Business Tax Overhaul On City Council’s Agenda This Week
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PHILADELPHIA (CBS) – City Council today tries yet again to tackle the thorny issue of Philadelphia’s business taxes, with a hearing on two proposals aimed at helping out firms based in the city and bringing new ones in (see related story).
Two plans are before Council’s Finance Committee. One, sponsored by Bill Green and Maria Quinones Sanchez, would give businesses an exemption on the first $100,000 of receipts. That would cover both the gross receipts and net income portions of the tax.
Green says the changes would greatly help small businesses. “We can’t afford not to reduce our business tax burden. We are one of only four major cities in the country that has a net income tax at all.”
Under the same plan, manufacturers based in the city would only pay taxes on goods that they sell within the city, which is how firms based outside the city are currently taxed. Green says that would level the playing field.
“That means that our manufacturers are no longer at a competitive disadvantage when competing across the country and worldwide.”
A similar effort last year failed to move out of committee in the face of opposition from the Nutter Administration. Also on tap: Councilman Jim Kenney’s proposal to give a two-year tax rebate to all new businesses located in the city.
Reported by City Hall Bureau Chief Mike Dunn, KYW Newsradio 1060