Township of Leacock, PA Chapter 271 Taxation

[HISTORY: Adopted by the Board of Supervisors of the Township of Leacock as indicated in article histories. Amendments noted where applicable.]

Article I Realty Transfer Tax

[Adopted 2-3-1987 by Ord. No. 64; amended in its entirety at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]

§ 271-1 Imposition of tax.

The Township of Leacock adopts the provisions of Article XI-D of the Tax Reform Code of 1971 and imposes a realty transfer tax as authorized under that article, subject to the rate limitations therein. The tax imposed under this section shall be at the rate of 1%.

§ 271-2 Administration.

The tax imposed under § 271-1 and all applicable interest and penalties shall be administered, collected and enforced under the Act of December 31, 1965 (P.L. 1257, No. 511, as amended, known as "The Local Tax Enabling Act," provided that, if the correct amount of the tax is not paid by the last date prescribed for timely payment, the Township of Leacock, pursuant to Section 1102-D of the Tax Reform Code of 1971 (72 P.S. § 8102-D), authorizes and directs the Department of Revenue of the Commonwealth of Pennsylvania to determine, collect and enforce the tax, interest and penalties.

§ 271-3 Interest.

Any tax imposed under § 271-1 that is not paid by the date the tax is due shall bear interest as prescribed for interest on delinquent municipal claims under the Act of May 16, 1923 (P.L. 207, No. 153) (53 P.S. § 7101 et seq.), as amended, known as "The Municipal Claims and Tax Liens Act." The interest rate shall be the lesser of the interest rate imposed upon delinquent commonwealth taxes as provided in Section 806 of the Act of April 9, 1929 (P.L. 343, No. 176) (72 P.S. § 806), as amended, known as "The Fiscal Code," or the maximum interest rate permitted under the Municipal Claims and Tax Liens Act for tax claims.

Article II Earned Income Tax

[Adopted 11-21-2011 by Ord. No. 129]

§ 271-4 Short title.

This article shall be known and may be cited as the "Leacock Township Earned Income Tax Ordinance."

§ 271-5 Definitions.

All terms defined in the Local Tax Enabling Act[1] shall have the meanings set forth therein. The following terms shall have the meanings set forth herein:

COLLECTOR

The person or entity appointed as tax officer pursuant to the Local Tax Enabling Act to collect the tax.

EFFECTIVE DATE

January 1, 2012.

ENACTMENT

This article.

GOVERNING BODY

The Board of Supervisors of the Township of Leacock.

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.

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.

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.

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

Leacock Township, Lancaster County.

[1] Editor's Note: See 53 P.S. § 6924.101 et seq.

§ 271-6 Imposition of tax.

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 enactment 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%. This combined tax rate is included solely for the purpose of providing information applicable on the date of adoption of this article. This combined tax rate might change if the school district changes the tax rate imposed by the school district.

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) regulations, 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.

§ 271-7 Exemption from tax for individuals under age 16.

This governing body finds that: 1) minors of various age groups have traditionally, and with judicial sanction, been considered as comprising separate classes for many legislative purposes; and 2) minors under the age of 16 are generally unemancipated and subject to compulsory school attendance and child labor laws, and therefore have limited earned income and net profits and control of money such that enforcement of reporting and collection of tax hereunder against them would yield inconsequential amounts and be unduly difficult, expensive and not in the public interest. For these reasons, individuals under the age of 16 years are exempt from liability for the tax.

§ 271-8 Exemption from municipal nonresident tax for residents of other states if similar exemption in other state.

Individuals who are residents of a state other than Pennsylvania are exempt from liability for the tax, but only if all local governments of the locality where the individual resides either: 1) impose no tax on the income of a Pennsylvania resident derived from activities within the locality; or 2) exempt that income from tax. In addition to this exemption from municipal nonresident tax, certain credits and deductions against tax are permitted under certain circumstances as provided in applicable law and regulations.

§ 271-9 Individual tax returns and payment.

Every individual receiving earned income or earning net profits in any tax year shall file tax returns and pay tax in accordance with the Local Tax Enabling Act.

§ 271-10 Employer withholding, remittance and tax returns.

Every employer shall register, withhold and remit tax, and file tax returns in accordance with the Local Tax Enabling Act.

§ 271-11 Tax Collector.

The tax will be collected from individuals and employers by the collector.

§ 271-12 Interest, penalties, costs and fines.

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.

§ 271-13 Purpose; amendment and restatement; repeal.

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. 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. 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. 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.