Amending Chapter 19-2600 of The Philadelphia Code, entitled 'Business Privilege Taxes,' by eliminating for new businesses the requirement to make an estimated payment when filing a return for their first tax year of business operations and allowing the estimated payment in succeeding years to be made in quarterly installments, all under certain terms and conditions.

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.

§19-2610.

Estimated Tax Payments. The Department shall promulgate regulations to provide for estimated tax payments to be paid concurrently, with the filing of any return, and for credits to be granted on any overpayment of estimated tax [payment.]

payment; provided that, in the first year that a business is required to file a return, no estimated tax payments shall be required, and in the second year that a business is required to file a return, the Department shall allow the business the option to make estimated tax payments in four installments, on a schedule and in such manner as determined by regulation.

Estimated business [privilege]

income and receipts

tax payments for any given Tax Year shall be calculated without taking into account any reductions in tax rates or changes to apportionment formulas required by Bill No. 110554 for such Tax Year. The Department shall also promulgate regulations to provide for transition rules. Failure to make an estimated payment pursuant to these regulations shall subject a taxpayer to interest, penalties and costs as provided in Section 19-509.

SECTION 2.

This Ordinance shall take effect July 1, 2019

.

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Explanation:

Italics

indicate new matter added.

[Brackets] indicate matter deleted.

End