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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | January 10, 2014 11:29 AM |
|---|---|
| From: | Senator David G. Argall |
| To: | All Senate members |
| Subject: | Clarifying Definition of Business Income and Receipts Tax for Philadelphia |
| Under current law, Philadelphia can impose business income and receipts tax (BIRT) on the gross receipts of all businesses that have an active presence in the city. Additionally, Philadelphia can impose BIRT on the net income of businesses that have an active presence in the city. My proposed legislation would clarify the definition of business under the BIRT enabling act by providing that the term business does not include the sale of beer by a licensed manufacturer of malt or brewed beverages to a licensed importing distributor located in Philadelphia which sells and delivers to retailers. Breweries are already subject to extensive federal and state taxation and regulation and unlike any other business, they cannot sell their product directly to consumers and must utilize the three tier system established after the repeal of prohibition. Thus breweries cannot establish a market in Philadelphia like other businesses and should not be subject to the same taxation. Please contact Jon Hopcraft of my office at 787-2637 or at jhopcraft@pasen.gov with any questions. |
Introduced as SB1462