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BillENACTED

Bill 250199

Amending Chapter 19-2600 of The Philadelphia Code, entitled “Business Income and Receipts Taxes,” to revise tax rates and end certain exclusions from the tax on receipts, all under certain terms and conditions.

Introduced Mar 13, 2025Committee of the WholeOfficial record: City of Philadelphia via Legistar

Introduced by

Council President JohnsonCouncilmember Gilmore Richardson

How members voted

  1. Vote on Jun 12, 2025 · CITY COUNCIL

    Aye (15)

    Councilmember BassCouncilmember DriscollCouncilmember GauthierCouncilmember Gilmore RichardsonCouncilmember HarrityCouncilmember JonesCouncilmember LozadaCouncilmember O'NeillCouncilmember PhillipsCouncilmember SquillaCouncilmember ThomasCouncilmember AhmadCouncilmember LandauCouncilmember YoungCouncil President Johnson

    Nay (1)

    Councilmember Brooks

From the floor

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

  1. “Hi. My name is Daniel Eisenberg. I serve as the Pastor of St. John's Lutheran Church in Mayfair in District No. 6. I also serve as the Dean of the Northeast Northwest Conference of Lutheran Churches in the Southeastern Pennsylvania Senate of the Evangelical Lutheran Church in America. I do all that stuff. And I am a volunteer organizer with POWER Interfaith. And I stand in opposition to Bill 250199, in particular the…”

    Mr. Eisenberg · Stated Meeting, June 12, 2025 · Jun 12, 2025 · official transcript, this passage

  2. “Hi. Tess Fieler, District 1. I'm testifying opposed to Bill 250199. I'm representing POWER Interfaith, Arch Street United Methodist Church, our nonprofit the Center Philadelphia, which is a daytime drop-in center for our unhoused and unsheltered neighbors as well as the RCO Center City organized for responsible development. I've spoken to dozens of people in these organizations and we are all deeply concerned that if…”

    Ms. Fieler · Stated Meeting, June 12, 2025 · Jun 12, 2025 · official transcript, this passage

  3. “My name is Michael Kane. I'm the Pastor of Old First Reformed United Church of Christ at 4th and Race and the Co-chair of POWER Interfaith. We're here today -- thank you. We're here today to talk against Bill 250199, getting rid of the business tax. I spent the last three months talking to about 35 of the homeless and food insecure people we serve each week and they agree with me that if individuals pay tax in Philly…”

    Mr. Kane · Stated Meeting, June 12, 2025 · Jun 12, 2025 · official transcript, this passage

  4. “Councilmember Bass and Councilmembers, thank you for this opportunity to speak. I speak against Bill 250199. My name is Robin Hynicka. I'm the Pastor of the Arch Street United Methodist Church in the 1st District where Councilman Squilla is our District person, but 32-year resident of the great Council District, 7th Council District where Councilmember Lozada is our Councilperson. I live on the 4200 block of Paul Str…”

    Pastor Hynicka · Stated Meeting, June 12, 2025 · Jun 12, 2025 · official transcript, this passage

  5. “Aye. The ayes are 15. The nays are 1. A majority of all members having voted in the affirmative the bill passes. Will the Chief Clerk please read the title of Bill No. 250199.”

    Council President Johnson · Stated Meeting, June 12, 2025 · Jun 12, 2025 · official transcript, this passage

  6. “The Whole to which were referred the following bills and resolutions: Bill No. 250195, an ordinance amending Chapter 19-1500 of The Philadelphia Code, entitled "Wage and Net Profits Tax" by revising certain taxes, under certain terms and conditions. Bill No. 250199, an ordinance amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Income and Receipts Taxes" to revise tax rates and end certain exclusi…”

    Chief Clerk · Stated Meeting, June 5, 2025 · Jun 5, 2025 · official transcript, this passage

Status timeline

  1. Mar 13, 2025Introduced and Referred · CITY COUNCIL
  2. Mar 25, 2025HEARING NOTICES SENT · Committee of the Whole
  3. Mar 25, 2025POSTPONED · Committee of the Whole
  4. Mar 25, 2025HEARING HELD · Committee of the Whole
  5. Mar 26, 2025HEARING HELD · Committee of the Whole
  6. Mar 26, 2025RECESSED · Committee of the Whole
  7. Apr 1, 2025HEARING NOTICES SENT · Committee of the Whole
  8. Apr 1, 2025HEARING HELD · Committee of the Whole
  9. Apr 1, 2025RECESSED · Committee of the Whole
  10. Apr 2, 2025HEARING NOTICES SENT · Committee of the Whole
  11. Apr 2, 2025HEARING HELD · Committee of the Whole
  12. Apr 2, 2025RECESSED · Committee of the Whole
  13. Apr 8, 2025HEARING HELD · Committee of the Whole
  14. Apr 8, 2025RECESSED · Committee of the Whole
  15. Apr 9, 2025HEARING HELD · Committee of the Whole
  16. Apr 9, 2025RECESSED · Committee of the Whole
  17. Apr 15, 2025HEARING HELD · Committee of the Whole
  18. Apr 15, 2025RECESSED · Committee of the Whole
  19. Apr 16, 2025HEARING NOTICES SENT · Committee of the Whole
  20. Apr 16, 2025HEARING HELD · Committee of the Whole
  21. Apr 16, 2025RECESSED · Committee of the Whole
  22. Apr 23, 2025HEARING NOTICES SENT · Committee of the Whole
  23. Apr 23, 2025HEARING HELD · Committee of the Whole
  24. Apr 23, 2025RECESSED · Committee of the Whole
  25. Apr 29, 2025HEARING NOTICES SENT · Committee of the Whole
  26. Apr 29, 2025HEARING HELD · Committee of the Whole
  27. Apr 29, 2025RECESSED · Committee of the Whole
  28. Apr 30, 2025HEARING NOTICES SENT · Committee of the Whole
  29. Apr 30, 2025HEARING HELD · Committee of the Whole
  30. Apr 30, 2025RECESSED · Committee of the Whole
  31. May 2, 2025HEARING NOTICES SENT · Committee of the Whole
  32. May 2, 2025HEARING HELD · Committee of the Whole
  33. May 2, 2025RECESSED · Committee of the Whole
  34. May 5, 2025HEARING NOTICES SENT · Committee of the Whole
  35. May 5, 2025HEARING HELD · Committee of the Whole
  36. May 5, 2025RECESSED · Committee of the Whole
  37. May 6, 2025HEARING NOTICES SENT · Committee of the Whole
  38. May 6, 2025HEARING HELD · Committee of the Whole
  39. May 6, 2025RECESSED · Committee of the Whole
  40. May 7, 2025HEARING NOTICES SENT · Committee of the Whole
  41. May 7, 2025HEARING HELD · Committee of the Whole
  42. May 7, 2025RECESSED · Committee of the Whole
  43. May 13, 2025HEARING NOTICES SENT · Committee of the Whole
  44. May 13, 2025HEARING HELD · Committee of the Whole
  45. May 13, 2025RECESSED · Committee of the Whole
  46. May 14, 2025HEARING HELD · Committee of the Whole
  47. May 14, 2025RECESSED · Committee of the Whole
  48. Jun 4, 2025HEARING NOTICES SENT · Committee of the Whole
  49. Jun 4, 2025HEARING HELD · Committee of the Whole
  50. Jun 4, 2025RECESSED · Committee of the Whole
  51. Jun 5, 2025HEARING NOTICES SENT · Committee of the Whole
  52. Jun 5, 2025HEARING HELD · Committee of the Whole
  53. Jun 5, 2025REPORTED FAVORABLY, RULE SUSPENSION REQUESTED · Committee of the Whole
  54. Jun 5, 2025SUSPEND THE RULES OF THE COUNCIL · CITY COUNCIL
  55. Jun 5, 2025ORDERED PLACED ON THIS DAY`S FIRST READING CALENDAR · CITY COUNCIL
  56. Jun 5, 2025READ AND ORDERED PLACED ON NEXT WEEK'S SECOND READING CALENDAR · CITY COUNCIL
  57. Jun 12, 2025READ AND PASSED · CITY COUNCIL
  58. Jun 13, 2025SIGNED · MAYOR

Official documents

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

Full text

Read the full text as published

..Title Amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Income and Receipts Taxes," to revise tax rates and end certain exclusions from the tax on receipts, all under certain terms and conditions. ..Body THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS: SECTION 1. Title 19 of The Philadelphia Code is hereby amended to read as follows: TITLE 19. FINANCE, TAXES AND COLLECTIONS * * * CHAPTER 19-2600. BUSINESS INCOME AND RECEIPTS TAXES * * * � 19-2601. Definitions. In addition to the definitions provided in the Act of May 30, 1984, P.L. 345, No. 69, known as the First Class City Business Tax Reform Act, and Chapter 19-500 of this Title, the following definitions shall apply: * * * Receipts. Cash, credits, property of any kind or nature, received from conducting any business or by reason of any sale made, including resales of goods, wares or merchandise taken by a dealer as a trade-in or as part payment for other goods, wares or merchandise or services rendered or commercial or business transactions, without deduction therefrom on account of the cost of property sold, materials used, labor, service or other cost, interest or discount paid or any other expense. For the purpose of determining receipts from the business of insurance, such receipts shall mean those from premiums received from risks within the city of the first class, whether by mutual or stock companies, domestic or foreign, without any deductions therefrom for any cost or expenses whatsoever; except, premiums shall not include return premiums, dividends paid or credited to policyholders, if such dividends are in the nature of an adjustment of the premiums charged, and premiums received for reinsurance. Receipts from a person engaged in the business of insurance shall also include receipts from rental real estate situated in cities of the first class, but shall not include interest, dividend and capital gain receipts. Nothing in this definition shall preclude the taxation of other nonpremium business receipts of persons engaged in the business of insurance. For purposes of determining the source of receipts of a Software Company the Market Based Sourcing Rule shall apply in accordance with Section 408(8) of the Department of Revenue Business Privilege Tax Regulations so that the source of receipts from the sale of products and services shall be deemed to be the location where the recipient receives the benefit of the products and services. Receipts of any business shall exclude: * * * (14) For tax year 2014, the first fifty thousand dollars ($50,000) in taxable receipts received by any person or business subject to the business privilege tax under this Chapter; for tax year 2015, the first seventy-five thousand dollars ($75,000) in taxable receipts received by any person or business subject to the business privilege tax under this Chapter; for tax year 2016 [and thereafter] through tax year 2024, the first one hundred thousand dollars ($100,000) in taxable receipts received by any person or business subject to the business privilege tax under this Chapter. * * * � 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: Tax year(s) Receipts rate Net income rate * * * 2022 1.415 mills 5.99% 2023 [and thereafter] 1.415 mills 5.81% 2024 1.415 mills 5.81% 2025 1.410 mills 5.71% 2026 1.395 mills 5.65 % 2027 1.390 mills 5.60% 2028 1.385 mills 5.55% 2029 1.380 mills 5.50% 2030 1.255 mills 5.45% 2031 1.130 mills 5.30% 2032 0.955 mills 4.95% 2033 0.780 mills 4.60% 2034 0.605 mills 4.25% 2035 0.430 mills 3.90% 2036 0.255 mills 3.55% 2037 0.080 mills 3.20% 2038 and thereafter 0 mills 2.80% * * * ..End 2