Use & Occupancy and AVI Update
Date: 8/8/13
The Final Passage of the Citys Use and Occupancy Tax Should Result in a Decrease in the Amount of Tax Paid by Companies Last Year.

MAP was involved in extensive conversations with Council members regarding the various proposals for how the final Bill would look. The two versions that were most important were the one introduced by Councilman Henon which called for no U&O tax for manufacturing companies and the one from Councilwoman Sanchez which called for a $2000 credit to be applied before any calculation was made. Then there was the version offered by the Mayor. MAP worked hard to get that $2000 credit applied to the final Bill.
Before Council closed its session for the summer, the following is the compromise agreed to regarding the U&O Tax:
The multiplier applied to your assessed value is 1.13%, with an automatic credit of $2000 applied, before you even receive the tax bill. The majority of companies will see their U&O go down. A sample calculation might look like this:
Assessed value of property:
$764,000
X 1.13% (new rate)
= $8,633
-$2,000 (tax credit)
New U&O Tax due: = $6,633

The compromise which allowed Councilwoman Sanchezs tax credit to be applied was obviously a huge win for taxpayers. But in some ways, Councilman Henons proposal to exclude manufacturing companies was every bit as important  even though it was not adopted. MAP has long proposed to Council that when determining a tax, a fee or an ordinance - you cant and shouldnt treat all sectors of the economy equally. One sector, services for example, may be able to absorb the cost of new legislation more easily than another (manufacturing), where the result would cause a disproportionate hardship and damage the sectors ability to compete. Councilman Henons proposal showed Councilmembers that a good case for sector exclusion could be made and if not adopted now, should be considered in the future. MAP applauds Councilwoman Sanchez for the thoughtful introduction of a tax credit and Councilman Henon for introducing a model for the future.

UP Date  AVI
The new millage rate by which you can calculate your property tax is 1.34%. Thats Assessed Value x 1.34% (use the percent, dont multiply by 1.34 alone) The new assessments and associated taxes for all properties are now on the citys website: http://www.phila.gov/revenue/realestatetax
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Orthopli Corp
Dental Equipment & Supplies Manufacturing
Leco Electric Mfg. Co.
Glass Products Made of Purchased Glass
Salini Bros., Inc.
Ornamental and Architectural Metal Work