All words and phrases shall have the meanings as set forth in Act
32, as amended. The following words and phrases, when used in this
Part, shall have the meanings ascribed to them as follows:
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.
BUSINESS ENTITY
A sole proprietorship, corporation, joint-stock association
or company, partnership, limited partnership, limited liability company,
association, business trust, syndicate or other commercial or professional
activity organized under the laws of this commonwealth or any other
jurisdiction.
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. This term
shall include an entity which is classified as a corporation for federal
income tax purposes.
DEPARTMENT
The Pennsylvania Department of Community and Economic Development
or successor agency charged with any duties under the Act, as may
be amended and supplemented.
DOMICILE
The place where a person or individual lives and has his
or her permanent home and to which he or she has the intention of
returning whenever he or she 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 person has voluntarily fixed the habitation of
himself or herself and his or her 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 or her 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 Pennsylvania 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.
For purposes of earned income, employee business expenses are allowable
deductions as determined under Article III of the Tax Reform Code
of 1971. 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.
EMPLOYER
A person, business entity or other entity employing one or
more persons for a salary, wage, commission or other compensation.
The term includes the commonwealth, a political subdivision and an
instrumentality or public authority of either. For purposes of penalties
hereunder, this term includes a corporate officer.
MUNICIPALITY
A city of the second class, city of the second class A, city
of the third class, borough, town, township of the first class or
township of the second class. For purposes of this Part, such term
shall mean the Borough of New Oxford, Adams County, Pennsylvania.
NET PROFITS
The net income from the operation of a business, except corporations
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 the rules and regulations promulgated under such
section. The term does not include income a) which is not paid for
services provided and b) which is in the nature of earnings from an
investment. Further, the term shall not include:
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; and
C.
Any gain on the sale of other capital assets of the farm.
NONRESIDENT
A person, partnership, association or other entity domiciled
outside of the municipality.
RESIDENT
A person, partnership, association or other entity domiciled
in the municipality.
TAX BUREAU
A public nonprofit entity established by a Tax Collection
Committee for the administration and collection of earned income and
net profits tax.
TAX OFFICER
A political subdivision, public employee, tax bureau, county,
excluding a county of the first class, or private agency which administers
and collects earned income and net profits for one or more tax collection
districts. Unless otherwise specifically provided, for purposes of
the obligations of an employer, the term shall mean the Tax Officer
or Tax Collector for the tax collection district within which the
employer is located, or if an employer maintains workplaces in more
than one tax collection district, the Tax Officer for each such tax
collection district with respect to employees principally employed
therein.
TAXPAYER
A person or business required hereunder to file a return
of earned income or net profits or to pay a tax thereon.