The following words and terms when used in this article shall
have the meanings as defined herein:
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 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 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 Pt. I Subpt. B Art.
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.
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 governing
body 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, 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 Pt. I Subpt. B Art.
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 taxing district.
RESIDENT
A person, partnership, association or other entity domiciled
in the taxing district.
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.
The Council of the Borough of Sharon Hill shall, by resolution,
fix the compensation for the Income Tax Officer.
This article shall become effective on January 1, 2011, and
shall remain in full force and effect for the calendar year 2011.
Thereafter, this article shall remain in full force and effect on
a calendar-year basis without annual reenactment until the specific
repeal of this article by the Council of the Borough of Sharon Hill,
and the tax imposed thereafter shall be upon the taxable subjects
of this article for the entire taxable year.