The provisions of the Local Tax Enabling Act,
53 P.S. § 6901 et seq., are incorporated in this article
by reference, and in the event that the provisions of this article
are interpreted as being in conflict with § 13 of the Local
Tax Enabling Act, the provisions of § 13, 53 P.S. § 6913,
shall be controlling.
In accordance with the provisions of the Local
Tax Enabling Act, the following words and phrases when used in this
article shall have the meaning ascribed to them in this section as
follows:
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
activity.
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 workmens' 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 benefits or 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 OFFICERS
Person, public employee or private agency designated by the
Board of Supervisors of the Township of Derry to collect and administer
the tax on earned income and net profits.
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 Township of Derry.
RESIDENT
A person, partnership, association or other entity domiciled
in the Township of Derry.
TAXPAYER
A person, partnership, association or any other entity required
in this article to file a return of earned income or net profits or
to pay a tax thereon.
[Amended 5-27-1986 by Ord. No. 276]
A tax for general revenue purposes at the rate
of 1% is hereby imposed on earned income and net profits to the full
extent permitted by the Local Tax Enabling Act, including net profits
and earned income as herein defined, earned by residents of Derry
Township on and after July 1, 1975. The tax hereby imposed shall be
and become effective on the July 1, 1975, and shall continue in force
and effect from year to year thereafter. In addition, said tax shall
also be imposed on the net profits and earned income, as herein defined,
earned by nonresidents of Derry Township whose place of employment
or business is located within Derry Township. The imposition of this
tax on nonresidents shall become effective on January 1, 1987, on
earned income or net profits from a place of employment or business
in Derry Township earned or received on or after January 1, 1987.
This tax on nonresident's earned income and net profits shall continue
in full force and effect from year to year thereafter.
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 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.
Taxpayers under this article shall be allowed
such credit or deduction from their liability for the tax imposed
by this article for taxes paid to other taxing authorities as is provided
by the Local Tax Enabling Act, 53 P.S. § 6501 et seq.