[Adopted 10-17-2011 by Ord. No. 2011-6]
This article shall be referred to as the "Earned Income and
Net Profits Tax Ordinance of the Township of Derry of 2011."
All terms defined in the Local Tax Enabling Act, as amended,
and as it may be amended in the future, shall have the meanings set
forth therein, which definitions are incorporated herein by reference.
The following terms shall have the meanings set forth herein:
January 1, 2012.
Mifflin County School District, Mifflin County, Pennsylvania.
The earned income and net profits tax.
The Tax Collection Committee established to govern and oversee
collection of earned income and net profits taxes within the tax collection
district established pursuant to the Local Tax Enabling Act, as amended,
and any regulations thereunder.
The tax collection district to which the Township is assigned
pursuant to the Local Tax Enabling Act, as amended, and any regulations
thereunder.
The Tax Officer appointed per the Local Tax Enabling Act,
as amended, to collect the tax.
That person or entity appointed pursuant to the Local Tax
Enabling Act, as amended, to collect and to receive and administer
earned income and net profit taxes. Effective as of January 1, 2012,
it shall be that person or entity appointed by the Mifflin County
Tax Collection Committee or successor agency.
That form prescribed for reporting the amount of earned income
or net profits and the amount of tax or other amount owed, required
to be withheld, remitted, or reported per the Local Tax Enabling Act
and this article.
The period from January 1 through December 31 of each year.
The Township of Derry, Mifflin County, Pennsylvania.
The Local Tax Enabling Act, Act of December 31, 1965, P.L.
1257, Section 1 et seq. (53 P.S. § 6901 et seq.), as amended
and, specifically, as amended by Act 32 of 2008, Act of July 2, 2008,
P.L. 197, No. 32, and as amended and renumbered by said Act 32 of
2008 (53 P.S. § 6924.101 et seq.) and as it may be amended
in the future.
The Township of Derry, Mifflin County, Pennsylvania.
A.
General purpose resident tax. The taxing authority hereby levies,
imposes and assesses a tax for general revenue purposes at the rate
of 1.0% on earned income received and net profits earned by individual
residents of the taxing authority.
B.
General purpose nonresident tax. The taxing authority also hereby
levies, imposes and assesses a tax for general revenue purposes at
the rate of 1.0% on earned income received 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 taxing authority's boundaries.
C.
Combined tax rate to residents. Currently, the total rate applicable
to residents of the taxing authority, including the tax imposed by
the school district together with the taxing authority, is 1.35%.
D.
Combined tax rate to nonresidents. Currently, the total tax rate
applicable to nonresidents working within the taxing authority's
boundaries is a nonresident tax rate of 1.0%.
E.
It is the intent of this article that the Local Tax Enabling Act
and all provisions thereof that relate to a tax on earned income and
net profits are incorporated herein, together with any regulations
thereunder, all as such are amended or may be amended in the future.
To the extent allowed per law, it is the intent hereof that any future
amendments to the Local Tax Enabling Act and any regulations thereunder
shall automatically become a part hereof upon the effective date of
the amendment without further amendment of this article. Further,
it is the intent hereof that the tax shall be collected and administered
in accordance with all applicable laws and regulations, including
policies and procedures adopted by the Tax Collection Committee or
successor agency and/or Tax Officer, all as such are amended or may
be amended in the future.
F.
The tax imposed and levied by this article shall continue at this
rate thereafter, during the calendar year 2012 and during each year
thereafter, without annual reenactment, until this article is repealed
or the rate of tax is changed.
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, as amended, and as it may be amended from
time to time, and the applicable regulations thereunder.
Every employer shall register, withhold and remit tax and file
the applicable tax returns in accordance with the Local Tax Enabling
Act, as amended, and as it may be amended from time to time, and the
applicable regulations thereunder.
The tax shall be collected from individuals and employers by
the Tax Officer and in accordance with the provisions of the Local
Tax Enabling Act, as amended, and as it may be amended from time to
time, and the applicable regulations thereunder.
Individuals and employers are subject to interest, penalties,
costs, and fines in accordance with the Local Tax Enabling Act, as
it may be amended from time to time, and the applicable regulations
thereunder, together with and including costs imposed by the Tax Officer
in accordance with the Local Tax Enabling Act, as amended, and as
it may be amended in the future from time to time.
Credits, deductions and losses, shall only be permitted under
circumstances which may from time to time be set forth in the Local
Tax Enabling Act, as amended, and in the applicable regulations thereunder.
Except as may be provided from time to time as set forth in the Local
Tax Enabling Act, as amended, and in the applicable regulations thereunder,
there shall be no exemptions from tax based on age, income or other
factors.
This article shall not apply to any person or property as to
whom or which it is beyond the legal power of the Township of Derry,
Mifflin County, Pennsylvania, to impose any tax or duty hereinbefore
provided.
Any prior enactment or ordinance or resolution conflicting with
this article is repealed to the extent of any inconsistency or conflict
with this article. Otherwise, the provisions of this article are intended
as a continuation of such enactment or ordinance or resolution and
not as a new enactment. In the event that this article is declared
invalid, any prior enactment, ordinance or resolution of the Township
of Derry levying an earned income and net profits tax shall remain
in full force and effect and shall not be affected in any manner by
enactment of this article. The provisions of this article shall not
affect any act done or liability incurred, nor shall they affect any
suit or prosecution pending or to be instituted to enforce any right
or penalty or to punish any offense under the authority of any enactment,
ordinance or resolution in effect prior to the enactment of this article.
Accordingly, subject to the foregoing provisions of this section,
effective January 1, 2012, this article shall supersede the enactment,
ordinance or resolution levying an earned income and net profits tax
which is in force immediately prior to the effective date of this
article.
The purpose of this article is to conform the earned income
and net profits tax currently imposed by the Township of Derry pursuant
to the Local Tax Enabling Act and the enactment, ordinance or resolution
imposing and levying the same to the provisions of the Local Tax Enabling
Act, as amended and restated by Act 32 of 2008, Act of July 2, 2008,
P.L. 197, No. 32 (53 P.S. § 6924.101 et seq.), and to do
so within the time frame as may be required by said Act 32 of 2008.
In all cases, subject to the foregoing, the provisions of this article
are intended to amend and restate on the effective date any enactment,
ordinance or resolution duly enacted levying a tax on earned income
and net profits which is in force immediately prior to the effective
date.
This article shall become effective January 1, 2012.
