This article is enacted pursuant to the authority granted by the Local Tax Enabling Act, 53 P.S. § 6924.101 et seq.
[Adopted 9-17-2025 by Ord. No. 3191[1]]
[1]
Editor's Note: This ordinance provided: "The Earned Income Tax levied by the terms of this ordinance shall not commence collection until January 1, 2026."
This ordinance also superseded former Art. VIII, Earned Income Tax, adopted 9-4-2024 by Ord. No. 3169.
A. ASSOCIATION BUSINESS BUSINESS ENTITY COLLECTOR COMBINED TAX RATE APPLICABLE TO RESIDENTS DOMICILE EARNED INCOME EMPLOYER GOVERNING BODY LOCAL TAX ENABLING ACT MUNICIPAL TAX RATE APPLICABLE TO NONRESIDENTS NET PROFITS NONRESIDENT PERSON RESIDENT TAX TAX RETURN TAX YEAR TAXING AUTHORITY TAXPAYER TCC TCD
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:
A partnership, limited partnership, or any other form of unincorporated enterprise owned by two or more persons.
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.
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.
The Tax Officer for the administration and collection of the Earned Income Tax of Upper Darby Township appointed by the Tax Collection Committee for the applicable Tax Collection District and acting pursuant to the various provisions of the Local Tax Enabling Act and this article.
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%.
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.
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.
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.
The Council of Upper Darby Township, Delaware County, Pennsylvania.
Act of December 31, 1965, P.L. 1257, 53 P.S. §§ 6924.101 through 6924.901, and any amendments thereto.
The total rate applicable to nonresidents working within the Taxing Authority based on the municipal nonresident tax rate is 1%.
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," and rules and regulations promulgated under that section. The term does not include income under any of the following paragraphs:
A person or business domiciled outside the Taxing Authority.
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.
A person or business domiciled in Upper Darby Township, Delaware County, Pennsylvania.
The tax imposed by this article.
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.
The period from January 1 to December 31.
Upper Darby Township, Delaware County, Pennsylvania.
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.
The Delaware County Tax Collection Committee.
Any tax collection district to which the Taxing Authority or any part of the Taxing Authority is assigned under the Local Tax Enabling Act.
B.
Singular shall include the plural, and the masculine shall include the feminine and neuter.
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 non-resident 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 applicable law.
Any individual earning a total income of less than $12,000 annually shall be exempt from the Earned Income Tax.
Every resident 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 this article.
Every employer shall register, withhold, and remit tax, and file tax returns in accordance with the Local Tax Enabling Act and this article.
The tax shall be collected from residents and employers by the Collector.
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.