Title
Amending Chapter 19-2600 of The Philadelphia Code, entitled Business Income and Receipts Tax, by revising the alternative receipts tax computation, under certain terms and conditions.
Body
WHEREAS, In Bill No. 110554 (approved November 14, 2011), Council repealed the gradual reduction to zero of the gross receipts tax rate, but inadvertently failed to repeal the gradual reduction to zero of the alternative receipts tax computation; and
WHEREAS, Council now wishes to correct this oversight; now, therefore
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 INCOME AND RECEIPTS TAXES
* * *
§ 19-2604. Tax Rates, Credits, and Alternative Tax Computation.
* * *
(3) Alternative Receipts Tax Computation. A manufacturer (other than a regulated industry) shall at its option be permitted to compute the gross receipts tax on manufacturing sales at the rate shown in the following chart under the column entitled "Manufacturers", multiplied by receipts from manufacturing sales after deducting the applicable cost of goods sold as determined under the rules provided by the Federal Internal Revenue Code. A wholesaler (other than a regulated industry) shall at its option be permitted to compute the gross receipts tax on wholesale sales at the rate shown under the column entitled "Wholesalers", multiplied by receipts from wholesale sales after deducting the applicable cost of goods and the applicable cost of labor. A retailer (other than a regulated industry) shall at its option be permitted to compute the gross receipts tax on retail sales at the rate shown under the column entitled "Retailers", multiplied by receipts from retail sales after deducting the applicable cost of goods and the applicable cost of labor:
Tax year(s) |
Manufacturer (%) |
Wholesalers (%) |
Retailers (%) |
* * * |
* * * |
* * * |
* * * |
2008 [through 2013] and thereafter |
2.34 % |
3.29 % |
0.78 % |
[2014 |
2.19 % |
3.08 % |
0.73 %] |
[2015 |
2.07 % |
2.91 % |
0.69 %] |
[2016 |
1.82 % |
2.56 % |
0.61 %] |
[2017 |
1.65 % |
2.33 % |
0.55 %] |
[2018 |
1.40 % |
1.98 % |
0.47 %] |
[2019 |
1.24 % |
1.75 % |
0.41 %] |
[2020 |
0.83 % |
1.17 % |
0.27 %] |
[2021 |
0.43% |
0.59% |
0.14%] |
[2022 and thereafter |
0.0% |
0.0% |
0.0%] |
* * *
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Explanation:
[Brackets] indicate matter deleted.
Italics indicate new matter added.
End