Article I: DEFINITIONS
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"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 any 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 levied.

"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 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 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, wages or compensation paid to persons on active military service, 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 or unemployment compensation payments made by any governmental agency or 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" Any person who renders services to another for a financial consideration or its equivalent, under an express or implied contract, and who is under the control and direction of the latter and shall include temporary, provisional, casual, or part-time employment.

"Employer" A person, partnership, association, corporation institution, governmental body, unit or agency, or any other entity employing one or more persons for a salary, wage, commission, or other compensation.

"Income Tax Officer or officer" Person, public employee or private agency designated by governing body to collect and administer the tax on earned income and net profits.

"Independent Contractor" A person who, while performing services, is not under the direction and control of another person, as to the result to be accomplished by the work and as to the details and means by which that result is accomplished, such as authors, professional men, seamstresses, laundresses, tailors and registered and practical nurses. Where the independent contractor is in the permanent or part-time employment of an employer, however, that contractor will be considered an employee of said employer for the purpose of withholding the tax due under the resolution.

"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.

"Non-resident" A person, partnership, association or other entity domiciled outside the taxing district.

"Person" Any individual, partnership, association or other entity.

"Preceding Year" The calendar year before the current year.

"Resident" A person, partnership, association or other entity domiciled in the taxing district.

"Resolution or Ordinance" As adopted by the respective Districts empowering the tax for a given year, or any part thereof.

"State" Encompasses government entities other than the Commonwealth of Pennsylvania located within the United States, but does not include foreign countries, for purposes of crediting provisions.

"Succeeding Year" The calendar year following the current year.

"Taxing District" or "District" The political subdivisions, including school districts, levying and assessing an earned income and net profits tax, which have appointed or commissioned Berkheimer to collect and administer the tax on earned income and net profits.

"Taxpayer" A person, partnership, association, or other entity required hereunder to file a return of earned income or net profits, or to pay a tax thereon.

COMMENT: These definitions are taken verbatim from the definitions set forth in Act 511, 53 P.S. § 6913(I). The definition of "domicile" was reworded slightly in amendments to Act 511. The definition of "state" comes from the case of O'Reilly v. Fox Chapel Area School District, 555 A.2d 1288, 521 Pa. 471, 1989.