[Adopted 9-19-2011 by Ord. No. 1297]
For purposes of this article, all terms defined in the Local Tax Enabling Act, 53 P.S. § 6924.101 et seq., shall have the meanings set forth therein, except as modified below. The following terms shall have the meanings set forth herein:
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 as the center of business affairs and the place where its functions are discharged.
EARNED INCOME
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.
EFFECTIVE DATE
January 1, 2012.
LOCAL TAX ENABLING ACT
The Local Tax Enabling Act, 53 P.S. § 6924.101 et seq., and as amended in the future, including any regulations adopted by the Department of Community and Economic Development thereunder.
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 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," and rules and regulations promulgated under that section.
NONRESIDENT
A person or business domiciled outside the political subdivision levying the tax.
RESIDENT
A person or business domiciled in the political subdivision levying the tax.
TAX
The tax 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 OFFICER/TAX COLLECTOR
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.
TAX RETURN
A form prescribed by the Tax Officer 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.
TAXPAYER
A person or business required under this article or the Local Tax Enabling Act to file a return of an income tax or to pay an income tax.
TCC
The tax collection committee established to govern and oversee the collection of earned income tax within the TCD under the Local Tax Enabling Act.
TCD
The Allegheny North 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.
[1]
Editor's Note: See 72 P.S. § 7101 et seq.
A. 
General purpose resident tax. The Borough hereby imposes a tax for general revenue purposes at the rate of 0.5% on earned income and net profits of individual residents of the Borough.
B. 
General purpose municipal nonresident tax. The Borough also imposes a tax for general revenue purposes at the rate of 0.5% on earned income and net profits derived by an individual nonresident from any work, business, profession or activity of any kind engaged in within the boundaries of Borough.
C. 
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. 
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. 
Applicable laws, regulations, policies and procedures. The tax shall be collected and administered in accordance with: (1) all applicable laws and regulations; and (2) 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.
F. 
Administration – powers and duties of officer. 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 powers as provided for by the Local Tax Enabling Act.
Although credits and deductions against 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 file tax returns and pay tax in accordance with the Local Tax Enabling Act and the policies and procedures of the TCC and Tax Officer. Tax imposed on net profits and all earnings not subject to withholding at source must be reported and paid on a quarterly basis in accordance with the Local Tax Enabling Act. A taxpayer is required to file a return even if no tax payment is due and owing.
Every employer shall register, withhold and remit tax, and file tax returns in accordance with the Local Tax Enabling Act and the policies and procedures of the TCC and Tax Officer.
The tax will be collected from individuals 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 income taxes 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 income taxes under the Local Tax Enabling Act.
Individuals 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 primary purpose of this article is to confirm the earned income and net profits tax imposed pursuant 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 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 provision affect any suit or prosecution pending or to be initiated to enforce any right or penalty or to punish offenses 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.
This article is intended to be consistent with the Local Tax Enabling Act and to include all necessary authorizations to permit the Tax Officer to take such tax collection, administration, disbursement, enforcement and other action as authorized by the Local Tax Enabling Act, subject to the policies and procedures of the TCC.
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.