civus
BillVETOED

Bill 040767

Amending Section 19-2604 of The Philadelphia Code, relating to tax rates, credits and alternative tax computation for the business privilege tax, by reducing certain tax rates; all under certain terms and conditions.

Introduced Sep 23, 2004Committee of the WholeOfficial record: City of Philadelphia via Legistar

Introduced by

Councilmember NutterCouncilmember NutterCouncilmember O'NeillCouncilmember O'NeillCouncilmember KenneyCouncilmember KenneyCouncilmember DiCiccoCouncilmember DiCicco

From the floor

Passages in the official transcripts that cite this file number. Every quote links to its exact place in the record.

  1. “To the President and members of the Council of the City of Philadelphia. I am pleased to advise you that on June 14 and June 15, I signed all the bills that were passed by Council at its session on June 2, 2005, except 040767. And I am returning herewith as disapproved Bill No. 040767 passed by the Council on June 2, 2005. And I am transmitting for consideration of your honorable body a resolution approving the redev…”

    Chief Clerk · Stated Meeting, June 16, 2005 · Jun 16, 2005 · official transcript, this passage

  2. “It has been moved and properly seconded that the Rules of Council be suspended so as to permit first reading this day of Bill No. 050337. All in favor will indicate by saying aye. Those opposed? The ayes have it, and the bill just read will be placed on our first reading calendar. We will now have a special order of business. Council will now proceed under a special order of business to the reconsideration of Bill No…”

    President Verna · Stated Meeting, June 16, 2005 · Jun 16, 2005 · official transcript, this passage

  3. “Thank you, Madam President. Madam President, I move that Council reconsider Bill No. 040767, which was approved by City Council on June 2, 2005. (Duly seconded.)”

    Councilman Nutter · Stated Meeting, June 16, 2005 · Jun 16, 2005 · official transcript, this passage

  4. “All in favor let it be known by saying aye. Those opposed? The ayes have it, the motion carries. Council will now reconsider the vote by which Bill No. 040767 was passed. The Chief Clerk will please read the title of the bill. THE”

    President Verna · Stated Meeting, June 16, 2005 · Jun 16, 2005 · official transcript, this passage

  5. “Thank you. This bill having been read on two SPECIAL ORDER OF BUSINESS - 6/16/05 different days, was duly approved by City Council on June 2, 2005, and was returned to Council by the Mayor as disapproved at today's session of Council. The question is, shall Bill No. 040767 pass, notwithstanding the Mayor's disapproval. Please note that a vote of aye, a vote of aye, is a vote to override the Mayor's veto; and a vote o…”

    President Verna · Stated Meeting, June 16, 2005 · Jun 16, 2005 · official transcript, this passage

  6. “How about Bill No. 040767?”

    Council President Verna · Stated Meeting, June 2, 2005 · Jun 2, 2005 · official transcript, this passage

Status timeline

  1. Sep 23, 2004Referred · CITY COUNCIL
  2. Sep 23, 2004Introduced · CITY COUNCIL
  3. Nov 16, 2004Cancellation of Scheduled Public Hearing · Committee of the Whole
  4. Nov 23, 2004HEARING NOTICES SENT · Committee of the Whole
  5. Nov 23, 2004Cancellation of Scheduled Public Hearing · Committee of the Whole
  6. Feb 16, 2005HEARING NOTICES SENT · Committee of the Whole
  7. Feb 16, 2005HEARING HELD · Committee of the Whole
  8. Feb 16, 2005RECESSED · Committee of the Whole
  9. Feb 23, 2005HEARING HELD · Committee of the Whole
  10. Feb 23, 2005RECESSED · Committee of the Whole
  11. Mar 2, 2005HEARING HELD · Committee of the Whole
  12. Mar 2, 2005RECESSED · Committee of the Whole
  13. Mar 8, 2005HEARING HELD · Committee of the Whole
  14. Mar 8, 2005RECESSED · Committee of the Whole
  15. Mar 9, 2005HEARING HELD · Committee of the Whole
  16. Mar 9, 2005RECESSED · Committee of the Whole
  17. Mar 15, 2005HEARING HELD · Committee of the Whole
  18. Mar 15, 2005RECESSED · Committee of the Whole
  19. Mar 16, 2005HEARING HELD · Committee of the Whole
  20. Mar 22, 2005HEARING HELD · Committee of the Whole
  21. Mar 22, 2005RECESSED · Committee of the Whole
  22. Mar 23, 2005HEARING HELD · Committee of the Whole
  23. Mar 23, 2005RECESSED · Committee of the Whole
  24. Mar 29, 2005HEARING HELD · Committee of the Whole
  25. Mar 29, 2005RECESSED · Committee of the Whole
  26. Mar 30, 2005HEARING HELD · Committee of the Whole
  27. Mar 30, 2005RECESSED · Committee of the Whole
  28. Apr 5, 2005HEARING HELD · Committee of the Whole
  29. Apr 5, 2005RECESSED · Committee of the Whole
  30. Apr 6, 2005HEARING HELD · Committee of the Whole
  31. Apr 6, 2005RECESSED · Committee of the Whole
  32. Apr 12, 2005HEARING HELD · Committee of the Whole
  33. Apr 12, 2005RECESSED · Committee of the Whole
  34. Apr 13, 2005HEARING HELD · Committee of the Whole
  35. Apr 13, 2005RECESSED · Committee of the Whole
  36. Apr 21, 2005HEARING HELD · Committee of the Whole
  37. Apr 21, 2005RECESSED · Committee of the Whole
  38. Apr 28, 2005HEARING HELD · Committee of the Whole
  39. Apr 28, 2005RECESSED · Committee of the Whole
  40. May 5, 2005HEARING HELD · Committee of the Whole
  41. May 5, 2005RECESSED · Committee of the Whole
  42. May 12, 2005HEARING HELD · Committee of the Whole
  43. May 12, 2005RECESSED · Committee of the Whole
  44. May 19, 2005HEARING NOTICES SENT · Committee of the Whole
  45. May 19, 2005RECESSED · Committee of the Whole
  46. May 19, 2005HEARING HELD · Committee of the Whole
  47. May 19, 2005AMENDED · Committee of the Whole
  48. May 25, 2005HEARING HELD · Committee of the Whole
  49. May 25, 2005REPORTED FAVORABLY, RULE SUSPENSION REQUESTED · Committee of the Whole
  50. May 26, 2005ORDERED PLACED ON THIS DAY`S FIRST READING CALENDAR · CITY COUNCIL
  51. May 26, 2005SUSPEND THE RULES OF THE COUNCIL · CITY COUNCIL
  52. May 26, 2005ORDERED PLACED ON NEXT WEEK`S SECOND READING CALENDAR · CITY COUNCIL
  53. Jun 2, 2005READ · CITY COUNCIL
  54. Jun 2, 2005PASSED · CITY COUNCIL
  55. Jun 16, 2005VETOED · MAYOR
  56. Jun 16, 2005RECONSIDERED · CITY COUNCIL
  57. Jun 16, 2005READ · CITY COUNCIL
  58. Jun 16, 2005FAILED · CITY COUNCIL

Official documents

Documents open on the City of Philadelphia’s legislative site.

Full text

Read the full text as published

..Title Amending Section 19-2604 of The Philadelphia Code, relating to tax rates, credits and alternative tax computation for the business privilege tax, by reducing certain tax rates; all under certain terms and conditions. ..Body THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS: SECTION 1. Section 19-2604 of The Philadelphia Code is hereby amended to read as follows: §19-2604. Tax Rates, Credits, and Alternative Tax Computation. (1) Every business shall pay an annual tax on each dollar of annual receipts at the millage rate shown in the second column of the following chart ("Receipts rate in mills"), and an annual tax on net income at the percentage rate shown in the third column ("Net income rate %"), except that a regulated industry shall only pay an annual tax on each dollar of annual receipts at the millage rate shown in the second column, and in an amount not to exceed the percentage of net income shown in the third column, and except as rates are otherwise provided under § 19-2604(5): Tax year (s) Receipts rate in mills Net income rate % * * * 2002 2.40 mills 6.50% 2003 2.30 mills 6.50% 2004 2.10 mills 6.50% 2005 1.90 mills 6.50% 2006 1.75 mills [6.50%] 6.48% 2007 1.625 mills [6.50%] 6.46% 2008 [and thereafter] 1.50 mills [6.50%] 6.44% 2009 1.30 mills 6.42% 2010 1.137 mills 6.40% 2011 0.974 mills 5.50% 2012 0.811 mills 4.60% 2013 0.648 mills 3.70% 2014 0.485 mills 2.80% 2015 0.322 mills 1.90% 2016 0.159 mills 1.00% 2017 and thereafter 0.0 mills 0.0% (2) The annual tax to be paid by any person registered under the Act of December 5, 1972 (P.L. 1280, No. 284), known as the Pennsylvania Securities Act of 1972, shall in no event be less than the sum of: (a) the millage rate shown in the second column of the following chart ("Rate 1 in mills"), multiplied by the person's taxable receipts without regard to the exclusion from receipts as defined in paragraph (8) of the definition of "receipts" in §19-2601; plus (b) the lesser of (i) the millage rate shown in the third column ("Rate 2 in mills"), multiplied by the person's taxable receipts without regard to the exclusion from receipts as defined in paragraph (8) of the definition of "receipts" in §19-2601, or (ii) the percentage shown in the fourth column ("% of net income"), multiplied by the person's net income without regard to the deduction as defined in subsection (a)(2)(v) of the definition of "net income" in §19-2601: Tax year(s) Rate 1 in mills Rate 2 in mills % of net income 1985 4.60 mills 2.30 mills 2.30% 1986 through 1988 inclusive 5.90 mills 2.90 mills 2.90% 1989 through 1997 inclusive 5.711 mills 4.302 mills 4.302% 1998 and thereafter 4.60 mills 2.30 mills 2.30% (3) Alternative Receipts Tax Computation. A manufacturer (other than a regulated industry) shall at its option be permitted to compute the gross receipts tax on manufacturing sales at the millage rate shown in the following chart under the column entitled "Manufacturers," multiplied by receipts from manufacturing sales after deducting the applicable cost of goods sold as determined under the rules provided by the Federal Internal Revenue Code. A wholesaler (other than a regulated industry) shall at its option be permitted to compute the gross receipts tax on wholesale sales at the millage rate shown under the column entitled "Wholesalers," multiplied by receipts from wholesale sales after deducting the applicable cost of goods and the applicable cost of labor. A retailer (other than a regulated industry) shall at its option be permitted to compute the gross receipts tax on retail sales at the rate shown under the column entitled "Retailers," multiplied by receipts from retail sales after deducting the applicable cost of goods and the applicable cost of labor: Tax year (s) Manufacturer (%) Wholesalers (%) Retailers (%) 1985 4.357 6.10 2.033 1986 through 1988 inclusive 5.573 7.80 2.60 1989 through 1991 inclusive 5.395 7.55 2.10 1992 through 1995 inclusive 5.395 7.55 1.80 1996 4.98 6.97 1.662 1997 4.90 6.85 1.63 1998 4.77 6.68 1.59 1999 4.60 6.45 1.53 2000 4.39 6.16 1.46 2001 4.18 5.87 1.39 2002 3.97 5.58 1.32 2003 3.80 5.35 1.27 2004 3.47 4.88 1.16 2005 3.14 4.42 1.05 2006 2.89 4.07 0.97 2007 2.68 3.78 0.90 2008 [and thereafter] 2.48 3.49 0.83 2009 2.15 3.02 0.72 2010 1.88 2.64 0.63 2011 1.61 2.26 0.54 2012 1.34 1.88 0.45 2013 1.07 1.50 0.36 2014 0.8 1.12 0.27 2015 0.53 0.74 0.18 2016 0.26 0.37 0.09 2017 and thereafter 0.00 0.00 0.00 * * * (5) [Reserved.] The rates shown in §19-2604(1), (2) and (3) for Tax Years 2011 and thereafter shall not take effect unless Council by ordinance so provides, and until Council so provides, the tax rates for Tax Years 2011 and thereafter shall be the same as the tax rates set forth for Tax Year 2010. * * * SECTION 2. This Ordinance shall take effect with tax years beginning on or after January 1, 2006. _________________________________ Explanation: [Brackets] indicate matter deleted. Italics indicate new matter added. ..End 2