[Adopted 12-14-2021 by Ord. No. 95-2021[1]]
The following words and phrases when used in this article shall
have the meanings given to them in this section unless the context
clearly indicates otherwise:
Any activity, enterprise, profession, trade or undertaking
of any nature conducted or engaged in, or ordinarily conducted or
engaged in, with the object of gain, benefit or advantages, whether
direct or indirect, to the taxpayer or to another or others. The term
shall include subsidiary or independent entities which conduct operations
for the benefit of others and at no profit to themselves, nonprofit
businesses, and trade associations. A person shall be deemed to be
conducting business within the City who engages, hires, employs or
contracts with one or more individuals as employees or is self-employed
and, in addition, does at least one of the following: 1) maintains
a fixed place of business within the City; 2) owns or leases real
property within the City for purposes of such business; 3) maintains
a stock of tangible, personal property in the City for sale in the
ordinary course of business; 4) conducts continuous solicitation within
the City related to such business; or 5) utilizes the streets of the
City in connection with the operation of such business, other than
for the mere transportation from a site outside the City, through
the City, to a destination outside of the City. A person shall be
deemed to be engaged in business who, in return for rental income,
rents, leases or hires real or personal property to others. A person
shall not be deemed to be engaged in business solely by reason of
the receipt of income from passive investments for which no services
were rendered.
A charitable organization that qualifies for tax exemption
pursuant to the act of November 26, 1997 (P.L. 508, No. 55), known
as the Institutions of Purely Public Charity Act, 10 P.S. § 371
et seq.
Salaries, wages, commissions, bonuses, net earnings and incentive
payments, whether based on profit or otherwise, fees, tips and any
other form of remuneration earned for services rendered, whether paid
directly or through an agent, and whether in cash or in property or
the right to receive property.
Any individual in the service of an employer, under an appointment
or contract of hire or apprenticeship, express or implied, oral or
written, whether lawfully or unlawfully employed. In addition, for
purposes of this tax, and irrespective of the common law tests for
determining the existence of an independent contractor relationship,
an individual performing work or service for compensation shall be
deemed to be an employee of the person for whom the work or service
is performed unless: 1) such individual has been and will continue
to be free from control or direction over the performance of such
work or service, both under his/her appointment of contract of hire
or apprenticeship; 2) such work or service is either outside the usual
course of the business of the person for which such service is performed;
or 3) such individual is customarily engaged in an independently established
trade, occupation, business or profession.
Any person conducting business activity within the City,
except for a governmental entity.
The Internal Revenue Code of 1986 (P.L. No. 99-514), 26 U.S.C.
§ 1 et seq., as amended.
All compensation earned by an employee or by a self-employed
individual.
A corporation, partnership, business trust, other association,
estate, trust, foundation or natural person.
A share of net income earned for services rendered from a
partnership, a limited-liability company, a business trust or S corporation,
after provision for all costs and expenses incurred in the conduct
thereof, determined either on a cash or accrual basis in accordance
with accepted accounting principles and practices, and including,
but not limited to, any amount treated as net earnings from self-employment
for services rendered.
A twelve-month period beginning on January 1 and ending on
December 31.
An employer whose presence in the City is of a duration of
120 days or less.
For general revenue purposes a tax is hereby levied at the rate
of 0.2787% on the amount of payroll expense generated as a result
of an employer conducting business activity within the City.
A.
For purposes of computation of the tax imposed in § 428-61, above, the payroll amount attributable to the City shall be determined by applying an apportionment factor to total payroll expense based on that portion of payroll which the total number of days an employee, partner, member, shareholder or other individual works within the City bears to the total number of days such employee or person works both within and outside the City.
B.
Tax base. The tax shall be computed on the payroll expense of the
previous quarter attributable to the City.
C.
An employer, which conducts business in the City on a temporary,
seasonal or itinerant basis, shall calculate the tax on the total
compensation earned while in the City.
D.
A charitable organization, as defined above, shall calculate the
tax that would otherwise be attributable to the City, but shall only
pay the tax on that portion of its payroll expense attributable to
business activity for which a tax may be imposed pursuant to Section
511 of the Internal Revenue Code. If the charity has purchased or
is operating branches, affiliates, subsidiaries or other business
entities that do not independently meet the standards of the Institutions
of Purely Public Charity Act,[1] the tax shall be paid on the payroll attributable to such
for-profit branches, affiliates or subsidiaries, whether or not the
employees are leased or placed under the auspices of the charity's
umbrella or parent organization.
[1]
Editor's Note: See 10 P.S. § 371 et seq.
An employer subject to the tax shall make a return and shall pay the tax quarterly at such time or times and in such manner as provided in § 428-65.
Registration. Every person having an office, factory, workshop,
branch, warehouse, or other place of business, including banks, schools,
hospitals, nonprofit, and trade associations, located in the City
or outside the City, who, during any tax year, performs work or renders
services in whole or in part in the City, who has not previously registered,
shall, within 15 days, register with the Treasurer its name and address
and shall provide such other information as the Treasurer may require.
A.
The first quarterly return, which is due May 31 of the current year,
shall be filed and the tax shall be paid based on the amount of payroll
expense during the months of January, February, and March of the current
year; the second quarterly return, which is due August 31 of the current
year, shall be filed and the tax shall be paid based on the amount
of payroll expense during the months of April, May, and June of the
current year; the third quarterly return, which is due November 30
of the current year, shall be filed and the tax shall be paid based
on the amount of payroll expense during the months of July, August,
and September of the current year; the fourth quarterly return, which
is due February 28 of the succeeding year, shall be filed and the
tax shall be paid based on the amount of payroll during the months
of October, November, and December of the current year.
B.
An employer which conducts business in the City on a temporary, seasonal
or itinerant basis shall file a return and pay the tax within 10 days
of the completion of the temporary, seasonal, or itinerant business.
A.
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% of the amount of the unpaid tax for each month or fraction thereof
during which the tax remains unpaid shall be added and collected.
B.
In addition to any other penalties or enforcement proceedings provided
for by ordinance for the collection and enforcement of taxes:
(1)
Any employer who willfully makes any false or untrue statement on
the employer's return shall be guilty of a misdemeanor of the second
degree and shall, upon conviction, be sentenced to pay a fine of not
more than $2,000 or to a term of imprisonment of not more than two
years, or both;
(2)
Any employer who willfully fails or refuses to file a return required
by this article shall be guilty of a misdemeanor of the third degree
and shall, upon conviction, be sentenced to pay a fine of not more
than $1,000 or to a term of imprisonment of not more than one year,
or both; and
(3)
Any person who willfully fails or refuses to appear before the Treasurer
or his agent in person with the employer's books, records or accounts
for examination when required under the provisions of this Title to
do so, or who willfully refuses to permit inspection of the books,
records or accounts of any employer in the person's custody or control
when the right to make such inspection by the Treasurer or his agent
is requested, shall be guilty of a misdemeanor and shall, upon conviction,
be sentenced to pay a fine of not more than $500 or to a term of imprisonment
of not more than six months, or both.
All ordinances and parts of ordinances are repealed to the extent
they are inconsistent with this article including File of the Council
No. 147, 1986, and File of the Council No. 98, 1976.
