[Ord. 666, 3/12/2012]
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 in Act 166 of 2002 and
Act No. 32 of 2008, 53 P.S. § 6924.101 et seq., and as further
amended and supplemented (known as the "Local Tax Enabling Act" and
herein referred to as the "Act").
[Ord. 666, 3/12/2012]
Act 32 (53 P.S. § 6924.101 through 53 P.S. § 6924.901)
and its definitions, duties, directives, rules, regulations, powers
and penalties, as amended and supplemented, are hereby adopted by
reference as if the same had been set forth fully herein.
[Ord. 666, 3/12/2012]
1.
DOMICILE
EARNED INCOME
NET PROFITS
NONRESIDENT
RESIDENT
TAX COLLECTION COMMITTEE (TCC)
TAX COLLECTION DISTRICT (TCD)
TAX OFFICER/TAX COLLECTOR
The following words and phrases, 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. A person can have only one state of domicile
at a given time. "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 induce 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 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. 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 Section 303 of the Act of March 4, 1971
(P.L. 6, No. 2), known as the "Tax Reform Code of 1971,"[1] 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 Tioga Tax Collection Committee established to govern
this tax collection district for the purpose of income tax collection.
The tax collection district is established under Section
504 of Act 32.[2]
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.
2.
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),
as amended and supplemented, and those words, phrases and definitions
as listed in the Act of March 4, 1971, (P.L. 6, No. 2), known as the
Tax Reform Code of 1971.[3]
[3]
Editor's Note: See 72 P.S. § 7101 et seq.
[Ord. 666, 3/12/2012]
1.
Resident Tax. A tax at the rate of 0.5% is hereby levied on all earned
income and net profits received and/or earned, as defined by Act 32,
on residents of the Borough of Wellsboro.
2.
Nonresident Tax. A tax at the rate of 1% is hereby levied on all
earned income and net profits received and/or earned by nonresidents
for work done or services performed or rendered in the Borough of
Wellsboro.
3.
All changes shall remain in effect on a calendar-year basis without
annual reenactment unless the rate of tax is subsequently changed.
[Ord. 666, 3/12/2012]
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 Officer shall receive compensation
for services and expenses as determined by agreement between the TCC
and the Tax Officer. The Tax Officer shall have the powers as provided
for by the Local Tax Enabling Act.
[Ord. 666, 3/12/2012]
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.
[Ord. 666, 3/12/2012]
Every taxpayer receiving earned income and earning net profits
in any tax year shall file tax returns and pay tax in accordance with
the Local Tax Enabling Act and the policies and procedures of the
TCC and Tax Officer. Tax imposed on net profits and all earnings not
subject to withholding must be reported and paid on a quarterly basis
in accordance with the Local Tax Enabling Act. A taxpayer is required
to file a return even if no tax payment is due and owing.
[Ord. 666, 3/12/2012]
Every employer shall register, withhold, and remit tax, and
file tax returns in accordance with the Local Tax Enabling Act and
the policies and procedures of the TCC and Tax Officer.
[Ord. 666, 3/12/2012]
The tax will be collected from individuals and employers by
the Tax Officer. The Tax Officer is authorized to file an action in
the name of the Borough for the recovery of income taxes due to the
Borough and unpaid. Nothing in this section shall affect the authority
of the Borough to file an action in its own name for collection of
income taxes under the Local Tax Enabling Act.
[Ord. 666, 3/12/2012]
Individuals and employers are subject to interest, penalties,
costs, and fines in accordance with the Local Tax Enabling Act, including
costs of collection, fees and reasonable attorney fees as may be permitted
and imposed by the Tax Officer in accordance with authorization by
the TCC. All definitions, duties, directives, rules, regulations,
powers and penalties of the Local Tax Enabling Act, as amended and
supplement, are incorporated by reference.
[Ord. 666, 3/12/2012]
The primary purpose of this Part is to confirm the earned income
and net profits tax currently imposed under 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 ordinance imposing a
tax on earned income or net profits of individuals is amended and
restated in its entirety to read as stated in this Part. Any other
prior ordinance or part of any prior ordinance conflicting with the
provisions of this Part is rescinded insofar as the conflict exists.
To the extent the same as any ordinance in force immediately prior
to adoption of this Part, the provisions of this Part are intended
as a continuation of such prior ordinance and not as a new ordinance.
If this Part is declared invalid, any prior ordinance levying a similar
tax shall remain in full force and effect and shall not be affected
by adoption of this Part. If any part of this Part is declared invalid,
the similar part of any prior ordinance levying a similar tax shall
remain in effect and shall not be affected by adoption of this Part.
The provisions of this Part 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 ordinance in force prior to adoption
of this Part. Subject to the foregoing provisions of this section,
this Part shall amend and restate on the effective date any ordinance
levying a tax on earned income or net profits in force immediately
prior to the effective date.
[Ord. 666, 3/12/2012]
This Part is intended to be consistent with the Local Tax Enabling
Act, and to include all necessary authorizations to permit the Tax
Officer to take such tax collection, administration, disbursement,
enforcement and other activities as authorized by the Local Tax Enabling
Act, subject to the policies and procedures of the TCC.
[Ord. 666, 3/12/2012]
This Part shall be effective April 1, 2012. It is the intention
of the governing body of the Borough of Wellsboro 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.
