[Amended 11-10-2014 by Ord. No. 2014-01]
The provisions of the Local Tax Enabling Act, P.L. 1257, No.
511, December 31, 1965, as amended by Act 32 of 2008, P.L. 197, No.
32, July 2, 2008, and as hereinafter amended, supplemented, modified or
reenacted by the General Assembly of Pennsylvania, are incorporated
herein by reference.
The following words and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where
the context clearly indicates or requires a different meaning. The
singular shall include the plural, and the masculine shall include
the feminine and the neuter.
ASSOCIATION
A partnership, limited partnership, limited liability company,
limited liability partnership or any other unincorporated group of
two or more persons.
[Amended 11-10-2014 by Ord. No. 2014-01]
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.
CURRENT YEAR
The calendar year for which the tax is collected.
[Added 11-10-2014 by Ord.
No. 2014-01]
DOMICILE
The place where one lives and has his/her permanent home
and to which he/she has the intention of returning whenever he/she
is absent. Actual residence is not necessarily domicile, for domicile
is the fixed place or 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/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.
[Amended 11-10-2014 by Ord. No. 2014-01]
EARNED INCOME
Compensation as determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), 72 P.S. § 7303, 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). 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.
[Amended 11-10-2014 by Ord. No. 2014-01]
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, profession, or other activity, except corporations determined under Section 303 of the Act of March 4, 1971 (P.L. 6, No. 2), 72 P.S. § 7303, 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 the nature of earnings from an investment.
[Amended 11-10-2014 by Ord. No. 2014-01]
NONRESIDENT
A person, partnership 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.
[Added 11-10-2014 by Ord.
No. 2014-01]
The regulations promulgated by the Municipal and School Income
Tax Office, as amended, are hereby adopted. All subsequent amendments
to the Municipal and School Income Tax Office regulations may be adopted
from time to time by resolution of the Borough Council of the Borough
of Montgomery.
If for any reason the tax is not paid when due, interest at
the rate of 6% per annum on the amount of such tax, and an additional
penalty of 1/2 of 1% of the amount of the unpaid tax for each month
or fraction thereof during which the tax remains unpaid, shall be
added and collected. Where suit is brought for the recovery of any
such tax, the person liable therefor shall in addition be liable for
the costs of collection and the interest and penalties herein imposed.