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Ordinance supplementing the Pittsburgh City Code, Title 2: Fiscal, Article VII: Business Related Taxes by adding a new Chapter 248: Unearned Income Tax, to tax the net unearned income of City residents that is not subject to other City income taxes.
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The Council of the City of Pittsburgh hereby enacts as follows:
Section 1. The Pittsburgh City Code, Title 2: Fiscal, Article VII: Business Related Taxes is hereby supplemented to add a new Chapter 248: Unearned Income Tax.
§ 248.01. Definitions.
In this Chapter, the following words and phrases shall have the meanings given to them in this Section unless the context clearly requires otherwise:
(a) CITY shall mean the City of Pittsburgh.
(b) CITY RESIDENT shall mean a natural person who is beneficially entitled to unearned income and who is domiciled in the City for all or part of the tax year. “City resident” does not include corporations. “City resident” shall include, but not be limited to:
(1) Individuals.
(2) Individual limited partners.
(3) Individual shareholders of an ‘S’ Corporation.
(4) Members of unincorporated associations with respect to the taxable income of the association received by or credited to the members.
(5) Beneficiaries of trusts and estates as to current or accumulated taxable income paid to them.
(6) Individuals treated as substantial owners of trusts and estates.
(c) NET UNEARNED INCOME shall mean the net taxable unearned income of any City resident and shall be calculated according to Section 248.05.(1) Net unearned income shall not be treated as “received or credited” from an S corporation (as defined in 26 U.S.C. § 1361) for purposes of this Chapter until actually distributed.
(d) TAX YEAR shall mean the 12-month period from January 1 to December 31.
(e) ‘S’ CORPORATION shall mean a corporation that elects to be treated as an ‘S’ Corporation for federal tax purposes.
(f) EXCLUDED INCOME TAXES shall mean taxes of any nature based upon income, including but not limited to ...
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