[1]
Editor's Note: This ordinance also repealed former Art. VIII,
Earned Income and Net Profits Tax, adopted 12-10-2014 by Ord. No.
5657.
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:
The person or entity appointed as tax officer pursuant to
the Local Tax Enabling Act to collect the tax.
January 1, 2020.
This article.
The Council of the City of Altoona.
The Act, as set forth in 53 Pa.C.S.A. § 2901 et
seq., Act 177 of 1996, and as amended in the future. Also referred
to as the "Home Rule Charter Act." Any reference to the Home Rule
Charter Act shall be interpreted to also reference the Home Rule Charter
adopted by the City in November 2014.
The 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. Also referred to as "Act 511."
The Act, as set forth in 53 P.S. § 895.101 et seq.,
Act 205 of 1984, and as amended in the future. Also referred to as
"Act 205."
The tax and/or taxes imposed by this enactment.
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 and/or the Local Tax Enabling Act
and/or any other applicable tax.
The period from January 1 to December 31.
The City of Altoona.
The tax collection committee established to govern and oversee
the collection of earned income tax within the TCD under the Local
Tax Enabling Act.
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.
Taxes imposed. The following taxes are hereby imposed by the taxing
authority in the amounts set forth:
(1)
General purpose resident tax. The taxing authority hereby imposes
a tax for general revenue purposes at the rate of 1% under Act 511
and at the rate of 0.2% under the Home Rule Charter Act on earned
income and net profits of individual residents of the taxing authority.
(2)
Municipal Pension Plan Funding Standard and Recovery Act resident
tax. In addition to the general purpose resident tax levied for general
revenue purposes, the taxing authority hereby imposes a special tax
for the purpose of raising revenue to defray costs related to the
pension plans of the City of Altoona under Act 205, 53 P.S. § 895.101
et seq., at the rate of 0.4% on earned income and net profits of individual
residents of the taxing authority.
(3)
General purpose nonresident tax. The taxing authority also imposes
a tax for general revenue purposes at the rate of 1% under Act 511
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 by such individual.
(4)
Municipal Pension Plan Funding Standard and Recovery Act nonresident
tax. In addition to the general purpose nonresident tax levied for
general revenue purposes, the taxing authority hereby imposes a special
tax for the purpose of raising revenue to defray costs related to
the pension plans of the City of Altoona under Act 205, 53 P.S. § 895.101
et seq., at the rate of 0.4% on earned income and net profits of 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 by such individual.
B.
Ongoing tax. The tax imposed pursuant to the Local Tax Enabling Act,
the Home Rule Charter Act and the Municipal Pension Plan Funding Standard
and Recovery Act 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.
C.
Combined tax rate applicable to residents. Currently, the total tax
rate applicable to residents of the taxing authority pursuant to Act
511, the Home Rule Charter Act, and the Municipal Pension Plan Funding
Standard and Recovery Act is 1.6%.
D.
Combined tax rate applicable to nonresidents. Currently, the total
rate applicable to nonresidents working within the taxing authority
pursuant to Act 511, the Home Rule Charter Act, and the Municipal
Pension Plan Funding Standard and Recovery Act is 1.4%.
E.
Applicable taxing statutes. The taxes are imposed under authority
of the Local Tax Enabling Act, and all provisions thereof that relate
to a tax on earned income and/or net profits are incorporated into
this enactment. The taxes are also imposed under authority of the
Home Rule Charter Act and the Municipal Pension Plan Funding Standard
and Recovery Act. Any future amendments to the Local Tax Enabling
Act and/or the Home Rule Charter Act and/or the Municipal Pension
Plan Funding Standard and Recovery 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.
F.
Applicable laws, regulations, policies, and procedures. The tax shall
be collected and administered in accordance with: all applicable laws
and regulations; and regulations, policies and procedures adopted
by the TCC and/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 taxes 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 and/or earning net
profits in any tax year shall file tax returns and pay taxes in accordance
with the Local Tax Enabling Act and/or the Home Rule Charter Act and/or
the Municipal Pension Plan Funding Standard and Recovery Act.
Every employer shall register, withhold, and remit taxes, and
file tax returns in accordance with the Local Tax Enabling Act and/or
the Home Rule Charter Act and/or the Municipal Pension Plan Funding
Standard and Recovery Act.
The taxes will be collected from individuals and employers by
the collector.
Individuals and employers are subject to interest, penalties,
costs, and fines, including costs imposed by the collector in accordance
with the Local Tax Enabling Act and/or the Home Rule Charter Act and/or
the Municipal Pension Plan Funding Standard and Recovery Act.
The primary purpose of this enactment is to conform the earned
income and net profits tax currently imposed to the Local Tax Enabling
Act, as amended and restated by Act 32 of 2008, and to comply with
the Home Rule Charter Act and Act 205. Any prior enactment imposing
a tax on earned income or net profits of individuals is amended and
restated in its entirety to read as stated in this enactment. Any
other prior enactment or part of any prior enactment conflicting with
the provisions of this enactment is rescinded insofar as the conflict
exists. To the extent the same as any enactment in force immediately
prior to adoption of this enactment, the provisions of this enactment
are intended as a continuation of such prior enactment and not as
a new enactment. If this enactment is declared invalid, any prior
enactment levying a similar tax shall remain in full force and effect
and shall not be affected by adoption of this enactment, and/or this
enactment shall be considered to have been enacted under authority
of any other law permitting this enactment to be valid. If any part
of this enactment is declared invalid, the similar part of any prior
enactment levying a similar tax shall remain in effect and shall not
be affected by adoption of this enactment, and/or such part or parts
of this enactment shall be considered to have been enacted under authority
of any other law permitting any such part of this enactment to be
valid. The provisions of this enactment shall not affect any act done
or liability incurred, nor shall such provisions affect any suit or
prosecution pending or to be initiated to enforce any right or penalty
or to punish offense under the authority of any enactment in force
prior to adoption of this enactment. Subject to the foregoing provisions
of this section, this enactment shall amend and restate on the effective
date any enactment levying a tax on earned income or net profits in
force immediately prior to the effective date.
