If you do not qualify for one of the exclusions, there will be a 1% discount if you transfer the payment no later than the 25th of the month in which the tax is due. However, if you are a landlord and tenant, you are not entitled to this discount. It is only available to third-party tenants occupying the property. If you are responsible for collecting the use and occupancy tax from tenants, you can get a 1% discount on the total tax if the payment is submitted no later than the 25th of the month in which the tax is due. The hotel`s tourist tax, levied at the same rate as VAT, applies to room rental fees for periods of less than 30 days by the same person. In addition to hotels, the tax applies to the rental of rooms, apartments and houses negotiated through online or third-party providers. There is a processing fee for credit and debit card payments. For each resident, the tax is calculated separately. In a multi-storey commercial office building, the tax is based on the number of square meters occupied by each tenant.
It is also prorated to the actual days of use or occupancy during the fiscal year, defined as 360 days. Second, only the space actually leased by a tenant is taxable. To calculate the tax attributable to each tenant, take the number of square metres of floor space contained in a building or other structure, without the number of square feet in service, utilities and common areas. All of these spaces, with the exception of services, utilities and common areas, are included in the “square feet available for use or occupancy”, although some or all of these spaces may be excluded from the tax-sharing share counter (see section 505 of the U&O Regulations) because they are empty or because their use may be expressly excluded from tax. Building owners should work with building engineers to determine the “square feet available for use or occupancy” to ensure tenants are not overcharged. Detailed and historical information on the turnover, use and occupancy tax of hotels is available in the Tax Compendium. The Business Use and Occupancy Tax is a tax on the commercial, commercial or other use and occupation of real estate in Philadelphia. The tax is due if: The use and occupancy tax must be submitted online via the city`s eFile/ePay website. However, if you are the owner of the property and you owe a portion of the tax because you operate a business there, the discount cannot be applied to your share. If you pay by e-check on the city`s ePay website, you will need: www.phila.gov/departments/office-of-property-assessment/ parts of your property may be excluded from the estimated value when determining the use and occupancy tax.
This results in a lower total amount of tax due. Exceptions include: U&O is imposed on businesses that use or occupy real estate in the City of Philadelphia School District to conduct business, commerce, professions, professions, vocations, or other commercial or industrial activities. The user is subject to the tax, but the owners and their owners collect them monthly from their tenants. Although the tax is levied by the city, the Commissioner of Revenue administers the tax and the revenue generated is used to fund the school district. The city is expected to challenge the case in Commonwealth Court. In the meantime, owners who participated in the litigation and transferred the use and occupancy tax based on the higher contributions should consider filing U&O tax refund claims. Of course, if the landlord is a landlord, any refund of this tax would go to the companies that were tenants of the property. Others who were not part of the dispute should consider appealing their 2020 property assessments, which would reduce their U&O rating. If your property has recently been revalued, you may have to pay a higher use and occupancy tax. Anyone exempt from property tax is also exempt from U&O tax. For example, properties leased to the government, schools, hospitals and religious organizations are excluded. To be exempt from collecting taxes from a not-for-profit organization, a landlord must obtain a copy of the non-profit organization`s federal notice of exemption.
The landlord must file this document with the first tax return filed at the reception. If you do not pay on time, interest and penalties will be added to the amount you owe. As of July 1, 2015, an exemption of $165,300 applies to the estimated value of each property used for commercial purposes. This equates to an annual tax exemption of $2,000 ($167 per month or $500 per quarter). If there are several businesses that use or live on the same property, the $2,000 tax exemption will be distributed equally among them. Landlords must inform tenants of the number of users or users of the property so that they know how the exemption should be divided. If you incur interest of more than $15,000 or penalties of more than $35,000, you may be eligible for an exemption from interest and penalties beyond these amounts. To apply, you must complete a tax complaint application with the City`s Tax Review Board. You may want to consider an appeal against the property tax assessment if the landlord feels the assessed value is too high. Complaints are filed with the above-mentioned OPA. You can search and compare property values through the city`s online property search app. Certain types of use of the property are excluded from the tax, including: For more information on prices, please visit our Interest, Penalties and Fees page.
Anyone responsible for filing a tax return and paying taxes must do so, whether or not they receive a tax return. The use and occupancy tax must be submitted and paid monthly on the 25th of each month. If the 25th falls on a weekend or a public holiday, the return is due on the first working day following the 25th. The university submits declarations of use and occupancy for the part of its own real estate that is used by commercial companies. The Real Value Initiative (“OID”) was implemented in fiscal 2014 to assess all real estate, land and buildings in Philadelphia at their current market value. The market value reflects the approximate amount for which a property would be sold in the current real estate market. AVI`s goal was to ensure that all values were evaluated fairly and in accordance with the state`s laws, statutes, and industry standards. .