In addition to the definitions provided in the Act of May 30, 1984, P.L. 345, No. 69, known as the First Class City Business Tax Reform Act, and Chapter 19-500 of this Title, the following definitions shall apply:
Affiliated Group. One or more chains of corporations connected through stock ownership with a common parent corporation if:
(1) Stock possessing at least eighty percent (80%) of the voting power of all classes of stock and at least eighty percent (80%) of each class of the nonvoting stock of each corporation, except the common parent corporation, is owned directly by one or more of the other corporations.
(2) The common parent corporation owns directly stock possessing at least eighty percent (80%) of the voting power of all classes of stock and at least eighty percent (80%) of each class of the nonvoting stock of at least one of the other corporations.
As used in this definition, "stock" does not include nonvoting stock which is limited and preferred as to dividends.
Business. Carrying on or exercising for gain or profit within a city of the first class, any trade, business, including financial business as hereinafter defined, profession, vocation or commercial activity, including the partial or complete liquidation or sale of business assets, or making sales to persons within such city of the first class. "Business" shall not include the following: 454
(1) Any business conducted by a nonprofit corporation or association organized for religious, charitable, or education purposes, other than commercial activity that does not directly serve and is not directly connected with the corporation or association's religious, charitable, or education purposes; the business of any political subdivision, or of any authority created and organized under and pursuant to law of this Commonwealth, and the business of any credit union chartered under the laws of this Commonwealth. 455
(2) The specific business conducted by any public utility operating under the laws, rules and regulations administered by the Pennsylvania Public Utility Commission or conducted by a business subject to the jurisdiction of the Interstate Commerce Commission of furnishing or supplying service or services at the rates specified in its tariffs.
(3) The business of any insurance company, association or exchange, or any fraternal, benefit or beneficial society of any other state under the laws of which insurance companies, associations or exchanges or fraternal, benefit or beneficial societies of this Commonwealth doing business in such other state are subjected, by reason of the tax imposed by this act, to additional or further taxes, fines, penalties or license fees by such other state.
(4) Any employment for a wage or salary.
(5) For the tax year 1986 and thereafter, the business of loading or discharging cargo to or from vessels conducted on piers, wharves or marine terminal facilities in the Port of Philadelphia and business 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. 456
(6) Any hobby or other not-for-profit activity, as set forth at 26 C.F.R. § 1.183-2. The determination of whether an activity is engaged in for profit is made by reference to objective factors, taking into account all of the facts and circumstances of each case. The Department of Revenue shall promulgate regulations setting forth the factors to be considered in making this determination, which regulations shall be consistent with 26 C.F.R. § 1.183-2. The relevant, non-exclusive factors set forth in 26 C.F.R. § 1.183-2 are: (1) the manner in which the person carries on the activity; (2) the expertise of the person carrying on the activity or such person's advisors; (3) the time and effort expended by the person in carrying on the activity; (4) the expectation that assets used in the activity may appreciate in value; (5) the success of the person in carrying on other similar or dissimilar activities; (6) the person's history of income or losses with respect to the activity; (7) the amount of occasional profits, if any, which are earned from the activity; (8) the financial status of the person carrying on the activity; and (9) elements of personal pleasure or recreation in carrying on the activity. 457
(7) For tax year 2012 and thereafter, the activities of (i) an investment company (no matter how organized) as defined in subsection 3(a) of the Investment Company Act of 1940, without regard to the exceptions set forth at subsections 3(c)(1), 3(c)(3) with respect to common trusts or similar funds, 3(c)(5)(C), 3(c)(7), 3(c)(9), 3(c)(10), 3(c)(11), or 3(c)(14) of said Act; and (ii) an entity or natural person directly or indirectly owning a general partnership interest or a managing member interest in a limited liability company in an entity described in subparagraph (i) that is not publicly traded, to the extent that the activities consist of the exercise of management responsibilities of a general partner or of a managing member in a limited liability company and result in income, gross, net or otherwise, that is measured by or otherwise based on the financial performance of the entity. Except as otherwise provided by law, the activities of any such entity or natural person other than the activities described above shall not be excluded from the definition of "business". The Revenue Department may, by regulation, apply the provisions of subparagraphs (i) or (ii) to the activities of an entity or natural person that are substantially the same as those described in subparagraph (i) or (ii) whether or not the investee entity is publicly traded. 458
Collector. The receiver of taxes in cities of the first class.
Community-Based Organization. Any group affiliated with, or organized for the benefit of, one or more communities or neighborhoods; or any group organized to benefit the quality of life in a residential area.
Cost of Goods. In the case of a retailer or wholesaler, the cost of goods, wares, commodities, and merchandise purchased by the retailer or wholesaler and resold by him, such cost to include all freight-in charges.
Cost of Labor. In the case of a retailer or wholesaler, the cost of the labor of his employees used in receiving, storing, shipping, and delivering the goods, wares, commodities, or merchandise purchased for resale and the cost of the salaries or commissions paid to his employees for making the actual sales of the goods, commodities or merchandise.
Dividends. Any distribution made by a corporation to its shareholders in respect of its stock, whether ordinary, extraordinary or in liquidation.
Drug Paraphernalia. Drug paraphernalia as defined in the Act of December 4, 1980, P.L. 1093, No. 186, § 1, 35 P.S. § 780-102. 459
Equity Interest. A legal or equitable ownership interest in a property or business, however designated, including, but not limited to, capital stock, partnership interests, or membership interests. 460
Financial Business. Other than the business of any regulated industry, the services and transactions of private banks and bankers; building and loan associations; savings and loan associations; credit unions; savings banks; banks; bank and trust companies; trust companies; investment companies registered as such with the Federal Securities and Exchange Commission; holding companies; persons registered under the act of December 5, 1972 (P.L. 1280), known as the Pennsylvania Securities Act of 1972, including traders, dealers and brokers in money, credits, commercial paper, bonds, notes, securities and stocks, and monetary metals; factors and commission merchants.
Illegal Drugs. All drug products the sale of which is prohibited in the Commonwealth, as identified, or as named, in The Act of April 14, 1972, P.L. 233, No. 64, §§ 3 and 4; as amended; 35 P.S. §§ 780-103, 104, as amended.
Information Technology Company. A person whose business is categorized as electronic data processing services (NAIC 5142 and 51421), computer systems design and related services (NAIC 5415, 54151, and 541512), custom computer programming services (NAIC 541511), computer facilities management services (NAIC 541513), and on-line information services (NAIC 514191), as set forth in the North American Industry Classification System, 1997 ("NAIC") codes established by the Office of Management and Budget, Executive Office of the President. 461
Manufacturer. A person whose business is the sale of goods, commodities, wares or merchandise of its own manufacture, growth or production.
Net Income.
(a) "Net income" shall, at the option of the taxpayer, which option shall not be revokable by the taxpayer after it has been exercised as provided for by the collector, be either:
(.1) The net gain from the operation of a business, after provision for all allowable costs and expenses actually incurred in the conduct thereof, either paid or accrued in accordance with the accounting system used, without deduction of taxes based on income, subject to a deduction for the pro rata portion of net income attributable to receipts that are excluded under subsection (14) of the definition of "receipts" of this Section; or 462
(.2) The taxable income from any business activity as returned to and ascertained by the Federal Government prior to giving effect to the exclusion for dividends received and net operating loss, subject to the following adjustments:
(.a) A deduction for dividends, interest and royalty income and other receipts excluded from the definition of receipts under paragraphs (5) and (7) of that definition, but only to the extent that such dividends, interest, royalty and other receipts are included in taxable income as returned to and ascertained by the Federal Government as heretofore defined.
(.b) A deduction for net income attributable to receipts that are excluded under paragraph (6) or (9) of the definition of "receipts" of this Section. 463
(.c) A deduction for income received from all obligations of the United States, including stocks, bonds and Treasury notes and other obligations of the United States.
(.d) An increase for interest expense attributable to these stocks, bonds and Treasury notes and other obligations of the United States or any of its political subdivisions which is exempt from taxation of income under the laws of the United States or of the Commonwealth. The increase shall not exceed the deduction claimed in subsection (.3).
(.e) A deduction for net income of persons registered under the Pennsylvania Securities Act of 1972 other than the net income attributable to commissions and similar charges on account of transactions effected for persons residing or having their principal place of business within a city of the first class; or
(.3) The taxable income from any business activity as returned to and ascertained by the Federal Government prior to giving effect to the exclusion for dividends received and net operating loss, subject to the following adjustments: 464
(.a) A deduction for dividends, interest and royalty income and other receipts excluded from the definition of receipts under subsections (5) and (7) of that definition, but only to the extent that such dividends, interest, royalty and other receipts are included in taxable income as returned to and ascertained by the Federal Government as heretofore defined.
(.b) A deduction for net income attributable to receipts that are excluded under subsection (6) or (9) of the definition of "receipts" of this Section.
(.c) A deduction for income received from all obligations of the United States, including stocks, bonds and Treasury notes and other obligations of the United States.
(.d) An increase for interest expense attributable to these stocks, bonds and Treasury notes and other obligations of the United States or any of its political subdivisions which is exempt from taxation of income under the laws of the United States or of the Commonwealth. The increase shall not exceed the deduction claimed in subsection (.3).
(.e) A deduction for net income of persons registered under the Pennsylvania Securities Act of 1972 other than the net income attributable to commissions and similar charges on account of transactions effected for persons residing or having their principal place of business within a city of the first class.
(.f) A deduction for the pro rata portion of net income attributable to receipts that are excluded under subsection (14) of the definition of "receipts" of this Section. 465
(b) In the case of a corporation participating in the filing of a consolidated corporate return to the Federal Government, net income shall mean the income from any business activity which would have been returned to and ascertained by the Federal Government, subject, however to any correction thereof for fraud, evasion or error as finally ascertained by the Federal Government. Notwithstanding any other provision of this act, no taxpayer shall be required or permitted to participate in the filing of a consolidated or combined tax return under this act.
(c) The collector shall establish rules and regulations and methods of apportionment and allocation and evaluation so that only that part of such net income or net operating loss which is properly attributable and allocable to the doing of business in the city of the first class levying the tax shall be taxed hereunder. The collector may make an apportionment and allocation with due regard to the nature of the business concerned on the basis of mileage, the ratio of the taxable receipts of the taxpayer from within the city to the total receipts of the taxpayer, the ratio of the value of the tangible personal and real property owned or leased and situated in the city levying the tax to the total tangible personal and real property of the taxpayer wherever owned and situated, the ratio of the wages, salaries, commissions and other compensation paid by the taxpayer within the city levying the tax to the total wages, salaries, commissions and other compensation paid by the taxpayer, and any other method or methods of apportionment and allocation other than the foregoing, calculated to effect a fair and proper apportionment and allocation. The net income of a person which is described as being subject to a tax pursuant to Article VII, VIII, IX or XV of the act of March 4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971, shall be allocated, and apportioned to a city of the first class in accordance with a fraction of which the numerator shall be "receipts" as defined and limited in this Section, and the denominator shall be receipts regardless of whether received in or apportionable to the city of the first class.
(d) After apportioning and allocating net income, apportioned and allocated net operating losses carried forward shall be deducted.
Net Operating Loss.
(1) In the case of a person conducting its entire business within a city of the first class, any net losses incurred from the operation of its business as returned to and ascertained by the Federal Government prior to giving effect to the exclusion for dividends received and net operating loss subject to the same adjustments made applicable to net income in this Section. In the case of a person conducting its business both within and without a city of the first class, any net operating loss incurred which is carried forward to another tax year shall be allocated and apportioned in the same manner as net income prior to its being deducted from apportioned and allocated net income in the subsequent tax year. Apportionment and allocation of net operating loss shall be based upon allocation and apportionment factors applicable to the year in which the net operating loss was incurred.
(2) Net operating losses incurred in another tax period may be carried over for three (3) tax years following the year in which it was incurred. The earliest net loss shall be carried over to the earliest taxable year to which it may be carried. 466
Occupier. Any person, group or business occupying private property under any form of agreement with the owner or manager whether written or unwritten or without an agreement, or at sufferance.
Owner. A legal owner of property, no matter what the form or length of such ownership.
Person. Any individual, partnership, limited partnership, association, corporation, estate or trust. Whenever used in any provision prescribing or imposing a penalty, the term "person", as applied to associations, shall mean the partners or members thereof, and as applied to corporations, the officers thereof.
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. 467
Private Nuisance. Any unreasonable interference with another's right to use and enjoy private property. A public nuisance which affects private rights is also actionable as a private nuisance.
Public Nuisance. Any unreasonable interference with a public right of more than three (3) people caused by any activity or condition which violates The Philadelphia Code, an ordinance, or any statute.
Receipts. Cash, credits, property of any kind or nature, received from conducting any business or by reason of any sale made, including resales of goods, wares or merchandise taken by a dealer as a trade-in or as part payment for other goods, wares or merchandise or services rendered or commercial or business transactions, without deduction therefrom on account of the cost of property sold, materials used, labor, service or other cost, interest or discount paid or any other expense. For the purpose of determining receipts from the business of insurance, such receipts shall mean those from premiums received from risks within the city of the first class, whether by mutual or stock companies, domestic or foreign, without any deductions therefrom for any cost or expenses whatsoever; except, premiums shall not include return premiums, dividends paid or credited to policyholders, if such dividends are in the nature of an adjustment of the premiums charged, and premiums received for reinsurance. Receipts from a person engaged in the business of insurance shall also include receipts from rental real estate situated in cities of the first class, but shall not include interest, dividend and capital gain receipts. Nothing in this definition shall preclude the taxation of other nonpremium business receipts of persons engaged in the business of insurance. For purposes of determining the source of receipts of a Software Company the Market Based Sourcing Rule shall apply in accordance with Section 408(8) of the Department of Revenue Business Privilege Tax Regulations so that the source of receipts from the sale of products and services shall be deemed to be the location where the recipient receives the benefit of the products and services. Receipts of any business shall exclude: 468
(1) The amount of any allowance made for goods, wares or merchandise taken by a dealer as a trade-in or as part payment for other goods, wares and merchandise in the usual and ordinary course of his business.
(2) In the case of a financial business or a person which is described as being subject to a tax imposed pursuant to Article VII, VIII or XV of the Tax Reform Code of 1971, the cost of securities and other property sold, exchanged, paid at maturity, or redeemed; moneys or credits received in repayment of the principal amount of deposits, advances, credits, loans and other obligations; interest received on account of deposits, advances, credits, loans and other obligations made to persons resident or having their principal place of business outside such city; interest received on account of other deposits, advances, credits, loans and other obligations but only to the extent of interest expense attributable to such deposits, advances, credits, loans and other obligations and shall also exclude payments received on account of shares purchased by shareholders.
(3) In the case of a broker, any commissions paid by him to another broker on account of a purchase or sales contract initiated, executed or cleared in conjunction with such other broker, except where either is an employee of the other.
(4) Receipts by dealers from sales to other dealers in the same line, where the dealer transfers title or possession at the same price for which he acquired the goods, wares or merchandise.
(5) Dividends, interest and royalties received by one corporation from:
(.1) a corporation of the same affiliated group; or
(.2) a corporation of which the receiving corporation owns at least twenty percent (20%) of the voting power of all classes of stock and at least twenty percent (20%) of each class of nonvoting stock.
(6) Receipts from the specific business conducted by any public utility operating under the laws, rules and regulations administered by the Pennsylvania Public Utility Commission or conducted by a business subject to the jurisdiction of the Interstate Commerce Commission of furnishing or supplying service or services at the rates specified in its tariffs.
(7) Receipts by a corporation which is a member of an affiliated group from other members of the same affiliated group.
(8) Commissions and similar charges received by persons registered under the Pennsylvania Securities Act of 1972, on account of transactions effected for persons resident and having their principal place of business outside the city of the first class.
(9) For the tax year 1986 and thereafter, receipts from the business of loading or discharging cargo to or from vessels conducted on piers, wharves or marine terminal facilities in the Port of Philadelphia and from business 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. 469
(10) Beginning with the tax year 1996 and thereafter, receipts, or portion of receipts, attributable to the bona fide delivery of fiber, yarn, fabric or materials that have been dyed by a chemical mechanical process to a location regularly maintained by the other party to the transaction outside the limits of the city of the first class, and not for the purpose of evading or avoiding payment of the tax, or any portion thereof, imposed under this act. 470
(11) For the tax year 2001 through and including the tax year 2006, any receipts, or a portion of a receipt, from the specific business conducted by an information technology company. 471
(12) Beginning with the tax year 2006 and thereafter, receipts, or portion of receipts, attributable to the bona fide delivery of goods, wares or merchandise by persons engaged in bookbinding, which shall mean any business categorized as tradebinding (NAIC 323121) under the North American Industry Classification System, 2002 ("NAIC") codes established by the Office of Management and Budget, Executive Office of the President, to a location regularly maintained by the other party to the transaction outside the limits of the city of the first class, and not for the purpose of evading or avoiding payment of the tax, or any portion thereof, imposed under this Chapter. 472
(13) For the tax year 2011 and thereafter, any interest or fees received on loans made under the federal New Market Tax Credit program, Section 45D of the Internal Revenue Code, 26 U.S.C. § 45D. 473
(14) For tax year 2014, the first fifty thousand dollars ($50,000) in taxable receipts received by any person or business subject to the business privilege tax under this Chapter; for tax year 2015, the first seventy-five thousand dollars ($75,000) in taxable receipts received by any person or business subject to the business privilege tax under this Chapter; for tax year 2016 and thereafter, the first one hundred thousand dollars ($100,000) in taxable receipts received by any person or business subject to the business privilege tax under this Chapter. 474
Regulated Industry. A person subject to a tax pursuant to Articles VII, VIII, IX or XV of the Tax Reform Code of 1971 or any public utility operating under the laws, rules and regulations administered by the Pennsylvania Public Utility Commission, all or a portion of the activities of which is to furnish or supply service or services at the rates specified in its tariffs.
Retailer. A person whose business is the sale of goods, commodities, wares or merchandise to persons who are not dealers or vendors of those goods, commodities, wares or merchandise.
Sale. Transfer of title to goods, wares, commodities or merchandise, regardless of where accomplished, the delivery of which is made by the seller within a city of the first class. "Sale" shall not include any intra-company transfer.
Software Company. 475 A persons whose business is categorized as computer systems design and related services (NAICS 5415, 54151, 541512), computer software publishing (NAICS 51121), internet publishing and broadcasting (NAICS 51611), internet web service provider (NAICS 51811), data processing, hosting and related services (NAICS 518210), and financial transaction processing and clearing (NAICS 52232).
Taxable Receipts.
(1) Receipts, as defined and limited in this Section, within the limits of the city of the first class.
(2) Taxable receipts shall exclude the following:
(.1) receipts or portion of receipts attributable to any sale involving the bona fide delivery of goods, commodities, wares or merchandise to a location regularly maintained by the other party to the transaction outside the limits of a city of the first class, and not for the purpose of evading or avoiding payment of the tax, or any portion thereof, imposed under this act;
(.2) receipts or portion of receipts received for any services actually performed outside the limits of a city of the first class and not for the purpose of evading or avoiding payment of the tax, or any portion of it imposed, under this act.
(3) Taxable receipts of persons making sales or rendering services both inside and outside a city of the first class, or both, are to be segregated.
(4) In the event, and only in the event, taxable receipts as defined in this subsection are incapable of segregation, the collector shall establish rules and regulations and methods of allocation and apportionment and evaluation so that only that part of such taxable receipts which is properly attributable to the doing of business within a city of the first class levying this tax shall be taxed hereunder.
Tax Measurement Year. The fiscal or calendar year by which the person engaging in business keeps its books and records for federal tax purposes. 476
Tax Year. A 12-month period from January 1 to December 31.
Wholesaler. A person whose business is the sale of goods, commodities, wares or merchandise to dealers or vendors of those goods, commodities, wares or merchandise.
Notes
| 453 | Amended, 1985 Ordinances, p. 152; amended, 1991 Ordinances, p. 255. |
| Section 19-2601 - Conditional Amendment | This section has been amended by Bill No. 220485 (approved June 27, 2022). Section 2 of Bill No. 220485 provides: "This ordinance shall take effect for the Tax Year immediately following the year of enactment of authorizing legislation by the Pennsylvania General Assembly." At the time of posting, the authorizing legislation had not been enacted, and the amendments to this section are not incorporated here. |
| 454 | Amended, Bill No. 020115 (approved November 26, 2002). |
| 455 | Amended, Bill No. 130009 (approved June 25, 2013). |
| 456 | Added, 1986 Ordinances, p. 292. |
| 457 | Added, Bill No. 100754 (approved June 15, 2011). |
| 458 | 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." |
| 459 | Added, 1989 Ordinances, p. 267. |
| 460 | Added, Bill No. 180940-A (approved January 3, 2019), effective July 1, 2020. |
| 461 | Added, Bill No. 000336 (approved September 14, 2000), effective January 1, 2000. |
| 462 | Amended, Bill No. 110554 (approved November 14, 2011). Enrolled bill referenced paragraph (13); renumbered by Code editor. |
| 463 | Amended, 1986 Ordinances, p. 292. |
| 464 | Added, Bill No. 110554 (approved November 14, 2011). |
| 465 | Enrolled bill referenced paragraph (13); renumbered by Code editor. |
| 466 | Amended, Bill No. 180909 (became law January 24, 2019). Section 2 of Bill No. 180909 provides: "This ordinance shall take effect upon the enactment of authorizing legislation by the Pennsylvania General Assembly." To date, authorizing legislation has not been passed, so the amendments have not been included herein. |
| 467 | Added, 1986 Ordinances, p. 292. |
| 468 | Amended, Bill No. 121037-A (approved June 17, 2013). |
| 469 | Added, 1986 Ordinances, p. 292. |
| 470 | Added, Bill No. 960364 (approved July 8, 1996), 1996 Ordinances, p. 695. |
| 471 | Added, Bill No. 000336 (approved September 14, 2000), effective January 1, 2000. |
| 472 | |
| 473 | |
| 474 | |
| 475 | Added, Bill No. 121037-A (approved June 17, 2013). |
| 476 | Added, Bill No. 020115 (approved November 26, 2002). Section 2 of the Ordinance provides: "This Ordinance shall take effect upon the later of the date this Ordinance becomes law or the effective date of state legislation authorizing this Ordinance. This Ordinance shall apply to tax years 2002 and thereafter, except that if this Ordinance is approved after November 30, 2002, this Ordinance shall apply to tax years 2003 and thereafter." Authorized by Act of December 30, 2002, P.L. 2089, No. 237, § 1, effective immediately, so effective for tax years 2003 and thereafter. |
(1) Every person desiring to engage in or to continue to engage in any business within the City of Philadelphia shall, whether or not such person maintains a place of business in the City, prior to engaging in such business, procure a commercial activity license from the Department of Licenses and Inspections. A person exclusively engaged in a hobby or other not-for-profit activity, excluded from the definition of business set forth in Section 19-2601, shall not be required to procure or maintain a commercial activity license. 478
(a) If the person required to procure a license under this Section 19-2602 is not a natural person or a publicly traded corporation, then such person shall submit as part of the application the name and preferred mailing address of each natural person who has an equity interest in such applicant that exceeds one or more of the following, regardless of whether the natural person has a direct equity interest or such natural person's equity interest is held through one or more tiers of a corporate structure, such as parent-subsidiary structure: (a) forty-nine percent (49%) of the value of such applicant, or (b) forty-nine percent (49%) of the value of the owner of such applicant. If no natural person has such an interest, the application shall identify the name and preferred mailing address of the two natural persons who have the largest equity interest in such applicant.
(b) Applicants shall have an ongoing obligation to provide accurate and up to date information, and to correct inaccurate information. An applicant shall notify the Department of any changes to the information set forth in an application submitted pursuant to subsection 19-2602(3) within ten (10) business days of such change, provided that the Department may rely on the accuracy of the current application on file at a given date.
(3.1) The Department of Licenses and Inspections shall promulgate such regulations as it deems proper to regulate the form and manner of issuing and revoking such licenses and the imposition of sanctions set forth in this Chapter for operating without, or in violation of the conditions of, a valid license. Such regulations may provide for the imposition of sanctions on one or more of the premises operated under a particular license, depending on the breadth of occurrence of the violative behavior. 482
(4) Every person required to procure a license under this Section shall as a condition to the receipt or retention of the license: 483
(a) file all required returns and make payment of any monies due and owing as a result of all taxes imposed by City or School District of Philadelphia or, if delinquent in the payment of taxes, interest or penalties, enter into and be in compliance with a payment agreement with the Department of Revenue or the Law Department; and
(b) refrain, under color of such license, from selling, transferring, delivering or manufacturing, drug paraphernalia, in violation of the provisions of the Act of December 4, 1980, P.L. 1093, No. 186, § 2, 35 P.S. § 780-113(a)(32) and (33) or, under color of such license, from leasing real estate to a person knowing, or having reason to know, that such person is using, or intends to use, such real estate or improvements thereon in the selling, transferring, delivering or manufacturing of drug paraphernalia in violation of the provisions of said Act. 484
(c) refrain, under color of such license, from selling, transferring, delivering or manufacturing, illegal drugs to any person, or alcoholic beverages to a minor, or engaging in acts of prostitution or promoting prostitution as defined at 18 Pa. C.S. § 5902(a) and (b), or permitting a minor to remain upon the premises of said establishment in violation of Chapter 10-300 of The Philadelphia Code or, under color of such license, from leasing real estate to a person knowing, or having reason to know, that such person is using, or intends to use, such real estate or improvements thereon in the selling, transferring, delivering or manufacturing of illegal drugs, or in the sale of alcoholic beverages to a minor, or to engage in acts of prostitution or promoting prostitution as defined at 18 Pa. C.S. § 5902(a) and (b) or permitting a minor to remain upon the premises of said establishment in violation of Chapter 10-300 of The Philadelphia Code. 485
(d) refrain from causing or permitting an owner or occupier to cause a public or private nuisance, including the Operation of a Nuisance Health Establishment as defined in subsection 6-1101(3), either directly or indirectly, or by permitting third persons or conditions to do so when such nuisances may be minimized or prevented by reasonable measures. 486
(.1) The Department of Licenses and Inspections shall refrain from issuing, or shall revoke, the commercial activity license of any person, who, under color of such license intends to operate, or is operating, in violation of the provisions of subsections 19-2602(4)(b), (4)(c), (4)(d), (4)(e) or (4)(f), and shall take all steps necessary to terminate the business operations of any business establishment that has violated any of such subsections, including, but not limited to the following: 487
(.a) The seizure of the illegal drugs and/or drug paraphernalia located at such establishment, and the delivery of the material taken to appropriate law enforcement personnel for forfeiture proceedings pursuant to the provisions of the Act of April 14, 1972, P.L. 233, No. 64, §§ 28 and 29, as amended, 35 P.L. 780-128, and 129; and
(.b) padlocking and physical closure of the business enterprise; and
(.c) the initiation of proceedings to enjoin preliminarily and/or permanently the further operation of the business enterprise which has violated or intends to violate such subsections. A person, business or community-based organization shall also have standing to initiate such proceedings. No bond shall be required of such entity for seeking or obtaining preliminary injunctive relief. In addition, public officials currently empowered by law to file nuisance actions shall also have standing to file actions pursuant to this Chapter;
(.d) The taking of an appeal from an order granting a preliminary or permanent injunction pursuant to this Chapter shall not automatically stay the order granting the injunction. The Court granting the injunction may, upon application, grant a stay. In making a determination of whether a stay application shall be granted, the Court shall consider whether the proposed stay, if granted, will adversely affect the community or the petitioner who obtained the injunction;
(.e) A prevailing petitioner shall be entitled to reasonable attorneys fees and costs. Any filing with the Court is subject to the sanctions provided by 42 Pa. C.S. § 8355.
(.2) Any person who operates a business notwithstanding the denial or revocation of a license to operate such business under this subsection shall be subject to a fine of three hundred dollars ($300) and up to ninety (90) days imprisonment for each day such business continues to operate without possessing a valid license.
(e) refrain from violating any provision of Chapter 9-2300 of The Philadelphia Code entitled "Protection of Displaced Contract Workers". The Philadelphia Labor Standards Unit shall have the responsibility for the enforcement of the provisions of this subsection and in connection therewith shall: 488
(.1) Cause a notice containing the provisions of this ordinance to be sent to all persons currently engaged in performing food and beverage, hotel service, health care, janitorial or building maintenance services within the City of Philadelphia as indicated on the application for Philadelphia Business Tax Account Number filed with the Revenue Department and to all persons who shall in the figure indicate on their application for Philadelphia Business Tax Account Number filed with the Revenue Department that they intend to engage in such businesses.
(.2) Maintain a current list of all commercial activity license holders for performing food and beverage, hotel service, health care, janitorial or building maintenance services within the City of Philadelphia. 489
(.3) Investigate all complaints against any contractor or subcontractor or awarding authority and in connection therewith or with respect to any investigation shall have full power and authority to subpoena any witness, books, records, or other data of any person for the purposes of obtaining information pertinent to such investigation. The Director of the Philadelphia Labor Standards Unit shall make a finding in writing with respect to each complaint filed, and shall send a copy thereof to the complainant and the contractor and shall maintain it on file. Upon request, the unit shall provide any affected contractor or subcontractor with a hearing.
(.4) Refer all complaints determined to have merit to the Department of Licenses and Inspections for revocation of the offending person's business privilege license pursuant to subsection (d)(1). 490
(.5) Monitor the operations of contractors, subcontractors and awarding authorities to ensure compliance with Chapter 9-2300 of The Philadelphia Code.
(f) refrain from violating any provision of Chapter 9-2400 of The Philadelphia Code entitled "Prohibition Against Predatory Lending". 491
(h) The Department of Licenses and Inspections is authorized to deny or revoke a commercial activity license for failure to comply with the requirements of this subsection. Any person who has been denied a license or whose license has been revoked shall have the right to appeal to the Board of License and Inspection Review within ten (10) days after receipt of the notice of denial or revocation. 493
(5) Any person who has been denied a license or whose license has been revoked, or who has been the subject of any other proceedings under subsection 19-2602(4) shall have the right to appeal to the Board of License and Inspection Review within ten (10) days after receipt of the notice of denial or renovation, or occurrence of such other proceeding. The filing of such appeal shall not act as a stay of the action or proceeding appealed from.
(a) Whenever business is being conducted in or on any premises without a required commercial activity license, the Department of Licenses and Inspections ("Department") may issue a Cease Operations Order directing that business activity cease immediately until the required license is obtained. 495
(.1) The Cease Operations Order shall describe the business that is being conducted without the required commercial activity license, and shall state that such business activity, and any other business activity required a commercial activity license, must cease until the required license is obtained. 496
(.2) The Cease Operations Order shall be posted at every entrance to the premises in conspicuous places clearly visible to the public and shall remain posted until removed by the Department following compliance with its terms.
(.3) The Department shall promptly notify the Police Department of the issuance of every Cease Operations Order. The Police Department, upon the request of the Department, shall render assistance in the enforcement of any Cease Operations Order and shall have the right to enter the premises for such purpose.
(b) Prohibited conduct. No person with knowledge of a Cease Operations Order shall:
(.1) Continue to conduct any business for which a commercial activity license is required in or on any premises for which a Cease Operations Order has been issued. 497
(.2) Remove, damage or deface any Cease Operations Order.
(.3) Resist or interfere with any inspection or other official in the performance of their duties or the enforcement of any provision of this Section.
(c) Penalties.
(.1) Any person violating this subsection 19-2602(6) shall be subject to a fine of three hundred dollars ($300).
(.2) Each day of violation shall constitute a separate offense for which a fine may be imposed.
(7) Other Penalties. Knowingly providing false or misleading information regarding those natural persons having an ownership or other equity interest in a property or owner, shall be a Class III offense, and the negligent provision of such false or misleading information shall be a Class II offense. Each day of violation shall constitute a separate offense. 498
Notes
| 477 | Amended, 1990 Ordinances, p. 911. |
| 478 | |
| 479 | Note that "business privilege license" was changed to "commercial activity license" by Bill No. 110758 (approved December 21, 2011), effective May 1, 2012. |
| 480 | |
| 481 | Added, Bill No. 180940-A (approved January 3, 2019), effective July 1, 2020. |
| 482 | Amended, 1991 Ordinances, p. 225; renumbered, Bill No. 180940-A (approved January 3, 2019), effective July 1, 2020. |
| 483 | Added, 1985 Ordinances, p. 999. |
| 484 | Added, 1989 Ordinances, p. 267; amended, 1991 Ordinances, p. 225. |
| 485 | Amended, 1994 Ordinances, p. 681; amended, Bill No. 1163 (approved December 28, 1995), 1995 Ordinances, p. 1403. |
| 486 | Amended, Bill No. 140452 (approved September 10, 2014). |
| 487 | |
| 488 | Added and former subsections (e) and (f) renumbered, Bill No. 000108 (approved May 31, 2000). |
| 489 | Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012. |
| 490 | |
| 491 | Added and former subsections (f) and (g) renumbered, Bill No. 000715-A (approved April 19, 2001), effective 90 days following enactment. |
| 492 | Added, 1989 Ordinances, p. 810. Enrolled bill erroneously numbered this as subsection (b) and next as subsection (c); renumbered by Code editor. Amended, 1994 Ordinances, p. 706. Editor's note: Subsections (e) and (f) were mistakenly dropped from the Sixth Edition of the Code when new (c) and (d) were added in 1991. See 1991 Ordinances at p. 225. |
| 493 | Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012. |
| 494 | Added, 1993 Ordinances, p. 1205. Enrolled bill numbered this as subsection (5) in error; renumbered by Code editor. |
| 495 | Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012. |
| 496 | Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012. |
| 497 | Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012. |
| 498 | Added, Bill No. 180940-A (approved January 3, 2019), effective July 1, 2020. |
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