[Adopted 10-3-2011 by Ord. No. 391]
This article shall be known and may be cited as the "Quarryville Borough Earned Income Tax Ordinance."
All terms defined in the Local Tax Enabling Act shall have the meanings set forth therein. The following terms shall have the meanings set forth herein:
- The person or entity appointed as tax officer pursuant to the Local Tax Enabling Act to collect the tax.
- EFFECTIVE DATE
- January 1, 2012.
- This article.
- GOVERNING BODY
- The Council of the Borough of Quarryville.
- LOCAL TAX ENABLING ACT
- The Local Tax Enabling Act, as set forth in 53 P.S. § 6901 et seq. while such numbering and provisions remain in effect under Act 32 of 2008, and as set forth in 53 P.S. § 6924.101 et seq. when such numbering and provisions become effective under Act 32, and as amended in the future.
- The tax imposed by this article.
- TAX RETURN
- A form prescribed by the Collector 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.
- TAX YEAR
- The period from January 1 to December 31.
- TAXING AUTHORITY
- Quarryville Borough.
- The tax collection committee established to govern and oversee the collection of earned income tax within the TCD under the Local Tax Enabling Act.
- Any tax collection district to which the Taxing Authority or any part of the Taxing Authority is assigned under the Local Tax Enabling Act.
General purpose resident tax. The taxing authority 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 taxing authority.
General purpose municipal nonresident tax. The taxing authority also imposes a tax for general revenue purposes at the rate of 1.0% 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.
Ongoing tax. The tax shall continue at the above rates during the current tax year and each tax year thereafter, without annual reenactment, until this article is repealed or the rate is changed.
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.
Applicable laws, regulations, policies, and procedures. The tax shall be collected and administered in accordance with: all applicable laws and regulations; and regulations, policies and procedures adopted by the TCC or by the Collector. This includes any regulations, policies, and procedures adopted in the future to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
This governing body finds that: minors of various age groups have traditionally, and with judicial sanction, been considered as comprising separate classes for many legislative purposes; and minors under the age of 16 are generally unemancipated and subject to compulsory school attendance and child labor laws, and therefore have limited earned income and net profits and control of money such that enforcement of reporting and collection of tax hereunder against them would yield inconsequential amounts and be unduly difficult, expensive, and not in the public interest. For these reasons, individuals under the age of 16 years are exempt from liability for the tax.
Individuals who are residents of a state other than Pennsylvania are exempt from liability for the tax, but only if all local governments of the locality where the individual resides either: impose no tax on the income of a Pennsylvania resident derived from activities within the locality; or exempt that income from tax. In addition to this exemption from municipal nonresident tax, certain credits and deductions against tax are permitted under certain circumstances as provided in applicable law and regulations.
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.
Every employer shall register, withhold, and remit tax, and file tax returns in accordance with the Local Tax Enabling Act.
The tax will be collected from individuals and employers by the Collector.
Individuals 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 the Local Tax Enabling Act.
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 Borough Council 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 conform the earned income and net profits tax currently imposed 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 enactment imposing a tax on earned income or net profits of individuals is amended and restated in its entirety to read as stated in this article. Any other prior enactment or part of any prior enactment conflicting with the provisions of this article is rescinded insofar as the conflict exists. To the extent the same as any enactment in force immediately prior to adoption of this article, the provisions of this article are intended as a continuation of such prior enactment and not as a new enactment. If this article is declared invalid, any prior enactment levying a similar tax shall remain in full force and effect and shall not be affected by adoption of this article. If any part of this article is declared invalid, the similar part of any prior enactment levying a similar tax shall remain in effect and shall not be affected by adoption of this article. The provisions of this article 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 enactment in force prior to adoption of this article. Subject to the foregoing provisions of this section, this article shall amend and restate on the effective date any enactment levying a tax on earned income or net profits in force immediately prior to the effective date.
This article shall take effect and be in force on January 1, 2012.