Help! Philadelphia After me because I own website?

[unity007]

Hey all,

I run a website where I made some money on (like $100 for the year) in 2009, and the city of philadelphia sent me a letter about taxes on this $100? I have no idea where I'm supposed to go to do this. What type of taxes are you supposed to file? I tried to call the Tax Amnesty Program, but they weren't overly helpful.

Please let me know!

[Malloy]

LOL I got the same thing on a BS website that I own that barely breaks even. I'm going to call tomorrow on it.

[raider.adam]

Hey all,

I run a website where I made some money on (like $100 for the year) in 2009, and the city of philadelphia sent me a letter about taxes on this $100? I have no idea where I'm supposed to go to do this. What type of taxes are you supposed to file? I tried to call the Tax Amnesty Program, but they weren't overly helpful.

Please let me know!

City of Philadelphia | Revenue Department

[unity007]

I called the revenue department. Apparently in the city of philadelphia, you need to pay $300 for a business license in order to make money using ads on a website. This doesn't sound right to me. EVERYBODY who has a website in philly owes the city $300?

[seand]

I called the revenue department. Apparently in the city of philadelphia, you need to pay $300 for a business license in order to make money using ads on a website. This doesn't sound right to me. EVERYBODY who has a website in philly owes the city $300?

Boy that sounds like a real smart way to attract educated, tech savvy people to the city - make them have a BPL to run a blog - whether they make a profit or not. Genius.

[unity007]

exactly. that's all i have, is a blog. and they want me to get licensed for that? Can't i just add it to my revenue income? this is ridiculious.

[raider.adam]

exactly. that's all i have, is a blog. and they want me to get licensed for that? Can't i just add it to my revenue income? this is ridiculious.

Any business in the city has to get a business privilege license and pay the BPT.

[unity007]

even if it's just a hobby website and you're just trying to break even with the cost of hosting? well is this license at least good for other businesses as well? lets say i want to open a hot dog stand, i already have my license right?

[StrangeTanks]

Ha ha...thats hilarious. I wonder how they found out you own a website based in Philly.

I'm self employed, welcome to the wonderful world of doing business in Philly. Not only do you need to pay the $300 for your liscence. But you need to pay double last years taxes because you pay the next years in advance.

Oh by the way, once you get you BPT get ready for the letters from L&I and the Revenue Dept for taxes on running a home business.

[desolate]

No wonder all the college kids sell weed and extacy.

[PhillyKev]

even if it's just a hobby website and you're just trying to break even with the cost of hosting? well is this license at least good for other businesses as well? lets say i want to open a hot dog stand, i already have my license right?

Just break even, or run a loss? Sorry, still owe taxes. Welcome to Gross Receipts, a tax on every dollar of revenue whether you have a profit or not.

[palvar]

Wait, aren't websites taxed based on the location of the server?

[Politburo]

If I had to bet, assuming you've haven't made any enemies, whoever you got the money from (Google? Amazon?) turned over records at the City's request.

[seand]

Wait, aren't websites taxed based on the location of the server?

Yeah I was wondering that as well. Worst case scenario, maybe you should "sell" the site to someone in one of the neighboring counties, if its a labor of love. I'm sure they will still let you post what you want.

[unity007]

it's just ridiculious though. i didn't make this website in philly, i've had it since I've lived in virginia (back in 2007). i don't mind paying the taxes, it's the business license that confuses me. it just seems stupid to get a business license for a hobby website i have.

[raider.adam]

Wait, aren't websites taxed based on the location of the server?

Websites aren't taxed, business are.

It isn't sales tax he is being hit on, he is being hit on the business taxes.

[Seanibus]

it's just ridiculious though. i didn't make this website in philly, i've had it since I've lived in virginia (back in 2007). i don't mind paying the taxes, it's the business license that confuses me. it just seems stupid to get a business license for a hobby website i have.

Adam is right, I think - they are after you for the "business privilege tax," which bestows upon you the privilege of paying business taxes whether you make a profit or not.

[MikePenn]

Websites aren't taxed, business are.



It isn't sales tax he is being hit on, he is being hit on the business taxes.

But it's not a business ?
So they could go after you for selling items on ebay ?

[Hiki]

All those esty users could probably be hit up also by that logic.

[Seanibus]

But it's not a business ?
So they could go after you for selling items on ebay ?

Yes, they could. The law is written so broadly that virtually any activity that involves receiving any money in Philadelphia is subject to the BPT.