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 Subsection 1 of Section 19-2604 of The Philadelphia Code is hereby repealed in its entirety, and a new subsection is added that reads as follows: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.
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
-9.65
0.00
FY07 Total
-60.52
-6.35
FY08
Wage Tax
-39.63
0.00
BPT – Net Profits
-46.82
0.00
BPT – Receipts
0.00
-27.06
Partnership deduction
-9.75
0.00
FY08 Total
-96.20
-27.06
FY09
Wage Tax
-60.06
0.00
BPT – Net Profits
-63.40
0.00
BPT – Receipts
-4.47
-52.20
Partnership deduction
-10.15
0.00
FY09 Total
-138.09
-52.20
FY05 - FY09
Wage Tax
-130.85
0.00
BPT – Net Profits
-155.30
0.00
BPT – Receipts
-4.47
-85.61
Partnership deduction
-48.30
0.00
FY05-09 Total
-338.92
-85.61
SECTION 2. Effective dates. This Ordinance shall be effective immediately.
_____________________________________
Explanation:
[Brackets] indicate matter deleted.
Italics
indicate new matter added.
End