The following words and phrases, when used in
this article, shall have the meanings respectively ascribed to them:
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
Salaries, wages, commissions, bonuses, incentive payments,
fees, tips and, other compensation received by a person or his personal
representative for services rendered, whether directly or through
an agent, and whether in cash or in property, not including, however,
wages or compensation paid to persons on active military service,
periodic payments for sickness and disability other than regular wages
received during a period of sickness, disability or retirement or
payments arising under workers' compensation acts, occupational disease
acts and similar legislation or payments commonly recognized as "old
age benefits," retirement pay or pensions paid to persons retired
from service after reaching a specific age or after a stated period
of employment or payments commonly known as "public assistance," or
unemployment compensation payments made by any governmental agency
or payments to reimburse expenses or payments made by employers or
labor unions for wage and salary supplemental programs, including
but not limited to programs covering hospitalization, sickness, disability
or death, supplemental unemployment benefits, strike benefits, social
security and retirement.
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 or OFFICER
The person, public employee or private agency designated
by the Council to collect and administer the tax on earned income
and net profits, more particularly, the tax collector for the City.
NET PROFITS
The net income from the operation of a business, profession
or other activity, except corporations, after provision for all costs
and expenses incurred in the conduct thereof, determined either on
a cash or accrual basis in accordance with the accounting system used
in such business, profession or other activity, but without deduction
of taxes based on income.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the taxing district.
RESIDENT
A person, partnership, association or other entity domiciled
in the taxing district.
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.
[Amended by Ord. Nos. 9-1990; 2-1991; 2-1992;
14-1993; 8-1994; 41-1994; 1-24-1996 by Ord. No. 23-1996; 1-15-1997 by Ord. No.
4-1997; 1-14-1998 by Ord. No. 2-1998; 2-1-1999 by Ord. No.
3-1999; 2-7-2000 by Ord. No. 5-2000; 1-29-2001 by Ord. No.
5-2001; 2-4-2002 by Ord. No. 5-2002; 1-27-2003 by Ord. No.
108-2003; 1-29-2004 by Ord. No. 5-2004; 1-20-2005 by Ord. No.
96-2005; 1-26-2006 by Ord. No. 6-2006; 1-18-2007 by Ord. No.
75-2007; 1-29-2008 by Ord. No. 8-2008; 1-20-2009 by Ord. No.
55-2009; 1-26-2010 by Ord. No. 4-2010; 1-18-2011 by Ord. No.
2-2011; 1-12-2012 by Ord. No. 3-2012; 10-11-2012 by Ord. No.
62-2012; 9-4-2014 by Ord. No. 41-2014; 1-29-2015 by Ord. No. 77-2015; 12-10-2015 by Ord. No. 131-2015; 1-5-2017 by Ord. No.
77-2017; 12-7-2017 by Ord. No. 131-2017; 12-3-2018 by Ord. No. 42-2018; 12-15-2020 by Ord. No. 41-2020; 12-7-2021 by Ord. No. 97-2021; 12-13-2022 by Ord. No. 42-2022; 12-12-2023 by Ord. No. 103-2023]
An annual tax for general revenue purposes of 2.4% is hereby
imposed on the earned income received and net profits earned, in the
period beginning January 1 and ending December 31 annually by all
persons, individuals, associations, and businesses who are residents
of the City of Scranton, and 1% on nonresidents of the City of Scranton,
for work done, services performed or businesses conducted within the
City of Scranton.
The income tax officer shall receive such compensation
for his services and expenses as the Council and the governing bodies
of the other political subdivisions appointing him shall determine
by resolution. The City shall share in the compensation and expenses
of the officer, his assistants and employees, according to the proportionate
share that the total annual collections for the City bears to the
total annual collection of taxes, except that the Council of the City
and the other political subdivisions appointing the officer may by
resolution substitute a different manner of sharing the compensation
and expenses.
If for any reason the tax imposed under this
article is not paid when due, interest at the rate of 6% per annum
on the amount of the 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.