[Adopted 11-20-1978 by Ord. No. 738, approved 11-20-1978]
This article shall be known and may be cited as the "Earned
Income Tax Ordinance."
This Earned Income Tax Ordinance is enacted under the authority
of the Local Tax Enabling Act of December 31, 1965, P.L. 1257, as
amended, and this statement of statutory authority is made in compliance
with Section 5 of said Act, as amended (53 P.S. § 6905).[1]
[1]
Editor's Note: See now generally 53 P.S. § 6924.101
et seq.
A tax for general revenue purposes of five mills or 1/2 of 1%
is hereby imposed on:
A.
Earned income earned on and after January 1, 1979, by residents of
the Borough of Middletown.
B.
Earned income earned on and after January 1, 1979, by nonresidents
of said Borough for work done or services performed or rendered in
the Borough of Middletown.
C.
The net profits earned on and after January 1, 1979, by residents
of the Borough of Middletown.
D.
The net profits earned on and after January 1, 1979, from the operation
of businesses, professions or other activity, except corporations,
conducted in said Borough by nonresidents thereof.
Section 13 of the Local Tax Enabling Act of December 31, 1965,
P.L. 1257, 53 P.S. § 6913, pp. 383-394,[1] is hereby incorporated by reference into and made a part
of this article and to the same extent as if the full text of said
section was set out verbatim herein, except that:
A.
In the ease of net profits, the Borough of Middletown elects to operate
under the option set out in Subsection IIIA(2) of said Section 13,
requiring, and hereby requiring, an annual declaration of the estimated
net profits and quarterly payments thereof rather than annual payments
of the tax due on net profits for the preceding year as set forth
in Subsection III(A)(1).
B.
In the case of earned income not subject to withholding, the Borough
of Middletown elects to operate under the option set forth in Subsection
III(B)(2) requiring, and hereby requiring, a quarterly return with
accompanying payment of the tax rather than an annual return and payment
of the tax for the preceding year as set forth in Subsection III(B)(1).
The Income Tax Officer may provide, by regulation, for the making
and filing of adjusted declarations of net profits and for the payment
of the estimated tax on net profits in cases where a taxpayer who
has previously made a declaration of estimated net profits anticipates
additional net profits not previously declared or finds that said
taxpayer has overestimated anticipated net profits.
[1]
Editor's Note: See now generally 53 P.S. § 6924.101
et seq.
[Amended 9-7-2004 by Ord.
No. 1182, approved 9-7-2004]
The Borough Council shall designate one person or agency, by
resolution, for the assessment and collection of any such income taxes
as may be levied by the Borough, to act as Income Tax Officer, with
the powers and duties delineated in the Local Tax Enabling Act.[1] Further, the designee shall perform all duties, be subject
to all of the requirements and have all the powers prescribed by local
and state law. Said designee shall receive such compensation for its
services as it and this Borough may agree to from time to time. The
Borough expressly authorizes the designee to promulgate and amend
policies and regulations for the collection of said taxes.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
[Amended 9-7-2004 by Ord.
No. 1182, approved 9-7-2004]
The tax levied by this article:
A.
Shall be applicable to earned income received and to net profits
earned in the period beginning January 1, 1979, and ending December
31, 1979, or for taxpayer fiscal years beginning in the aforesaid
year, and the said tax shall continue in force and remain effective
on a calendar-year or taxpayer fiscal-year basis without annual reenactment;
B.
May be collected by the Income Tax Officer at the source through
withholding by employers for nonresident as well as residents; and
C.
Is hereby affirmed by this subsection to be 1/2 of 1% of the maximum
rate as limited by Local Tax Enabling Act, which is, as of the date
of adoption of this ordinance, 1%.
