The following words and phrases, when used in this chapter,
shall have the meanings ascribed to them, except where the context
or language clearly indicates or requires a different meaning:
COLLECTOR
The entity designated by the Director under whose direction
this tax shall be collected, administered and enforced.
DIRECTOR
The Director of the City's Bureau under whose authority
this tax shall be collected, administered and enforced.
EARNED INCOME
Compensation as determined under Section 303 of the Act of
March 4, 1971 (P.L. 6, No. 2), 72 P.S. § 7303, known as
the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Part
I, Subpart B, Article V, 61 Pa. Code § 101.1 (relating to
personal income tax), not including, however, wages or compensation
paid to individuals on active military service. Employee business
expenses are allowable deductions as determined under Article III
of the "Tax Reform Code of 1971." The amount of any housing allowance
provided to a member of the clergy shall not be taxable as earned
income.
EMPLOYER
An individual, partnership, association, corporation, governmental
body, agency, or other entity employing one or more persons on salary,
wage, commission, or other compensation basis, including a self-employed
person.
INDIVIDUAL
Any person, male or female, engaged in any occupation, trade
or profession within the corporate limits of the City.
NET PROFITS
The net income from the operation of a business, profession,
or other activity, except corporations, determined under Section 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 Part I, Subpart B, Article
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 business;
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; and
D.
Any gain on the sale of other capital assets of the farm.
NONPRINCIPAL EMPLOYER
An employer in a concurrent employment situation who does
not pay the largest amount of salary, wage, commission or other compensation
to an employee.
OCCUPATION
Any trade, profession, business, or undertaking of any type,
kind or character, including services, domestic or other, carried
on or performed within the corporate limits of the City for which
compensation is charged or received, whether by means of salary, wages,
commissions, or fees for services rendered.
PRINCIPAL EMPLOYER
An employer in a concurrent employment situation who pays
the largest amount of salary, wage, commission or other compensation
to an employee.
RESERVE COMPONENT OF THE ARMED FORCES
The United States Army Reserve, United States Navy Reserve,
United States Marine Corps Reserve, United States Coast Guard Reserve,
United States Air Force Reserve, the Pennsylvania Army National Guard
or the Pennsylvania Air National Guard.
TAX
The local services tax in the amount levied by this chapter.
The City hereby levies and imposes on each occupation engaged
in by individuals within its corporate limits during the fiscal year
of 2016 and each fiscal year thereafter a local services tax, to the
degree and for the duration authorized by law. This tax is in addition
to all other taxes of any kind or nature heretofore levied by the
City. Such tax shall continue in force on a fiscal-year basis without
annual reenactment, except that the rate of the tax may be subsequently
changed.
All employers and self-employed individuals residing or having
their place of business outside of the City, but who perform services
of any type or kind or engage in any occupation or profession within
the City, do, by virtue thereof, agree to be bound by and subject
themselves to the provisions, penalties and regulations promulgated
under this chapter with the same force and effect as though they were
residents of the City. Further, any individual engaged in an occupation
within the City and an employee of a nonresident employer may, for
the purpose of this chapter, be considered a self-employed person;
and in the event this tax is not paid, the City shall have the option
of proceeding against either the employer or employee for the collection
of this tax as heretofore provided.
Funds derived from the local services tax may only be used for
the following purposes:
A. Emergency services, which shall include emergency medical services,
police services and/or fire services. No less than 25% of the funds
derived from the local services tax shall be used for this purpose.
B. Road construction and/or maintenance.
C. Reduction of property taxes.
D. Property tax relief through the implementation of a homestead and
farmstead exclusion in accordance with 53 Pa.C.S.A. Chapter 85, Subchapter
F.
Any individual or employer who or which shall fail, neglect
or refuse to pay the tax after it becomes due and payable, or otherwise
violates any part of this chapter, shall face conviction before any
Magisterial District Judge and be subject to a fine of not more than
$300 for each offense and costs of court proceedings.