§ 19-1501. Definitions.

   (1)   Business. An enterprise, activity, profession or undertaking of any nature conducted for profit or ordinarily conducted for profit, whether by an individual, co-partnership, association, governmental 299 body or unit or agency, or any other entity.

   (2)   Employee. Any person who renders services to another for a consideration or its equivalent, under an express or implied contract, and who is under the control and direction of the latter, including temporary, provisional, casual or part-time employment.

   (3)   Employer. An individual, co-partnership, association, corporation, governmental body or unit or agency, or any other entity, who or that employs one or more persons on a salary, wage, commission or other compensation basis.

   (4)   Low Income Non-Residents.  300 Non-Residents who are entitled to refund and/or forgiveness of taxes pursuant to State Low-Income Tax Provisions, including those who are eligible for the maximum refund and/or forgiveness available and those who are entitled to less than the maximum percentage amount.

   (5)   Low Income Residents.  301 Residents who are entitled to refund and/or forgiveness of taxes pursuant to State Low-Income Tax Provisions, including those who are eligible for the maximum refund and/or forgiveness available and those who are entitled to less than the maximum percentage amount.

   (6)   Net Profits. 302 The net gain from the operation of a business, profession or enterprise, after provision for all allowable costs and expenses incurred in the conduct thereof, either paid or accrued in accordance with the accounting system used, without deduction of taxes based on income.

   (7)   Non-resident. 303 An individual, co-partnership, association, corporation or any other entity domiciled outside the City.

   (8)   Person. 304 Every individual, co-partnership, fiduciary or association.

   (9)   Resident. 305 An individual, co-partnership, association, corporation or any other entity domiciled in the City.

   (10)   Salaries, Wages, Commissions and Other Compensation. 306 All salaries, wages, commissions, bonuses, incentive payments, fees and tips that may accrue or be received by an individual, whether indirectly or through an agent and whether in cash or in property, for services rendered, but excluding:

      (a)   periodical payments for sick or disability benefits and those commonly recognized as old age benefits;

      (b)   retirement pay, or pensions paid to persons retired from service after reaching a specific age or after a stated period of employment;

      (c)   any wages or compensation paid to any person for active service in the Army, Navy or Air Force of the United States, or to a member of the National Guard for active federal duty; 307

      (d)   any bonus or additional compensation paid by the United States, this Commonwealth, or any other state for such service;

      (e)   any statutory per diem compensation paid any witness or juror, or member of the District Election Board; 308

      (f)   Stock options which do not have a readily ascertainable fair market value, as defined by 26 C.F.R. § 1.83-7(b), on the date the stock option is granted. Stock options which do have a readily ascertainable fair market value on the date the stock option is granted shall be considered as compensation in the amount of such value and received on such date. If an employee is offered the choice of receiving compensation in cash or compensation in stock options, and chooses stock options, then such stock options shall be deemed to have a readily ascertainable fair market value equal to the amount of cash that was offered. Any amount that would otherwise be considered as compensation arising from the exercise, exchange, sale or disposition of stock options, whether or not they had a readily 309 ascertainable fair market value when granted, shall not be taxable under this Chapter; 310

      (g)   Certain tuition benefits, as follows: 311

         (.1)   Qualified tuition reduction benefits.

         (.2)   Tuition benefits that:

            (.a)   Are provided to its employees by a not-for-profit healthcare system and its not-for-profit affiliates that are wholly (one hundred percent (100%)) owned and controlled, directly or indirectly, by a not-for- profit university; and

            (.b)   Would qualify as qualified tuition reduction benefits if such not-for-profit healthcare system and its not-for-profit affiliates were part of such university.

         (.3)   Reimbursements by an employer of an employee's educational expenses relating to education required by the employer to maintain the employee's employment status or compensation level, including any education required by the Commonwealth to retain a professional license or certification relating to the employee's position. The employer must certify any such requirement in such manner as the Department shall determine.

         (.4)   For purposes of this subsection (g), the following definition applies:

            (.a)   Qualified tuition reduction benefits. As defined in Section 117(d) of the Internal Revenue Code (26 U.S.C. § 117(d)), as amended from time to time.

   (11)   State Low-Income Tax Provisions. The state law provisions for refund and forgiveness of Commonwealth taxes based on poverty income set forth in Section 304 of the Tax Reform Code of 1971 (Act of March 4, 1971, P.L. 6, No. 2), as added by the Act of March 13, 1974 (P.L. 179, No. 32), 72 P.S. § 7304, and as amended from time to time. 312

   (12)   Reserved. 313

   (13)   Reserved. 314

 

Notes

299	Enrolled bill read "governmenal".
300	Added, Bill No. 040397 (became law June 10, 2004); deleted, Bill No. 080161 (approved May 22, 2008); added, Bill No. 140140 (approved June 17, 2014).
301	Added, Bill No. 040397 (became law June 10, 2004); deleted, Bill No. 080161 (approved May 22, 2008); added, Bill No. 140140 (approved June 17, 2014).
302	Renumbered, Bill No. 040397 (became law June 10, 2004).
303	Renumbered, Bill No. 040397 (became law June 10, 2004).
304	Renumbered, Bill No. 040397 (became law June 10, 2004).
305	Renumbered, Bill No. 040397 (became law June 10, 2004).
306	Renumbered, Bill No. 040397 (became law June 10, 2004).
307	Amended, Bill No. 050741 (approved December 15, 2005).
308	Added, 1975 Ordinances, p. 1318; amended, 1980 Ordinances, p. 932; amended, 1981 Ordinances, p. 269.
309	Enrolled Bill No. 000354 read "really".
310	Added, Bill No. 000354 (approved September 14, 2000). Section 2 of Bill No. 000354 provides: "The provisions of subsection 19-1501(8)(f) of The Philadelphia Code, as added by Section 1 of this Ordinance, exempting certain stock options from tax, shall apply only to stock options that are granted after the date this Ordinance takes effect, and to stock options that are exercised, exchanged, sold or otherwise disposed of, on or after the date this Ordinance takes effect."
311	Added, Bill No. 060766 (approved January 23, 2007).
312	Added, Bill No. 040397 (became law June 10, 2004); deleted, Bill No. 080161 (approved May 22, 2008); added, Bill No. 140140 (approved June 17, 2014).
313	Added, Bill No. 040397 (became law June 10, 2004); deleted, Bill No. 080161 (approved May 22, 2008).
314	Added, Bill No. 040397 (became law June 10, 2004); deleted, Bill No. 080161 (approved May 22, 2008).

§ 19-1502. Imposition of Tax. 315

   (1)   Tax on Salaries, Wages, Commissions and Other Compensation.

      (a)   Residents.  316 An annual tax on salaries, wages, commissions and other compensation earned by residents of Philadelphia is imposed for general revenue purposes for the following periods at the following rates:

January 1, 1950 through December 31, 1956	1.2500%
January 1, 1957 through December 31, 1960	1.5000%
January 1, 1961 through December 31, 1965	1.6250%
January 1, 1966 through June 30, 1968	2.0000%
July 1, 1969 through June 30, 1971	3.0000%
July 1, 1971 through June 30, 1976	3.3125%
July 1, 1976 through June 30, 1983	4.3125%
July 1, 1983 through June 30, 1991	4.9600%
July 1, 1991 through December 31, 1995	3.4600%
January 1, 1996 through June 30, 1996	3.3600%
July 1, 1996 through June 30, 1997	3.3400%
July 1, 1997 through June 30, 1998	3.2900%
July 1, 1998 through June 30, 1999	3.1869%
July 1, 1999 through June 30, 2000	3.1135%
July 1, 2000 through June 30, 2001	3.0635%
July 1, 2001 through June 30, 2002	3.0385%
July 1, 2002 through June 30, 2003	3.0000%
July 1, 2003 through December 31, 2004	2.9625%
January 1, 2005 through December 31, 2005	2.8310%
January 1, 2006 through December 31, 2006	2.8010%
January 1, 2007 through December 31, 2007	2.7600%
January 1, 2008 through June 30, 2008	2.7190%
July 1, 2008 through December 31, 2008	2.4800%
January 1, 2009 through June 30, 2009	2.4300%
July 1, 2009 through June 30, 2010	2.4296%
July 1, 2010 through June 30, 2013	2.4280%
July 1, 2013 through June 30, 2014	2.4240%
July 1, 2014 through June 30, 2015	2.4200%
July 1, 2015 through June 30, 2016	2.4102%
July 1, 2016 through June 30, 2017	2.4004%
July 1, 2017 through June 30, 2018	2.3907%
July 1, 2018 through June 30, 2019	2.3809%
July 1, 2019 through June 30, 2021	2.3712%
July 1, 2021 through June 30, 2022	2.3398%
July 1, 2022 through June 30, 2023	2.2900%
July 1, 2023, and thereafter	2.2500%

 

      (b)   Non-Residents.  317 An annual tax on salaries, wages, commissions and other compensation earned by non-residents of Philadelphia for work done or services performed or rendered in Philadelphia is imposed for general revenue purposes for the following periods at the following rates:

January 1, 1950 through December 31, 1956	1.2500%
January 1, 1957 through December 31, 1960	1.5000%
January 1, 1961 through December 31, 1965	1.6250%
January 1, 1966 through June 30, 1968	2.0000%
July 1, 1969 through June 30, 1971	3.0000%
July 1, 1971 through June 30, 1976	3.3125%
July 1, 1976 through December 31, 1995	4.3125%
January 1, 1996 through June 30, 1996	4.2256%
July 1, 1996 through June 30, 1997	4.2082%
July 1, 1997 through June 30, 1998	4.1647%
July 1, 1998 through June 30, 1999	4.0750%
July 1, 1999 through June 30, 2000	4.0112%
July 1, 2000 through June 30, 2001	3.9672%
July 1, 2001 through June 30, 2002	3.9462%
July 1, 2002 through June 30, 2003	3.9127%
July 1, 2003 through December 31, 2004	3.8801%
January 1, 2005 through December 31, 2005	3.8197%
January 1, 2006 through December 31, 2006	3.7716%
January 1, 2007 through December 31, 2007	3.7557%
January 1, 2008 through June 30, 2008	3.7242%
July 1, 2008 through December 31, 2008	3.5392%
January 1, 2009 through June 30, 2009	3.5000%
July 1, 2009 through June 30, 2010	3.4997%
July 1, 2010 through June 30, 2013	3.4985%
July 1, 2013 through June 30, 2014	3.4950%
July 1, 2014 through June 30, 2015	3.4915%
July 1, 2015 through June 30, 2016	3.4828%
July 1, 2016 through June 30, 2017	3.4741%
July 1, 2017 through June 30, 2018	3.4654%
July 1, 2018 through June 30, 2019	3.4567%
July 1, 2019 through June 30, 2020	3.4481%
July 1, 2020 through June 30, 2021	3.5019%
July 1, 2021 through June 30, 2022	3.4481%
July 1, 2022, and thereafter	3.4400%

 

      (c)   The tax imposed under subsections 19-1502(1)(a) and (b) shall relate to and be imposed upon salaries, wages, commissions, and other compensation paid by an employer or on his behalf to any person who is employed by or renders services to him.

   (2)   Tax on Net Profits Earned in Businesses, Professions or Other Activities.

      (a)   Residents.  318 An annual tax on the net profits earned in businesses, professions or other activities conducted by residents of Philadelphia is imposed for general revenue purposes for the following periods at the following rates:

January 1, 1949 through December 31, 1955	1.2500%
January 1, 1956 through December 31, 1959	1.5000%
January 1, 1960 through December 31, 1964	1.6250%
January 1, 1965 through December 31, 1968	2.0000%
January 1, 1969 through December 30, 1970	3.0000%
January 1, 1971 through December 31, 1975	3.3125%
January 1, 1976 through December 31, 1982	4.3125%
January 1, 1983 through June 30, 1991	4.9600%
July 1, 1991 through December 31, 1995	3.4600%
January 1, 1996 through December 31, 1996	3.3400%
January 1, 1997 through December 31, 1997	3.2900%
January 1, 1998 through December 31, 1998	3.1869%
January 1, 1999 through December 31, 1999	3.1135%
January 1, 2000 through December 31, 2000	3.0635%
January 1, 2001 through December 31, 2001	3.0385%
January 1, 2002 through December 31, 2002	3.0000%
January 1, 2003 through December 31, 2004	2.9625%
January 1, 2005 through December 31, 2005	2.8310%
January 1, 2006 through December 31, 2006	2.8010%
January 1, 2007 through December 31, 2007	2.7600%
January 1, 2008 through June 30, 2008	2.7190%
July 1, 2008 through December 31, 2008	2.4800%
January 1, 2009 through December 31, 2009	2.4296%
January 1, 2010 through December 31, 2012	2.4280%
January 1, 2013 through December 31, 2013	2.4240%
January 1, 2014 through December 31, 2014	2.4200%
January 1, 2015 through December 31, 2015	2.4102%
January 1, 2016 through December 31, 2016	2.4004%
January 1, 2017 through December 31, 2017	2.3907%
January 1, 2018 through December 31, 2018	2.3809%
January 1, 2019 through December 31, 2020	2.3712%
January 1, 2021 through December 31, 2021	2.3398%
January 1, 2022 through December 31, 2022	2.2900%
January 1, 2023, and thereafter	2.2500%

 

      (b)   Non-Residents.  319 An annual tax on the net profits earned in businesses, professions or other activities conducted in Philadelphia by non-residents is imposed for general revenue purposes for the following periods at the following rates:

January 1, 1949 through December 31, 1955	1.2500%
January 1, 1956 through December 31, 1959	1.5000%
January 1, 1960 through December 31, 1964	1.6250%
January 1, 1965 through December 31, 1968	2.0000%
January 1, 1969 through December 30, 1970	3.0000%
January 1, 1971 through December 31, 1975	3.3125%
January 1, 1976 through December 31, 1982	4.3125%
January 1, 1983 through June 30, 1991	4.9600%
July 1, 1991 through December 31, 1995	4.3125%
January 1, 1996 through December 31, 1996	4.2082%
January 1, 1997 through December 31, 1997	4.1647%
January 1, 1998 through December 31, 1998	4.0750%
January 1, 1999 through December 31, 1999	4.0112%
January 1, 2000 through December 31, 2000	3.9672%
January 1, 2001 through December 31, 2001	3.9462%
January 1, 2002 through December 31, 2002	3.9127%
January 1, 2003 through December 31, 2004	3.8801%
January 1, 2005 through December 31, 2005	3.8197%
January 1, 2006 through December 31, 2006	3.7716%
January 1, 2007 through December 31, 2007	3.7557%
January 1, 2008 through June 30, 2008	3.7242%
July 1, 2008 through December 31, 2008	3.5392%
January 1, 2009 through December 31, 2009	3.4997%
January 1, 2010 through December 31, 2012	3.4985%
January 1, 2013 through December 31, 2013	3.4950%
January 1, 2014 through December 31, 2014	3.4915%
January 1, 2015 through December 31, 2015	3.4828%
January 1, 2016 through December 31, 2016	3.4741%
January 1, 2017 through December 31, 2017	3.4654%
January 1, 2018 through December 31, 2018	3.4567%
January 1, 2019 through December 31, 2019	3.4481%
January 1, 2020 through December 31, 2020	3.5019%
January 1, 2021 through December 31, 2021	3.4481%
January 1, 2022, and thereafter	3.4400%

 

      (c)   The tax levied under subsections 19-1502(2)(a) and (b) shall relate to and be imposed on the net profits of any business, profession, or enterprise carried on by any person as owner or proprietor, either individually or in association with some other person or persons.

      (d)   For taxable years beginning on or after January 1, 1998, the tax levied under subsections 19-1502(2)(a) and (b) shall not apply to any net profits earned by a domestic or foreign business trust, or any series thereof, that qualifies as a regulated investment company under Section 851 of the Internal Revenue Code and is registered with the United States Securities and Exchange Commission under the Investment Company Act of 1940, or any related domestic or foreign business trust, or any series thereof, which confines its activities in Philadelphia to the maintenance, administration and management of intangible investments and activities of regulated investment companies.

      (e)   For taxable years beginning on or after January 1, 2012, the tax levied under subsections 19-1502(2)(a) and (b) shall not apply to any net profits from any activity described in Section 19-2601 "Business", subsection (7) (relating to certain investment companies and investment company managers).  320

 

Notes

315	Amended, 1956 Ordinances, p. 881; amended, 1960 Ordinances, p. 880; amended, 1965 Ordinances, p. 1621; amended, 1968 Ordinances, p. 1553; amended, 1969 Ordinances, p. 1080; amended, 1971 Ordinances, p. 603. Former Section 19-1502 repealed and new Section added, Bill No. 020092 (approved April 23, 2002); amended, Bill No. 030073 (became law April 25, 2003); amended, subsection (3) repealed, Bill No. 040607 (approved July 1, 2004). Section 2 of Bill No. 040607 provides: "This Ordinance shall be effective as of January 1, 2004."
316	Amended, Bill No. 080161 (approved May 22, 2008); amended, Bill No. 080855 (approved December 8, 2008); amended, Bill No. 110138 (approved June 24, 2011); amended, Bill No. 130444 (approved June 25, 2013); amended, Bill No. 150167 (approved June 18, 2015); amended, Bill No. 160175 (approved June 20, 2016); amended, Bill No. 170198 (approved June 14, 2017); amended, Bill No. 180168 (approved June 20, 2018); amended, Bill No. 190155 (approved June 18, 2019); amended, Bill No. 210324 (approved June 28, 2021); amended, Bill No. 220410 (approved June 27, 2022); amended, Bill No. 230147 (approved June 23, 2023).
317	Amended, Bill No. 080161 (approved May 22, 2008); amended, Bill No. 080855 (approved December 8, 2008); amended, Bill No. 110138 (approved June 24, 2011); amended, Bill No. 130444 (approved June 25, 2013); amended, Bill No. 150167 (approved June 18, 2015); amended, Bill No. 160175 (approved June 20, 2016); amended, Bill No. 170198 (approved June 14, 2017); amended, Bill No. 180168 (approved June 20, 2018); amended, Bill No. 190155 (approved June 18, 2019); amended, Bill No. 200291 (approved June 26, 2020); amended, Bill No. 220410 (approved June 27, 2022).
318	Amended, Bill No. 080161 (approved May 22, 2008); amended, Bill No. 080855 (approved December 8, 2008); amended, Bill No. 110138 (approved June 24, 2011); amended, Bill No. 130444 (approved June 25, 2013); amended, Bill No. 150167 (approved June 18, 2015); amended, Bill No. 160175 (approved June 20, 2016); amended, Bill No. 170198 (approved June 14, 2017); amended, Bill No. 180168 (approved June 20, 2018); amended, Bill No. 190155 (approved June 18, 2019); amended, Bill No. 210324 (approved June 28, 2021); amended, Bill No. 220410 (approved June 27, 2022); amended, Bill No. 220659-A (approved November 9, 2022); amended, Bill No. 230147 (approved June 23, 2023).
319	Amended, Bill No. 080161 (approved May 22, 2008); amended, Bill No. 080855 (approved December 8, 2008); amended, Bill No. 110138 (approved June 24, 2011); amended, Bill No. 130444 (approved June 25, 2013); amended, Bill No. 150167 (approved June 18, 2015); amended, Bill No. 160175 (approved June 20, 2016); amended, Bill No. 170198 (approved June 14, 2017); amended, Bill No. 180168 (approved June 20, 2018); amended, Bill No. 190155 (approved June 18, 2019); amended, Bill No. 200291 (approved June 26, 2020); amended, Bill No. 220410 (approved June 27, 2022).
320	Added, Bill No. 120007 (approved April 10, 2012). Section 5 of Bill. No. 120007 provides: "Nothing in this Ordinance shall affect the amount of estimated business privilege tax payments required to be paid in April 2012 for estimated Tax Year 2012 tax liabilities, and such estimated tax payments shall be calculated as if this Ordinance were not in effect for Tax Year 2012."

§ 19-1503. Returns and Payment of Tax.

   (1)   Each person whose net profits are subject to the tax imposed by this Chapter shall, on or before April 15 of each year, make and file with the Department a return on a form furnished by or obtainable from the Department setting forth the amount of such net profits earned by him during the preceding year and subject to the said tax, together with such other pertinent information as the Department may require. 321

   Where a return is made for a fiscal year or for any other period different from a calendar year, the said return shall be made within 105 days from the end of the said fiscal year or other period. 322

   (2)   Each person who is employed on a salaried, wage, commission or other compensation basis, who is subject to a tax imposed by this Chapter and which tax is not withheld by his/her employer and paid to the City as provided in Section 19-1504 shall make and file a tax return with the Department on or before the last day of January, April, July and October for the last three months ending on the last day of the month preceding the due date. The return shall be made on a form furnished by the Department, setting forth the aggregate amount of salaries, wages, commissions, and other compensation subject to the said tax earned by such person for the three months, together with such other pertinent information as the Department may require. 323

   (3)   Whenever any person files a return required by Section 19-1503 he shall at the time of filing pay to the Department the amount of tax due thereon.

 

Notes

321	Amended, 1980 Ordinances, p. 508.
322	Amended, 1981 Ordinances, p. 154.
323	Amended, 1986 Ordinances, p. 870; amended, Bill No. 990219 (approved June 11, 1999).

§ 19-1504. Collection at Source. 324

   (1)   Each employer within the City who employs one or more persons on a salary, wage, commission or other compensation basis shall deduct at the time of payment thereof, the tax imposed by this Chapter on the salaries, wages, commissions and other compensation due from the said employer to the said employee, except that due to employees engaged as domestic servants, and shall make a return and pay to the Department the amount of tax so deducted at such intervals as the Commissioner shall establish by regulations.

      (a)   The return shall be on a form or forms furnished by the Department, and shall set forth the names and residences of each employee of said employer during all or any part of the period covered by the said return, the amounts of salaries, wages, commissions or other compensation earned during such period by each of such employees, together with such other information as the Department may require.

      (b)   The employer making the return shall, at the time of filing, pay to the Department the amount of tax due thereon.

      (c)   The failure of any employer, residing either within or outside of the City, to make such return and/or to pay such tax shall not relieve the employee from the responsibility for making the returns, paying the tax, and complying with the regulations with respect to making the returns and paying the tax.

   (2)   When any employer makes deductions or returns under subsection 19-1504(1), he shall deposit such deduction with the Department or with any bank designated by the Department, which shall in all cases be a bank designated as a City depository pursuant to subsection 19-201(1).

      (a)   Each bank so designated shall issue official receipts to the employer for the money received from him, which money shall be credited to the City's account. Such deposits shall be reported daily to the Department.

      (b)   At the time of each deposit, the employer shall file with the Department or designated bank a depository form to be furnished by the Department which shall contain such information as the Department may require.

   (3)   Penalties. For late deposits of withheld taxes due under this Section there shall be added, in addition to the penalties set forth in Section 19-508 a penalty of ten percent (10%) of the underpayment. 325

 

Notes

324	Amended, 1974 Ordinances, p. 383; amended, 1989 Ordinances, p. 1310. Section 2 of the 1989 Ordinance provides: "This Ordinance shall become effective for City Wage Tax due for periods commencing on or after January 1, 1989."
325	Added, 1974 Ordinances, p. 383; renumbered, 1989 Ordinances, p. 1310.

§ 19-1505. Estimated Net Profits Tax. 326

   (1)   Returns and Payments of Estimated Tax.

      (a)   Each person whose net profits are subject to the tax imposed by this Chapter shall be required to file returns and pay estimated tax on account of the net profits due for the current taxable year.

   (2)   For the purposes of this Chapter, the term "estimated tax" means the amount of net profits tax which a person calculated to be his tax due under this Chapter for the preceding taxable year, after giving effect to the tax credit provided in Section 19-1506. 327

   (3)   Calendar Year Taxpayers.

      (a)   Returns and payments of estimated tax for taxable years beginning after December 31, 1984 shall be due and payable as follows:

         (.1)   The first installment of one-fourth (1/4) of the estimated tax shall be due and payable on or before April 15 of the taxable year.

         (.2)   The second installment of one-fourth (1/4) of the estimated tax shall be due and payable on or before June 15 of the taxable year.

   (4)   Fiscal Year Taxpayers.

      (a)   Persons who report net income for a fiscal year period other than a calendar year shall make returns and payments of estimated tax for taxable years beginning after December 31, 1984 as follows:

         (.1)   The first installment of one-fourth (1/4) of the estimated tax shall be due and payable within three and one-half (3.5) months after the beginning of the taxable fiscal year.

         (.2)   The second installment of one-fourth (1/4) of the estimated tax shall be due and payable within five and one-half (5.5) months after the beginning of the taxable fiscal year.

   (5)   Credits for Excessive Estimated Payments.

      (a)   Any estimated payments which exceed a person's tax liability for the taxable year shall be applied as a credit against the estimated tax for the following taxable year, to the extent of the estimated tax due for the following taxable year.

      (b)   The amount of any estimated payments which exceed the estimated tax for the following year shall be refunded to the taxpayer.

   (6)   Provisions not Applicable. The provisions of Section 19-1505 shall not be applicable to a person for a taxable year if:

      (a)   Such person was not engaged in business in the preceding taxable year; or

      (b)   Such person's net profits tax liability for the preceding taxable year does not exceed one hundred dollars ($100); or

      (c)   Such person terminated his business activity prior to the due date of the net profits tax return for the preceding taxable year.

   (7)   Any person who terminates his business activity prior to the due date of any estimated payment shall not be required to make any additional estimated payments for that taxable year.

 

Notes

326	Added, 1980 Ordinances, p. 506; amended, 1985 Ordinances, p. 133 (Bill No. 424). Section 2 of Bill No. 424 provides that it shall not "relieve any taxpayer of the obligation to make any estimated net profits tax installment payments for a taxable year beginning prior to January 1, 1985, and which are due and payable on or before June 30, 1985."
327	Amended, 1988 Ordinances, p. 700.

§ 19-1506. Credit Against Tax. 328

   (1)   Any person subject to a tax under subsections 19-1502(2)(a) and (b) 329 shall be given a credit in the amount of sixty percent (60%) of the tax liability based upon net income and paid as provided by Chapter 19-2600 of this Title, subject to the provisions of this Section.

      (a)   The credit against net profits tax liability, provided under subsection 19-2604(4), shall be calculated without regard to any reduction in tax provided under subsection 19-2604(6), relating to Credit for Contributions to Community Development Corporations. 330

   (2)   The credit provided pursuant to this Section relates to the following tax year:

      (a)   When a return is made for a fiscal year corresponding to the calendar year, the same calendar year as that which is used as the measuring period for computing net income subject to the tax imposed under Chapter 19-2600 of this Title on which the credit is based.

      (b)   When a return is made for a fiscal year other than a calendar year, the fiscal year which ends within the calendar year for which the tax imposed under Chapter 19-2600 of this Title is paid, and on which the credit is based.

   (3)   Nothing in this Section shall permit credits to be charged against any given tax year in excess of the amount of tax due under subsections 19-1502(2)(a) and (b) 331 for that tax year.

 

Notes

328	Added, 1984 Ordinances, p. 619; amended, 1985 Ordinances, pp. 133 and 543; amended, 1988 Ordinances, p. 697.
329	Enrolled bill read "§ 19-1502(1)(c) and (d)"; reference corrected by Code editor.
330	Added, Bill No. 050064 (approved March 31, 2005).
331	Enrolled bill read "§ 19-1502(1)(c) and (d)"; reference corrected by Code editor.

§ 19-1507. Liability of Persons To Collect, Account For and Pay Over Wage Taxes. 332

   (1)   Any person required to collect, truthfully account for, and pay over any tax imposed by this Chapter on salaries, wages, commissions and other compensation who fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall be liable for the full amount of such tax.

   (2)   For purposes of subsection 19-1507(1), an individual or entity that exercises significant control over the financial affairs of an employer, including without limitation the disbursements of funds or determining the priority of payments to creditors, is deemed to be a person required to collect, truthfully account for, and pay over any tax imposed by this Chapter on salaries, wages, commissions and other compensation.

   (3)   For purposes of this Section, "person" includes a shareholder, director, trustee, officer or employee of a corporation, or a partner or employee of a partnership, or the sole proprietor of a sole proprietorship, or a third party who makes either direct payment of wages to the employees of another or advances funds to pay the wages of the employees of another.

   (4)   More than one person may be liable under subsection 19-1507(1) with respect to the same employer, with each such person being jointly and severally liable for the full amount of the tax.

   (5)   This Section is modeled upon Section 6672 of the Internal Revenue Code (26 U.S.C. § 6672), and it is City Council's intent that this Section be construed in the same manner that Section 6672 has been construed.

 

Notes

332	Added, Bill No. 1134 (approved July 25, 1995), 1995 Ordinances, p. 1227.