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Back to search resultsBill 251026

Amending Chapter 19-2600 of The Philadelphia Code ("Business Income and Receipts Taxes") to exempt sole proprietorships and single-member limited liability companies from some or all of the Business Income and Receipts Tax, under certain terms and conditions.

AI summary

This bill, which is currently in committee, would change Philadelphia’s Business Income and Receipts Tax rules. Beginning with tax year 2026, it would exclude businesses operated as sole proprietorships and single-member limited liability companies owned by an individual from the tax, under the bill’s terms; the ordinance would take effect July 1, 2026.

File details

Status
IN COMMITTEE
Introduced
November 20, 2025
View official record ↗

Full text

THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:

SECTION 1. Title 19 of The Philadelphia Code is hereby amended to read as follows:

TITLE 19. FINANCE, TAXES AND COLLECTIONS

CHAPTER 19-2600. BUSINESS INCOME AND RECEIPTS TAXES

§ 19-2601. Definitions.

In addition to the definitions provided in the Act of May 30, 1984, P.L. 345, No. 69, known as the First Class City Business Tax Reform Act, and Chapter 19-500 of this Title, the following definitions shall apply:

Business. Carrying on or exercising for gain or profit within a city of the first class, any trade, business, including financial business as hereinafter defined, profession, vocation or commercial activity, including the partial or complete liquidation or sale of business assets, or making sales to persons within such city of the first class. “Business” shall not include the following:

(8) For tax year 2026 and thereafter, any business conducted by an entity owned and operated as a sole proprietorship by an individual or by a single-member limited liability company whose sole member is an individual.

Individual. A natural person.

SECTION 2. This Ordinance shall be effective July 1, 2026.

Explanation: [Brackets] indicate matter deleted.

Italics

indicate new matter added.

End

File history

Sometimes city council's record keeping is not complete. This timeline reflects the information on the council's legistar website.
  1. Council actionCITY COUNCIL

    Introduced and Referred