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. In addition, the following terms shall have the meanings set forth herein, unless the context shall clearly indicate otherwise:

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.

TAX

The tax on earned income and net profits 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.

TAXPAYER

A person or business required under this article or the Local Tax Enabling Act to file a tax return or to pay tax.

TAX RETURN

A form or forms prescribed by the Department of Community and Economic Development, or by the Tax Officer with the approval of the TCC, 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 in a single calender year.

TCC

The Tax Collection Committee established to govern and oversee the collection of income tax within the TCD under the Local Tax Enabling Act.

TCD

The Northampton 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.

Although credits and deductions against the tax are permitted under certain circumstances as provided in applicable law and regulations, no individuals are exempt from the tax based on age, income, or other factors.

Every taxpayer receiving earned income or earning net profits in any tax year shall make and file tax returns and declarations and pay tax in accordance with the Local Tax Enabling Act and the rules, regulations, policies and procedures of the TCC and the Tax Officer. A taxpayer is required to file timely an annual tax return even if no tax payment is due and owing. In addition, even though a resident of the Borough did not have earned income or net profits in the prior tax year, the resident must file an annual tax return, when requested to do so by the Tax Officer, stating the reason why there was no income or net profits to report.

Every employer shall register, require employee residency certificates, withhold and remit tax, and file tax returns and withholding statements in accordance with the Local Tax Enabling Act and the rules, regulations, policies and procedures of the TCC and the Tax Officer.

In the event of violation of this article or the Local Tax Enabling Act, or nonpayment of tax, taxpayers 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 Tax Officer may retain reasonable costs of collection in accordance with Local Tax Enabling Act and as approved by the TCC.

The primary purpose of this article is to conform the Borough's currently existing earned income and net profits tax 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 provisions of this article are 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 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 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. The tax imposed by this article shall not apply to any person as to whom it is beyond the legal power of the Borough to impose the tax herein provided under the Constitution of the United States and the Constitution and laws of the Commonwealth of Pennsylvania.

This article is intended to be consistent with the Local Tax Enabling Act. The ordinance is intended to include all necessary authorizations to permit the Tax Officer to take all actions for the collection, administration, disbursement, and enforcement of the tax and all other actions on behalf of the political subdivisions of the TCD as authorized by the Local Tax Enabling Act, subject to the policies and procedures of the TCC. To give full force and effect to this article, the authority of the Tax Officer shall be interpreted in the broadest permissible sense for the benefit of the Tax Officer's ability to perform his/her duties.

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.