[Ord. 722, 11/30/2011, § 1]
Now, therefore, this Part is hereby enacted pursuant to the
authority granted by the Local Tax Enabling Act, P.L. 1257, known
as Act No. 511 of 1965, effective January 1, 1966, as amended through
in Act 166 of 2002 and Act No. 32 of 2008, 53 P.S. § 6924.101
et seq. (known as the Local Tax Enabling Act and herein referred to
as the "Act").
[Ord. 722, 11/30/2011, § 2]
Act 32 (53 P.S. § 6924.101 through 53 P.S. § 6924.901)
and its definitions, duties, directives, rules, regulations, powers
and penalties is hereby adopted by reference as if same had been set
forth fully herein.
[Ord. 722, 11/30/2011, § 3]
The following words and phrases are included herein when used
in this Part shall have the meanings given to them in this section
unless the context clearly indicates otherwise:
The place where a person lives and has a permanent home and
to which the person has the intention of returning whenever 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 voluntarily fixed place of
habitation of a person, not for a mere special or limited purpose,
but with the present intention of making a permanent home, until some
event occurs to include the person to adopt some other permanent home.
In the case of a business, domicile is that place considered as the
center of business affairs and the place where its functions are discharged.
The compensation as required to be reported to or as determined
by the Department of Revenue under § 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. Employee business
expenses as reported to or determined by the Department of Revenue
under Article III of the Tax Reform Code of 1971, shall constitute
allowable deductions in determining earned income. 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.
The net income from the operation of a business, other than
a corporation, as required to be reported to or as determined by the
Department of Revenue under § 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.
A person or business domiciled outside the political subdivision
levying the tax.
A person or business domiciled in the political subdivision
levying the tax.
The Clinton Tax Collection Committee established to govern
this tax collection district for the purpose of income tax collection.
The tax collection district is established under § 504
of Act 32 and includes the school districts and municipalities set
forth in the Clinton Tax Collection Committee Tax Collection Agreement.
The agency engaged to administer and collect earned income
taxes for this tax collection district. Unless otherwise specifically
provided, for purposes of the obligations of an employer, the term
shall mean the tax officer for the tax collection district within
which the employer is located, or, if an employer maintains workplaces
in more than one district, the tax officer for each such district
with respect to employees principally employed therein.
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In addition to the above definitions, this section incorporates
by reference those words, phrases and definitions as listed in Act
32 (53 P.S. § 6924.101 through 53 P.S. § 6924.901).
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[Ord. 722, 11/30/2011, § 4]
1.
Resident Tax. A tax at the rate of 1/2% is hereby levied on all earned
income and net profits, as defined by Act 32, on residents of Renovo
Borough.
2.
Nonresident Tax. A tax at the rate of 1% is hereby levied on all
earned end net profits earned by nonresidents for work done or services
performed or rendered in Renovo Borough.
3.
All changes shall remain in effect on a calendar year basis without
annual reenactment unless the rate of tax is subsequently changed.
[Ord. 722, 11/30/2011, § 5]
The collection and administration of the tax provided for in
this Part shall be performed by the Tax Officer appointed by the Tax
Collection Committee. Said tax office shall receive compensation for
services and expenses as determined by agreement between the TCC and
the Tax Officer. The Tax Officer shall have the power as provided
for by the Local Tax Enabling Act.
[Ord. 722, 11/30/2011, § 6]
1.
No exemptions or credits based on age or income, or any other conditions
are granted by this Part. Nothing in this Part is intended to preclude
or inhibit any credit or exemption imposed by act of law or regulation.
2.
Payments of tax on income due any state other than Pennsylvania or
to any political subdivision thereof by residents thereof pursuant
to any state or local law, to the extent that such income includes
salaries, wages, commissions, bonuses, incentive payments, fees, tips
and other compensation or net profits of businesses, professions or
other activities, but in such proportions as hereinafter set forth,
shall be credited to and allowed as a deduction from the liability
of such person for the tax imposed by this Part on salaries, wages,
commissions, bonuses, incentive payments, fees, ups and other compensation
or net profits of business, professions or other activities, if residents
of Renovo Borough receive like credits and deductions of a similar
degree from the tax on income imposed by the other state or political
subdivision thereof.
Where a credit or deduction is allowable, it shall be allowed
in proportion to the concurrent periods for which taxes are imposed
by the other state or respective political subdivisions, but not in
excess of the amount paid for the concurrent period and not in excess
of the local Pennsylvania tax liability. No other exemptions based
on any other factor to include age or income level is granted by this
Part. Nothing in this Part is intended to preclude or inhibit any
credit or exemption imposed by act of law or regulation.
No credit or deduction shall be allowed against any tax on earned
income imposed under authority of this Part to the extent of the amount
of credit or deduction takes from the same period by the taxpayer
against any income tax imposed by the Commonwealth of Pennsylvania
under § 314 of the Act of March 4, 1971 (P.L. 6, No, 2)
known as the "Tax Reform Code of 1971," on account of taxes imposed
on income by other states or by political subdivisions.
3.
Any nonresident who is otherwise subject to the earned income tax
of Renovo Borough is hereby exempted from the imposition, collection,
and payment of this tax, provided the domicile of the nonresident
taxpayer provides a like exemption from the imposition, collection,
and payment of an earned income tax of any resident of Renovo Borough,
Clinton County, Pennsylvania, who would otherwise be subject to an
earned income tax in the domicile of that nonresident. No other exemption
or credit based on any other factor to include age or income level
is granted by this Part. Nothing in this Part is intended to preclude
or inhibit any credit or exemption imposed by act of law or regulation.
[Ord. 722, 11/30/2011, § 8]
This Part shall be effective January 1, 2012. It is the intention
of Borough Council of Renovo Borough that this Part shall provide
procedural modifications only to the previously adopted earned income
tax ordinance, and no gap as to imposition of the tax set forth herein
should be inferred.
