Definitions. As used
in this Part, the following terms shall have the meanings indicated:
ASSOCIATION
A partnership or 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 county 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
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 TAX COLLECTOR
Person, public employee or private agency designated by the
Borough Council of the Borough of Hatfield to collect and administer
the tax on earned income and net profits.
EMPLOYER
A person, partnership, association, corporation, institution,
governmental body or unit or agency, or any other entity employing
one or more persons for 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:
(1)
Any interest earnings generated from any monetary accounts or
investment instruments of the farming business.
(2)
Any gain on the sale of farm machinery.
(3)
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes.
(4)
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside of the Borough of Hatfield.
RESIDENT
A person, partnership, association or other entity domiciled
in the Borough of Hatfield.
TAXPAYER
A person, partnership, association or other entity required
hereunder to file a return of earned income or net profits or to pay
a tax thereon.