§ 24-101. Short Title.

It is the intent and purpose of this Part to include all of the applicable language and provisions of 53 P.S. § 6924.501 et seq., the Act of General Assembly of July 2, 2008 (P.L. 197) and known as Act No. 32, as may be amended and supplemented from time to time. In all enforcement of the administration of this Part, the language and intent of the Act, as amended, shall take precedence.

The tax imposed by this Part shall be collected and administered in accordance with: (A) all applicable laws and regulations; and (B) regulations, policies and procedures adopted by the TCC or tax officer. This includes any regulations, policies and procedures adopted in the future to the maximum extent allowed by 1 Pa.C.S.A. § 1937.

(Ord. 2011-10, 11/14/2011, § 2)

§ 24-103. Definitions.

All words and phrases shall have the meanings as set forth in Act 32, as amended. The following words and phrases, when used in this Part shall have the meanings ascribed to them as follows:

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 this Commonwealth or any other jurisdiction.

Corporation–a corporation or joint-stock association organized under the laws of the United States, the Commonwealth of Pennsylvania or any other State, territory, foreign country or dependency. This term shall include an entity which is classified as a corporation for Federal income tax purposes.

Current year–the calendar year for which the tax is levied.

Department–the Pennsylvania Department of Community and Economic Development or successor agency charged with any duties under the Act, as may be amended and supplemented.

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 place in which a man has voluntarily fixed the habitation of himself and his family, 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 associations, the 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 Pennsylvania Department of Revenue under § 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. For purposes of earned income, employee business expenses are allowable deductions as determined under Article III of the “Tax Reform Code of 1971.” 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 and net profits tax–the tax levied herein by municipality on earned income and net profits. Also referred to as “tax” herein.

Employer–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 hereunder, this term includes a corporate officer.

Municipality–a city of the second class, city of the second class A, city of the third class, borough, town, township of the first class or township of the second class. For purposes of this Part, such term shall mean “Dover Township, York County, Pennsylvania.”

Net profits–the net income from the operation of a business, except corpora tions as required to be reported to or as determined by the Department of Revenue under § 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 in promulgated under such Section. The term does not include income: (1) which is not paid for services provided; and (2) which is in the nature of earnings from an investment. Further, the term shall not include:

(1) Any gain on the sale of farm machinery.

(2) Any gain on the sale of livestock held twelve months or more for draft, breeding or dairy purposes.

(3) Any gain on the sale of other capital assets of the farm.

Nonresident–a person, partnership, association or other entity domiciled outside of the municipality.

Person or individual–a natural person.

Preceding year–the calendar year before the current year.

Resident–a person, partnership, association or other entity domiciled in the municipality.

Succeeding year–the calendar year following the current year.

Tax bureau–a public nonprofit entity established by a TCC for the administra tion and collection of earned income and net profits tax.

Tax Collection Committee (herein referred to as “TCC”)–the committee established to govern each TCD for the purpose of income tax collection. This term shall include a joint tax collection committee.

Tax Collection District (herein referred to as “TCD”)–the York Tax Collection District as established under Act.

Tax officer–a political subdivision, public employee, tax bureau, county, excluding a county of the first class, or private agency which administers and collects earned income and net profits for one or more TCD. Unless otherwise specifically provided, for purposes of the obligations of an employer, the term shall mean the tax officer or tax collector for the TCD within which the employer is located, or if an employer maintains workplaces in more than one TCD, the tax officer for each such TCD with respect to employees principally employed therein.

Taxpayer–a person or business required hereunder to file a return of earned income or net profits or to pay a tax thereon.

(Ord. 2011-10, 11/14/2011, § 3)

§ 24-104. Imposition of Tax.

1. A tax of 1% for general revenue purposes is hereby imposed on earned income and net profits earned by residents of the municipality.

2. A tax of 1% for general revenue purposes is hereby imposed on earned income and net profits earned by nonresidents, exclusive of domestic servants and Maryland residents.

3. The earned income and net profits tax levied under this Part shall be applicable to earned income received and to net profits earned during the period beginning January 1 of the current year and ending December 31 of the current year or for taxpayer fiscal years beginning in the current year. The earned income and net profits tax shall continue in force on a calendar year or taxpayer fiscal year basis without the need for annual enactment or re-enactment, unless the rate of the tax is subsequently changed. For a taxpayer whose fiscal year is not a calendar year, the tax officer shall establish deadlines for filing, reporting and payment of taxes which provide time periods equivalent to those provided for a calendar year taxpayer.

(Ord. 2011-10, 11/14/2011, § 4)

§ 24-105. Declaration and Payment of Tax.

1. Application.

A. Income taxes shall be applicable to taxable income earned or received based on the method of accounting used by the taxpayer in the period beginning January 1 of the current year and ending December 31 of the current year; except that taxes imposed for the first time and changes to existing tax rates shall become effective on January 1 or July 1, as specified in this Part, and the tax shall continue in force on a calendar year or taxpayer fiscal year basis, without annual reenact ment, unless the rate of the tax is subsequently changed.

B. For a taxpayer whose fiscal year is not a calendar year, the tax officer shall establish deadlines for filing, reporting and payment of taxes which provide time periods equivalent to those provided for a calendar year taxpayer.

2. Partial Domicile. The taxable income subject to tax of a taxpayer who is domiciled in a political subdivision for only a portion of the tax year shall be an amount equal to the taxpayer's taxable income multiplied by a fraction, the numerator of which is the number of calendar months during the tax year that the individual is domiciled in the political subdivision, and the denominator of which is 12. A taxpayer shall include in the numerator any calendar month during which the taxpayer is domiciled for more than half the calendar month. A day that a taxpayer's domicile changes shall be included as a day the individual is in the new domicile and not the old domicile. If the number of days in the calendar month in which the individual lived in the old and new domiciles are equal, the calendar month shall be included in calculating the number of months in the new domicile.

3. Declaration and Payment. Except as provided in subsection .1.B, taxpayers shall declare and pay income taxes as follows:

A. Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the resident tax officer, a final return showing the amount of taxable income received during the period beginning January 1 of the current year and ending December 31 of the current year, the total amount of tax due on the taxable income, the amount of tax paid, the amount of tax that has been withheld under § 24-107 below and the balance of tax due. All amounts reported shall be rounded to the nearest whole dollar. At the time of filing the final return, the taxpayer shall pay the tax officer the balance of the tax due or shall make demand for refund or credit in the case of overpayment.

B. (1) Every taxpayer making net profits shall, by April 15 of the current year, make and file with the tax officer a declaration of the taxpayer's estimated net profits during the period beginning January 1 and ending December 31 of the current year, and shall pay to the tax officer in four equal quarterly installments the tax due on the estimated net profits. The first installment shall be paid at the time of filing the declaration, and the other installments shall be paid on or before June 15 of the current year, September 15 of the current year and January 15 of the succeeding year, respectively.

(2) Any taxpayer who first anticipates any net profit after April 15 of the current year, shall make and file the declaration required on or before June 15 of the current year, September 15 of the current year or December 31 of the current year, whichever date next follows the date on which the taxpayer first anticipates such net profit, and shall pay to the tax officer in equal install ments the tax due on or before the quarterly payment dates that remain after the filing of the declaration.

(3) Every taxpayer shall, on or before April 15 of the succeeding year, make and file with the tax officer a final return showing the amount of net profits earned or received based on the method of accounting used by the taxpayer during the period beginning January 1 of the current year, and ending December 31 of the current year, the total amount of tax due on the net profits and the total amount of tax paid. At the time of filing the final return, the taxpayer shall pay to the tax officer the balance of tax due or shall make demand for refund or credit in the case of overpayment. Any taxpayer may, in lieu of paying the fourth quarterly installment of the estimated tax, elect to make and file with the tax officer on or before January 31 of the succeeding year, the final return.

(4) The Department, in consultation with the Department of Revenue, shall provide by regulation for the filing of adjusted declarations of estimated net profits and for the payments of the estimated tax in cases where a taxpayer who has filed the declaration required under this subsection anticipates additional net profits not previously declared or has overestimated anticipated net profits.

(5) Every taxpayer who discontinues business prior to December 31 of the current year, shall, within 30 days after the discontinuance of business, file a final return as required under this Part and pay the tax due.

C. Every taxpayer who receives any other taxable income not subject to withholding under § 512(3) of the Act shall make and file with the resident tax officer a quarterly return on or before April 15 of the current year, June 15 of the current year, September 15 of the current year, and January 15 of the succeeding year, setting forth the aggregate amount of taxable income not subject to withholding by the taxpayer during the three-month periods ending March 31 of the current year, June 30 of the current year, September 30 of the current year, and December 31 of the current year, respectively, and subject to income tax, together with such other information as the Department may require. Every taxpayer filing a return shall, at the time of filing the return, pay to the tax officer the amount of income tax due. The Department shall establish criteria under which the tax officer may waive the quarterly return and payment of the income tax and permit a taxpayer to file the receipt of taxable income on the taxpayer's annual return and pay the income tax due on or before April 15 of the succeeding year.

D. The TCC may, by regulation, waive the requirements for a quarterly return and payment of income tax under specified circumstances, including those instances where a taxpayer’s annual taxable income is less than a specified amount.

(Ord. 2011-10, 11/14/2011, § 5)

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