Overview

• Philadelphia will implement minor wage tax cuts on July 1, trimming the resident rate from 3.75% to 3.74% and the nonresident rate from 3.44% to 3.43%.
• The budget ends the $100,000 revenue exclusion for small businesses under BIRT after a Massachusetts firm’s constitutionality challenge and allocates $47 million in grants and assistance to ease the transition.
• It establishes a 13-year schedule to cut the Business Income and Receipts Tax, including full elimination of the gross receipts levy by 2039.
• City officials raised the real estate transfer tax to 3.578% to help finance the $800 million Housing Opportunities Made Easy initiative.
• Council added annual oversight requirements for each housing program and set the first $400 million bond sale for this fall.