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, and by making technical amendments; all under certain terms and conditions.
Body
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1. Section 19-2604 of The Philadelphia Code is hereby repealed in its entirety, and a new Section 19-2604 of the Code is added, to read as follows: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 %
1985
3.05
3.7
1986 through 1988 inclusive
3.90
4.35
1989 through 1995 inclusive
3.25
6.5
1996
3.00
6.5
1997
2.95
6.5
1998
2.875
6.5
1999
2.775
6.5
2000
2.65
6.5
2001
2.525
6.5
2002
2.40
6.5
2003
1.92
6.5
2004
1.44
6.5
2005
0.96
6.5
2006
0.48
6.5
(2) The annual tax to be paid by any person registered under the Act of December 5, 1972 (P.L. 1280, No. 284), known as the Pennsylvania Securities Act of 1972, shall in no event be less than the sum of: (a) the millage rate shown in the second column of the following chart ("Rate 1 in mills"), multiplied by the person's taxable receipts without regard to the exclusion from receipts as defined in paragraph (8) of the definition of "receipts" in §19-2601; plus (b) the lesser of (i) the millage rate shown in the third column ("Rate 2 in mills"), multiplied by the person's taxabl...
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