PHILADELPHIA, PA – City Council members Bill Green and Maria Quiñones Sánchez were honored on May 20, 2011 by the Greater Philadelphia Chapter of the Pennsylvania Institute of Certified Public Accountants (PICPA), which presented them with the “Outstanding Achievement in Tax Reform Award 2011” for their ongoing efforts to reform Philadelphia’s business privilege tax (BPT).

“We are humbled and honored to be recognized by these local experts, who know better than anyone the necessity of reforming Philadelphia’s current business tax structure, which puts Philadelphia businesses at a competitive disadvantage,” Councilwoman Sánchez remarked.  “The recognition of the Greater Philadelphia Chapter of the PICPA is like getting the Good Housekeeping Seal of Approval,” Councilman Green continued.  “We’re immensely thankful for their support.”

In presenting the award to the Councilmembers, Bob Hornick, the Chairman of the Greater Philadelphia Chapter’s Local Taxation and Legislation Committee, offered his perspective that “the [Green/Sanchez] BPT proposal is the best Philadelphia tax proposal since the 2001 Tax Reform Commission's recommendations.”  The text of the award reads:  “The Greater Philadelphia Chapter Local Taxation and Legislation Committee honors regional leaders who have demonstrated a commitment to advancing local tax policies that are both simple and fair and that encourage economic growth and activity.”

The BPT currently consists of two components:  a 6.45% net income tax and a 0.1415% gross receipts tax.   The net income tax is paid primarily by Philadelphia-based businesses, whereas the gross receipts tax is paid by all businesses that make sales in Philadelphia, whether or not they are based in the city.  

The Councilmembers’ BPT reform proposal, which was recognized with the award, was for a revenue-neutral, phased elimination of the net income tax, an increase in the gross receipts tax to 0.53%, and exemption from taxation of a business’ first $100K in receipts (resulting in up to 50,000 current business taxpayers having $0 business tax liability).