AN ORDINANCE

Amending Chapter 19-2600 of The Philadelphia Code, entitled "Business Privilege Taxes," by eliminating the prepaid structure of the tax, by clarifying the period to be used in computation of the tax, by requiring the payment of an estimated payment, by ensuring that gains from the termination of the business are subject to tax, by clarifying the treatment of calendar and fiscal taxpayers and by amending definitions of the tax, under certain terms and conditions.

THE COUNCIL OF THE CITY OF PHILADELPHIA HEREBY ORDAINS:

SECTION 1. Chapter 19-2600 of The Philadelphia Code is hereby amended to read as follows:

CHAPTER 19-2600. BUSINESS PRIVILEGE TAXES.
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§ 19-2609. Due Date for Filing Returns.

Each person engaged in business is required to file a return on or before the fifteen day of April of the year following the license year.

§ 19-2610. Period used in computation of tax.

(a) Ongoing businesses.-Every person subject to the payment of the tax hereby imposed who has commenced his business at least one full year prior to the beginning of any license year shall compute his annual receipts upon the receipts received by him during the tax year ending in the license year and shall compute his net income or loss based on the same tax year.

(b) Partial tax year.-Every person subject to the payment of the tax imposed hereunder, who has commenced his business after the beginning of the license year, shall compute his receipts for the license year upon the receipts received by him during the part of such license year and shall compute his net income or loss based on the same tax year.

(c) Final tax year.-Every person subject to the payment of the tax imposed hereunder, who has terminated his business during the license year but before the tax year ending in the license year, shall compute his receipts for the license year upon the receipts received by him as if the tax year ended on the termination date and shall compute his net income or loss based on the same tax year. Every person subject to the payment of the tax imposed hereunder, who has terminated his business during the license year but after the tax year ending in the license year, shall compute his receipts for the license year upon the receipts received by him for the period tax year ending in the license year plus the short tax period ending on the termination date and shall compute his net income or loss based on the same tax year.

(d) Seasonal businesses. -Every person subject to the payment of the tax hereby imposed, who engaged in a business, temporary, seasonal or itinerant by its nature, shall compute his annual receipts upon the actual receipts received by him during the current tax year and shall compute his net income or loss based on the current tax year.

§ 19-2611. Estimated Tax Payment.

Each person engaged in business is required to make an estimated tax payment on or before the fifteen day of April of the current license year in an amount equal to the tax due for the proceeding tax year. Failure to make an estimated tax payment by the due date subjects the tax payer to interest and penalty at the rates provided under Section 19-509.

§ 19-2612. Over Payment.

Where the estimated payment exceeds the tax due, the taxpayer shall be granted, as of the due date for the return or as of the date the return is filed whichever is later, a credit to be applied to future tax years in the amount that the estimated payment exceeds the tax due.

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SECTION 2. Effective Date; Application. This Ordinance shall take shall take effect upon the later of the date this Ordinance becomes law or the effective date of state legislation authorizing the Ordinance, and shall apply to tax years that begin after the effective date.

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Explanation:
[Brackets] indicate matter deleted.
Underlined indicate new matter added.