[Adopted 11-1-2011 by Ord. No. 272-2011[1]]
[1]
Editor's Note: This ordinance also repealed former Art. V, Earned Income Tax, adopted 11-15-1977 by Ord. No. 40, as amended.
All terms defined in the Local Tax Enabling Act shall have the meanings set forth therein. The following terms shall have the meanings set forth herein:
COLLECTOR
The Berks County Earned Income Tax Collection Bureau.
[Amended 7-5-2016 by Ord. No. 305-2016]
EFFECTIVE DATE
January 1, 2012.
GOVERNING BODY
The Board of Supervisors of Bern Township.
LOCAL TAX ENABLING ACT
The Local Tax Enabling Act, as set forth in 53 P.S. § 6901 et seq. while such numbering and provisions remain in effect under Act 32 of 2008, and as set forth in 53 P.S. § 6924.101 et seq. when such numbering and provisions become effective under Act 32, and as amended in the future.
TAX
All local earned income taxes, other taxes, penalties, interest and costs that the collector collects on behalf of the taxing authority under the Local Tax Enabling Act, 53 P.S. § 6924.101 et seq. or other statutory law.
[Amended 7-5-2016 by Ord. No. 305-2016]
TAXING AUTHORITY
Bern Township.
TAXPAYER
An employer or taxpayer that is liable for tax.
[Added 7-5-2016 by Ord. No. 305-2016]
TAX RETURN
A form prescribed by the collector for reporting the amount of tax or other amount owed or required to be withheld, remitted, or reported under this enactment or the Local Tax Enabling Act.
TAX YEAR
The period from January 1 to December 31.
THIS ENACTMENT
This Ordinance No. 272.
TCC
The Tax Collection Committee established to govern and oversee the collection of earned income tax within the TCD under the Local Tax Enabling Act.
TCD
Any tax collection district to which the taxing authority or any part of the taxing authority is assigned under the Local Tax Enabling Act.
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 individual residents of the taxing authority.
B. 
General purpose municipal nonresident 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 reenactment, until this enactment is repealed or the rate is changed.
D. 
Combined tax rate applicable to residents. Currently, the total rate applicable to residents of the taxing authority, including the tax imposed by the school district and municipality in which the individual resides, is 1%.
E. 
Municipal tax rate applicable to nonresidents. Currently, the total rate applicable to nonresidents working within the taxing authority based on the municipal nonresident tax rate is 1%.
F. 
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 enactment. 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 enactment upon the effective date of such amendment, without the need for formal amendment of this enactment, to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
G. 
Applicable laws, regulations, policies, and procedures. The tax shall be collected and administered in accordance with all applicable laws and regulations; and with policies and procedures adopted by the TCC or by the collector. This includes any regulations, policies, and procedures adopted in the future to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
Although credits and deductions against the tax are permitted under certain circumstances as provided in applicable law and regulations, no individuals are exempt from tax based on age, income, or other factors.
Every individual 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.
Every employer shall register, withhold, and remit the tax, and file tax returns in accordance with the Local Tax Enabling Act.
The tax will be collected from individuals and employers by the collector.
[Amended 7-5-2016 by Ord. No. 305-2016]
A. 
Individuals 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 the Local Tax Enabling Act.
B. 
The taxing authority acknowledges the collector may engage one or more third-party collection agencies to pursue and collect delinquent tax in situations where the amount of delinquent tax owed is relatively small and it is therefore cost-prohibitive for the collector to dedicate the upfront resources necessary to pursue such delinquent tax. The taxing authority hereby approves of the imposition on and collection of a fee from any delinquent taxpayer by any third-party collection agency engaged by the collector, provided such fee does not exceed 25% of the amount of tax collected from any such taxpayer.