The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates or requires a different meaning.
ASSOCIATION
A partnership, limited partnership, or any other unincorporated
group of two or more persons.
BUSINESS
An enterprise, activity, profession or any other undertaking
of an unincorporated nature conducted for profit or ordinarily conducted
for profit whether by a person or partnership.
CORPORATION
A corporation or joint stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania, or
any other state, territory, foreign country or dependency.
DOMICILE
The place where one lives and has his permanent home and
to which he has the intention of returning whenever he is 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 place in which a man has voluntarily
fixed the habitation of himself and his family, not for a mere special
or limited purpose, but with the present intention of making a permanent
home, until some event occurs to induce him to adopt some other permanent
home. In the case of businesses or associations, the domicile is that
place considered as the center of business affairs and the place where
its functions are discharged.
EARNED INCOME
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered whether directly or through an
agent, and whether in case or in property; not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workmen's compensation acts, occupational disease
acts and similar legislation, or payments commonly recognized as old
age benefits, retirement pay or pensions paid to persons required
from service after reaching a specific age or after a stated period
of employment or payments commonly known as "public assistance," or
unemployment compensation payment made by any governmental agency
or payments to reimburse expenses or payments made by employers or
labor unions for wage and salary supplemental programs, including,
but not limited to, programs covering hospitalization, sickness, disability
or death, supplemental unemployment benefits, strike benefits, social
security and retirement.
EMPLOYER
A person, partnership, association, corporation, institution,
governmental body or unit or agency, or any other entity employing
one or more persons for a salary, wage, commission or other compensation.
INCOME TAX OFFICER OR OFFICER
Person, public employee or private agency designated by the
Borough Council of Lemoyne to collect and administer the tax on earned
income and net profits.
NET PROFITS
The net income from the operation of a business profession,
or other activity except corporations, after provision for all costs
and expenses incurred in the conduct thereof, determined either on
a cash or accrual basis in accordance with the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the Borough of Lemoyne.
RESIDENT
A person, partnership, association or other entity domiciled
in the Borough of Lemoyne.
TAXPAYER
A person, partnership, association, or any other entity,
required hereunder to file a return of earned income or net profits
or to pay a tax thereon.
[Amended 12-1972 by Ord. No. 492]
A. A tax for general revenue purposes is hereby imposed at the rate
of 1% of the following:
(1) Earned income received on and after February 1, 1966, by residents
of the Borough of Lemoyne;
(2) Earned income received on and after February 1, 1966, by nonresidents
of the Borough of Lemoyne in the Borough of Lemoyne;
(3) Net profits earned on and after February 1, 1966, by residents of
the Borough of Lemoyne; and
(4) Net profits earned on and after February 1, 1966, in the Borough
of Lemoyne by nonresidents of the Borough of Lemoyne.
B. The tax levied upon earned income shall relate to and be imposed
upon that earned income paid by an employer or on his behalf to a
taxpayer who is employed by him. The tax levied upon net profits herein
shall relate to and be imposed on the net profits of any business,
profession or other activity carried on by any taxpayer.
C. Every corporation which is subject to the Pennsylvania Corporate
Net Income Tax or exempt from the Pennsylvania Corporate Net Income
Tax and every foreign corporation which is subject to the Pennsylvania
Franchise Tax or exempt from the Pennsylvania Franchise Tax shall
be exempt from the tax imposed by this article.
D. The tax levied under this article shall be applicable to earned income
received and to net profits earned on and after February 1, of the
current year and ending December 31 of the current year or for taxpayer
fiscal years beginning in the current year and the tax shall continue
in force on a calendar year or taxpayer fiscal year basis.
E. Commencing with the year following 1966 and thereafter, whenever
February 1 is referred to herein, January 1 shall be substituted therefor.
Notwithstanding that all dates herein specifically refer to 1966 and
1967, the said date shall also apply to all current years subsequent
to 1966 and 1967.
If for any reason the tax is not paid when due, interest at
the rate of 6% per annum on the amount of said tax an additional penalty
of 0.5% of the amount of the unpaid tax for each month or fraction
thereof during which the tax remains unpaid shall be added and collected.
Where suit is brought for the recovery of any such tax, the taxpayer
or employer liable therefor shall, in addition, be liable for the
costs of collection and the interest and penalties herein imposed.
The Income Tax Officer or his agent is hereby authorized to
accept payment of the amount of tax claimed by the Borough in any
case where any person disputes the validity or amount of the Borough's
claim for the tax. If it is thereafter judicially determined by a
court of competent jurisdiction that there has been an overpayment
to the Income Tax Officer or his agent, the amount of the overpayment
shall be refunded or credited to the taxpayer or employer who paid.
The Council shall by resolution hereafter to be adopted, designate
such person, persons, firm or corporation as Income Tax Officer at
such rate of compensation as it shall deem appropriate, whose term
shall expire at the end of the year for which appointed. The Council
and the Income Tax Officer may contract with an agent and delegate
thereto the powers and duties prescribed in this article for the Income
Tax Officer. The designated Income Tax Officer shall have the powers
and duties prescribed in this article.
The Council may enter into reciprocal agreements with other
municipalities pertaining to the collection of tax moneys from nonresidents
and payment to the respective municipalities of residence which have
a tax which would preempt the tax herein imposed on nonresidents.
[Amended 6-7-1984 by Ord.
No. 553]
The authority under which the tax enacted is the Act of June
25, 1947, P.L. 1145, as amended, and the authority of the Act of December
31, 1965, P.L., (Act 511), "The Local Tax Enabling Act."
The provisions of this article are severable. If any sentence,
clause or section of this article is for any reason found to be unconstitutional,
illegal or invalid, such unconstitutionality, illegality or invalidity
shall not affect or impair any of the remaining provisions, sentences,
clauses or sections of this article. It is hereby declared to be the
intent of the Council of the Borough of Lemoyne that this article
would have been adopted had such unconstitutional, illegal or invalid
sentence, clause or section not been included herein.