Philadelphia officials have made no secret that as of this year’s Tax Day, they are applying the city’s Business Income and Receipts Tax – $1.41 per $1,000 of sales and $57.10 per $1,000 of profits – even when sales are under $100,000. That income used to be tax-exempt.
The city estimates 75,000 small-business owners may owe the tax for the first time.
But the realization that payment of this portion of the Business Income & Receipts (BIRT) tax – plus next year’s tax, which businesses are required to pay in advance in quarterly installments – is due on top of other city, state, and local taxes, has left busy sole proprietors and other small-business owners feeling unprepared, even resentful…