Earlier today, Philadelphia City Council passed two critical pieces of legislation that will make our city a more competitive place for businesses to locate and grow. For years, your Chamber has fought for legislation that would level the economic playing field for businesses in our city. We always believed that the onerous Business Privilege Tax (BPT) creates an unfair burden on employers and job creators. Alleviating the burden of the BPT has long been identified as the highest legislative priority of our Chamber.
We are thrilled to report that City Council passed favorably Bills 110548-A and 110554. The first piece of legislation is designed to entice businesses to locate here by providing all new businesses with a two-year BPT exemption and a waiver on all business-related license fees for the first two years of operation. It also eliminates the Business Privilege License Fee for all businesses beginning January 1, 2014. The second piece of legislation provides significant tax relief for Philadelphia-based and small businesses. It would phase in an exemption on the first $100,000 of gross receipts and a proportionate share of the net income for all businesses. Also, it would phase in the “single sales factor apportionment”, meaning that Philadelphia businesses would pay the high rate (6.45%) net income only on income derived from sales in Philadelphia. The Mayor is expected to sign both pieces of legislation.
We applaud Council for passing this legislation and especially thank the bills’ respective sponsors: Councilman Jim Kenny and Councilmembers Bill Green and Maria Quiñones-Sánchez. Today’s vote sends the right message to current and potential employers that Philadelphia is open for business.