City of Washington, PA
Washington County
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Table of Contents
Table of Contents
[Adopted 10-6-2011 by Ord. No. 1846]
All terms defined in the Local Tax Enabling Act, 53 P.S. § 6924.101 et seq., shall have the meanings set forth therein. The following terms shall have the meanings set forth herein:
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.
COLLECTOR
The person or entity appointed as Tax Officer pursuant to the Local Tax Enabling Act to collect the tax.
COMBINED TAX RATE APPLICABLE TO RESIDENTS
The total rate applicable to residents of the taxing authority, including the tax imposed by the School District and by the municipality as described in § 325-97 below.
DOMICILE
The place where a person lives and has a permanent home and to which the person has the intention of returning whenever 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 voluntarily 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 the person to adopt some other permanent home. In the case of a business, domicile is that place considered to be the center of business affairs and the place where its functions are discharged.
EARNED INCOME
The compensation required to be reported to or as determined by the Pennsylvania Department of Revenue under Section 303 of the Tax Reform Code of 1971,[1] as amended, and rules and regulations promulgated thereunder. Employee business expenses as reported to or determined by the Department of Revenue under Article III of the Tax Reform Code shall constitute allowable deductions in determining earned income. The term does not include offsets for business losses. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
EFFECTIVE DATE
January 1, 2012.
EMPLOYER
A person, business entity or other entity employing one of more person for a salary, wage, commission or other compensation. The term includes the commonwealth, a political subdivision and an instrumentality or public authority of either. For purpose of penalties under this article, the term includes a corporate officer.
GOVERNING BODY
The Board of Supervisors of the City of Washington, Washington County, Pennsylvania.
LOCAL TAX ENABLING ACT
The Local Tax Enabling Act, 53 P.S. § 6924.101 et seq., and any amendments thereto.
MUNICIPAL TAX RATE APPLICABLE TO NONRESIDENTS
The total rate applicable to nonresidents working within the taxing authority based on the municipal nonresident tax rate as described in § 325-97 below.
NET PROFITS
The net income from the operation of a business, other than a corporation, as required to be reported to or as determined by the Pennsylvania Department of Revenue under Section 303 of the Tax Reform Code of 1971, as amended, and rules and regulations promulgated thereunder. The term does not include income under any of the following paragraphs:
A. 
Income which:
(1) 
Is not paid for services provided; or
(2) 
Is in the nature of earnings from an investment.
B. 
Income which represents:
(1) 
Any gain on the sale of farm machinery;
(2) 
Any gain on the sale of livestock held for 12 months or more for draft, breeding or dairy purposes; or
(3) 
Any gain on the sale of other capital assets of a farm.
NONRESIDENT
A person or business domiciled outside the taxing authority.
PERSON
A natural person.
RESIDENT
A person or business domiciled in the City.
TCC
The Washington County Tax Collection Committee, which has been established to govern and oversee the collection of earned income tax within the TCD under the Local Tax Enabling Act.[2]
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.
TAX
The tax imposed by this article.
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 article or the Local Tax Enabling Act.[3]
TAX YEAR
The period from January 1 to December 31.
TAXING AUTHORITY
The City of Washington, Washington County, Pennsylvania.
TAXPAYER
A person or business required under this article and the Local Tax Enabling Act[4] to file a return of the earned income and net profits tax or to pay the earned income and net profits tax.
[1]
Editor's Note: See 72 P.S. § 7101 et seq.
[2]
Editor's Note: See 53 P.S. § 6924.101 et seq.
[3]
Editor's Note: See 53 P.S. § 6924.101 et seq.
[4]
Editor's Note: See 53 P.S. § 6924.101 et seq.
A. 
General purpose resident and nonresident tax.
(1) 
A tax at the rate of 1% on each $1 is hereby imposed on all earned income and net profits, as defined herein, earned by residents of the City of Washington and on all earned income received on or after January 1, 2012, by nonresidents in the City of Washington by those individuals not governed by an earned income tax in the jurisdiction where they reside; and on the net profits earned on or after January 1, 2012, of businesses, professions and other activities, except corporations, conducted by such residents of the City of Washington, and imposed on the net profits earned on or after January 1, 2012, of businesses, professions and other activities, except corporate entities, conducted in the City of Washington by nonresidents.
(2) 
A tax for the special tax under Act 205 for the specific purpose of raising revenue to defray costs related to the pension plans of the City of Washington in the amount of 0.635% is hereby imposed and continued on all earned income received on or after January 1, 2012, by residents of the City of Washington, and imposed and continued on all earned income received on or after January 1, 2012, by nonresidents; and imposed and continued on the net profits earned on or after January 1, 2012, of businesses, professions and other activities, except corporate entities, conducted in the City of Washington by nonresidents.
(3) 
The breakdown and/or distribution of said tax shall be as follows unless otherwise changed by ordinance:
(a) 
City of Washington: 0.50%.
(b) 
Washington School District: 0.50%.
(c) 
City of Washington Pension Distress (Act 205): 0.635%.
(4) 
The taxes hereby imposed and continued, or imposed, on the earned income received and the net profits earned commencing on January 1, 2012, and during each calendar year (or taxpayer fiscal year beginning in said calendar year) thereafter, without reenactment until this article shall be repealed or the rates of tax changed. This tax was originally imposed as of January 1, 1988, and has remained in effect thereafter on a calendar-year basis without annual reenactment, except for a later change in the rate of tax.
B. 
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.
C. 
Local Lax Enabling Act[1] 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 a tax on earned income or net profits 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.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
D. 
Applicable laws, regulations, policies and procedures. The tax shall be collected and administered in accordance with all applicable laws and regulations and 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.
Every resident 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[1] and this article.
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
Every employer shall register, withhold and remit tax, and file tax returns, in accordance with the Local Tax Enabling Act and this article.
The tax will be collected from residents and employers by the Collector.
Residents 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 authorization by the TCC having jurisdiction.
The primary purpose of this article is to conform the earned income and net profits tax currently imposed by the taxing authority 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 imposing a tax on earned income or net profits of individuals is amended and restated in its entirety to read as stated in this article. Any other 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 that this article is 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 by adoption of this article. If any part of this article is declared invalid, the similar part of any prior ordinance levying a similar tax shall remain in effect and shall not be affected 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 amend and restate on the effective date any ordinance levying a tax on earned income or net profits in force immediately prior to the effective date.
The provisions of this article shall become effective on January 1, 2012.