Amending Section 19-2604 of The Philadelphia Code, relating to tax rates, credits and alternative tax computation for the business privilege tax, by reducing certain tax rates, under certain terms and conditions.

THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:

SECTION 1. Section 19-2604 of The Philadelphia Code is amended to read as follows:

§19-2604. Tax Rates, Credits, and Alternative Tax Computation.

(1) 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 %

* * *

* * *

* * *

2005

1.90 mills

6.50%

2006

1.75 mills

[6.50]

6.48

%

2007

1.625 mills

[6.50]

6.46

%

2008 [and thereafter]

1.50 mills

[6.50]

6.44

%

2009

1.5 mills

6.42%

2010 and thereafter

1.5 mills

6.40%

* * *

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Explanation:

[Brackets] indicate matter deleted.

Italics

indicate new matter added.

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