Title
Amending Section 19-2604 of The Philadelphia Code, relating to tax rates, credits and alternative tax computation for the business privilege tax, by reducing certain tax rates; all under certain terms and conditions.
Body
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. Subsection 1 of Section 19-2604 of The Philadelphia Code is hereby repealed in its entirety, and a new subsection is added that reads as follows:
§19-2604. Tax Rates, Credits, and Alternative Tax Computation.
(1) Every business shall pay an annual tax on each dollar of annual receipts at the millage rate shown in the second column of the following chart (“Receipts rate in mills”), and an annual tax on net income at the percentage rate shown in the third column (“Net income rate %“), except that a regulated industry shall only pay an annual tax on each dollar of annual receipts at the millage rate shown in the second column, and in an amount not to exceed the percentage of net income shown in the third column:
|
Tax year (s) |
Receipts rate in mills |
Net income rate% |
|
2002 |
2.40 mills |
6.50% |
|
2003 |
2.30 mills |
6.50% |
|
2004 |
2.10 mills |
6.50% |
|
2005 |
1.90 mills |
6.50% |
|
2006 |
1.75 mills |
6.50% |
|
2007 |
1.50 mills |
6.50% |
|
2008 |
1.00 mills |
6.50% |
|
2009 |
0.5 mills |
6.50% |
|
2010 |
0.0 mills |
6.0% |
|
2011 |
0.0 mills |
5.0% |
|
2012 |
0.0 mills |
4.0% |
|
2013 |
0.0 mills |
3.0% |
|
2014 |
0.0 mills |
2.0% |
|
2015 |
0.0 mills |
1.0% |
|
2016 |
0.0 mills |
0.0% |
|
IMPACT ON FIVE YEAR PLAN REVENUES (in millions) |
|
FY05 |
Tax Refom Commission |
|
Bill No. 040023 |
|
|
Wage Tax |
-2.32 |
0.00 |
|
|
BPT – Net Profits |
0.00 |
0.00 |
|
|
BPT – Receipts |
0.00 |
0.00 |
|
|
Partnership deduction |
-9.45 |
0.00 |
|
|
FY05 Total |
-11.77 |
0.00 |
|
FY06 |
|
|
|
|
|
Wage Tax |
-8.16 |
0.00 |
|
|
BPT – Net Profits |
-14.89 |
0.00 |
|
|
BPT – Receipts |
0.00 |
0.00 |
|
|
Partnership deduction |
-9.30 |
0.00 |
|
|
FY06 Total |
-32.34 |
0.00 |
|
FY07 |
|
|
|
|
|
Wage Tax |
-8.16 |
0.00 |
|
|
BPT – Net Profits |
-30.19 |
0.00 |
|
|
BPT – Receipts |
0.00 |
-6.35 |
|
|
Partnership deduction |
-9.65 |
0.00 |
|
|
FY07 Total |
-60.52 |
-6.35 |
|
FY08 |
|
|
|
|
|
Wage Tax |
-39.63 |
0.00 |
|
|
BPT – Net Profits |
-46.82 |
0.00 |
|
|
BPT – Receipts |
0.00 |
-27.06 |
|
|
Partnership deduction |
-9.75 |
0.00 |
|
|
FY08 Total |
-96.20 |
-27.06 |
|
FY09 |
|
|
|
|
|
Wage Tax |
-60.06 |
0.00 |
|
|
BPT – Net Profits |
-63.40 |
0.00 |
|
|
BPT – Receipts |
-4.47 |
-52.20 |
|
|
Partnership deduction |
-10.15 |
0.00 |
|
|
FY09 Total |
-138.09 |
-52.20 |
|
FY05 - FY09 |
|
|
|
|
|
Wage Tax |
-130.85 |
0.00 |
|
|
BPT – Net Profits |
-155.30 |
0.00 |
|
|
BPT – Receipts |
-4.47 |
-85.61 |
|
|
Partnership deduction |
-48.30 |
0.00 |
|
|
FY05-09 Total |
-338.92 |
-85.61 |
SECTION 2. Effective dates. This Ordinance shall be effective immediately.
_____________________________________
Explanation:
[Brackets] indicate matter deleted.
Italics indicate new matter added.
End