This week, Philadelphia City Council is expected to vote on and pass two separate pieces of legislation that will allow businesses to better compete and create jobs. For years, the Greater Philadelphia Chamber of Commerce has worked hard to push for business privilege tax (BPT) reform. We applaud the respective sponsors of the legislation – Councilmembers Kenney, Green and Sanchez – and emphatically support passage of both bills.
Bill 110548, known as “Jumpstart Philly 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. Bill 110554 has two main components. First, 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. Second, 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. It is projected that this legislation will provide over $50 million per year of tax relief targeted toward Philadelphia-based and small businesses, and does not create “winners and losers”.
We expect both measures to pass Council comfortably and receive the Mayor’s signature of approval. We hope you will click here to thank your representatives in Council for advancing this legislation and urge their favorable vote. In addition, if you’d like to personally thank Council through “open mic” at Council session this Thursday at 10am, please email Denise Earley with your contact information at dearley@greaterphilachamber.com. She will sign you up and provide more details to you.
