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 a different meaning:
ASSOCIATION
A partnership, limited partnership, or any other unincorporated
group of two or more persons.
BOROUGH
Trappe Borough, Montgomery County, Pennsylvania.
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.
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 workmen's 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 payments by any governmental agency or payments to reimburse
expenses or payments made by employers to 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 OFFICER
Person, public employee or private agency designated by the
Borough 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 of the Borough.
RESIDENT
A person, partnership, association or other entity domiciled
in the Borough.
TAXPAYER
A person, partnership, association or any other entity required
hereunder to file a return on earned income or net profits or to pay
a tax thereon.
If for any reason the tax is not paid when due,
interest at the rate of 6% per annum on the amount of the tax, and
an additional penalty of 1/2 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. Where suit is brought for the recovery
of the tax, the person liable therefor shall, in addition, be liable
for the costs of collection and the interest and penalties herein
imposed.
This article shall not apply to personal property
or persons to whom or which it is beyond the legal power of the Borough
to impose the tax herein provided; the net profits of any institution,
organization, trust, association or foundation operated for public,
religious, educational or charitable purposes, provided that this
section shall not operate to relieve or exempt any such entity from
collection at source of earned income of its employees and remittance
of such collections to the Income Tax Officer.
This article shall become effective the first
day of July 1970, for the period July 1, 1970, to December 31, 1970,
and for all calendar years thereafter.