City of Philadelphia - File #: 040023-A

• File #: 040023-A
• Version: 2
• Type: Bill
• Status: LAPSED
• File created: 1/22/2004
• In control: Committee on Finance
• Final action: 7/1/2004
• 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.
• Sponsors: Councilmember Goode, Councilmember Nutter
• Indexes: BUSINESS PRIVILEGE TAX
• Code sections: 19-2604 - Tax Rates, Credits, and Alternative Tax Computation

Date	Ver.	Action By	Action	Result	Tally
7/1/2004	2	CITY COUNCIL	READ
7/1/2004	2	CITY COUNCIL	FAILED	Fail	8:9
6/21/2004	1	CITY COUNCIL	READ
6/21/2004	2	CITY COUNCIL	ORDERED PLACED ON FINAL PASSAGE CALENDAR FOR NEXT MEETING.
6/21/2004	2	CITY COUNCIL	AMENDED
6/10/2004	1	CITY COUNCIL	ORDERED PLACED ON THIS DAY`S FIRST READING CALENDAR
6/10/2004	1	CITY COUNCIL	SUSPEND THE RULES OF THE COUNCIL	Pass
6/10/2004	1	CITY COUNCIL	ORDERED PLACED ON NEXT WEEK`S SECOND READING CALENDAR
6/8/2004	0	Committee on Finance	HEARING NOTICES SENT
6/8/2004	0	Committee on Finance	HEARING HELD
6/8/2004	0	Committee on Finance	AMENDED
6/8/2004	1	Committee on Finance	REPORTED FAVORABLY, RULE SUSPENSION REQUESTED
1/22/2004	0	CITY COUNCIL	Referred
1/22/2004	0	CITY COUNCIL	Introduced	Pass

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 Subsection 1 of Section 19-2604 of The Philadelphia Code is hereby repealed in its entirety, and a new subsection is added that reads as follows: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
...