The following words and phrases, when used in
this Part, shall have the meanings ascribed to them in this section
except where the context clearly indicates or requires a different
meaning:
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 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
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, not including, however:
1.
Wages or compensations paid to persons on active
military service.
2.
Periodic payments for sickness and disability
other than regular wages 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.
3.
Payments commonly known as "public assistance,"
or unemployment compensation payments made by a governmental agency.
4.
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.
INCOME TAX OFFICER or OFFICER
The person, public employee or private agency designated
by the Borough of Homestead to collect and administer the tax on earned
income and net profits.
EMPLOYEE
Any natural person domiciled in the Borough of Homestead
or employed therein upon whose earned income, as above defined, a
tax is imposed by this Part.
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, 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.
RESIDENT
A person, partnership, association or other entity domiciled
in the Borough of Homestead.
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.
[Amended 1-13-1994 by Ord. No. 1052; 1-12-1995 by Ord. No.
1066; 1-20-2005 by Ord. No. 1164]
1. A tax for general
revenue purposes of 1% is hereby assessed, levied and imposed on:
A. Earned income
received, beginning January 1, 2005, and ending December 31, 2005,
by residents of the Borough of Homestead.
B. The net profits
earned, beginning January 1, 2005, and ending December 31, 2005, of
businesses, professions or other activities conducted in the Borough
of Homestead by such residents regardless of where the same were earned.
2. A tax for general
revenue purposes of 1% is hereby assessed, levied and imposed on:
A. Earned income
received, beginning January 1, 2005, and ending December 31, 2005,
by nonresidents of the Borough of Homestead for work done or services
performed or rendered in the Borough of Homestead.
B. The net profits
earned, beginning January 1, 2005, and ending December 31, 2005, of
businesses, professions or other activities conducted in the Borough
of Homestead by nonresidents.
3. The tax herein
assessed, levied and imposed shall continue in force on a calendar-year
basis or a taxpayer-fiscal-year basis following December 31, 2005,
without annual reenactment so long as the Borough of Homestead remains
a distressed municipality under the provisions of the Municipalities
Financial Recovery Act, Act 47 of 1987, as amended, and until such
time as the Council of the Borough of Homestead shall change the rate
of tax or by appropriate ordinance repeal such tax.
[Amended 1-13-1994 by Ord. No. 1052]
The Income Tax Officer shall receive such compensation
for his services and expenses as shall be determined by the Council
of the Borough of Homestead from time to time. In the case of a single
collector established by the Council of the Borough of Homestead and
the Board of Directors of Steel Valley School District, such taxing
jurisdictions shall share in the compensation and expenses of a single
Officer according to the proportionate share that the total annual
collections for each jurisdiction bears to the total annual collection
for all political subdivisions in a single collector district, except
that with the agreement of 2/3 of all participating political subdivisions,
a different manner of sharing may be substituted.
If, for any reason, the tax is not paid when
due, interest at the rate of 6% per annum on the amount of said 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.
[Added 6-9-1994 by Ord. No. 1060]
1. All fees, fines
and penalties imposed by this Part shall be recoverable by the Borough
of Homestead as other debts are recoverable.
2. Collection costs
as added costs. If, for any reason, the tax or fee (whichever is applicable)
is not paid when due, in addition to any interest and penalties applicable
thereto, the person or persons liable therefor shall also be liable
for all costs of collection, including but not limited to attorney's
fees, collection fees, whether a flat fee, percentage fee or hourly
fee, administrative costs of collection and billing, and all other
fees and costs charged to or incurred by the Borough of Homestead.
[Amended 1-13-1994 by Ord. No. 1052; 1-12-1995 by Ord. No.
1066]
This Part and the tax imposed hereunder is adopted
under and by virtue of the authority contained in the:
1. Act of the General
Assembly of the Commonwealth of Pennsylvania numbered 511 approved
the 31st day of December 1965, entitled the "Local Tax Enabling Act
of 1965," its supplements and amendments, the provisions of which are hereby accepted and adopted
by the Council of the Borough of Homestead, and where the interpretation
or terms or provisions of this Part are not in accord with or in compliance
with the provisions of said Act of Assembly, the provisions of said
Act of Assembly are intended to be ordained and enacted by this Part
as fully as though incorporated, set forth and made part of this Part;
and
2. Municipalities
Financial Recovery Act, Act 47 of 1987, as amended.