THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:
SECTION 1.
Chapter 19-1500 of The Philadelphia Code is amended to read as follows:
CHAPTER 19-1500. WAGE AND NET PROFITS TAX
§19-1508.
Refunds and Forgiveness for Poverty Income.
During the calendar year January 1, [2009]
2012
through December 31, [2009]
2012
, the rate of tax imposed on Very Low Income Residents under §19-1502(1)(a) and (2)(a) shall be one half of one percent (0.5%) less than the rate of tax imposed upon Residents on July 1, [2008]
2011
. During each calendar year thereafter, the rate of tax imposed on Very Low Income Residents under §19-1502(1)(a) and (2)(a) shall be reduced by one half of one percent (0.5%) from the rate of tax imposed upon Very Low Income Persons under such section during the previous calendar year until the rate of tax drops to one half of one percent (0.5%) or less. During the next succeeding calendar year and thereafter, no tax shall be imposed under §19-1502(1)(a) and (2)(a) on Very Low Income Residents. For example, if the rate of tax imposed upon Residents on July 1, [2008]
2011
is 2.8325%, the rate of tax imposed on Very Low Income Residents during the calendar year January 1, [2009]
2012
through December 31, [2009]
2012
shall be 2.3325%. On January 1 of every year thereafter the rate of tax imposed on Very Low Income Residents would then be as follows:
January 1, [2010]
2013
-- 1.8325%
January 1, [2011]
2014
-- 1.3325%
January 1, [2012]
2015
-- 0.8325%
January 1, [2013]
2016
-- 0.3325%
January 1, [2014]
2017
and thereafter -- no tax
The rates of tax imposed on Very Low Income Non-Residents under §19-1502(1)(b) and (2)(b) on January 1, [2009]
2012
and thereafter shall be reduced in the same manner, and by the same percentage amounts, as set forth for Very Low Income Residents under §19-1508(1) above; provided, however, that the tax rate from which said reduction is first calculated shall be the rate imposed on Non-Residents on July 1, [2008]
2011
; provided, further, that the rate of tax imposed under §19-1502(1)(b) and (2)(b) on Very Low Income Non-Residents shall never fall below 0.9127%. For example, if the rate of tax imposed upon Non-Residents on July 1, [2008]
2011
is 3.7671%, the rate of tax imposed on Very Low Income Non-Residents during the calendar year January 1, [2009]
2012
through December 31, [2009]
2012
shall be 3.2671%. On January 1 of every year thereafter the rate of tax imposed on Very Low Income Residents would then be as follows:
January 1, [2010]
2013
-- 2.7671%
January 1, [2011]
2014
-- 2.2671%
January 1, [2012]
2015
-- 1.7671%
January 1, [2013]
2016
-- 1.2671%
January 1, [2014]
2017
and thereafter -- 0.9127%
In each calendar year, Low Income Residents shall be entitled to a percentage of the rate reduction available to Very Low Income Residents from the rate imposed upon Residents on July 1 of the previous year. Such percentage shall be equal to the percentage reduction to which Low Income Residents are entitled under State Low-Income Tax Provisions. For example a Low Income Resident may be entitled to a 60% reduction under State Low-Income Tax Provisions every year starting in [2009]
2012
running through [2013]
2016
. In each of those years the rate of tax imposed upon Residents under §19-1502(1)(a) and (2)(a) may decline annually by 0.0375%. Assuming that the rate of tax imposed upon Residents on July 1, [2008]
2011
has fallen to 2.8325%, the rate of tax imposed upon Low Income Residents entitled to a 60% reduction under State Low-Income Tax Provisions starting January 1, [2009]
2012
under §19-1502(1)(a) and (2)(a) would be calculated as follows:
January 1
Resident rate
Very Low Income Resident Rate
Difference Between Resident and Very Low Income Resident Rate
Rate for Resident Qualifying for 60% Reduction
[2009] 2012
2.8325%
2.3325%
0.5000%
2.5325%
[2010] 2013
2.7950
1.8325
0.9625
2.2175
[2011] 2014
2.7575
1.3325
1.4250
1.9025
[2012] 2015
2.7200
0.8325
1.8875
1.5875
[2013] 2016
2.6825
0.3325
2.3500
1.2725
[2014] 2017
2.6450
0
2.6450
1.0580
[2015] 2018
2.6075
0
2.6075
1.0430
In each calendar year, Low Income Non-Residents shall be entitled to a percentage of the rate reduction available to Very Low Income Non-Residents from the rate imposed upon Non-Residents on July 1 of the previous year. Such percentage shall be equal to the percentage reduction to which Low Income Non-Residents are entitled under State Low-Income Tax Provisions. For example a Low Income Non-Resident may be entitled to a 60% reduction under State Low-Income Tax Provisions every year starting in [2009]
2012
running through [2013]
2016
. In each of those years it will be assumed that the rate of tax imposed upon Non-Residents under §19-1502(1)(b) and (2)(b) declines annually by the same percentage reduction by which the Total Resident Tax Rate is reduced as a result of the rate reduction provided by §19-1502(3)(b)(.3). Assuming further that the rate of tax imposed upon Non-Residents on July 1, [2008]
2011
has fallen to 3.7671%, the rate of tax imposed under §19-1502(1)(b) and (2)(b) upon Low Income Non-Residents entitled to a 60% reduction under State Low-Income Tax Provisions starting January 1, [2009]
2012
would be calculated as follows:
January 1
Non-Resident rate
Very Low Income Non-Resident Rate
Difference Between Non-Resident and Very Low Income Non-Resident Rate
Rate for Non-Resident Qualifying for 60% Reduction
[2009] 2012
3.7671%
3.2671%
0.5000%
3.4671%
[2010] 2013
3.7345
2.7671
0.9674
3.1541
[2011] 2014
3.7019
2.2671
1.4348
2.8410
[2012] 2015
3.6693
1.7671
1.9022
2.5280
[2013] 2016
3.6367
1.2671
2.3696
2.2149
[2014] 2017
3.6041
0.9127
2.6914
1.9893
[2015] 2018
3.5715
0.9127
2.6588
1.9762
Persons subject to the rates described in subsections (1), (2), (3) and (4) shall be entitled to a refund of any taxes paid in excess of the amounts due under such subsections upon application for same filed with the Department on forms supplied by the Department.
The withholding and filing requirements of this Chapter shall continue to apply to, and in connection with, persons entitled to refunds and forgiveness under this Section.
_____________________________________
Explanation:
[Brackets] indicate matter deleted.
Italics
indicate new matter added.
End