Philadelphia FINALLY Reforms Business Privlege Tax

Philly Business Journal is reporting that Philadelphia City Council has passed a bill that reforms the business privlege tax in Philadlephia. The business privlege tax has long been viewed as a key factor preventing new businesses from opening in Philadelphia or from already established companies moving thier headquarters to Philadelphia.  The following significant changes are aimed at making Philadelphia a more attractive place to businesses:

1. A complete two-year exemption for new businesses
2. An exemption on the first $100,000 per year of gross receipts for all businesses
3. Waiver of business-related license fees for new businesses
4. Eliminates the business privilege license fee altogether in 2014
5. Phases in a “single sales factor apportionment” that will allow businesses to pay the higher 6.45 percent tax rate only related to Philadelphia sales

The only thing missing now is Mayor Michael Nutter’s signature and he is expected to sign immanently.

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Blog post compliments of CenterCityTeam’s Philadelphia Real Estate Blog

Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106
215.521.1623  Direct
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[email protected]
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