This article is enacted under the authority
of the Local Tax Enabling Act, 53 P.S. § 6901 et seq.
This article shall be known and may be cited
as the "Schwenksville Borough Earned Income Tax Ordinance."
As used in this article, the following terms
shall have the meanings indicated:
ASSOCIATION
A partnership, limited partnership or any other unincorporated
group of two or more persons.
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.
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.
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 voluntary 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 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
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent, and whether in cash or in property; not including, however,
wages or compensation paid to persons in active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workmen's compensation acts, occupational disease
acts and similar legislation or payments commonly recognized as old
age benefits, retirement pay or pensions paid to persons retired from
service after reaching a specific age or after a stated period of
employment or payments commonly known as "public assistance" or unemployment
compensation payments by any governmental agency or payments to reimburse
expenses or payments made by employers or labor unions for wage and
salary supplemental programs, including but not limited to programs
covering hospitalization, sickness, disability or death, supplemental
unemployment benefits, strike benefits, social security and retirement.
EMPLOYER
A person, partnership, association, corporation, institution,
governmental body or unit or agency or any other entity employing
one or more persons for a salary, wage, commission or other compensation.
INCOME TAX OFFICER or OFFICER
That person, public employee, private agency or other entity
designated by Borough Council to collect and administer the tax on
earned income and net profits. The elected (or appointed) Borough
Real Property Tax Collector shall be and shall serve as the Income
Tax Officer of the Borough.
NET PROFITS
The net income from the operation of a business, profession
or other activity, except corporations, after provision for all costs
and expenses incurred in the conduct thereof, determined either on
a cash or accrual basis in accordance with the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the Borough.
RESIDENT
A person, partnership, association or other entity domiciled
in the Borough.
TAXPAYER
Person, partnership, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
The following taxes are hereby imposed, for
general Borough purposes, under the authority of Act No. 511 of 1965,
The Local Tax Enabling Act (53 P.S. § 6901 et seq.):
A. One percent of all earned income earned during the
current year by residents.
B. One percent of all earned income earned during the
current year by nonresidents for work done or services rendered in
the Borough of Schwenksville.
C. One percent of all net profits earned during the current
year by businesses, professions and other activities conducted by
residents.
D. One percent of the net profits earned during the current
year by businesses, professions and other activities conducted in
the Borough of Schwenksville by nonresidents.
As authorized by 53 P.S. § 6902, persons
whose total income from all sources is less than $5,000 per annum
are hereby exempted from this tax.
The Officer shall receive such compensation
for his services and expenses as determined by the Borough Council.
This article shall not apply to any person or
property as to whom or which it is beyond the legal power of the Borough
to impose the tax or duties herein provided for.