CollectionsGross Receipts Tax
IN THE NEWS

Gross Receipts Tax

FEATURED ARTICLES
NEWS
December 18, 2013
ONE OF THE longest stories ever told is the story of tax reform in this city. Few disagree about the need to overhaul antiquated tax structures that punish growth, but finding consensus on how to change is more complicated. Changing the property-tax structure, for example, which finally resulted in the Actual Value Initiative, took more than a decade. Business-tax reform is no exception, but it looks as if there may be progress there - if a bill co-sponsored by Council members Bill Green and Maria Quinones-Sanchez advances when Council returns next year.
NEWS
February 26, 1989 | By Tom Linafelt, Special to The Inquirer
For many of the businesses in West Chester, justice was served Tuesday. That was the consensus of West Chester business people interviewed last week after Judge Charles B. Smith voided the borough's business tax, ruling that the state Tax Reform Act of 1988 established a moratorium on taxes on gross receipts beginning the day before the Borough Council passed the levy. Borough businesses may still have to pay the new tax, however, because the council has appealed Smith's ruling.
NEWS
January 22, 1989 | By Shelly Phillips, Special to The Inquirer
One court hearing was not enough to decide whether West Chester's gross- receipts tax will be upheld. A second hearing will be held Tuesday at 9:30 a.m. At the hearing Thursday morning before Judge Charles B. Smith, borough attorneys argued that the tax was legal and properly enacted, and attorneys for borough merchants and professionals explained why they thought the tax should be struck down. The taxes, popularly known as gross-receipts taxes, are composed of two parts: a mercantile tax, that levies $1 per $1,000 of gross receipts on wholesalers and $1.50 per $1,000 of gross receipts on retailers and restaurants; and amendments to the business privilege tax, which levy a tax of $2 per $1,000 of gross receipts on all those not covered by the mercantile tax, including professionals.
NEWS
January 26, 2002 | By Nathan Gorenstein INQUIRER STAFF WRITER
Deeper cuts in Philadelphia's much-maligned tax burden on local businesses are expected to be unveiled by Mayor Street next week. Administration officials declined to offer any specifics, but other sources said the city plans to speed up previously scheduled reductions in the gross-receipts tax. That tax requires all businesses - even businesses that lose money - to pay a portion of their total revenue to the city. The tax generates about $120 million a year, or 4 percent of the city's $2.9 billion budget.
NEWS
May 18, 1989 | By Tom Linafelt, Special to The Inquirer
By shooting down Gov. Casey's proposed tax reform act, voters appear to have strengthened West Chester's argument for its controversial gross receipts tax. In Tuesday's primary, voters overwhelmingly rejected Casey's plan for broad changes in the taxing authority of local governments, allowing them to tax residential property at a lower rate than commercial property. Although the borough would have been able to raise more money by reassessing property and restructuring its tax base, the rejection of the act seems to bolster its position against a lawsuit that would nullify a tax on the gross receipts of borough businesses.
NEWS
July 2, 1989 | By Tom Linafelt, Special to The Inquirer
West Chester politicians are choosing allies and making enemies after the Borough Council split Wednesday over its legal challenge to a tax on businesses. At least two Democratic council members broke rank with the embattled council by supporting a proposal by Republican mayoral and council candidates to drop the borough's appeal of the gross-receipts tax. Common Pleas Court Judge Charles Smith ruled Feb. 21 in a suit brought by merchants that state tax reform made the local tax illegal after Nov. 30. The Borough Council passed the tax Dec. 1. The borough has appealed Smith's ruling to Commonwealth Court.
NEWS
May 10, 2004
CITY COUNCIL is scheduled to hold hearings today on the budget and a raft of sweeping tax reform bills. How ready is Council? The Daily News asked all 17 members the following question: 1Have you read the 500-page Tax Reform Commission report, which explains the need for each tax reform bill now before City Council? (The report was released in November.) 2Will you support all or some of the 13 tax reform bills put forth by the Tax Reform Commission? 1 No. 2Probably no to land value tax. Probably yes to the gross receipts tax cut. Undecided on others.
NEWS
May 10, 2004
CITY COUNCIL is scheduled to hold hearings today on the budget and a raft of sweeping tax reform bills. How ready is Council? The Daily News asked all 17 members the following question: 1Have you read the 500-page Tax Reform Commission report, which explains the need for each tax reform bill now before City Council? (The report was released in November.) 2Will you support all or some of the 13 tax reform bills put forth by the Tax Reform Commission? 1 No. 2 Yes to gradual elimination of the gross receipts tax. No to wage tax reductions.
NEWS
February 3, 2002 | By Nathan Gorenstein INQUIRER STAFF WRITER
If you work in Philadelphia, every year since 1995 you've been keeping a few more dollars in your pocket because of reductions in the wage tax. It hasn't been much - maybe an extra $20 or $30 a year, less than a buck a week - but it added up. If you make $50,000 a year, you are now paying $230 less in wage taxes than you did in 1995. But soon there will be no more extra cash for a pack of cookies or a Coke after lunch. The cost of schools, stadiums, blight removal, and the lingering effects of a recession prompted Mayor Street to announce last week a proposal to halt the incremental wage-tax cuts as of July 1, 2003.
1 | 2 | 3 | 4 | 5 | Next »
ARTICLES BY DATE
NEWS
December 18, 2013
ONE OF THE longest stories ever told is the story of tax reform in this city. Few disagree about the need to overhaul antiquated tax structures that punish growth, but finding consensus on how to change is more complicated. Changing the property-tax structure, for example, which finally resulted in the Actual Value Initiative, took more than a decade. Business-tax reform is no exception, but it looks as if there may be progress there - if a bill co-sponsored by Council members Bill Green and Maria Quinones-Sanchez advances when Council returns next year.
NEWS
December 15, 2010 | By Jeff Shields, Inquirer Staff Writer
A bill to turn the city's business-tax structure on its head is dead for now, as its Council sponsors agreed Tuesday to instead work with the Nutter administration in the hope of preserving at least some of their ideas. A critical Council committee hearing scheduled for Wednesday has been postponed indefinitely, and Mayor Nutter has scheduled an afternoon news conference instead. In a letter to City Council members Bill Green and Maria Quiñones Sánchez Tuesday, Nutter's chief of staff, Clay Armbrister, outlined the areas of agreement that the two camps would collaborate on. Those include finding a way to exempt the first $100,000 of a company's sales from taxes and close loopholes that allow national corporations and out-of-town companies to avoid paying city business privilege taxes even as they do business in Philadelphia.
NEWS
December 15, 2010
IN RECENT WEEKS, there has been robust public discussion regarding the proposed legislation by Councilwoman Maria Quinones-Sanchez and Councilman Bill Green that would recalibrate the Business Privilege Tax (BPT). We applaud them, and City Council, for bringing focus and discussion to this matter. The fact that Council's Committee of the Whole spent almost two days of public hearings on this matter is an excellent first step toward reforming the city's tax policy, to spur economic recovery.
NEWS
December 2, 2010 | By CATHERINE LUCEY, luceyc@phillynews.com 215-854-4172
A committee vote on the radical business-tax proposal put forth by two freshman City Council members has been delayed until Dec. 15. Marathon hearings were held this week on legislation from members Bill Green and Maria Quinones-Sanchez that would shift the business-tax burden from the net-income tax, which taxes profits, to the gross-receipts tax, which taxes sales. The Council members argue that the legislation - which would exempt a business' first $100,000 in sales - would benefit Philadelphia-based companies and small businesses.
NEWS
December 1, 2010 | By Jeff Shields, Inquirer Staff Writer
A dramatic shift in business-tax policy could either wreak havoc with the Philadelphia economy or eliminate historical inequities and make the city's economy blossom, witnesses said Tuesday at an epic City Council hearing. A bill by Council members Maria Quiñones Sánchez and Bill Green to flip the city's business-tax structure, and its current tax-overhaul strategy, got a lengthy airing over seven hours of testimony from two dozen witnesses. The hearing will continue Wednesday. After Tuesday's session, Green and Sánchez said they had proved their most important point - that the change would benefit Philadelphia-based businesses at the expense of out-of-town companies.
NEWS
November 23, 2010 | By CATHERINE LUCEY, luceyc@phillynews.com 215-854-4172
A battle is brewing over the best way to tax businesses in Philadelphia. Next week, City Council will hold hearings on a bill authored by members Bill Green and Maria Quinones-Sanchez that would shift the business-tax burden from the net-income tax, which taxes profits, to the gross-receipts tax, which taxes sales. The Council members, who have been working on the legislation for more than two years, argue that this method would spread the tax burden more fairly and remove the disincentive to locate a business in Philadelphia.
BUSINESS
November 21, 2010 | By Joseph N. DiStefano, Inquirer Staff Writer
There are winners and losers in a City Council proposal to change Philadelphia's onerous business taxes. The losers are organizing. The bill, introduced by City Council members Bill Green and Maria Quiñones Sánchez this fall after more than a year's research, would cut the Business Privilege Tax levy on profits and replace it with an increase in the "gross-receipts" tax, which businesses pay on their sales - whether they make money or...
NEWS
October 1, 2010 | By Miriam Hill, Inquirer Staff Writer
A major effort to overhaul the city tax code took a small step forward Thursday as City Council members Bill Green and Maria Quiñones Sánchez introduced a bill to restructure business taxes. Their proposal is expected to encounter vigorous debate, as Philadelphia's business community has yet to weigh in on whether it supports the bill. Green and Quiñones Sánchez say their bill would encourage more businesses to locate in Philadelphia. Their legislation would phase out the net-income portion of the business-privilege tax over five years from its current level of 6.45 percent.
NEWS
September 30, 2010 | By CATHERINE LUCEY, luceyc@phillynews.com 215-854-4172
WHEN JOE WEISS, chairman of the software-design firm Electronic Ink, heard about business-tax legislation cooked up by two freshman City Council members, he was shocked. "When I heard the proposal, I was incredulous," said Weiss, whose Center City firm employs 80 people. And for good reason. Council members Bill Green and Maria Quinones-Sanchez have been working on a plan that would reverse a 14-year effort to reduce a tax on businesses' gross receipts. But after a conversation with Green, Weiss has come around, at least part of the way. "I talked to the councilman and I listened to his explanation, and now I have an open mind to listen," said Weiss.
BUSINESS
August 15, 2010 | By Joseph N. DiStefano, Inquirer Staff Writer
How should the City of Philadelphia tax companies within its borders? Right now, it charges two "business privilege" taxes: It demands $6.45 of every $100 of a company's profits, the so-called net-income tax. It also takes 14 cents on every $100 of total sales, the gross-receipts tax. These business taxes are slapped on top of city property taxes and other local levies. For a generation, Philadelphia business taxpayers, their lawyers, and the Greater Philadelphia Chamber of Commerce have targeted the gross-receipts tax as unfair and discouraging to employers, says city Finance Director Rob Dubow.
1 | 2 | 3 | 4 | 5 | Next »
|
|
|
|
|