[Adopted as Article 373 of the Codified Ordinances; amended in its entirety 10-11-2011 by Ord. No. 9-2011]
This article shall be known and may be cited as the “City of Lancaster Earned Income Tax Ordinance.”
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 person or entity appointed as tax officer pursuant to the Local Tax Enabling Act to collect the tax.
EFFECTIVE DATE
January 1, 2012.
ENACTMENT
This article.
GOVERNING BODY
The Council of the City of Lancaster.
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
The tax imposed by this enactment.
TAXING AUTHORITY
The City of Lancaster.
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.
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 0.6% 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 1.0% 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rates during the current tax year and each tax year thereafter, without annual reenactment, until this enactment is repealed or the rate is changed.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. 
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.
E. 
Applicable laws, regulations, policies, and procedures.
(1) 
The tax shall be collected and administered in accordance with:
(a) 
All applicable laws and regulations; and
(b) 
Regulations, policies and procedures adopted by the TCC or by the collector.
(2) 
This includes any regulations, policies, and procedures adopted in the future to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
A. 
This governing body finds that:
(1) 
Minors of various age groups have traditionally, and with judicial sanction, been considered as comprising separate classes for many legislative purposes; and
(2) 
Minors under the age of 16 are generally unemancipated and subject to compulsory school attendance and child labor laws and therefore have limited earned income and net profits and control of money such that enforcement of reporting and collection of the tax hereunder against them would yield inconsequential amounts and be unduly difficult, expensive, and not in the public interest.
B. 
For these reasons, individuals under the age of 16 years are exempt from liability for the tax.
A. 
Individuals who are residents of a state other than Pennsylvania are exempt from liability for the tax, but only if all local governments of the locality where the individual resides either:
(1) 
Impose no tax on the income of a Pennsylvania resident derived from activities within the locality; or
(2) 
Exempt that income from tax.
B. 
In addition to this exemption from municipal nonresident tax, certain credits and deductions against the tax are permitted under certain circumstances as provided in applicable law and regulations.
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 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.