Philadelphia’s Use & Occupancy (U&O) Tax is changing in July 2019, with an immediate and important transition period for filers –especially annual filers.
What’s changing? In the past, the Department of Revenue calculated a filer’s U&O Tax (“Maximum Tax for Period”) from January to June based on their current-year property assessment. Taxes due between July and December were based on the following year’s property assessment.
Starting in July 2019, Revenue will calculate U&O Taxes for the entire Calendar Year (January to December) based on the filer’s current-year assessment.
Who does this affect? Monthly and annual U&O tax filers.
If you file and pay month-to-month, we will base your July 2019 U&O Tax on your 2019 property assessment. Your property’s “Maximum Tax for Period” won’t be subject to change until the January 2020 filing period.
If you are eligible to file and pay U&O annually, you should file a one-time, 6-month return by July 25, 2019. This tax return and payment will cover the period between July and December 2019, and is based on your 2019 property assessment. Filing this transitional return allows you to stay in the annual program.
In January 2020, you can file and pay an annual return that covers January 2020 to December 2020, based on your property’s 2020 assessment. That return and payment must be completed by January 25, 2020.
To be eligible for annual filing:
- Your Commercial space must be 100% occupied.
- You cannot claim exclusions from Lines 2 or 3 on the U&O return.
- You can only claim exclusions for residential living space on Line 4.
When should I file and pay? Monthly filers should file and pay July U&O Tax by July 25, 2019.
To take advantage of the 6-month (July 2019 – December 2019) return, annual filers must file and pay it by July 25, 2019.
Where do I file and pay? The Philadelphia Department of Revenue only accepts U&O returns through the City’s eFile/ePay site. That has not changed. We’ve already updated our site to reflect the U&O Tax change. Your login remains the same.
What if I need help? Email your questions to revenue@phila.gov, or call (215) 686-6600, during normal business hours.
Photo credit: Taylor Farnsworth, Department of Commerce/Flickr
