The City of Philadelphia will offer a tax amnesty program from May 3rd to June 25th, 2010. During amnesty, Philadelphia will waive all penalties and half the interest due on eligible delinquent tax bills. This will allow taxpayers the opportunity to clear up their debts and avoid further enforcement activities, including additional penalties and prosecution.
All taxes of the City of Philadelphia are eligible for tax amnesty, except for the Sales and Use Tax and Hotel Occupancy Tax and the General Acute Care Hospital Assessment and High Volume Medicaid Hospital Assessment. The Sales Tax is eligible for amnesty through the Commonwealth of Pennsylvania. See Pennsylvania Tax Amnesty Begins.
The Philadelphia taxes eligible for amnesty are:
- Amusement tax, pursuant to Chapter 19-600.
- Auctioneer tax, pursuant to Chapter 19-700 (repealed).
- Bowling alley tax, pursuant to Chapter 19-800 (repealed).
- Mechanical amusement device tax, pursuant to Chapter 19-900.
- Personal property tax, pursuant to Chapter 19-1100.
- Parking tax, pursuant to Chapter 19-1200.
- Real estate tax, pursuant to Chapter 19-1300, Chapter 19-1800 and applicable State law.
- Realty transfer tax, pursuant to Chapter 19-1400.
- Wage and net profits tax, pursuant to Chapter 19-1500 and Chapter 19-2800.
- Net income tax, pursuant to Chapter 19-1800.
- Realty use and occupancy tax, pursuant to Chapter 19-1800.
- Liquor sales tax, pursuant to Chapter 19-1800.
- Hotel room rental tax, Tourism and marketing tax, and Hospitality promotion tax, pursuant to Chapter 19-2400.
- Business privilege tax, pursuant to Chapter 19-2600.
- Vending machine tax, pursuant to Chapter 19-2800 (repealed).
- Vehicle rental tax, pursuant to Chapter 19-3300.
- Excise tax on outdoor advertising transactions, pursuant to Chapter19-3400.
Individuals and businesses wishing to take advantage of the amnesty must complete an application and make payment during the Amnesty period (May 3-June 25, 2010). Information about how to apply will be released closer to the start of amnesty. A website, phone number, and walk-in amnesty center will be available.
A taxpayer with a tax delinquency dating from between February 1, 1986 and June 30, 2009 is eligible for amnesty, unless the taxpayer is the subject of a criminal investigation, the defendant in a criminal complaint related to Philadelphia taxes, or the taxpaoyer or an entity for wihci the taxpayer was an officer participated in a prior Philadelphia Tax Amnesty program.
Taxpayers are expected to pay all past delinquencies in order to have penalties and half the interest waived under amnesty, unless the taxpayer certifies a financial hardship. Taxpayers with a financial hardship may pay off one tax year or tax type at a time.
Taxpayers in a payment agreement with the City who have not missed a payment since June 30, 2009 can participate in the Philadelphia Tax Amnesty.