§ 243-29Statutory authority.
§ 243-30Imposition of tax.
§ 243-31Incorporation of state law.
§ 243-32Income Tax Officer designated.
§ 243-33Continuity; applicability.
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).
A tax for general revenue purposes of five mills or one-half of one percent (1/2 of 1%) is hereby imposed on:
Earned income earned on and after January 1, 1979, by residents of the Borough of Middletown.
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.
The net profits earned on and after January 1, 1979, by residents of the Borough of Middletown.
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, 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:
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).
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.
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.
The tax levied by this article:
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; and
May be collected by the Income Tax Officer at the source through withholding by employers for nonresident as well as residents; and
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%.