Title
Authorizing the Council Committee on Commerce and Economic Development to hold hearings to investigate the City’s payment and refund systems for municipal taxes.
Body
WHEREAS, Philadelphia’s Department of Revenue is responsible for the collection and administration of all City taxes, including the Business Income and Receipts Tax (BIRT), Net Profits Tax, Wage Tax, and Real Estate Tax, among others; and
WHEREAS, The City’s tax payment and refund systems directly affect thousands of residents, small businesses, and property owners who rely on timely processing of payments and refunds to manage their finances and maintain compliance with City tax obligations; and
WHEREAS, Many residents, small business owners, and tax preparers have reported difficulties with delayed or inconsistent refund processing, including long wait times for overpayment reimbursements, lost correspondence, and unclear communication regarding refund eligibility or status; and
WHEREAS, According to the Department of Revenue, refund claims for most taxes and fees typically take six to eight weeks to process, with higher volume periods (April-June) extending processing to eight to ten weeks. By contrast, many revenue administrations in other jurisdictions such as New York City process refunds significantly faster; and
WHEREAS, The recent federal shift by the Internal Revenue Service toward phasing out paper refund checks and favoring electronic payments emphasizes that even long-standing government refund systems require modernization; and
WHEREAS, The City’s transition to modernized online systems, such as the Philadelphia Tax Center, represents an important step toward digital government, yet continued oversight is needed to ensure that these systems function reliably, protect sensitive data, and meet the needs of both taxpayers and City staff; and
WHEREAS, Efficient and transparent tax administration is essential to maintaining public confidence in City government and ensuring a fair, predictable business environment that encourages investment and job creation; now, therefore, be it
RESOLVED, THAT THE COUNCIL OF THE CITY OF PHILADELPHIA, Committee on Commerce and Economic Development, is hereby authorized to hold hearings regarding the City’s payment and refund systems for municipal taxes.
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