This article shall be known as the "Lower Windsor Township Earned
Income and Net Profits Tax Ordinance."
All words and phrases shall have the meanings as set forth in
Act 32, as amended. The following words and phrases, when used in this article
shall have the meanings ascribed to them as follows:
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.
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. This term
shall include an entity which is classified as a corporation for federal
income tax purposes.
DEPARTMENT
The Pennsylvania Department of Community and Economic Development
or successor agency charged with any duties under the Act, as may
be amended and supplemented.
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
The compensation as required to be reported to or as determined by the Pennsylvania 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. For purposes of earned income, employee business expenses are allowable deductions as determined under Article
III of the Tax Reform Code of 1971. 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.
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
hereunder, this term includes a corporate officer.
HE, HIS or HIM
Shall mean and indicate the singular and plural number as
well as male, female and neuter gender.
MUNICIPALITY
A city of the second class, city of the second class A, city
of the third class, borough, town, township of the first class or
township of the second class. For purposes of this article, such term
shall mean the Township of Lower Windsor, York County, Pennsylvania.
NET PROFITS
The net income from the operation of a business, except corporations
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 such section. The term does not include
income which is not paid for services provided and which is in the
nature of earnings from an investment. Further, the term shall not
include:
A.
Any gain on the sale of farm machinery;
B.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
C.
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside of the municipality.
RESIDENT
A person, partnership, association or other entity domiciled
in the municipality.
TAX BUREAU
A public nonprofit entity established by a TCC for the administration
and collection of earned income and net profits tax.
TAX OFFICER
A political subdivision, public employee, tax bureau, county,
excluding a county of the first class, or private agency which administers
and collects earned income and net profits for one or more tax collection
district. Unless otherwise specifically provided, for purposes of
the obligations of an employer, the term shall mean the Tax Officer
or Tax Collector for the tax collection district within which the
employer is located, or if an employer maintains workplaces in more
than one tax collection district, the Tax Officer or Tax Collector
for the tax collection district within which the employer is located,
or if an employer maintains workplaces in more than one tax collection
district, the Tax Officer for each such tax collection district with
respect to employees principally employed therein.
TAXPAYER
A person or business required hereunder to file a return
of earned income or net profits or to pay a tax thereon.
This article shall not apply to any person or property as to
whom or which it is beyond the legal power of the municipality to
levy, assess and impose the tax or duties as herein provided.
The provisions of this article are severable and if any of its
provisions are determined by a court of competent jurisdiction to
be invalid or unconstitutional, such determination shall not affect
or impair any of the remaining provisions of this article. It is hereby
declared to be the intention of the Board of Supervisors of Lower
Windsor Township 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 local
income tax currently levied on earned income and net profits by the
municipality with the Act and to do so within the time frame set forth
in the Act. Any prior ordinance levying such tax is hereby amended
and restated in its entirety to read as set forth in this article.
To the extent that any previous ordinance or portion thereof is inconsistent
or conflicts with this article, such ordinance(s) or portion(s) thereof
shall be repealed to the extent of such inconsistency and/or conflict.
To the extent the same or any prior ordinance levying such tax is
in force immediately prior to enactment of this article, this article
is intended as a continuation of such prior ordinance and not as the
enactment of an ordinance imposing a new tax. In the event this article
or any portion thereof is determined to be unconstitutional or otherwise
invalid, the prior ordinance, or portion thereof, levying a similar
tax shall remain in full force and effect and shall not be affected
by the adoption of this article. Nothing contained herein shall affect,
impair or otherwise abrogate any act done or liability incurred, nor
shall any provision of this article affect, impair or preclude any
suit or prosecution pending, whether or not currently initiated, to
enforce any right, penalty or violation under the authority of any
previous ordinance in force prior to adoption of this article.
The effective date of this article and beginning of the initial
current year shall be January 1, 2012.