Philadelphia has just increased its Use and Occupancy Tax as of July 1, 2015. The new Use & Occupancy Tax rate will be 1.21%. This is an increase from the prior rate of 1.13%.
This new rate will be effective with the July 2015 Use & Occupancy tax Return that is due July 27, 2015. Remember that as of January 2015, all U&O tax returns must be filed and paid on-line through the Philadelphia Department of Revenue website. So when filing in July, 2015 be aware of this increased tax rate and resulting tax increase.
Assessment Exemption: Also, beginning July 1, 2015, the assessment exemption will be reduced to $165,300 from the prior exemption of $177,000 that had been in place since July, 2013. It is important to understand that with the new tax rate and the new reduced assessed value for Use & Occupancy Tax, this is merely a mathematical adjustment as the annual Use & Occupancy Tax exemption will remain at $2,000 ($167 per month).
The discount for landlords remains at one percent (1%).
Please call our office if you need assistance.