[Adopted 3-7-1977 by Ord.
No. 4B; amended in its entirety 11-21-2011 by Ord. No. 893 (Ch.
24, Part 1, of the 2003 Code of Ordinances)]
This article shall be known and may be cited as the "Earned
Income Tax Ordinance of the City of Lock Haven."
This article is hereby enacted pursuant to the authority granted
by the Local Tax Enabling Act, P.L. 1257, known as Act No. 511 of
1965, effective January 1, 1966, as amended through in Act 166 of
2002 and Act No. 32 of 2008, 53 P.S. § 6924.101 et seq.
(known as the "Local Tax Enabling Act," and herein referred to as
the "Act").
Act 32 (53 P.S. §§ 6924.101 through 6924.901)
and its definitions, duties, directives, rules, regulations, powers
and penalties is hereby adopted by reference as if same had been set
forth fully herein.
A.Â
DOMICILE
EARNED INCOME
NET PROFITS
NONRESIDENT
RESIDENT
TAX COLLECTION COMMITTEE (TCC)
TAX COLLECTION DISTRICT (TCD)
TAX OFFICE/TAX COLLECTOR
The following words and phrases are included herein when used in
this section shall have the meanings given to them in this section
unless the context clearly indicates otherwise:
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 as
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 Department of Revenue under Section 303 of the Act of March
4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971,[1] and rules and regulations promulgated under that section. Employee business expenses as reported to or determined by the Department of Revenue under Article III of the Tax Reform Code of 1971 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.
The net income from the operation of a business, other than
a corporation, as required to be reported to or as determined by the
Department of Revenue under Section 303 of the Act of March 4, 1971
(P.L. 6, No. 2), known as the Tax Reform Code of 1971,[2] and rules and regulations promulgated under that section.
A person or business domiciled outside the political subdivision
levying the tax.
A person or business domiciled in the political subdivision
levying the tax.
The Clinton Tax Collection Committee established to govern
this tax collection district for the purpose of income tax collection.
The tax collection district is established under Section
504 of Act 32[3] and includes the school districts and municipalities set
forth in the Clinton Tax Collection Committee Tax Collection Agreement.
The agency engaged to administer and collect earned income
taxes for this tax collection district. Unless otherwise specifically
provided, for purposes of the obligations of an employer, the term
shall mean the tax officer for the tax collection district within
which the employer is located, or, if an employer maintains workplaces
in more than one district, the tax officer for each such district
with respect to employees principally employed therein.
B.Â
In addition to the above definitions, this section incorporates by
reference those words, phrases and definitions as listed in Act 32
(53 P.S. §§ 6924.101 through 6924.901).
A.Â
Resident tax. A tax at the rate of 1/2% is hereby levied on all earned
income and net profits, as defined by Act 32, on residents of the
City of Lock Haven.
B.Â
Nonresident tax. A tax at the rate of 1/2% is hereby levied on all
earned income and net profits earned by nonresidents for work done
or services performed or rendered in the City of Lock Haven.
C.Â
All changes shall remain in effect on a calendar-year basis without
annual reenactment unless the rate of tax is subsequently changed.
The collection and administration of the tax provided for in
this article shall be performed by the Tax Officer appointed by the
Tax Collection Committee. Said Tax Officer shall receive compensation
for services and expenses as determined by agreement between the TCC
and the Tax Officer. The Tax Officer shall have the power as provided
for by the Local Tax Enabling Act.[1]
[1]
Editor's Note: See 53 P.S. § 6924.101 et seq.
A.Â
No exemptions or credits based on age or income, or any other conditions,
are granted by this article. Nothing in this article is intended to
preclude or inhibit any credit or exemption imposed by act of law
or regulation.
B.Â
Payments of tax on income due any state other than Pennsylvania or
to any political subdivision thereof by residents thereof pursuant
to any state or local law, to the extent that such income includes
salaries, wages, commissions, bonuses, incentive payments, fees, tips
and other compensation or net profits of businesses, professions or
other activities, but in such proportions as hereinafter set forth,
shall be credited to and allowed as a deduction from the liability
of such person for the tax imposed by this article on salaries, wages,
commissions, bonuses, incentive payments, fees, tips and other compensation
or net profits of business, professions or other activities, if residents
of the City of Lock Haven receive like credits and deductions of a
similar degree from the tax on income imposed by the other state or
political subdivision thereof.
(1)Â
Where a credit or deduction is allowable, it shall be allowed in
proportion to the concurrent periods for which taxes are imposed by
the other state or respective political subdivisions, but not in excess
of the amount paid for the concurrent period and not in excess of
the local Pennsylvania tax liability. No other exemptions based on
any other factor to include age or income level is granted by this
article. Nothing in this article is intended to preclude or inhibit
any credit or exemption imposed by act of law or regulation.
(2)Â
No credit or deduction shall be allowed against any tax on earned
income imposed under authority of this article to the extent of the
amount of credit or deduction takes from the same period by the taxpayer
against any income tax imposed by the Commonwealth of Pennsylvania
under Section 314 of the Act of March 4, 1971 (P.L. 6, No. 2) known
as the "Tax Reform Code of 1971,"[1] on account of taxes imposed on income by other states
or by their political subdivisions.
[1]
Editor's Note: See (72 P.S. § 7314.
C.Â
Any nonresident who is otherwise subject to the earned income tax
of the City of Lock Haven is hereby exempted from the imposition,
collection, and payment of this tax, provided the domicile of the
nonresident taxpayer provides a like exemption from the imposition,
collection, and payment of an earned income tax to any resident of
the City of Lock Haven, Clinton County, Pennsylvania, who would otherwise
be subject to an earned income tax in the domicile of that nonresident.
No other exemption or credit based on any other factor to include
age or income level is granted by this article. Nothing in this article
is intended to preclude or inhibit any credit or exemption imposed
by act of law or regulation.
This article shall be effective January 1, 2012, It is the intention
of the Council of the City of Lock Haven that this article shall,
except for providing an earned income tax for nonresidents, provide
procedural modifications only to the previously adopted Earned Income
Tax Ordinance, and no gap as to imposition of the tax set forth herein
should be inferred.
