Effective May 1, 2012, Council Bill 110758 renames the BPT the "Business Income and Receipts Tax" and renames the BPL the "Commercial Activity License". This change will not be reflected on the actual tax forms until next tax season.

Business Tax Reform
The Nutter Administration has worked with City Council this past fall to implement the most significant tax reform changes in over 25 years. Effective January 1, 2012, qualifying new businesses, who apply for and meet all requirements, will not have to pay for their business privilege license when they apply for it and must file but will not owe any business privilege tax (BPT) for the first two years they are in business. On May 1, 2012, the BPT will be renamed the Business Income and Receipts Tax. Beginning in 2014, businesses will be able to take an exclusion of $50,000 that will increase over the following years to $100,000 in 2016. The city will also be implementing Single Sales Factor which will have a positive effect on Philadelphia based businesses. More information can be found in our Winter 2012 ReveNews.

IMPORTANT NOTICE: There will be no change to the Wage Tax Rates on January 1, 2012. The following rates are effective from January 1, 2012 through June 30, 2012:

    Residents of Philadelphia       3.9280%     (.03928)        
    Non-Residents                         3.4985%     (.034985)

Business Tax Delinquents On-line

In order to enjoy the services the City of Philadelphia provides, including trash pick-up, libraries, fire and public safety, everyone must pay their fair share.  The City is publicizing the names of 38 businesses and their officers that the City has sued for nonpayment of business taxes.  These businesses have been given several opportunities to come into compliance with the City and have been warned of this publication, and each time have chosen to ignore their Philadelphia tax obligations.  Three of the businesses on this list owe the City over $400,000 each.  The City will continue to publicize those who owe money including for real estate taxes and water/sewer charges in the coming months.  This list of business tax delinquents will be revised every quarter highlighting different businesses and their officers who thumb their noses at the rest of the hardworking, responsible taxpayers of our City. The new list can be found on-line at http://www.phila.gov/revenue/delinquencies/BusinessTaxes.aspx

Notice: The deadline of any city annual tax returns or payments customarily due on the 15th of April - Business Privilege Tax, Net Profits Tax, School Income Tax and Earnings Tax, annual reconciliation have been automatically extended to April 18, 2011. Note that the extension of the due date does not impact other monthly taxes due on the 15th of each month. The City allows this extension to make it easier for taxpayers by making the federal and the city taxes due on the same day...more>>

This spring, the Philadelphia City Council introduced and passed legislation creating the Tobacco and Tobacco-related Products Tax. On June 1, 2010, the bill was signed by Mayor Michael A. Nutter and the tax will be in effect starting July 1, 2010. more »

Effective Oct. 8, 2009, the City of Philadelphia is increasing its local sales and use tax rate from 1 percent to 2 percent, except for the Philadelphia local hotel occupancy tax which will remain at 1 percent. This is in addition to the state sales, use and hotel occupancy tax rate which remains at 6 percent. Under Act 44 of 2009, signed into law on Sept. 18, 2009, this tax rate change is effective from Oct. 8, 2009 to June 30, 2014. Sales taxes are collected and administered by the Pennsylvania Department of Revenue. State and local sales, use and hotel occupancy returns and payments may be filed online at www.etides.state.pa.us, or by calling, toll-free, 1-800-748-8299. Both filing services are free.
Reminder: All sales tax licensees that remit Philadelphia hotel occupancy tax are required to file their returns online at www.etides.state.pa.us.
For more information about the Philadelphia sales tax increase, call 717-787-1064. A Retailers’ Information Booklet (REV-717), containing a listing of taxable and non-taxable items and a description of taxable services, is available at: http://www.revenue.state.pa.us/

Mayor Michael A. Nutter announces the City of Philadelphia’s Tax Fraud Hotline initiative on May 5, 2009.

If you don't want to be subjected to a sheriff's sale, pay up fast. Continuing efforts to rein in the city's deadbeat taxpayers...

The Department of Revenue held hearings on Friday, February 13, 2009 on two proposed regulation changes. The first clarifies

Based on an ordinance passed by City Council and signed by the Mayor in December, the Business Privilege License fee was increased from $250.00 [one time payment] to $300.00 [one time payment] effective January 1, 2009.