This article shall be known as the "East Manchester Township
Earned Income and Net Profits Tax Ordinance," referred to herein as
"article."
All words and phrases shall have the meanings as set forth in
Act 32, as amended. The following words and phrases, when used in
this article, shall have the meanings ascribed to them as follows:
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.
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. This term
shall include an entity which is classified as a corporation for federal
income tax purposes.
DEPARTMENT
The Pennsylvania Department of Community and Economic Development
or successor agency charged with any duties under the Act, as may
be amended and supplemented.
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
The compensation as required to be reported to or as determined by the Pennsylvania 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. For purposes of earned income, employee business expenses are allowable deductions as determined under Article
III of the Tax Reform Code of 1971. 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.
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
hereunder, this term includes a corporate officer.
MUNICIPALITY
A city of the second class, city of the second class A, city
of the third class, borough, town, township of the first class or
township of the second class. For purposes of this article, such term
shall mean East Manchester Township, York County, Pennsylvania.
NET PROFITS
The net income from the operation of a business, except corporations
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
is promulgated under such section. The term does not include income
which is not paid for services provided; and which is in the nature
of earnings from an investment. Further, the term shall not include:
A.
Any gain on the sale of farm machinery;
B.
Any gain on the sale of livestock held twelve months or more
for draft, breeding or dairy purposes; and
C.
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside of the municipality.
POLITICAL SUBDIVISION
A city of the second class, city of the Second Class A, city
of the third class, borough, town, township of the first class, township
of the second class, school district of the first class A, district
of the second class, school district of the third class, school district
of the fourth class or municipal authority.
RESIDENT
A person, partnership, association or other entity domiciled
in the municipality.
TAX BUREAU
A public nonprofit entity established by a TCC for the administration
and collection of earned income and net profits tax.
TAX OFFICER
A political subdivision, public employee, tax bureau, county,
excluding a county of the first class, or private agency which administers
and collects earned income and net profits for one or more tax collection
district. Unless otherwise specifically provided, for purposes of
the obligations of an employer, the term shall mean the Tax Officer
or tax collector for the tax collection district within which the
employer is located, or if an employer maintains workplaces in more
than one tax collection district, the Tax Officer for each such tax
collection district with respect to employees principally employed
therein.
TAXPAYER
A person or business required hereunder to file a return
of earned income or net profits or to pay a tax thereon.
This article shall not apply to any person or property as to
whom or which it is beyond the legal power of the municipality to
levy, assess and impose the tax or duties as herein provided.
This article and the tax imposed hereby are adopted under and
by virtue of the authority contained in the Act of General Assembly,
approved the 31st day of December, 1965, Act No. 511, as amended,
known as the "Local Tax Enabling Act."