Unless otherwise expressly stated, the following terms shall have,
for the purpose of this article, the meanings ascribed to them in
this section:
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 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 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.
INCOME TAX OFFICER or OFFICER
Any person, public employee or private agency designated
by the political subdivision to collect and administer the tax on
earned income and net profits.
JOINT TAX COLLECTION COMMITTEE
An entity formed by two or more tax collection committees
for the purpose of income tax collection in more than one tax collection
district.
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, 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. The term
does not include income under any of the following subsections:
(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, partnership, association or other entity domiciled
outside the political subdivision.
RESIDENT
A person, partnership, association or other entity domiciled
in the political subdivision.
TAX COLLECTION COMMITTEE
The committee established to govern each tax collection district
for the purpose of income tax collection. The term shall include a
joint tax collection committee.
TAXPAYER
A 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.