City of Philadelphia - File #: 020436

• File #: 020436
• Version: 1
• Type: Bill
• Status: LAPSED
• File created: 6/13/2002
• In control: Committee of the Whole
• Title: Amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," by amending the definition of "Net Income" with respect to determining what portion of net income is properly attributable to the doing of business in Philadelphia and therefore subject to tax, and by making technical amendments; all under certain terms and conditions.
• Sponsors: Councilmember DiCicco, Councilmember Nutter, Councilmember Kenney, Council President Verna, Councilmember Rizzo, Councilmember Cohen, Councilmember Tasco, Councilmember Ortiz
• Indexes: BUSINESS PRIVILEGE TAX, NET INCOME TAX
• Code sections: 19-2600 - Business Privilege Tax, 19-2601 - Definitions

Date	Ver.	Action By	Action	Result	Tally
11/13/2002	0	Committee of the Whole	HEARING NOTICES SENT
11/13/2002	0	Committee of the Whole	HEARING HELD
11/13/2002	0	Committee of the Whole	AMENDED
11/13/2002	1	Committee of the Whole	RECESSED
6/13/2002	0	CITY COUNCIL	Re-Referred
6/13/2002	0	CITY COUNCIL	Introduced	Pass

Title
Amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," by amending the definition of "Net Income" with respect to determining what portion of net income is properly attributable to the doing of business in Philadelphia and therefore subject to tax, and by making technical amendments; all 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 hereby 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:

* * *

Net Income.

* * *

(c) The collector shall establish rules and regulations and methods of apportionment and allocation and evaluation so that only that part of such net income or net operating loss which is properly attributable [and allocable] to the doing of business in [the city of the first class levying the tax] Philadelphia shall be taxed hereunder. Such rules and regulations shall include: (i) methods to determine what items of non-business income are to be allocated to Philadelphia; and (ii) methods to apportion business income to Philadelphia based solely on a fraction of which the numerator shall be receipts of the taxpayer in Philadelphia during the tax period, and the denominator shall be receipts of the taxpayer everywhere during the tax period. Receipts from the sale of tangible personal property are in Philadelphia if the property is delivered or shipped to a purchaser within Philadelphia, regardless of any conditions of the sale. [The collector may make an apportionment and allocation with due regard to the nature of the business concerned on the basis of mileage, the ratio of the taxable receipts of the taxpayer from within...