[Adopted 8-12-2003 by Ord. No. 645[1][2] (Ch. 139, Art. V, of the 1982 Code); amended in its entirety at time of adoption of Code (see Ch. 1, General Provisions, Art. I)]
[1]
Editor's Note: This ordinance also repealed former Art V, Earned Income Tax, adopted 11-9-1993 by Ord. No. 514.
[2]
Editor's Note: This ordinance was reaffirmed and reenacted 5-8-2007 by Ord. No. 682.
All terms as are defined in the Local Tax Enabling Act, 53 P.S. §§ 6924.101 through 6924.901, shall have the meanings set forth therein. Further, the following words, terms and phrases, as used in this article, shall have the following meanings respectively ascribed to them in this section:
ASSOCIATION
A partnership, limited partnership, or any other form of unincorporated enterprise owned by 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, partnership, association or any other entity.
BUSINESS ENTITY
A sole proprietorship, corporation, joint-stock association or company, partnership, limited partnership, limited liability company, association, business trust, syndicate or other commercial or professional activity organized under the laws of this commonwealth or any other jurisdiction.
COLLECTOR
The Tax Officer for the administration and collection of the earned income tax of the Borough appointed and acting pursuant to the various provisions of the Local Tax Enabling Act[1] and this article.
COMBINED TAX RATE APPLICABLE TO RESIDENTS
The total rate applicable to residents of the taxing authority, including the tax imposed by the School District, if any, and by the municipality in which the individual resides, is 1%.
DOMICILE
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 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.
EARNED INCOME
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. Earned income shall not include any wages or compensation paid by the United States to any person for active service in the military of the United States or the Commonwealth of Pennsylvania or any other state for such service.
EMPLOYER
A person, business entity or other entity, employing one or more persons for a salary, wage, commission or other compensation. The term includes the commonwealth, a political subdivision, and an instrumentality or public authority of either. For purposes of penalties under this article, the term includes a corporate officer.
GOVERNING BODY
The Newtown Borough Council, Bucks County, Pennsylvania.
LOCAL TAX ENABLING ACT
Act of December 31, 1965, P.L. 1257, 53 P.S. §§ 6924.101 through 6924.901, and any amendments thereto.
MUNICIPAL TAX RATE APPLICABLE TO NONRESIDENTS
The total rate applicable to nonresidents working within the taxing authority based on the municipal nonresident tax rate is 1%.
NET PROFITS
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,"[2] and rules and regulations promulgated under that section. The term does not include income under any of the following paragraphs:
A. 
Income which:
(1) 
Is not paid for services provided; and
(2) 
Is in the nature of earnings from an investment.
B. 
Income which represents:
(1) 
Any gain on the sale of farm machinery;
(2) 
Any gain on the sale of livestock held 12 months or more for draft, breeding or dairy purposes; or
(3) 
Any gain on the sale of other capital assets of a farm.
NONRESIDENT
A person or business domiciled outside the taxing authority.
PERSON
A natural person, partnership, corporation, fiduciary, or association. Whenever used in any section prescribing and imposing a penalty, the term "person," as applied to associations, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
RESIDENT
A person or business domiciled in Newtown Borough.
TAX
The tax imposed by this article.
TAX RETURN
A form prescribed by the Collector for reporting the amount of tax or other amount owned or required to be withheld, remitted, or reported pursuant to this article or the Local Tax Enabling Act.
TAX YEAR
The period from January 1 to December 31.
TAXING AUTHORITY
Newtown Borough, Bucks County, Pennsylvania.
TAXPAYER
A person or business required under this article and the Local Tax Enabling Act to file a return of the earned income and net profits tax or to pay the earned income and net profits tax.
TCC
The Bucks County Tax Collection Committee.
TCD
Any tax collection district to which the taxing authority or any part of the taxing authority is assigned under the Local Tax Enabling Act.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
[2]
Editor's Note See 72 P.S. § 7303.
A. 
General purpose resident tax. The taxing authority hereby imposes a tax for general revenue purposes at the rate of 1% on earned income and net profits of residents of the taxing authority.
B. 
General purpose nonresident tax. The taxing authority also imposes a tax for general revenue purposes at the rate of 1% on earned income 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 boundaries of the taxing authority.
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.
(1) 
The tax shall be collected and administered in accordance with:
(a) 
All applicable laws and regulations; and
(b) 
Policies and procedures adopted by the TCC or by the Collector.
(2) 
This includes any regulations, policies, and procedures adopted in the future to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
Residents and employers are subject to interest, penalties, costs, and fines in accordance with the Local Tax Enabling Act, including costs imposed by the Collector in accordance with authorization by the TCC having jurisdiction.