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(1) Child Tax Credit. The federal Child Tax Credit, as set forth in § 24 of the Internal Revenue Code.
(2) Department. The City of Philadelphia Department of Revenue.
(3) EITC. The federal Earned Income Tax Credit, as set forth in § 32 of the Internal Revenue Code.
(4) Non-payroll worker. An independent contractor, self-employed person, or sole proprietor.
(5) Tax Liability Reduction Eligibility Notice. A form, prepared by the Department, that provides, in clearly understandable language and format, notice of the availability of and benefits from the EITC, Wage Tax Refund, and Child Tax Credit, and a description for each program of the eligibility requirements, credit or refund available, application process and services available from the City to assist in applying for benefits along with relevant contact information.
(6) Wage Tax Refund. The refund on annual tax on salaries, wages, commissions and other compensation earned by residents and non-residents of Philadelphia, as set forth in Section 19-1508 (Refunds and Forgiveness for Poverty Income) of the Philadelphia Code.
Notes
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It is the policy of the City to enable all persons who live or work in Philadelphia and who are potentially eligible for the EITC, Child Tax Credit or Wage Tax Refund to apply for and receive the maximum tax benefit to which they are entitled.
Notes
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Beginning with calendar year 2015 and each year thereafter:
(1) By February 15 of each year, each employer shall provide each employee residing or working in Philadelphia from whom it withholds taxes a Tax Liability Reduction Eligibility Notice at the same time that it provides the employee with the employee's federal W-2 or comparable form.
(2) By February 15 of each year, a person or business that is required to provide a non-payroll worker residing or working in Philadelphia with a federal form 1099 or comparable form shall provide each such worker with both the federal form and a Tax Liability Reduction Eligibility Notice at the same time.
(3) By February 15 of each year, any third party that is retained to provide tax information, including but not limited to W-2 forms, federal form 1099 or other tax filing documents, to a worker residing or working in Philadelphia shall provide such worker a Tax Liability Reduction Eligibility Notice in connection with the provision of any tax filing documents.
(4) The Department shall notify each employer subject to subsection (1) and each person or business subject to subsection (2), and each third party subject to subsection (3) of the requirements of this Section, and shall provide a downloadable version of the Tax Liability Reduction Eligibility Notice on its website.
Notes
| 741 | Amended, Bill No. 170245 (approved May 8, 2017). Section 2 of Bill No. 170245 provides that the amendments to this Section shall apply for tax year 2017 and thereafter. Amended, Bill No. 220006 (approved March 2, 2022). Section 2 of Bill No. 220006 provides: "This Ordinance shall take effect immediately, with the exception of the revisions to Section 19-4004 of the Code, which shall take effect immediately upon the Commissioner of the Department of Revenue certifying to the Chief Clerk of City Council that the Tax Credit and Refund Eligibility Notice authorized under Section 1 of this Ordinance is publicly available on the Department of Revenue's website." The certification was made on March 6, 2023. |
(1) Reserved.
(2) Beginning on July 1, 2015, and on that date each year thereafter, the Finance Director shall submit to Council, together with the Mayor's proposed operating budget ordinance, a report on implementation of the City's Tax Liability Reduction Policy. The Finance Director shall post a copy of the Report on the City's website. The Report shall provide the following information: 743
(a) A detailed assessment of the progress made by the City over the previous calendar year in executing the City's Tax Liability Reduction Policy. This should include the City's outreach efforts and strategy to identify, contact and enroll, by each year's respective tax filing deadline, all eligible persons residing or working in the City of Philadelphia. The City's strategy may include, among other things, a plan to accurately identify and enroll those who live or work in the City and who failed to claim available tax benefits in prior years, contracting with interested non-profits to provide free tax filing assistance, and engaging in community outreach;
(b) The most recently available data on the number of Philadelphia residents receiving EITC, the number of Philadelphia residents eligible for EITC, and the gap between the two, as well as those numbers for prior years;
(c) The most recently available data on the number of Philadelphia residents receiving the Child Tax Credit, the number of Philadelphia residents eligible for the Child Tax Credit, and the gap between the two, as well as those numbers for prior years;
(d) The most recently available data on the number of Philadelphia residents receiving the Wage Tax Refund, the number of Philadelphia residents eligible for the Wage Tax Refund, and the gap between the two, as well as those numbers for prior years;
(e) Commencing in calendar year 2018, the following additional information:
(.1) A detailed listing of all financial expenditures made towards the implementation of the City's Tax Liability Reduction Policy. This should include, but is not limited to, expenditures relating to the following:
(.a) Community engagement and outreach efforts;
(.b) Marketing, advertising and personal relations;
(.c) Free tax preparation sites and filing efforts;
(.d) Communications efforts;
(.e) Personal services and administrative costs;
(.2) In addition, all expenditure information shall also include, but is not limited to:
(.a) An itemized list of all recipients (including non-profit organizations, accounting firms, city departments or any third parties) who received funds from the City relating to the implementation of the City's Tax Liability Reduction Policy;
(.b) A listing of any contracts entered into by the City and the amount and scope of the contract;
(.c) Detail related to the process for contract selection and the percentage of M/W/DSBE participation as it relates to total EITC policy implementation expenditures; and
(f) Such other information as the Department deems appropriate or that Council by resolution requests.
Notes
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| 743 | Amended, Bill No. 170245 (approved May 8, 2017). |