Update: New Business Tax Relief

On December 1, the Department of Revenue announced the following three changes aimed at providing Philadelphia businesses with additional relief during the COVID-19 pandemic:

• Amending U&O guidance to exempt the portion of restaurants and bars used for indoor dining from Use & Occupancy Tax: This initiative will exempt restaurants and bars from Use & Occupancy tax on the square footage of the business used for indoor dining (dining room space) during the period when indoor dining is prohibited. This exemption is for this most recent “Safer at Home” phase and would be effective from November 20, 2020 through January 1, 2021.

• Businesses can amend BIRT returns and receive a refund: Under this initiative, the Revenue Department will provide guidance and instructions to businesses that if they feel they overestimated their 2020 BIRT estimated payment, they can amend the return and provide a new, more realistic, estimated payment and have the difference refunded. It would take six to eight weeks for businesses to receive refunds.

• Extending Refuse Fee due dates: Under this measure, the full $500 refuse fee is now due by June 30, 2021. Previously, half of the annual fee was due December 31, 2020.

NEW BUSINESS RECOVERY PAYMENT AGREEMENTS
Philadelphia businesses that were in compliance before the pandemic, but are now struggling to pay taxes, can take advantage of new payment agreements. Watch our video to learn about eligibility and flexible terms.
The City can also help businesses that were in a payment agreement – or that already owed taxes – before COVID-related closures. Go here to find an agreement that best fits your situation.

HOW TO FILE FOR A REFUND OF U&O TAXES
If your business is requesting a refund for Use & Occupancy (U&O) Tax because of COVID-19 closure orders, it is important to note that businesses must first amend their refund. The Philadelphia Department of Revenue has instructions on how to do this.