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:
BUSINESS
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.
CHARITY
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.
COMPENSATION
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.
EMPLOYEE
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.
EMPLOYER
Any person conducting business activity within the City,
except for a governmental entity.
INTERNAL REVENUE CODE
The Internal Revenue Code of 1986 (P.L. No. 99-514), 26 U.S.C.
§ 1 et seq., as amended.
PERSON
A corporation, partnership, business trust, other association,
estate, trust, foundation or natural person.
PROFITS
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.
TAX YEAR
A twelve-month period beginning on January 1 and ending on
December 31.
[Amended 12-13-2022 by Ord. No. 44-2022; 12-12-2023 by Ord. No. 104-2023]
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.
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.
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.