§ 19-1806. Authorization of Realty Use and Occupancy Tax. 393

   (1)   Definitions. In this Section the following definitions shall apply:

      (a)   Commissioner. School Revenue Commissioner.

      (b)   Landlord. Any person who grants the right to use or occupy real estate or any part thereof to any lessee, sublessee, licensee or concessionaire, whether or not he is the owner of the real estate.

      (c)   Port of Philadelphia. Piers, wharves and marine terminal facilities entering into or abutting either the Delaware or Schuylkill Rivers which are within the confines of the City of Philadelphia. 394

      (d)   Port Related Activities. Loading or discharging cargo to or from vessels conducted on piers, wharves or marine terminal facilities in the Port of Philadelphia and activities related thereto such as furnishing dockage, wharfage, truck and/or railroad car loading and unloading and storage of cargo which is to be loaded or has been discharged from vessels at a pier wharf or marine terminal facility in the Port of Philadelphia. 395

      (e)   Tax Year. July first of any calendar year through June 30 of the following calendar year. 396

      (f)   Square Feet Available for Use or Occupancy. The whole portion of any real estate, any structure thereon and space therein exclusive of service, utility and common areas controlled by the landlord or owner thereof. 397

      (g)   OPA. Office of Property Assessment. 398

   (2)   Imposition of the Tax.

      (a)   The Board of Education of the School District of Philadelphia is authorized to impose a tax for general school purposes on the use or occupancy of real estate within the School District of Philadelphia during the tax year beginning July 1, 1988 for the purpose of carrying on any business, trade, occupation, profession, vocation, or any other commercial or industrial activity. This tax is imposed on the user or occupier of real estate. 399

      (b)   The Board of Education of the School District of Philadelphia is authorized to impose a tax for general school purposes on the use or occupancy of real estate within the School District of Philadelphia during the tax years beginning July 1, 2001, July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, July 1, 2007, July 1, 2008, July 1, 2009, July 1, 2010, July 1, 2011, July 1, 2012, July 1, 2013, July 1, 2014, July 1, 2015, July 1, 2016, July 1, 2017, and thereafter for the purpose of carrying on any business, trade, occupation, profession, vocation, or any other commercial or industrial activity. This tax is imposed on the user or occupier of real estate. 400

   (3)   Exclusions.

      (a)   This authorization shall not include the authority to levy a tax on the use or occupancy of real estate to the extent that the real estate is used or occupied as the dwelling or principal place of residence of the user or occupier or its use or occupancy is subject to tax by the Commonwealth of Pennsylvania under the Tax Act of 1963 for Education.

      (b)   This authorization shall not authorize this tax to be imposed upon any person exempt from real estate taxes in the City of Philadelphia.

      (c)   This authorization shall not include the authority to levy a tax on the use or occupancy of facilities used in or occupied by those engaged in Port related activities. 401

   (4)   Rate and Computation of Tax. 402

      (a)   Rate.

         (.1)   The tax authorized by this Section shall be measured by the assessed value of the real estate, for the tax year beginning July 1, 1988, at the rate not to exceed three dollars and eighty-five cents ($3.85) per one hundred dollars ($100) of the assessed value of the real estate as most recently returned by the Board of Revision of Taxes. In the event that a court of competent jurisdiction enters a final order from which all appeals have been exhausted, determining that City Council lacked the authority to impose this rate effective July 1, 1988, the rate shall revert to three dollars and twenty-five cents ($3.25) per one hundred dollars ($100) of the assessed value of the real estate as most recently returned by the Board of Revision of Taxes.

         (.2)   The tax authorized by this Section shall be measured by the assessed value of the real estate, for the tax years beginning July 1, 2001, July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, July 1, 2007, July 1, 2008, July 1, 2009, July 1, 2010, and July 1, 2011, at the rate each year not to exceed four dollars and sixty-two cents ($4.62) per one hundred dollars ($100) of the assessed value of the real estate as most recently returned by the Board of Revision of Taxes. 403

         (.3)   The tax authorized by this Section shall be measured by the assessed value of the real estate, for the tax year beginning July 1, 2012, at the rate not to exceed five dollars and fifty-one cents ($5.51) per one hundred dollars ($100) of the assessed value of the real estate as most recently returned by the Office of Property Assessment, except that, for the tax year beginning July 1, 2012, only, the tax shall be calculated based on the assessed value of the real estate as returned by the Office of Property Assessment in 2011. 404

      (b)   Computation. For tax years subject to subsection (a), above, the tax to be paid by the user or occupier shall be computed as follows: 405

 

Square feet occupied or used Total square feet available for use or occupancy on the real estate

x

Assessed value

x

Rate of taxation

x

Days of actual use of occupancy 360

 

      (c)   Computation for Tax Years beginning on or after July 1, 2013. 406 The tax to be paid by the user or occupier, for the tax year beginning July 1, 2013, and for all tax years thereafter, shall be computed as follows:

         (.1)   First, calculate the following product:

 

Square feet occupied or used Total sq. ft. available for use or occupancy on the real estate

x

Assessed value

 

         (.2)   Next, subtract the Exemption Amount from the foregoing product.

         (.3)   If the foregoing difference is less than zero, the tax liability is zero. Otherwise, multiply the foregoing difference by the following:

 

Tax Rate

x

Days of actual use of occupancy 360

 

         (.4)   For purposes of this subsection (c):

            (.a)   Assessed Value shall mean the assessed value of the real estate as most recently returned by the Office of Property Assessment prior to the start of the Tax year; provided that, for tax years beginning July 1, 2019, and thereafter, Assessed Value shall mean: 407

               (i)   For use and occupancy from July 1 of the Tax year until December 31 of the Tax year: the assessed value of the real estate applicable to real estate taxes due during such calendar year.

               (ii)   For use and occupancy from January 1 of the Tax year until June 30 of the Tax year: the assessed value of the real estate applicable to real estate taxes due during such calendar year.

            (.b)   The Exemption Amount shall be as follows: 408

 

Tax Year Beginning	Exemption Amount
July 1, 2013	$177,000 per property
July 1, 2014	$177,000 per property
July 1, 2015 and thereafter	$165,300 per property

 

Where there are multiple taxpayers using or occupying a property, the Exemption Amount shall be allocated equally among all such taxpayers, so that each taxpayer's Exemption Amount shall be the Exemption Amount per property divided by the number of taxpayers using or occupying the property. Every landlord shall provide to the tenants of a property the number of users or occupiers of the property.

            (.c)   The Tax Rate shall be as follows: 409

 

Tax Year Beginning	Tax Rate
July 1, 2013	1.13%
July 1, 2014	1.13%
July 1, 2015 and thereafter	1.21%

 

            (.d)   Notwithstanding the provisions of Section 19-509 (related to interest, penalties and costs) for the tax year beginning July 1, 2013, and July 1 each year thereafter, no interest, penalties or cost shall accrue while an appeal of the assessed value of the taxable property is pending, provided:  410

               (i)   the Taxpayer has timely filed an appeal of the assessed value with the Board of Revision of Taxes or court of competent jurisdiction between March 31, 2013 and October 6, 2014; and

               (ii)   the Taxpayer has, in accordance with subsection 19-1806(5), paid when due an amount equal to the Realty Use and Occupancy Tax due for the same period in the tax year beginning July 1, 2012;

               (iii)   Where the Taxpayer has timely filed an appeal of the assessed value with the Board of Revision of Taxes or court of competent jurisdiction within the time period specified in subsection (.d)(i), and a final determination has not been made on the appeal, the Department shall, while the appeal is pending, bill the taxpayer for the tax years beginning July 1, 2013, and July 1 each year thereafter, no more than the amount of Realty Use and Occupancy Tax due for the same period in the tax year beginning July 1, 2012;

               (iv)   Where a taxpayer has complied with the provisions of subsections (.d)(i) and (ii), any overpayment for a tax year beginning July 1, 2013, or July 1 each year thereafter, resulting from a final determination of the assessment appeal of the taxable property shall be credited against amounts due in future periods until exhausted;

               (v)   Where a taxpayer has complied with the provisions of subsections (.d)(i) and (ii), any outstanding balance for any tax year beginning July 1, 2013, or July 1 each year thereafter, which remains due after a final determination of the assessment appeal of the taxable property shall be deemed to have been paid when due if payment in full is received by the Department within thirty (30) days of the date of the final determination. Thereafter, amounts remaining due and unpaid shall accrue interest, penalties and costs in accordance with the provisions of Section 19-509 (related to interest, penalties and costs).

   (5)   Collection and Payment of the Tax. 411

      (a)   Each owner of real estate used or occupied solely by such owner, which use or occupancy is subject to the tax under this Section, shall make a return and pay the total tax due to the Commissioner at monthly, quarterly or semi-annual intervals, as the Commissioner shall establish by regulation. In the case of persons required to file returns and pay the tax due at monthly intervals, the returns shall be filed and the tax due shall be paid by the twenty-fifth day of the month for which the tax is due. In the case of persons required to file returns and pay the tax due at quarterly or semi-annual intervals, the returns shall be filed and the tax due shall be paid by the twenty-fifth day of the last month of the quarterly or semi-annual period, as the case may be.

      (b)   Each landlord or other person authorized to collect rentals on premises, the use or occupancy of which is subject to tax under this Section, shall collect as agent for the School District of Philadelphia, from each user or occupier the proper proportion of the user's or occupier's tax, at monthly, quarterly or semi-annual intervals, as the Commissioner shall establish by regulation and shall make a return and pay the total tax due from such user or occupier together with any tax for which the landlord or other person is liable, to the Commissioner at monthly, quarterly, or semi-annual intervals, as the Commissioner shall establish by regulation. In the case of persons required to file returns and pay the tax due at monthly intervals, the returns shall be filed and the tax due shall be paid by the twenty-fifth day of the month for which the tax is due. In the case of persons required to file returns and pay the tax due at quarterly or semi-annual intervals, the returns shall be filed and the tax due shall be paid by the twenty-fifth day of the last month of the quarterly or semi-annual period, as the case may be. 412

      The return shall be on forms furnished by the Commissioner. The failure of any person to procure or receive any report form shall not excuse him from making a return and paying the tax due.

      Any person required under this Section to collect the tax from a user or occupier, who shall fail to collect the proper amount of such tax, shall be liable for the full amount of the tax which is due from such user or occupier, provided, however, that if the person required by this Section to collect the tax shall notify the Commissioner, concurrently with the timely filing of a tax return for the period for which the tax is due, of such information as the Commissioner may require concerning the identity of such user or occupier who has not paid the tax, and the amount of tax not paid for the taxable period by each user or occupier, then said person required to collect the tax shall be excused from said liability.

      (c)   Any person required by this Section to collect the tax from a user or occupier, who shall remit the tax due by the twenty-fifth day of the month in which the tax is due, shall be entitled to apply against the tax due a discount of one percent (1%), as compensation for the expenses of collecting and remitting the tax and as a consideration for the prompt payment thereof. 413

      (d)   The Commissioner shall cause to be publicized, by means most reasonably effective, the names of the forty users or occupiers most grossly in arrears regarding the nonpayment of this tax, on a periodic basis of not less than once each calendar month. 414

 

Notes

393	Added, 1970 Ordinances, p. 743; amended, 1980 Ordinances, p. 12.
394	Added, 1982 Ordinances, p. 756.
395	Amended, 1982 Ordinances, p. 756.
396	Amended, 1982 Ordinances, p. 756.
397	Amended, 1982 Ordinances, p. 756.
398	Added, Bill No. 120173-A (approved June 27, 2012).
399	Amended, 1971 Ordinances, p. 800; amended, 1972 Ordinances, p. 401; amended, 1973 Ordinances, p. 513; amended, 1974 Ordinances, p. 549; amended, 1975 Ordinances, p. 481; amended, 1976 Ordinances, p. 550; amended, 1977 Ordinances, p. 392; amended, 1978 Ordinances, p. 808; amended, 1979 Ordinances, p. 923; amended, 1980 Ordinances, p. 497; amended, 1981 Ordinances, p. 879; amended, 1982 Ordinances, p. 1301; amended, 1983 Ordinances, p. 1079; amended, 1984 Ordinances, p. 597; amended, 1985 Ordinances, p. 756; amended, 1986 Ordinances, p. 298; amended, 1988 Ordinances, p. 328.
400	Added, 1989 Ordinances, p. 783 (Bill No. 442). Section 2 of Bill No. 442 includes certain effective date provisions in the event of litigation relating to tax year 1988-89; no such litigation was filed. Amended, 1991 Ordinances, p. 434; amended, 1992 Ordinances, p. 548; amended, 1993 Ordinances, p. 631; amended, 1994 Ordinances, p. 803; amended, Bill No. 1052 (approved June 2, 1995), 1995 Ordinances, p. 608; amended, Bill No. 49 (approved June 18, 1996), 1996 Ordinances, p. 449; amended, Bill No. 970133 (approved April 3, 1997); amended, Bill No. 990027 (approved May 10, 1999); amended, Bill No. 000008 (approved April 11, 2000); amended, Bill No. 010013 (approved April 4, 2001); amended, Bill No. 020032 (approved April 24, 2002); amended, Bill No. 030012 (approved June 5, 2003); amended, Bill No. 040262 (approved June 10, 2004); amended, Bill No. 050006 (approved May 19, 2005); amended, Bill No. 060008 (approved June 1, 2006); amended, Bill No. 070119 (approved June 13, 2007); amended, Bill No. 080159 (approved May 22, 2008); amended, Bill No. 090217 (approved May 27, 2009); amended, Bill No. 100119 (approved June 1, 2010); amended, Bill No. 110139 (approved June 24, 2011); amended, Bill No. 120173-A (approved June 27, 2012); amended, Bill No. 130182-A (approved June 25, 2013); amended, Bill No. 140147 (approved June 27, 2014); amended, Bill No. 150535 (approved June 18, 2015); amended, Bill No. 160173 (approved June 16, 2016); amended, Bill No. 170200 (approved June 14, 2017).
401	Added, 1982 Ordinances, p. 756.
402	Amended, 1980 Ordinances, p. 497; amended, 1981 Ordinances, p. 879; amended, 1982 Ordinances, p. 1301; amended, 1988 Ordinances, p. 328; amended, 1989 Ordinances, p. 783.
403	Amended, 1991 Ordinances, p. 434; amended, 1992 Ordinances, p. 548; amended, 1993 Ordinances, p. 631; amended, 1994 Ordinances, p. 803; amended, Bill No. 1052 (approved June 2, 1995), 1995 Ordinances, p. 608; amended, Bill No. 49 (approved June 18, 1996), 1996 Ordinances, p. 449; amended, Bill No. 970133 (approved April 3, 1997); amended, Bill No. 990027 (approved May 10, 1999); amended, Bill No. 000008 (approved April 11, 2000); amended, Bill No. 010013 (approved April 4, 2001); amended, Bill No. 020032 (approved April 24, 2002); amended, Bill No. 030012 (approved June 5, 2003); amended, Bill No. 040262 (approved June 10, 2004); amended, Bill No. 050006 (approved May 19, 2005); amended, Bill No. 060008 (approved June 1, 2006); amended, Bill No. 070119 (approved June 13, 2007); amended, Bill No. 080159 (approved May 22, 2008); amended, Bill No. 090217 (approved May 27, 2009); amended, Bill No. 100119 (approved June 1, 2010); amended, Bill No. 110139 (approved June 24, 2011); amended, Bill No. 120173-A (approved June 27, 2012).
404	Added, Bill No. 120173-A (approved June 27, 2012); amended, Bill No. 130182-A (approved June 25, 2013).
405	Amended, Bill No. 130182-A (approved June 25, 2013).
406	Added, Bill No. 130182-A (approved June 25, 2013).
407	Amended, Bill No. 180139 (approved April 18, 2018).
408	Amended, Bill No. 150535 (approved June 18, 2015).
409	Amended, Bill No. 150535 (approved June 18, 2015).
410	Added, Bill No. 130592 (became law October 31, 2013); amended, Bill No. 150197 (approved May 5, 2015).
411	Amended, 1985 Ordinances, p. 542 (effective for Realty Use and Occupancy Tax due for any period commencing on or after July 1, 1985).
412	Amended, 1971 Ordinances, p. 1435; amended, 1982 Ordinances, p. 1387; amended, 1983 Ordinances, p. 494.
413	Amended, 1986 Ordinances, p. 872.
414	Added, 1983 Ordinances, p. 494.