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Philadelphia Sales Tax Increase, July 2014


 Philadelphia to have a sales and use tax rate increase, July 2014.

Update, 6.27.14: The 1% tax described below is actually an extension of the temporary tax imposed in 2009. It was previously set to expire on June 30, 2014. The sales and use tax rate for Philadelphia remains 8%. See all Philadelphia tax rates.

Effective July 1, 2014, an additional tax of a 1% is imposed extended on the purchase price of “the sale at retail of tangible personal property or services” in Philadelphia, Pennsylvania. The additional 1% tax is also imposed on “the use within the City of tangible personal property purchased at retail and on services purchased at retail…,” provided that the 1% sales tax wasn’t paid at the time of purchase.

According to Philadelphia Bill Number 140489, revenue generated by the additional 1% sales and use tax is to be distributed to the School District of Philadelphia and the City, in the manner set forth in the bill.

Bill No. 140489 was passed by the City Council and approved by the mayor on June 12, 2014.

How does your business track sales tax rate changes in Pennsylvania and other states?

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.