ORDINANCE NO. 159

AN ORDINANCE OF KENNETT TOWNSHIP, CHESTER COUNTY, PENNSYLVANIA IMPOSING AN ADDITIONAL TAX ON EARNED INCOME AT THE RATE OF ¼ OF 1% (.25%) TO BE USED TO RETIRE ANY INDEBTEDNESS INCURRED PURCHASING INTEREST IN REAL PROPERTY OR IN MAKING ADDITIONAL ACQUISITIONS OF REAL PROPERTY FOR THE PURPOSE OF SECURING AN OPEN SPACE BENEFIT OR BENEFITS PURSUANT TO CERTAIN ENABLING LEGISLATION

            Pursuant to the Open Space Lands Acquisition and Preservation Act, the Local Tax Enabling Act, and the Second Class Township Code, and as approved by referendum presented to the electors of Kennett Township, the Board of Supervisors of Kennett Township ordains:

Section 1.     Section II, Imposition of Tax, of Ordinance 113, adopted August 18, 1997, as amended by Ordinance 114, adopted November 24, 1997, is amended to change the earned income tax imposed as of July 1, 2005 from one percent (1%)  to one and one-quarter percent (1.25%), so that so that Section II shall read in its entirety as follows:

II.          IMPOSITION OF TAX

            A.        An earned income tax, for general revenue purposes, in the amount of                                     one percent (1%) is hereby imposed on the following:

                        1.         Earned income earned on or after January 1, 1998, and to                                                        June 30, 2005, by persons residing in Kennett Township;

                        2.         Earned income earned on or after January 1, 1998, and to                                                        June 30, 2005, in Kennett Township by nonresidents of                                                  Kennett Township; and

                        3.         Net profits earned on or after January 1, 1998, and to                                                                 June 30, 2005, in Kennett Township.

            B.        An earned income tax, for general revenue purposes, in the amount of                                     one and one-quarter percent (1.25%) is hereby imposed on the following:

                        1.         Earned income earned on or after July 1, 2005 by persons                                                        residing in Kennett Township;

                        2.         Earned income earned on or after July 1, 2005 in Kennett                                                          Township by nonresidents of Kennett Township; and

                        3.         Net profits earned on or after July 1, 2005 in Kennett                                                                   Township.

C.    The tax levied hereunder shall relate to and be imposed upon salaries, wages, commissions, bonuses, incentive payments, fee, tips and other compensations herein defined as earned income paid by an employer on

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his behalf to a person employed by him subject to the tax, as well as upon any resident person of Kennett Township.  The tax levied hereunder also relates to and is imposed upon the net profits earned on the operation of a business, profession or other activities by those who conduct the business, profession or other activity in Kennett Township.  The earned income tax shall continue in force without annual reenactment until this ordinance shall be repealed or the rate of the tax changed.

Section 2.     In all other respects, the Board of Supervisors ratifies and confirms the terms of Ordinance 113, as previously amended by Ordinance 114.

ENACTED AND ORDAINED this 15th day of June, 2005.

BOARD OF SUPERVISORS

KENNETT TOWNSHIP

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Thomas W. Nale, III, Chairman

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Michael E. Elling, Vice-Chairman

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Robert A. Hammaker

ATTEST:

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Secretary-Treasurer