits Tax Ordinance."
It is the intent and purpose of this article to include all
of the applicable language and provisions of 53 P.S. 6924.501 et seq.,
the Act of General Assembly of July 2, 2008 (P.L. 197) and known as
Act No. 32, as may be amended and supplemented from time to time.
In all enforcement of the administration of this article, the language
and intent of Act 32, as amended, shall take precedence.
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 article 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 Act 32, 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 necessary 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 and net profits tax, 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 article, such term
shall mean Bonneauville Borough, 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.
A.
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.
B.
For taxpayers engaged in the business, profession or activity
of farming, 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 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
district. 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, partnership, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
The Tax Officer shall receive such compensation for his, her
or its services and expenses as shall be determined by the tax collection
district(s).
This article 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 primary purpose of this article 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 article.
To the extent that any previous ordinance or portion thereof is inconsistent
or conflicts with this article, such ordinance(s) or portion thereof
shall be repealed to the extent of such inconsistency and/or conflict.
To the extent that any prior ordinance levying such tax in force immediately
prior to enactment of this article, this article 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 article 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 article. Nothing contained herein shall affect, impair or
otherwise abrogate any act done or liability incurred, nor shall any
provision of this article 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 article.
The effective date of this article and beginning of the initial
current year shall be January 1, 2012.