The definitions set forth in Section 501, as amended, of the Local
Tax Enabling Act, 53 P.S. 6924.501, are hereby adopted and included
by reference as if set forth fully herein. Without limiting the generality
of the foregoing, the following words and phrases, when used in this
article, shall have the meanings ascribed to them in this section,
except where the context clearly indicates or requires a different
meaning:
ASSOCIATION
A partnership, limited partnership, or any other form of
unincorporated enterprise owned by 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.
BUSINESS ENTITY
A sole proprietorship, corporation, joint-stock association
or company, partnership, limited partnership, limited liability company,
association, business trust, syndicate or other commercial or professional
activity organized under the laws of this commonwealth or any other
jurisdiction.
COLLECTOR
The tax officer for the administration and collection of
the income taxes of the Township, appointed and acting pursuant to
the various provisions of the Local Tax Enabling Act and this article.
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.
DEPARTMENT
The Department of Community and Economic Development of the
Commonwealth.
DOMICILE
The place where a person lives and has a permanent home and
to which the person has the intention of returning whenever 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 the person to adopt some other permanent home.
In the case of a business, domicile is that place considered as the
center of business affairs and the place where its functions are discharged.
EARNED INCOME
The compensation as required to be reported to or as determined by the Department of Revenue under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and rules and regulations promulgated under that section. Employee business expenses as reported to or determined by the Department of Revenue under Article
III of the Tax Reform Code of 1971 shall constitute allowable deductions in determining earned income. The term does not include offsets for business losses. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income. Without limiting the generality of the foregoing, and unless specifically superseded by statute or regulation of the commonwealth, earned income shall include salaries, wages, commissions, bonuses, incentive payments, fees and tips and other compensation that may accrue or be received by an individual for services rendered, whether directly or through an agent and whether in case or in property, but shall not include periodic payments for sick or disability benefits and those 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, nor public assistance or unemployment compensation payments, nor any wages or compensation paid by the United States to any person for active service in the Army, Navy or Air Force of the United States or the Commonwealth of Pennsylvania or any other state for such service.
EMPLOYER
A person, business entity or other entity employing one or
more persons for a salary, wage, commission or other compensation.
The term includes the commonwealth, a political subdivision, and an
instrumentality or public authority of either. For purposes of penalties
under this article, the term includes a corporate officer.
MUNICIPALITY
The Township of Middletown, Bucks County, Pennsylvania.
NET PROFITS
The net income from the operation of a business other than
a corporation, as required to be reported to or as determined by the
Department of Revenue under Section 303 of the Act of March 4, 1971
(P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and rules
and regulations promulgated under that section. Without limiting the
generality of the foregoing, and unless specifically superseded by
statute or regulation of the commonwealth, net profits shall include
the net income from the operation of a business, profession or enterprise,
except corporations, after provisions for all costs and expenses incurred
in the conduct thereof, either paid or accrued in accordance with
the accounting system used in such business, profession or enterprise,
but without deduction of taxes based on income. Without limiting the
generality of the foregoing, and unless specifically superseded by
statute or regulation of the commonwealth, net profits shall not include:
(1)
Income, which:
(a)
Is not paid for services provided; and
(b)
Is in the nature of earnings from an investment.
(2)
Income, which represents:
(a)
Any gain on the sale of farm machinery;
(b)
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; or
(c)
Any gain on the sale of other capital assets of a farm.
NONRESIDENT
A person or business domiciled outside of the Township of
Middletown.
PERSON
A natural person, partnership, corporation, fiduciary or
association. Whenever used in any section prescribing and imposing
a penalty, the term "person" as applied to associations shall mean
the partners or members thereof and, as applied to corporations, the
officers thereof.
PRIVATE AGENCY
A business entity or person appointed as the Tax Officer.
RESIDENT
A person or business domiciled in the Township of Middletown.
TAX OFFICER
The political subdivision, public employee, tax bureau, county
or private agency which administers and collects income taxes for
the Township pursuant to and in accordance with the Local Tax Enabling
Act.
TAXPAYER
A person, whether an individual, partnership, association
or any other entity, required hereunder to file a return of earnings
or net profits or to pay a tax thereon.