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(1) The Department may, upon proper cause shown, grant a taxpayer an extension of not more than 60 days for the filing of any tax return. Application for such extension shall be made on or before the last day for the payment of the tax, in such form as the Department prescribes.
(2) If any Federal taxing authority grants to any taxpayer an extension for the filing of Federal income tax returns for a period in excess of 60 days, the Department may grant an additional extension of time for the filing of any tax returns affected thereby, not to exceed the date of termination of the Federal extension period.
(3) In order for an extension to be granted, the taxpayer must file a tentative return and pay one hundred percent (100%) of the tax estimated to be due, on or before the statutory due date. The extension will not relieve the taxpayer from the obligation to pay interest and penalty from the date such return was originally due upon the amount of tax due in excess of the estimated tax paid.
Notes
| 80 | Added, 1979 Ordinances, p. 1968; amended, Bill No. 423 (approved March 20, 1985), effective for tax returns due after December 31, 1984. |
(1) When a payment on a real estate tax account is made after the payment due date, such payment shall be applied first against the principal sum of such tax and the associated attorneys' fees or collectors' fees, then against interest and the associated attorneys' fees or collectors' fees, then against penalties and the associated attorneys' fees or collectors' fees, and then against lien filing fees and the associated attorneys' fees or collectors' fees. In each case, the allocation of the payment between the tax liability and the associated attorneys' fee or collectors' fee shall be made in the same proportion as the two liabilities bear to each other. In no case shall the amount of associated attorneys' fee or collectors' fee exceed the eighteen percent (18%) addition that is the maximum authorized under Philadelphia Code Section 19-3101.
(2) Notwithstanding the provisions of subsection (1), above, the Department may, by regulation, provide that payment on a real estate tax account may be allocated to Eligible Expenses prior to, or after, any allocation to tax principal and associated fees, interest and associated fees, penalties and associated fees, or lien filing fees and associated fees. Eligible Expenses means costs, charges or expenses other than attorneys' fees or collector's fees that are authorized under applicable law, including the Municipal Claims and Tax Liens Law of 1923, 53 P.S. §§ 7101 et seq., as amended.
(3) Unless otherwise provided, for all taxes other than real estate taxes imposed under Title 19, when a payment is made after the payment due date, such payment shall be applied first against the principal sum of such tax; and any partial payment in excess of the principal sum of such tax shall be applied against interest, costs, and then against the penalties, in that order.
(4) The Department is authorized to prescribe by regulation the hierarchy of applications, in terms of years and type of taxes, of any delinquent and partial tax payment made by a taxpayer when the taxpayer does not specifically identify the year(s) and/or type of tax(es) for which the payment should be applied; provided that no payment in such circumstances shall be applied against anything other than principal and associated attorneys' fees or collectors' fees unless and until all principal liability is satisfied on all taxes for all years. Effective January 1, 2015, (i) any taxpayer who so requests will be sent a receipt clearly setting forth the allocation of her tax payment among principal, interest, penalties, fees and any collection costs and (ii) any taxpayer paying in person will be provided with such a receipt automatically.
(5) Notwithstanding anything to the contrary in this Section 19-505, when a payment is made after the payment due date on a real estate tax account, (i) for which a tax claim was sold in trust in the Philadelphia Authority for Industrial Development 6.488% Tax Claim Collateralized Revenue Bonds, Series 1997 and (ii) for which such a tax claim remains outstanding, such payment shall be applied, in the same proportions as the liabilities bear to each other, among the principal sum of such tax, the penalties and interest accumulated on it, and the attorneys' fees or collectors' fees incurred on it, according to the priority in time of the tax liens, such that the oldest tax liens are paid first. After a partial payment on real estate taxes has been applied against all of the principal sum of such tax, the penalties and interest accumulated on it, and the attorneys' fees or collectors' fees incurred on it, additional payments received shall be applied to the Eligible Expenses of legal enforcement of the tax liens to collect a delinquent tax according to the priority in time in which the costs and expenses were incurred for the tax liens, such that the oldest tax lien years are paid first. Eligible Expenses means costs, charges or expenses other than attorneys' fees or collector's fees that are authorized under applicable law, including the Municipal Claims and Tax Liens Law of 1923, 53 P.S. §§ 7101 et seq., as amended.
Notes
| 81 | Source: New; to conform with federal tax practice; amended, 1979 Ordinances, p. 1968; amended, Bill No. 120823-AA (approved June 5, 2013), effective January 1, 2014. |
(1) Every person who has paid, or from whom there is due or alleged to be due, any moneys collectible by the Department, for or on behalf of the City or the School District of Philadelphia, including any taxes, rents, charges, or other sums, and any person upon whom there is imposed any other obligation to collect and remit to the City or the School District of Philadelphia any such moneys shall: 83
(a) preserve and retain his books, records, accounts, copies of tax returns filed with other taxing authorities, and other data relating thereto, for a period of 6 years after such moneys become collectible or have been collected by the Department, whichever is later;
(b) when requested by the Department produce his books, records, accounts, copies of tax returns filed with other taxing authorities, and other data relating thereto, and give to the Department the opportunity to make examination of such books, records, accounts, copies, data, and any property owned or controlled by such person in order to verify the accuracy of any report or return made, or if no report or return has been made, to ascertain the amount of tax, rent, charge, or other sum due.
(2) Any information obtained by the Department in the conduct of any examination or investigation shall be treated as confidential, except in the course of departmental business, or in accordance with judicial order, or as otherwise provided by law.
Notes
| 82 | Source: 1948 Ordinances, p. 419; amended, 1979 Ordinances, p. 1968. |
| 83 | Amended, 1980 Ordinances, p. 12. |
(1) The City may file joint claims for real estate and personal property taxes with the School District of Philadelphia, in the form of written or typewritten lists showing the names of the taxables and the descriptions of the properties against which said claims are filed. Such joint claims shall state separately the amount of taxes due the City and the School District. 85
(2) The Law Department, on behalf of the City and the School District, shall take all legal measures for the filing of such joint claims and the revival and prosecution thereof.
(3) The City's Law Department and the Department of Revenue shall enter into such arrangements with the School District as are necessary to provide for the filing and prosecuting of joint tax claims, including provision for the equitable sharing of the costs and expenses incident to the preparation, filing, revival, and prosecution thereof. 86
(4) The City's Law Department and the Department of Revenue are authorized to enter into such agreements with the School District of Philadelphia as are necessary to provide for the Tax Review Board to hear petitions concerning School District taxes which petitions shall be filed pursuant to Chapter 19-1700 of The Philadelphia Code, and for the City's Law Department to represent the School District in tax matters in the same manner and with the same authority as any litigation involving the City of Philadelphia, including provision for the equitable sharing of the costs and expenses incident thereto. 87
Notes
| 84 | Amended, 1979 Ordinances, p. 1968. |
| 85 | Source: 1939 Ordinances, p. 19. |
| 86 | Amended, 1980 Ordinances, p. 12. |
| 87 | Added, 1980 Ordinances, p. 12. |
(1) If any tax authorized or imposed under this Title is not paid when due, prior to July 1, 1987, there shall be added to the amount of the unpaid tax and collected therewith, interest at the rate of one-half of one percent (0.5%) of the amount of the unpaid tax, and a penalty at the rate of one percent (1%) of the amount of the unpaid tax shall be added for each month or fraction thereof during which said tax shall remain unpaid and shall be collected, together with the amount of the tax. This provision shall not apply to: 91
(b) Taxes imposed by subsection 19-1502(1)(a) or (b) that are not, in fact, withheld pursuant to Section 19-1504; provided, however, when such tax is not paid when due interest at the rate of one-half of one percent (0.5%) of the amount of the unpaid tax and a penalty of one percent (1%) of the amount of the unpaid tax per month for the first year and one-half of one percent (0.5%) per month thereafter shall be added and collected together with the amount of the tax; and
(c) General Business Taxes authorized under Section 19-1803.
(2) Commencing on July 1, 1987 and terminating on December 31, 2013, if any tax authorized or imposed under this Title was not paid when due or is not paid when it becomes due, there shall be added to the amount of the unpaid tax, interest, and penalty and collected therewith: 92
(a) interest at the rate of one percent (1%) of the amount of the unpaid tax each month or fraction thereof during which the tax remains unpaid; and 93
(b) penalty calculated on the amount of the unpaid tax at the following rates for each month during which the tax remains unpaid:
(.1) in the first month or fraction thereof following the due date, one percent (1%);
(.2) in the second month or fraction thereof following the due date, an additional one percent (1%) for a total of two percent (2%);
(.3) in the third month or fraction thereof following the due date, an additional one percent (1%) for a total of three percent (3%);
(.4) in the fourth month or fraction thereof following the due date, an additional two percent (2%) for a total of five percent (5%);
(.5) in the fifth month or fraction thereof following the due date, an additional two percent (2%) for a total of seven percent (7%);
(.6) in the sixth month or fraction thereof following the due date, an additional two percent (2%) for a total of nine percent (9%);
(.7) in the seventh month or fraction thereof following the due date, an additional three percent (3%) for a total of twelve percent (12%);
(.8) in the eighth month or fraction thereof following the due date, an additional three percent (3%) for a total of fifteen percent (15%);
(.9) in the ninth month or fraction thereof following the due date, an additional three percent (3%) for a total of eighteen percent (18%);
(.10) in the tenth month or fraction thereof following the due date, an additional four percent (4%) for a total of twenty-two percent (22%);
(.11) in the eleventh month or fraction thereof following the due date, an additional four percent (4%) for a total of twenty-six percent (26%);
(.12) in the twelfth month or fraction thereof following the due date, an additional four percent (4%) for a total of thirty percent (30%);
(.13) thereafter, for each additional month or fraction thereof following the due date, one and one- quarter percent (1.25%) shall be added to the amount charged under subsection (.12).
(3) Commencing on January 1, 2014, if any tax authorized or imposed under this Title, other than real estate taxes, was not paid when due or is not paid when it becomes due, there shall be added to the amount of the unpaid tax and collected therewith, interest and penalty, as follows: 94
(a) All taxes shall bear simple interest from the date they become due and payable until paid. The interest rate per annum during each calendar year shall be the sum of (i) the Federal Short-Term Rate established by the Secretary of the Treasury of the United States under the provisions of the Internal Revenue Code of 1954, 26 U.S.C. §§ 6621 et seq., effective January 1 of such calendar year without regard to any change or changes in said Federal interest rate during such calendar year, plus (ii) five (5) percentage points. The Revenue Commissioner shall publish the rate of interest for each calendar year on the Department website.
(b) All taxes shall bear a penalty at the rate of one and one-quarter percent (1.25%) of the amount of the unpaid tax for each month or fraction thereof during which the tax remains unpaid.
(4) Where suit is brought for the recovery of any such tax the person liable therefor shall, in addition, be liable for the costs of collection together with the interest and penalties herein imposed. 95
(5) In addition to any other sanction or remedial procedure provided, any person who shall: 96
(a) make any false or untrue statement on his or her report or return; 97
(b) fail or refuse to file any report or return;
(c) violate any condition of any license required hereunder;
(d) fail to pay over to the Department any monies which he or she may hold as agent for the City or School District of Philadelphia; 98
(e) violate any provision of this Title or any regulation adopted hereunder: shall be subject to a fine of not more than three hundred dollars ($300) for each offense. A separate offense shall be deemed to occur on the first day of each month that conduct described in subsections (5)(b) and (5)(d) continues. 99
(6) Any person who shall have paid, or from whom there is due or alleged to be due any moneys collectible by the Department, including any taxes, rents, charges, or other sums, and who fails and refuses to produce or permit the examination of his books, records, accounts, and related data, or to afford to authorized representatives of the Department an opportunity for such examination, shall be subject to a fine of not more than three hundred dollars ($300) for each such offense. 100
(7) When any person shall give or cause to be given to a City official or agency a check in payment of any obligation whether due to the City or others, including but not limited to any tax, water, sewer rent, or support order which is dishonored or unpaid by the bank upon which it is drawn, the sum of twenty dollars ($20) shall be added to the obligation and interest and penalties provided by the Code, or otherwise, to cover the additional cost to the City. 101
Notes
| 90 | Source: In general, the following provisions are based on the penalty provisions formerly included under each separate City tax. These provisions generalize the penalty provisions so as to make a uniform application thereof to all taxes levied by the City. Amended, 1962 Ordinances, p. 1216; amended, 1979 Ordinances, p. 1968; amended, 1980 Ordinances, p. 12; amended, 1984 Ordinances, p. 614 (made effective as of January 1, 1986 by Bill No. 566); amended, 1985 Ordinances, p. 554; amended, 1985 Ordinances, p. 1344; amended, Bill No. 758 (approved July 24, 1995), 1995 Ordinances, p. 1081; amended, Bill No. 970155 (approved April 3, 1997). |
| 91 | Amended, 1980 Ordinances, p. 12; amended, 1987 Ordinances, p. 27. |
| 92 | Added, 1987 Ordinances, p. 27; amended, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014. |
| 93 | Amended, Bill No. 970155 (approved April 3, 1997). Section 2 of the Ordinance provides: "Effective Date. This Ordinance shall take effect July 1, 1997, and the increase in interest rates provided by this Ordinance shall begin to apply as that date." |
| 94 | Added, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014. |
| 95 | Renumbered, 1987 Ordinances, p. 27; renumbered, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014. |
| 96 | Renumbered and amended, 1987 Ordinances, p. 27; renumbered, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014. |
| 97 | Amended, Bill No. 1133 (approved July 24, 1995), 1995 Ordinances, p. 1225. |
| 98 | Amended, 1980 Ordinances, p. 12; amended, Bill No. 1133 (approved July 24, 1995). |
| 99 | Amended, Bill No. 758 (approved July 24, 1995), 1995 Ordinances, p. 1081; amended, Bill No. 1133 (approved July 24, 1995), 1995 Ordinances, p. 1225. References to subsections (4)(b) and (4)(d) changed to subsections (5)(b) and (5)(d) by Code editor because subsections were renumbered by Bill No. 120822 (approved April 17, 2013), effective January 1, 2014. |
| 100 | Renumbered, 1987 Ordinances, p. 27; amended, Bill No. 758 (approved July 24, 1995), 1995 Ordinances, p. 1081; amended, Bill No. 1133 (approved July 24, 1995), 1995 Ordinances, p. 1225; renumbered, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014. |
| 101 | Source: 1939 Ordinances, p. 280; amended, 1958 Ordinances, p. 1176; amended, 1983 Ordinances, p. 1146; renumbered, 1987 Ordinances, p. 27; renumbered, Bill No. 120822 (approved April 17, 2013), effective January 1, 2014. |
(1) Subject to the limitations on assessment in Section 19-510.1, any suit to recover any tax authorized or imposed by this Title, other than real estate taxes, and personal property taxes not imposed under Section 19-1102, shall be begun within 6 years after such tax is due or within 6 years after a return or a report has been filed, whichever date is later, but this limitation shall not apply in the following cases: 103
(a) where the taxpayer has failed to file the return or report required under the provisions of this Title;
(b) where an examination of a return or report filed by the taxpayer and of other evidence relating to such return or report in the possession of the Revenue Commissioner reveals a fraudulent evasion of taxes or a substantial understatement of gross income, net profits, gross receipts, or any other receipt of income, moneys or funds in any such return or report, except with respect to any understatement the position for which was adequately disclosed, as provided by subsection (2)(b) of Section 19-510.1; 104
(c) where the taxpayer has collected or withheld tax funds or moneys of any nature or description under this Title as agent of or trustee for the City or the School District of Philadelphia, and has failed, neglected or refused to pay the amount so collected or so withheld to the City or the School District of Philadelphia.
(2) All defenses to the collection of any tax authorized or imposed by this Title shall be raised by appropriate petition pursuant to Chapter 19-1700. 105
(3) Where a taxpayer has filed any petition pursuant to Chapter 19-1700, the period of limitation set forth in subsection 19-510(1) 106 shall be tolled until final determination of such petition has been made.
Notes
| 102 | Source: 1952 Ordinances; made applicable to all City taxes; renumbered, 1979 Ordinances, p. 1967; caption amended, Bill No. 040021 (approved June 10, 2004). |
| 103 | |
| 104 | |
| 105 | Amended, 1980 Ordinances, p. 16. |
| 106 | Enrolled bill read 19-509(1); cross-reference revised by Code editor to reflect renumbering of Section at 1979 Ordinances, p. 1967. |
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