Since 2015, businesses have been able to exclude their first $100,000 in revenue generated in Philadelphia from the city’s business income and receipts tax (BIRT). Now, tens of thousands of small businesses face the threat of increased tax bills due to a lawsuit filed by an out-of-state medical device manufacturer. The lawsuit contends this exclusion violates the state Constitution’s uniformity clause.
 
A 2024 Pew study found that this exclusion means nearly 75 percent of businesses had no BIRT liability, and that the exclusion makes the BIRT progressive, meaning the tax is paid by the businesses who can most afford to pay it. The BIRT exclusion works similar to the homestead exemption for real estate tax, which allows $100,000 of value to be excluded from tax liability.
 
To protect small businesses operating in Philadelphia, we will soon be introducing legislation to clarify that the city’s BIRT exclusion does not violate the uniformity clause. Please join us in standing up for Pennsylvania’s hardworking entrepreneurs and advocating for fair, pro-business policies that keep our economy strong.