When a business doesn’t pay its taxes, the Department of Revenue takes it seriously. Taxes fund important services, including many that Philadelphia businesses benefit from directly.

We want businesses to stay open and to thrive. But delinquent taxes can lead to closure.

Marco Muniz is the Department of Revenue’s Deputy Commissioner for Collections. We asked him how license revocation works, and what options exist when businesses fall behind on taxes.

What is a Commercial Activity License and why do businesses need one?
Marco Muniz: It’s a license issued by the City’s Department of Licenses and Inspections. It’s needed to conduct business within Philadelphia, and is required prior to applying for any additional business licenses in the City.

The City requires licenses to protect residents, and the businesses themselves. Licenses let the City control business locations, ensure public health, rein in unjust or under-the-counter practices, keep track of taxes, and more. The City does not charge a fee for a Commercial Activity License.

What is the License Revocation Program?
MM: The program takes away the commercial activity licenses of businesses that fail to pay the City, forcing the businesses to stop operations.  The Philadelphia Code, specifically Section 19-2602, gives the City that authority.

Are there additional fees and/or fines associated with revocation?
MM: Yes. Any person who operates a business without a valid Commercial Activity License is subject to a fine of $300 for each day it continues to operate. People who don’t resolve their debt before revocation can’t enroll in some payment plans. It’s important that business owners don’t ignore their debt and reach out to the Department of Revenue as soon as they have a problem paying their taxes.

How can I prevent a City license revocation?
MM: You can prevent the loss of your license by filing returns and paying your tax bill on time, and in full. The Department of Revenue’s website has all the information you need. All the due dates and current rates are listed there. The website also has links for filing and paying electronically, and printable tax forms. The other way to prevent revocation is by entering into a payment agreement. We have several payment options with flexible terms. It’s then important to honor the terms of that agreement, by making all scheduled payments timely.

What is the Department of Revenue’ process for revoking licenses?
MM: The Department sends out a letter to delinquent businesses, with the title “Intent to Revoke Commercial Activity and Other City Licenses”.  The letter has the name and contact information for a case worker and an itemized bill of the unfiled and unpaid taxes.  It also notifies the business that it has 10 days to resolve the debt or to request a pre-revocation hearing.

If time runs out and no action is taken, the Department hand-delivers a second letter titled “Revocation of City License(s)” to let businesses know their license is revoked.

Two business days after delivery of this Notice of Revocation, the City will post a Cease Operations Order at your business location. This means you cannot be open or serve customers. If necessary, the Philadelphia Police Department will help enforce the closure.

Can I appeal the revocation?
MM: Yes. To request a hearing prior to revocation, you should send a letter within 10 days of the City’s Intent to Revoke notice to:

City of Philadelphia, Department of Revenue
Municipal Services Building
1401 John F. Kennedy Blvd., Room 480
Philadelphia, PA 19102

In the letter you should include your account number, and a copy of the notice we sent you. Be aware that hearings are scheduled once a month.

If your license has already been revoked, you can file an appeal with the Board of License and Inspection Review. You have 10 days to appeal from the date on your Notice of Revocation. You can get an appeal form in person:

1401 John F. Kennedy Boulevard
11th floor, Room 1130
Philadelphia, PA 19102

A Review Board appeal application can also be found online.

The filing an appeal doesn’t stop the revocation. The Cease Operations Order remains in effect pending the outcome of the appeal.

If my license has been revoked, and I pay the amount due, when is my license reinstated?
MM: If you filed and paid the amount you owe, you must contact your case worker. Only the case worker can confirm that the Department of Revenue received your returns and payments.

Your case worker will let you know when revocation enforcement stops and when your license will be reinstated.