[Adopted 9-18-2019 by Ord. No. 2019-06]
[Amended 11-20-2019 by Ord. No. 2019-07]
All terms, as are defined in the Local Tax Enabling Act, 53 P.S. § 6924.101 et seq., shall have the meanings set forth therein. Further, the following words and terms used in this article shall have the meanings as defined herein:
ASSOCIATION
A partnership, limited partnership, or any other form of unincorporated enterprise owned by two or more persons.
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.
BUSINESS ENTITY
A sole proprietorship, corporation, joint-stock association or company, partnership, limited partnership, limited liability company, association, business trust, syndicate or other commercial or professional activity organized under the laws of the commonwealth or any other jurisdiction.
COLLECTOR
The Tax Officer for the administration and collection of the earned income tax of the Borough appointed and acting pursuant to the various provision of the Local Tax Enabling Act[1] and this article.
CURRENT YEAR
The calendar year for which the tax is levied.
DOMICILE
The place where one lives and has his permanent home and to which he has the intention of returning whenever he is 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 voluntary 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 him to adopt some other permanent home. In the case of businesses, or association, the domicile is considered as the center of business affairs and the place where 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,"[2] 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 business 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. Earned income shall not include any wages or compensation paid by the United States to any person for active service in the military of the United States or the Commonwealth of Pennsylvania or any other state for such service.
EMPLOYER
A person, partnership, association, corporation, institution, governmental body or unit or agency or any 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.
LOCAL TAX ENABLING ACT
The Act of December 31, 1965, P.L. 1257, 53 P.S. § 6924.101 et seq., and any amendments thereto.
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,"[3] and rules and regulations promulgated under that section. The term does not include income under any of the following subsections:
(1) 
Income which:
(a) 
Is not paid for services provided; and
(b) 
Is in the nature of earnings from an investment.
(2) 
Income which represents:
(a) 
Any gain on the sale of farm machinery;
(b) 
Any gain on the sale of livestock held 12 months or more for draft, breeding or dairy purposes; or
(c) 
Any gain on the sale of other capital assets of a farm.
NONRESIDENT
A person or business domiciled outside of the limits of the Borough of Lansdowne.
PERSON
A natural person, partnership, corporation, fiduciary, or association. Whenever used in any section prescribing and imposing a penalty, the term "person," as applied to associations, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
PRECEDING YEAR
The calendar year before the current year.
RESIDENT
A person or business domiciled in the Borough of Lansdowne.
SUCCEEDING YEAR
The calendar year following the current year.
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 pursuant to this article or the Local Tax Enabling Act.[4]
TAXPAYER
A person or business required under this article and the Local Tax Enabling Act[5] to file a return of the earned income and net profits tax or to pay the earned income and net profits tax.
TCC
The Delaware County Tax Collection Committee.
TCD
Any tax collection district to which the Borough of Lansdowne or any part of the Borough of Lansdowne is assigned under the Local Tax Enabling Act.[6]
[1]
Editor's Note: 53 P.S. § 6924.101 et seq.
[2]
Editor's Note: See 72 P.S. § 7101 et seq.
[3]
Editor's Note: See 72 P.S. § 7101 et seq.
[4]
Editor's Note: 53 P.S. § 6924.101 et seq.
[5]
Editor's Note: 53 P.S. § 6924.101 et seq.
[6]
Editor's Note: 53 P.S. § 6924.101 et seq.
A. 
A tax for general revenue purposes in the amount of 0.5% is hereby imposed, effective January 1, 2020, and continuing thereafter, on the following:
(1) 
Earned income earned by residents of the Borough of Lansdowne.
(2) 
Earned income earned by nonresidents of the Borough of Lansdowne for work done or services performed or rendered within the limits of the Borough of Lansdowne.
(3) 
Net profits from unincorporated business activities conducted by residents of the Borough of Lansdowne.
(4) 
Net profits from unincorporated business activities conducted by nonresidents within the limits of the Borough of Lansdowne.
B. 
The tax is imposed under the authority of the Local Tax Enabling Act,[1] 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.
[Amended 11-20-2019 by Ord. No. 2019-07]
[1]
Editor's Note: 53 P.S. § 6924.101 et seq.
C. 
The tax shall be collected an administered in accordance with 1) all applicable laws and regulations; and 2) 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.
[Added 11-20-2019 by Ord. No. 2019-07]
[Amended 11-20-2019 by Ord. No. 2019-07]
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: 53 P.S. § 6924.101 et seq.
[Amended 11-20-2019 by Ord. No. 2019-07]
Every employer shall register, withhold, and remit tax and file tax returns in accordance with the Local Tax Enabling Act[1] and this article.
[1]
Editor's Note: 53 P.S. § 6924.101 et seq.
[Amended 11-20-2019 by Ord. No. 2019-07]
The tax shall be collected from residents and employers by the Collector, pursuant to the powers and duties of the Tax Officer enumerated in the Local Tax Enabling Act.[1]
[1]
Editor's Note: 53 P.S. § 6924.101 et seq.
[Amended 11-20-2019 by Ord. No. 2019-07]
Residents and employers are subject to interest, penalties, costs, and fines in accordance with the Local Tax Enabling Act,[2] including costs imposed by the Collector in accordance with authorization by the TCC having jurisdiction.
[1]
Editor's Note: Former §§ 300-45, Bond required of Income Tax Officer, 300-46, Suit for collection of tax, 300-48, Applicability, and 300-49, Violations and penalties, were repealed 11-20-2019 by Ord. No. 2019-07. This ordinance also provided for the renumbering of former § 300-47 as § 300-45 and former § 300-50 as § 300-46, respectively.
[2]
Editor's Note: 53 P.S. § 6924.101 et seq.
This article shall become effective on the first day of January 2020 and shall remain in full force and effect for the fiscal year 2020. Thereafter, this article shall remain in full force and effect on a calendar-year basis without annual reenactment until the specific repeal of this article by the Council of the Borough of Lansdowne.