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Philadelphia Tax Rate Changes, July 2015

  • Aug 4, 2015 | Gail Cole

 Parking tax in Philadelphia increased, July 2015.

Numerous tax rate changes took effect in Philadelphia, Pennsylvania, on July 1, 2015.

Rates for many taxes, such as earnings, wage, and school income taxes, have slightly decreased. Yet parking, use and occupancy tax rates have increased:

  • Use & Occupancy tax
    • The tax rate jumped from 1.13% to 1.21%.
    • The assessment exemption dropped from $177,000 to $165,300 per property per year.
  • Parking tax
    • The tax rate rose from 20% to 22%.

Hotel tax

In addition, the definition for hotel tax was amended to allow booking agents (such as Airbnb and FlipKey) to collect and remit the hotel tax on behalf of the operators, and to require booking agents to “alert operators of the Philadelphia tax obligations.” New legislation also stipulates that residential properties rented out for less than 31 nights in a row are subject to the hotel tax.

For additional information, please see this Tax Alert.

To facilitate transaction tax compliance, implement an automated solution such as AvaTax sales tax software or MyLodgeTax, the easiest way to manage and pay lodging taxes.

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.