The following words and phrases, when used in this Part, shall have
the meanings ascribed to them in this section; except if the context
clearly indicates or requires a different meaning:
ASSOCIATION
A partnership, limited partnership or any other form of unincorporated
enterprise owned by two or more persons.
BUSINESS
Any enterprise, activity, profession or undertaking of any
nature conducted for profit or ordinarily conducted for profit, whether
by an individual, copartnership, association or other entity.
COMPENSATION EARNED OR COMPENSATION PAID OR EARNINGS
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, as determined under
§ 303 of the Tax Reform Code of 1971 and regulations in
61 Pa. Code, Part I, Subpart B, Article V, relating to personal income
tax.
This term does not include wages or compensation paid to
persons on active military service, periodic payments for sickness
and disability other than regular waged 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
know as public assistance, or unemployment compensation payments to
reimburse expenses or payments made by employers or 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.
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.
CORPORATION
Any corporation or joint stock association organized under
the laws of the United States, the Commonwealth of Pennsylvania or
any other state, territory or foreign country or dependency.
EMPLOYER
Any individual, copartnership, association, corporation,
governmental body or unit or agency or any other entity, who or that
employs one or more persons on a salary, wage, commission or other
compensation basis.
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 as determined under § 303 of the
Tax Reform Code of 1971 and regulations 61 Pa. Code, Part I, Subpart
B, Article V, relating to personal income tax.
This 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;
and (4) any gain on the sale of other capital assets of the farm.
NONRESIDENT
An individual, copartnership, association or other entity
domiciled outside the Township of Leet.
PERSON
Every natural person, copartnership, association, firm or
fiduciary. Whenever used in any clause prescribing and imposing a
penalty, the term "person," as applied to associations, shall mean
the partners or members thereof and, as applied to corporations, the
officers thereof.
RESIDENT
An individual, copartnership, association or other entity
domiciled in the Township of Leet.
TAXPAYER
A person, whether an individual, copartnership, association
or any other entity, required hereunder to file a return on earnings
or net profits or to pay a tax thereon.