Notes
| 754 | Added, Bill No. 200556 (approved January 27, 2021). Section 2 of Bill No. 200556 provides: "This Ordinance shall take effect January 1, 2022 and shall apply to all building permit applications filed on or after that date, provided that authorization for the Office of Property Assessment or any other agency or department authorized to issue regulations as may be necessary under this ordinance shall take effect immediately." |
(1) There is hereby imposed a tax on the privilege of constructing any structure for human occupancy for residential purposes, or making any improvements to any such structure, for which a building permit is required pursuant to Section A-301.1.1.
(a) For purposes of this Chapter 19-4400, "improvements" shall mean any repairs, constructions, or reconstruction, including additions and alterations, which have the effect of rehabilitating a structure so that it becomes habitable or attains a higher degree of housing safety, health or amenity, or is brought into compliance with the laws, ordinances, or regulations of the City of Philadelphia. Ordinary upkeep and maintenance shall not be deemed an improvement. The Office of Property Assessment, or such other agency or department designated by the Mayor, shall issue such regulations as may be necessary to clarify, in plain English, the types of construction activity that qualify as an "improvement" and the types of construction activity that do not qualify as an "improvement", as provided herein. Said regulations shall be promulgated on or before April 1, 2021.
(2) Fifty percent (50%) of the tax shall be payable at the time of issuance of the building permit and the remaining fifty percent (50%) shall be payable upon the issuance of a certificate of final inspection pursuant to Section A-402.5. If no certificate of final inspection is required with respect to the construction authorized by the building permit, the tax shall be paid in full at the time of issuance of the building permit.
(3) Exemptions. No tax required by this Chapter shall be imposed upon the following improvements:
(b) Improvements that are exempt from real estate tax pursuant to Section 204 of the General County Assessment Law, 72 P.S. § 5020-204, or pursuant to the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act, 73 P.S. §§ 820.101 et seq.
(c) Improvements associated with preparing an existing residential rental unit for turn-over to a new tenant.
(4) Refund. The tax shall be refunded upon petition pursuant to Section 19-1703 if the improvement or construction authorized by the building permit is not actually performed and the building permit has expired or been cancelled.
(5) The tax shall be payable by the owner of the real estate upon which the structure is proposed to be erected or which is proposed to be improved; provided that, where the owner is a government agency, the tax shall be payable by any non-governmental owner of the proposed structure or improvement.
(1) The tax shall be imposed at the rate of one dollar ($1.00) per one hundred dollars ($100) of construction or improvement costs. Construction or improvement costs shall be calculated in the same manner as required for permits under Section A-902.3; provided that the Department may by regulation establish an alternative methodology for determining costs, including, at the Department's discretion, by using estimated costs. For a structure used or intended for use in significant part for non-residential purposes, the tax shall be charged only with respect to the costs associated with improvements to the portion of the structure used or intended for use for residential occupancy, including common space related to such purposes; provided that the Department may by regulation establish a method for estimating such costs.
(1) No building permit or certificate of final inspection shall be issued unless and until the tax due at the time of such issuance is paid. Every building permit and certificate of final inspection shall contain a notation regarding payment of the tax.
(2) In the event that at the time of building permit application, the precise amount of tax due is not known, the taxpayer shall submit a certified best estimate, as may be required by regulation; and shall promptly submit a corrected certification, with any additional payment that may be owing, as soon as more certain information is available. The Department may, by regulation, establish penalties and interest charges for underestimation of payments.
(3) At the time of building permit application, during or upon completion of construction or improvement, or at any appropriate time in the judgment of the Department, the Department may require taxpayers to submit such documentation as needed to confirm payment of the correct amount.
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