Keeping business tax exemption ‘too risky,’ Parker officials say – Metro Philadelphia

Mayor Cherelle L. Parker’s administration defends move to eliminate tax break that helps small businesses

The tax break, which took effect a decade ago, excludes companies’ first $100,000 in revenue from being taxed under Philadelphia’s business income and receipts tax, or BIRT.

Keeping business tax exemption ‘too risky,’ Parker officials say – Metro Philadelphia

Mayor Cherelle Parker’s administration is axing a tax break utilized by tens of thousands of Philadelphia small businesses because the benefit poses too great of a legal risk, officials said Thursday. The Business Income and Reception Tax, or BIRT, exemption excludes a business’s first $100,000 in sales, meaning smaller enterprises are not required to pay the tax at all. A lawsuit filed last year argues that the exemption violates Pennsylvania’s…