PHILADELPHIA (KYW Newsradio) — Small Philadelphia businesses that are getting hit with the city business tax for the first time can get free help filing their return.
On Thursday, Mayor Cherelle Parker announced the launch of the Philadelphia Free Business Tax Prep program, open to businesses based in Philadelphia that earn less than $250,000 per year. It’s a way to soften the blow of losing a business tax exemption that allowed some 50,000 small businesses to avoid paying the tax altogether.
Parker said the city had no choice but to eliminate the exemption after a court ruled it violated the state’s tax uniformity clause, but she’s devoting the new revenue to help the small businesses that are affected.
“Small businesses are the backbone of that neighborhood, of our city and our economy,” she said.
Commerce Director Karen Fegely said the city has already been providing grants and technical assistance to those businesses, and now it has contracted with 19 tax preparers to help businesses file not just the business tax but all state, federal and local returns.
“The department is going to pay the professionals directly. The small businesses participating will not receive a bill for services,” Fegely said.
Businesses can apply online. They will need a Philadelphia ID number and a commercial activity license. The free help is available in 13 languages.
Featured Image Photo Credit: Holli Stephens/KYW Newsradio