The online Philadelphia CityPaper reported last week that bloggers are now subject to a City of Philadelphia "Business Privilege License" and must also pay taxes on any revenues they earn, including activities such as making money from Google AdSense, affiliate programs and really, any type of revenues they generate, including freelancing.
According to the article:
After dutifully reporting even the smallest profits on their tax filings this year, a number -- though no one knows exactly what that number is -- of Philadelphia bloggers were dispatched letters informing them that they owe $300 for a privilege license, plus taxes on any profits they made.Bloggers (and others subject to the Business Privilege License Requirement) can choose to pay the entire $300 license fee all at once, in which case their payment would be considered a "lifetime" payment with no further licensing due, or $50 per year, in which case they'd have to renew their license every year, seemingly forever.
Part of what's causing the uproar is that many bloggers haven't made $300 from their blog yet. Plus, they'll owe profits taxes on any amount they earn, even if those earnings are $11 over the course of a full year (or, in the case of an example given, $11 over a two-year period). Of course, the city profits tax is in addition to any and all federal and state income taxes they're already paying.
One potential bright spot is a bill by City Council members Bill Green and Maria Quiñones-Sánchez scheduled to be introduced in September. If that bill passes, bloggers would still have to get a privilege license, but they wouldn't pay taxes on their first $100,000 in profit.
I suppose this isn't really shocking. Even when I worked in Philly back in the late 70's/early 80's, the city had a separate income tax. Still, there's something about cities and municipalities sucking people dry that strikes a nerve with me.
Whether you live in Philly or not, what are your thoughts on this issue? Should bloggers (and freelancers) be required to pay for a city business license? Please leave a comment and let's get a discussion going.
Read the full post, "Got a blog that makes no money? The city wants $300, thank you very much." on CityPaper
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