Unless otherwise expressly stated, the following terms shall have,
for the purpose of this Part, the meanings ascribed to them in this
Section:
ASSOCIATION
A partnership, limited partnership or any other unincorporated
group of 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.
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.
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
Compensation as determined under § 303 of the Act
of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of
1971," and regulations in 61 Pa. Code Pt. I Subpt. B Art. V (relating
to personal income tax). Employee business expenses are allowable
deductions as determined under Article III of the "Tax Reform Code
of 1971." The amount of housing allowance provided to a member of
the clergy shall not be taxable as earned income.
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.
INCOME TAX OFFICER
Any person, public employee or private agency designated
by the political subdivision to collect and administer the tax on
earned income and net profits.
NET PROFITS
The net income from the operation of a business, profession
or other activity, except corporations, determined under § 303
of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform
Code of 1971," and regulations in 61 Pa. Code Pt. I Subpt. B Art.
V (relating to personal income tax). The term does not include income
which is not paid for services provided and which is in the nature
of earnings from an investment. For taxpayers engaged in the business,
profession or activity of farming, the term shall not include:
A.
Any interest earnings generated from any monetary accounts or
investment instruments of the farming.
B.
Any gain on the sale of farm machinery.
C.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes.
D.
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the political subdivision.
RESIDENT
A person, partnership, association or other entity domiciled
in the political subdivision.
TAXPAYER
A person, partnership, association or any other entity, required
hereunder to file a return of earned income or net profits, or to
pay a tax thereon.