This article is enacted under the authority of the Local Tax
Enabling Act, 53 P.S. § 6924.101 et seq.
This article shall be known and may be cited as the "Abbottstown
Earned Income and Net Profits 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
Compensation as determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Part I, Subpart B, Article
V (relating to personal income tax), not including, however, wages or compensation paid to individuals on active military service. Employee business expenses are allowable deductions as determined under Article
III of the Tax Reform Code of 1971. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
EARNED INCOME AND NET PROFITS TAX OFFICER or OFFICER
That person, public employee, private agency or other entity
designated by the Borough Council to collect and administer the tax
on earned income and net profits. The elected (or appointed) Real
Property Tax Collector shall be and shall serve as the Earned Income
and Net Profits Tax Officer of the Borough of Abbottstown.
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.
NET PROFITS
The net income from the operation of a business, profession, or other activity, except corporations, determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Part I, Subpart B, Article
V (relating to personal income tax). The term does not include income which is not paid for services provided and which is in the nature of earnings from an investment. For taxpayers engaged in the business, profession or activity of farming, the term shall not include:
A.
Any interest earnings generated from any monetary accounts or
investment instruments of the farming business;
B.
Any gain on the sale of farm machinery;
C.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
D.
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the Borough of Abbottstown.
RESIDENT
A person, partnership, association or other entity domiciled
in the Borough of Abbottstown.
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 municipal
purposes, under the authority of Act No. 511 of 1965, the Local Tax
Enabling Act:
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
Abbottstown.
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 Abbottstown by nonresidents.
Persons whose total income from all sources is less than $12,000
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 of Abbottstown
to impose the tax or duties herein provided for.
All other Ordinances, including Ordinance No. 1969-A, or parts
of laws in conflict herewith are hereby repealed to the extent of
the conflict.
If any section, subsection, sentence, clause or phrase of this
Ordinance is, for any reason, held to be unconstitutional, such decision
shall not affect the validity of the remaining portions of this Ordinance.
The Abbottstown Borough hereby declares that it would have passed
this Ordinance, and each section, subsection, clause or phrase thereof,
irrespective of that fact that any one or more sections, subsections,
sentences, clauses and phrases be declared unconstitutional.
Nothing in this legislation hereby adopted shall be construed
to affect any suit or proceeding pending in any court, or any rights
acquired, or liability incurred, or any cause or causes of action
acquired or existing, under any act or ordinance hereby repealed nor
shall any just or legal right or remedy of any character be lost,
impaired or affected by this Ordinance.
This Ordinance shall become a part of code of the Abbottstown
Borough, Adams County, Pennsylvania upon enactment.
This Ordinance shall take effect and be in full force and effect
in accordance with Section 3301.3(b) of the Borough Code.