This article is enacted under the authority of the Local Tax
Enabling Act, 53 P.S. § 6901 et seq. and 53 P.S. § 6924.101
et seq.
This article shall be known and may be cited as the "Borough
of Riverside Earned Income and Net Profits Tax Ordinance."
As used in this article, the following terms shall have the
meanings indicated:
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
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 voluntary 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 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
Compensation as determined under Section 303 of the Act of
March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform Code of 1971," and regulations in 61 Pa. Code Part I, Subpart B, Article
V (relating to personal income tax), not including, however, wages or compensation paid to individuals on active military service. Employee business expenses are allowable deductions as determined under Article
III of the Tax Reform Code of 1971. The amount of any housing allowance provided to a member of the clergy shall not be taxable as earned income.
EARNED INCOME AND NET PROFITS TAX OFFICER or OFFICER
That person, public employee, private agency or other entity
designated by the Borough Council to collect and administer the tax
on earned income and net profits. The elected (or appointed) Real
Property Tax Collector shall be and shall serve as the Earned Income
and Net Profits Tax Officer of the Borough.
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.
NET PROFITS
The net income from the operation of a business, profession,
or other activity, except corporations, determined under Section 303
of the Act of March 4, 1971 (P.L. 6, No. 2), known as the "Tax Reform
Code of 1971," and regulations in 61 Pa. Code Part I, Subpart B, Article
V (relating to personal income tax). The term does not include
income which is not paid for services provided and which is in the
nature of earnings from an investment. For taxpayers engaged in the
business, profession or activity of farming, the term shall not include:
A.
Any interest earnings generated from any monetary accounts or
investment instruments of the farming business;
B.
Any gain on the sale of farm machinery;
C.
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; and
D.
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside the Borough.
RESIDENT
A person, partnership, association or other entity domiciled
in the Borough.
TAXPAYER
Person, partnership, association or any other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.
The following taxes are hereby imposed, for general municipal
purposes, under the authority of Act No. 511 of 1965, the Local Tax
Enabling Act:
A. One percent of all earned income earned during the current year by
residents.
B. One percent of all earned income earned during the current year by
nonresidents for work done or services rendered in the Borough of
Riverside.
C. One percent of all net profits earned during the current year by
businesses, professions and other activities conducted by residents.
D. One percent of the net profits earned during the current year by
businesses, professions and other activities conducted in the Borough
of Riverside by nonresidents.
The Officer shall receive such compensation for his services
and expenses as determined by the Borough Council.
This article shall not apply to any person or property as to
whom or which it is beyond the legal power of the Borough to impose
the tax or duties herein provided for.