[Adopted 11-10-1966 by Ord. No. 244; amended in its entirety 12-20-2011 by Ord. No. 396]
For purposes of this article, all terms defined in the Local
Tax Enabling Act, 53 P.S. § 6924.101 et seq., shall have
the meanings set forth therein, except as modified below. The following
terms shall have the meanings set forth herein:
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 voluntary fixed place of habitation
of a person, not for mere special or limited purpose, but with the
present intention of making a 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,"[1] and rules and regulations promulgated thereunder. 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.
January 1, 2012.
The Local Tax Enabling Act, 53 P.S. § 6924.101
et seq., and as amended in the future, including any regulations adopted
by the Department of Community and Economic Development thereunder.
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,[2] 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 tax imposed by this article.
The person or entity appointed as tax officer pursuant to
the Local Tax Enabling Act to collect the tax in the TCD.
The person, public employee or agency engaged to administer
and collect the taxes on earned income and net profits.
A form prescribed by the Tax Officer 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.
The period from January 1 to December 31.
A person or business required under this article or the Local
Tax Enabling Act to file a return of an income tax or to pay an income
tax.
The Tax Collection Committee established to govern and oversee
the collection of earned income tax within the TCD under the Local
Tax Enabling Act.
The Allegheny North Tax Collection District, or any future
tax collection district, to which the Borough or any part of the Borough
is assigned under the Local Tax Enabling Act.
A.
General purpose resident tax. The Borough hereby imposes a tax for
general revenue purposes at the rate of 0.5% on earned income and
net profits of individual residents of the Borough.
B.
General purpose municipal nonresident tax. The Borough also imposes
a tax for general revenue purposes at the rate of 0.5% on earned income
and net profits derived by an individual nonresident from any work,
business, profession, or activity of any kind engaged in within the
boundaries of the Borough.
C.
Ongoing tax. The tax shall continue at the above rates during the
current tax year and each tax year thereafter, without annual re-enactment,
until this article is repealed or the rate is changed.
D.
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.
E.
Applicable laws, regulations, policies, and procedures. The tax shall
be collected and administered in accordance with: 1) all applicable
laws and regulations; and 2) policies and procedures adopted by the
TCC or by the Tax Officer in conformity with the Local Tax Enabling
Act. This includes any regulations, policies, and procedures adopted
in the future to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
Although credits and deductions against the tax are permitted
under certain circumstances as provided in applicable law and regulations,
no individuals are exempt from tax based on age, income, or other
factors.
Every taxpayer 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 and the policies and procedures of the
TCC and Tax Officer. Tax imposed on net profits and all earnings not
subject to withholding at source 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.
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.
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.
Individuals and employers are subject to interest, penalties,
costs, and fines in accordance with the Local Tax Enabling Act, including
costs of collection imposed by the Tax Officer in accordance with
authorization by the TCC.
The provisions of this article are severable and if any of its
provisions are ruled by a court invalid or unconstitutional, such
decision shall not affect or impair any of the remaining provisions
of this article. It is declared to be the intention of the governing
body of the Borough that this article would have been adopted if such
invalid or unconstitutional provision had not been included.
The primary purpose of this article is to confirm the earned
income and net profits tax imposed pursuant 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 ordinance or part of
any prior ordinance conflicting with the provisions of this article
is rescinded insofar as the conflict exists. To the extent the same
as any ordinance in force immediately prior to adoption of this article,
the provisions of this article are intended as a continuation of such
prior ordinance and not as a new ordinance. If this article is declared
invalid, any prior ordinance levying a similar tax shall remain in
full force and effect and shall not be affected in any manner by adoption
of this article. The provisions of this article shall not affect any
act done or liability incurred, nor shall such provision 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 article. Subject to the foregoing
provisions of this section, this article shall supersede and repeal
on the effective date any ordinance levying a tax on earned income
or net profits in force immediately prior to the effective date.
This article 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.
The provisions of this article shall become effective on January
1, 2012, and shall apply to earned income received or earned and net
profits earned or made by a taxpayer during calendar year 2012 and
each year thereafter without annual re-enactment unless the rate of
tax is subsequently changed. Changes in the rate of tax shall become
effective on the date specified in the ordinance imposing such change.
