The definitions contained in this section shall
be exclusive for any tax upon earned income and net profits levied
and assessed by the City of Greensburg pursuant to Act 511, the Local
Tax Enabling Act, as set forth at 53 P.S. § 6913, as amended:
ASSESSMENT
The determination by a local taxing authority of the amount
of underpayment by a taxpayer.
[Added 2-9-2004 by Ord. No. 1884]
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.
COMPENSATION
See "earned income."
[Added 2-9-2004 by Ord. No. 1884]
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.
COVENANT NOT TO COMPETE
An agreement whereby one party promises to compensate another
to refrain from working in a certain profession or business, within
a limited geographical region, for a certain period of time. It is
a positive absence of activity in the form of an affirmative restraint
and is therefore taxable. It is not comparable to income from the
sale of good will, nor can the compensation received be considered
investment income, for the payment is directly dependent upon the
conduct of the person receiving the compensation.
[Added 2-9-2004 by Ord. No. 1884]
DOMICILE
The place where one lives and has his/her permanent home
and to which he/she has the intention of returning whenever he/she
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 voluntarily fixed
place of habitation of a person, 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/her 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 Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the “Tax Reform Code of 1971,” and regulations contained 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 any housing allowance provided to a member of the clergy shall not be taxable as earned income/compensation.
[Amended 2-9-2004 by Ord. No. 1884]
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(S) OR OFFICER(S)
Person(s), public employee(s) and/or a private agency designated
by City Council to collect and administer the tax on earned income
and net profits.
INDEPENDENT CONTRACTOR
A person who, while performing services for another person,
is not subject to the direction and control of the other as to the
details, methods and means by which a result directed by the other
is accomplished. Where the independent contractor is in the permanent
or part-time employment of an employer, however, that contractor will
be considered an employee of said employer for the purpose of the
tax due under the ordinances and resolutions.
[Added 2-9-2004 by Ord. No. 1884]
LOCAL TAXING AUTHORITY
A political subdivision levying an eligible tax. The term
shall include any officer, agent, agency, clerk, income tax officer,
collector, employee or other person to whom the governing body has
assigned responsibility for the audit, assessment, determination or
administration of an eligible tax. The term shall not include a tax
collector or collection agency who has no authority to audit a taxpayer
or determine the amount of eligible tax or whose only responsibility
is to collect all eligible tax on behalf of the governing body.
[Added 2-9-2004 by Ord. No. 1884]
NET LOSSES
When the costs and expenses incurred in the operation of
a business, profession or other activity (except corporations) are
greater than its income or profits, as hereinafter defined.
[Added 2-9-2004 by Ord. No. 1884]
NET PROFITS
The net income from the operation of a business, profession, or other activity, except corporations, as determined under Section 303 of the Act of March 4, 1971 (P.L. No. 2), known as the "Tax Reform Code or 1971” and regulations contained in 61 Pa. Code Pt. I Subpt. B Art.
V (relating to personal income tax).
[Amended 2-9-2004 by Ord. No. 1884]
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the City of Greensburg.
OFFICER(S) OR INCOME TAX OFFICER(S)
Person(s), public employee(s) and/or a private agency designated
by City Council to collect and administer the tax on earned income
and net profits.
RESIDENT
A person, partnership, association or other entity domiciled
in the City of Greensburg.
RESOLUTION or ORDINANCE
Legislation adopted by the taxing district levying and/or
assessing an earned income/compensation and net profits tax.
[Added 2-9-2004 by Ord. No. 1884]
TAX
The earned income/compensation tax and/or net profits tax
enacted under Act 511, P.L. 1257 known as "The Local Tax Enabling
Act," as amended by Act 166 of 2002 and Act 222 of 2004. Tax shall
include interest, penalties and additions to tax and shall further
include the tax required to be withheld by an employer on earned income/compensation
paid, unless a more limited meaning is disclosed by the context.
[Added 2-9-2004 by Ord. No. 1884; amended 12-30-2004 by Ord. No.
1903]
TAXING DISTRICT
The political subdivisions, including school districts, levying
and assessing an earned income/compensation and net profits tax, which
have appointed or commissioned the Officer to collect and administer
the tax on earned income/compensation and not profits.
[Added 2-9-2004 by Ord. No. 1884]
TAXPAYER
A person, partnership, association, or any other entity,
required hereunder to file a return of earned income/compensation
or net profits, or to pay a tax hereon.
[Amended 2-9-2004 by Ord. No. 1884]
UNDERPAYMENT
The amount or portion of any tax determined to be legally
due in the manner provided by law for which payment or remittance
has not been made.
[Added 2-9-2004 by Ord. No. 1884]
VOLUNTARY PAYMENT
A payment of an eligible tax made pursuant to the free will
of the taxpayer. The term does not include a payment made as a result
of distraint or levy or pursuant to a legal proceeding in which the
local taxing authority is seeking to collect its delinquent taxes
or file a claim therefor.
[Added 2-9-2004 by Ord. No. 1884]
The income tax officer(s) shall receive such
compensation for services and expenses as determined by the Council
of the City of Greensburg.
If for any reason the tax is not paid when due,
interest at the rate of 6% per annum on the amount of said tax, and
an additional penalty of 1/2 of 1% of the amount of the unpaid
tax for each month or fraction thereof during which the tax remains
unpaid, shall be added and collected. Where suit is brought for the
recovery of any such tax, the person liable therefor shall, in addition,
be liable for the costs of collection and the interest and penalties
herein imposed.