PASSED

This lapsed bill would have changed Philadelphia’s Business Privilege Tax rules for unincorporated businesses. It proposed allowing these businesses to deduct certain payments—such as guaranteed payments, commissions, bonuses, fringe benefits, and some retirement payments—to proprietors or partners who materially participated in the business, with the deduction phased in from 2005 through 2015. The change would have affected the businesses and owners or partners whose payments met the proposal’s requirements.

Amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," by amending the definition of "Net Income" to determine the net income of unincorporated businesses by allowing deductions of payments to certain proprietors or partners.