[Adopted 8-17-2011 by Ord. No. 995]
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
in which the individual resides, is 1%.
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 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, 72 P.S. § 7303, 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 or wages or compensation paid to individuals on active-duty military service shall not be taxable as earned income.
January 1, 2012.
A person, business entity or other entity, employing one
or more persons 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 purposes of penalties
under this article, the term includes a corporate officer.
The Council of the Borough of Charleroi, 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 is
1%.
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,[1] and rules and regulations promulgated thereunder. The
term does not include income under any of the following subsections:
A person or business domiciled outside the taxing authority.
A natural person.
A person or business domiciled in the Borough.[2]
The tax imposed by this article.
The Council of the Borough of Charleroi, Washington County,
Pennsylvania.
A person or business required under this article and the
Local Tax Enabling Act to file a return of the earned income and net
profits tax or to pay the earned income and net profits tax.
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.
The period from January 1 to December 31.
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.
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.Â
Any individual earning a total income of less than $12,000 or less
shall be exempt from the earned income tax.
B.Â
Any nonresident who is otherwise subject to the earned income tax
of the Borough of Charleroi is hereby exempt from the imposition,
collection and payment of this tax, provided that the domicile of
the nonresident taxpayer provides a life exemption from the imposition,
collection and payment of an earned income and net profits tax to
any resident of Charleroi Borough, Washington County, Pennsylvania,
who would otherwise be subject to an earned income and net profits
tax in the domicile of that nonresident who is subject to this taxation
of this Borough.
A.Â
General purpose resident tax. The taxing authority hereby imposes
a tax for general revenue purposes at the rate of 1% on earned income
and net profits of residents of the taxing authority.
B.Â
General purpose nonresident tax. The taxing authority also imposes
a tax for general revenue purposes at the rate of 1% 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.
C.Â
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.
D.Â
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 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.
E.Â
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 and this article.
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.
