City of Philadelphia - File #: 100754

• File #: 100754
• Version: 1
• Type: Bill
• Status: ENACTED
• File created: 11/4/2010
• In control: Committee on Finance
• Final action: 6/2/2011
• Title: Amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," by providing for exclusions and certifications for hobbies and other not-for-profit activities, under certain terms and conditions.
• Sponsors: Councilmember Green, Councilmember Goode, Councilmember Clarke, Councilmember Krajewski, Councilmember Tasco, Councilmember Reynolds Brown, Councilmember Jones, Councilmember Greenlee, Council President Verna, Councilmember Rizzo, Councilmember Miller, Councilmember Kelly, Councilmember Blackwell, Councilmember O'Neill
• Indexes: BUSINESS PRIVILEGE TAX
• Code sections: 19-2600 - Business Privilege Tax

Date	Ver.	Action By	Action	Result	Tally
6/15/2011	1	MAYOR	SIGNED
6/2/2011	0	CITY COUNCIL	READ AND PASSED	Pass	17:0
5/26/2011	1	CITY COUNCIL	ORDERED PLACED ON THIS DAY`S FIRST READING CALENDAR
5/26/2011	1	CITY COUNCIL	SUSPEND THE RULES OF THE COUNCIL	Pass
5/23/2011	0	Committee on Finance	HEARING NOTICES SENT
5/23/2011	0	Committee on Finance	HEARING HELD
5/23/2011	0	Committee on Finance	AMENDED
5/23/2011	1	Committee on Finance	REPORTED FAVORABLY, RULE SUSPENSION REQUESTED
11/4/2010	0	CITY COUNCIL	Introduced and Referred	Pass

Title
Amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," by providing for exclusions and certifications for hobbies and other not-for-profit activities, under certain terms and conditions.
Body
THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:

SECTION 1. Chapter 19-2600 of The Philadelphia Code is amended to read as follows:

CHAPTER 19-2600. BUSINESS PRIVILEGE TAXES.

§ 19-2601. Definitions.

In addition to the definitions provided in the Act of May 30, 1984, P.L. 345, No. 69, known as the First Class City Business Tax Reform Act, and Chapter 19-500 of this Title, the following definitions shall apply:

* * *

Business. Carrying on or exercising for gain or profit within a city of the first class, any trade, business, including financial business as hereinafter defined, profession, vocation or commercial activity, including the partial or complete liquidation or sale of business assets, or making sales to persons within such city of the first class. "Business" shall not include the following:

* * *

(6) Any hobby or other not-for-profit activity, as set forth at 26 C.F.R. § 1.183-2. The determination of whether an activity is engaged in for profit is made by reference to objective factors, taking into account all of the facts and circumstances of each case. The Department of Revenue shall promulgate regulations setting forth the factors to be considered in making this determination, which regulations shall be consistent with 26 C.F.R. § 1.183-2. The relevant, non-exclusive factors set forth in 26 C.F.R. § 1.183-2 are: (1) the manner in which the person carries on the activity; (2) the expertise of the person carrying on the activity or such person's advisors; (3) the time and effort expended by the person in carrying on the activity; (4) the expectation that assets used in the activity may appreciate in value; (5) the success of the person in carrying on other similar or d...