[Adopted 7-5-2010 by Ord. No. 759]
For purposes of this article, all terms defined in the Local Tax Enabling Act, 53 P.S. § 6901 et seq. and 53 P.S. §§ 6924.101 to 6924.312, shall have the meanings set forth therein. In addition, the following terms shall have the meanings set forth herein, unless the context shall clearly indicate otherwise:
- EFFECTIVE DATE
- January 1, 2012.
- LOCAL TAX ENABLING ACT
- The Local Tax Enabling Act, 53 P.S. § 6901 et seq. and 53 P.S. §§ 6924.101 to 6924.312, and as amended in the future, including any regulations adopted by the Department of Community and Economic Development thereunder.
- The tax on earned income and net profits imposed by this article.
- TAX OFFICER
- The person or entity appointed as tax officer pursuant to the Local Tax Enabling Act to collect the tax in the TCD (tax collection district).
- TAX RETURN
- A form or forms prescribed by the Department of Community and Economic Development, or by the Tax Officer with the approval of the TCC (tax collection committee), for reporting the amount of tax or other amount owed or required to be withheld, remitted or reported under this article or the Local Tax Enabling Act.
- TAX YEAR
- The period from January 1 to December 31 in a single calendar year.
- A person or business required under this article or the Local Tax Enabling Act to file a tax return or to pay the tax.
- The tax collection committee established to govern and oversee the collection of income tax within the TCD under the Local Tax Enabling Act.
- The Northampton Tax Collection District or any future tax collection district to which the Borough or any part of the Borough is assigned under the Local Tax Enabling Act.
General purpose resident tax. The Borough hereby imposes a tax for general revenue purposes at the rate of 1% on earned income and net profits of residents of the Borough.
General purpose municipal nonresident tax. The Borough also imposes a tax for general revenue purposes at the rate of 1% on earned income and net profits derived by a nonresident from any work, business, profession or activity of any kind engaged in within the boundaries of Borough.
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above rates during the current tax year and each tax year thereafter, without annual reenactment, until this article is repealed or the rate is changed.
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 article. Any future amendments to the Local Tax Enabling Act that are required to be applied to the tax will automatically become part of this article upon the effective date of such amendment, without the need for formal amendment of this article, to the maximum extent allowed by 1 Pa.C.S.A. § 1937.
Applicable laws, regulations, policies, and procedures. The tax shall be collected and administered in accordance with all applicable laws and regulations; and rules, regulations, policies and procedures adopted by the TCC or by the Tax Officer in conformity with the Local Tax Enabling Act. 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 taxpayer receiving earned income or earning net profits in any tax year shall make and file tax returns and declarations and pay tax in accordance with the Local Tax Enabling Act and the rules, regulations, policies and procedures of the TCC and Tax Officer. A taxpayer is required to file timely an annual tax return even if no tax payment is due and owing. In addition, even though a resident of the Borough did not have earned income or net profits in the prior tax year, the resident must file an annual tax return when requested to do so by the Tax Officer, stating the reason why there was no income or net profits to report.
Every employer shall register, require employee residency certificates, withhold and remit tax, and file tax returns and withholding statements in accordance with the Local Tax Enabling Act and the rules, regulations, policies and procedures of the TCC and Tax Officer.
Collection of tax. The tax will be collected from taxpayers and employers by the Tax Officer. The Tax Officer is authorized to file an action in the name of the Borough for the recovery of the tax due to the Borough and unpaid. Nothing in this section shall affect the authority of the Borough to file an action in its own name for collection of the tax under the Local Tax Enabling Act.
Criminal complaints for violations. The Tax Officer is authorized to file criminal complaints on behalf of the Borough for violations of this article or the Local Tax Enabling Act. Nothing in this section shall affect the authority of the Borough to file a criminal complaint on its own behalf for violation of this article or the Local Tax Enabling Act.
In the event of violation of this article or the Local Tax Enabling Act or nonpayment of tax, taxpayers and employers are subject to interest, penalties, costs and fines in accordance with the Local Tax Enabling Act, including costs of collection imposed by the Tax Officer in accordance with authorization by the TCC. The Tax Officer may retain reasonable costs of collection in accordance with the Local Tax Enabling Act and as approved by the TCC.
The primary purpose of this article is to conform the Borough's currently existing earned income and net profits tax to the Local Tax Enabling Act, as amended and restated by Act 32 of 2008, and to do so within the time frame required by Act 32. Any prior ordinance or part of any prior ordinance conflicting with the provisions of this article is rescinded insofar as the conflict exists. To the extent the provisions of this article are the same as any ordinance in force immediately prior to adoption of this article, the provisions of this article are intended as a continuation of such prior ordinance and not as a new ordinance. If this article is declared invalid, any prior ordinance levying a similar tax shall remain in full force and effect and shall not be affected in any manner by adoption of this article. The provisions of this article 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 any offense under the authority of any ordinance in force prior to adoption of this article. Subject to the foregoing provisions of this section, this article shall supersede and repeal, on the effective date, any ordinance levying a tax on earned income or net profits in force immediately prior to the effective date. The tax imposed by this article shall not apply to any person as to whom it is beyond the legal power of the Borough to impose the tax herein provided under the Constitution of the United States and the Constitution and laws of the Commonwealth of Pennsylvania.
This article is intended to be consistent with the Local Tax Enabling Act. The article is intended to include all necessary authorizations to permit the Tax Officer to take all actions for the collection, administration, disbursement and enforcement of the tax and all other actions on behalf of the political subdivisions of the TCD as authorized by the Local Tax Enabling Act, subject to the policies and procedures of the TCC. To give full force and effect to this article, the authority of the Tax Officer shall be interpreted in the broadest permissible sense for the benefit of the Tax Officer's ability to perform its duties.
The provisions of this article shall become effective on January 1, 2012, and shall apply to earned income received or earned and net profits earned or made by a taxpayer during calendar year 2012 and each year thereafter without annual reenactment unless the rate of tax is subsequently changed. Changes in the rate of tax shall become effective on the date specified in the ordinance imposing such change.