By Mike DeNardo

PHILADELPHIA (CBS) – The Philadelphia School District is taking a stand: no more contracts with companies that don’t pay their city taxes.

The new School Reform Commission policy means that vendors looking for school contracts have to have their use and occupancy taxes and other city taxes paid up.

The district’s chief financial officer Matthew Stanski says a significant number of firms wanting school business were not paid up.

“We did a pilot with our capital budget, and we found maybe 8 to 10 percent of people who were bidding weren’t (paid up). But then, once we informed them of this policy coming, they were quick to get up to speed.”

Stanski says it’s part of a full-court press against deadbeats.

“The mayor had come out in, I think, January or February with a new delinquent tax collection strategy. And we just want to do our part to ensure that the businesses we are doing business with are up-to-date on their taxes.”

Much of that city tax revenue, after all, would wind up back at the school district. Would-be school vendors would have to get a certificate of tax compliance from the city to submit with their school district bid proposals.