All terms defined in the Local Tax Enabling Act, 53 P.S. § 6924.101
et seq., shall have the meanings set forth therein. The following
terms shall have the meanings set forth herein:
BOROUGH
The Borough of Narberth, Montgomery County Pennsylvania.
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.
COLLECTOR or TAX OFFICER
A political subdivision, public employee, tax bureau, county,
except a county of the first class, or private agency which administers
and collects income taxes 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 for the tax collection
district within which the employer is located, or, if an employer
maintains workplaces in more than one district, the tax officer for
each such district with respect to employees principally employed
therein.
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. The term
shall include an entity which is classified as a corporation for federal
income tax purposes.
DEPARTMENT
The Department of Community and Economic Development of the
Commonwealth.
DOMICILE
The place where a person lives and has a permanent home and
to which the person has the intention of returning whenever 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 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 the person to adopt some other permanent home.
In the case of a business, 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 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
subject to the following:
A.
Employee business expenses as reported to or determined by the Department of Revenue under Article
III of the Tax Reform Code of 1971 shall constitute allowable deductions in determining earned income.
B.
The term does not include:
(1)
Wages or compensation paid to individuals on active military
service, regardless of whether it is earned for active military service
inside or outside this commonwealth.
(2)
Offsets for business losses.
(3)
The amount of any housing allowance provided to a member of
the clergy.
C.
For purposes of collection of earned income and net profits
taxes under this chapter and for crediting purposes under Section
317 of the Local Tax Enabling Act, the term shall include all taxes on earned income or net
profits whether authorized by this article or any other law of this
commonwealth, unless the law expressly provides otherwise.
EFFECTIVE INCOME TAX RATE
The actual tax rate levied by the Borough on a taxpayer based
on the total of all income taxes imposed under this article and all
other applicable laws, adjusted under Section 311 of the Local Tax
Enabling Act.
EFFECTIVE LOCAL SERVICES TAX RATE
The actual local services tax rate levied by the Borough
on taxpayers based on the total of all local services taxes imposed
under this article and all other applicable laws, adjusted under Section
311 of the Local Tax Enabling Act.
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
under this article, the term includes a corporate officer.
INCOME TAX
Except as set forth in Section 511(b) of the Local Tax Enabling
Act, an earned income and net profits tax, personal income
tax or other tax that is assessed on the income of a taxpayer levied
by a political subdivision under the authority of this article, the
Local Tax Enabling Act, or any other act.
JOINT TAX COLLECTION COMMITTEE
An entity formed by two or more tax collection committees
for the purpose of income tax collection in more than one tax collection
district.
LOCAL SERVICES TAX
A tax on individuals for the privilege of engaging in an
occupation that is levied, assessed and collected only by the political
subdivision of the taxpayer's place of employment under the authority
of this article, the Local Tax Enabling Act, or any other act.
NET PROFITS
The net income from the operation of a business, other than
a corporation, 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 rules and regulations
promulgated under that section. The term does not include income under
any of the following subsections:
A.
Income which:
(1)
Is not paid for services provided; and
(2)
Is in the nature of earnings from an investment.
B.
Income which represents:
(1)
Any gain on the sale of farm machinery;
(2)
Any gain on the sale of livestock held 12 months or more for
draft, breeding or dairy purposes; or
(3)
Any gain on the sale of other capital assets of a farm.
NONRESIDENT
A person or business domiciled outside the political subdivision
levying the tax and performing services within the political subdivision
levying the tax for at least 90 or more consecutive days.
NONRESIDENT TAX
An income tax levied by a political subdivision on a nonresident
who has performed services within the political subdivision levying
the tax for at least 90 or more consecutive days.
OFFICIAL REGISTER
The part of the tax register that includes withholding tax
rates as provided in Section 511(a)(3) of the Local Tax Enabling Act.
POLITICAL SUBDIVISION
A city of the second class, city of the second class A, city
of the third class, borough, town, township of the first class, township
of the second class, school district of the first class A, school
district of the second class, school district of the third class,
school district of the fourth class or municipal authority.
PRIVATE AGENCY
A business entity or person appointed as a tax officer by
a tax collection committee.
PUBLIC AGENCY
Any and all public bodies, authorities, agencies, instrumentalities,
political subdivisions, intermediate units, councils, boards, commissions
or similar governmental entities.
RESIDENT
A person or business domiciled in the Borough or the other
political subdivision levying the tax, as applicable.
RESIDENT TAX
An income tax levied by:
A.
The Borough on a resident of the Borough; or
B.
A school district on a resident of that school district.
TAX BUREAU
A public nonprofit entity established for the administration
and collection of taxes.
TAX COLLECTION COMMITTEE
The committee established to govern each tax collection district
for the purpose of income tax collection. The term shall include a
joint tax collection committee.
TAX OFFICER
A political subdivision, public employee, tax bureau, county,
except a county of the first class, or private agency which administers
and collects income taxes 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 for the tax collection
district within which the employer is located, or, if an employer
maintains workplaces in more than one district, the tax officer for
each such district with respect to employees principally employed
therein.
TAX RECORDS
Tax returns, supporting schedules, correspondence with auditors
or taxpayers, account books and other documents, including electronic
records, obtained or created by the tax officer to administer or collect
a tax under this article and Local Tax Enabling Act. The term includes
documents required by Section 509(e) of the Local Tax Enabling Act. The term "electronic records" includes data and information
inscribed on a tangible medium or stored in an electronic or other
medium and which is retrievable in perceivable form.
TAX REGISTER
A database of all county, municipal and school tax rates
available on the internet as provided in Section 511(a)(1) of the
Local Tax Enabling Act.
TAXABLE INCOME
Includes:
A.
In the case of an earned income and net profits tax, earned
income and net profits.
B.
In the case of a personal income tax, income enumerated in Section
303 of the Act of March 4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971, as reported to and
determined by the Department of Revenue, subject to correction for
fraud, evasion or error, as finally determined by the commonwealth.
TAXPAYER
A person or business required under this article and the
Local Tax Enabling Act, to file a return of an income tax or to pay
an income tax. The term includes a person or business that filed a
return of taxable income during the prior year but that had no taxable
income during the current year and was required by the tax collector
to file a final return indicating why the person or business no longer
has taxable income. The term does not include a person or business
with no taxable income, which person or business shall not be required
to file a return of income or to pay an income tax under the Local
Tax Enabling Act,
WITHHOLDING TAX
An income tax or a local services tax levied by the Borough
under the authority of this article, the Local Tax Enabling Act, or
any other act, or any other tax levied by the Borough, another political
subdivision, or school district for which employer withholding may
be required under this article, the Local Tax Enabling Act, or any
other act.