[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:
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.
The person or entity appointed as Tax Officer pursuant to
the Local Tax Enabling Act to collect the tax.
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.
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.
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.
January 1, 2012.
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.
The Board of Supervisors of the City of Washington, Washington
County, Pennsylvania.
The Local Tax Enabling Act, 53 P.S. § 6924.101
et seq., and any amendments thereto.
The total rate applicable to nonresidents working within the taxing authority based on the municipal nonresident tax rate as described in § 325-97 below.
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 person or business domiciled outside the taxing authority.
A natural person.
A person or business domiciled in the City.
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]
Any tax collection district to which the taxing authority
or any part of the taxing authority is assigned under the Local Tax
Enabling Act.
The tax imposed by this article.
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]
The period from January 1 to December 31.
The City of Washington, Washington County, Pennsylvania.
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.
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 0.4% is hereby imposed and
continued on all earned income received on or after January 1, 2018,
by residents of the City of Washington, and imposed and continued
on all earned income received on or after January 1, 2018, by nonresidents;
and imposed and continued on the net profits earned on or after January
1, 2018, of businesses, professions, and other activities, except
corporate entities, conducted in the City of Washington by nonresidents.
[Amended 4-5-2018 by Ord. No. 1908]
(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.