NEWS

Pay Up

Got a blog that’s set up to make (even very little) money? The city considers you a business, and would like you to pay $300.

by Valerie Rubinsky

Published: Aug 18, 2010

On Aug. 31, 2010, this story was altered from its originally published version to reflect new information and clarifications that had been published separately.

[ death and taxes ]

For the past three years, Marilyn Bess has operated MS Philly Organic, a small, low-traffic blog that features occasional posts about green living, out of her Manayunk home. Between her blog and infrequent contributions to ehow.com, over the last few years she says she's made about $50. To Bess, her website is a hobby. To the city of Philadelphia, it's a potential moneymaker, and the city wants its cut.

In May, the city sent Bess a letter demanding that she pay for a business privilege license — which cost $50 per year or $300 per lifetime.

Check out The Clog for some answers to the many questions this article has raised.

"The real kick in the pants is that I don't even have a full-time job, so for the city to tell me to pony up $300 for a business privilege license, pay wage tax, business privilege tax, net profits tax on a handful of money is outrageous," Bess says.

It would be one thing if Bess' website were, well, an actual business, or if the amount of money the city wanted didn't outpace her earnings six-fold. Sure, the city has its rules; and yes, cash-strapped cities can't very well ignore potential sources of income. But at the same time, there must be some room for discretion and common sense.

When Bess pressed her case to officials with the city's now-closed tax amnesty program, she says, "I was told to hire an accountant."

She might not be alone. After dutifully reporting even the smallest profits on their tax filings this year, some — though the city doesn’t keep track of how many — Philadelphia bloggers were dispatched letters informing them that they may owe the city for a privilege license, plus taxes on any profits they made.

Even though small-time bloggers aren't exactly raking in the dough, the city requires privilege licenses for any business engaged in any "activity for profit," says tax attorney Michael Mandale of Center City law firm Mandale Kaufmann. This applies "whether or not they earned a profit during the preceding year," he adds.
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So even if your blog collects a handful of hits a day, as long as you’ve made the decision to make it a commercial enterprise, the city thinks you should cut it a check. According to Andrea Mannino of the Philadelphia Department of Revenue, in fact, simply choosing the option to make money from ads — regardless of how much or little money is actually generated — qualifies a blog as a business. The same rules apply to freelance writers. As former City Paper news editor Doron Taussig once lamented [Slant, "Taxed Out," April 28, 2005], the city considers freelancers "businesses," and requires them to pay for a license and pay taxes on their profits, on top of their state and federal taxes.

The city says that it is not targeting bloggers; rather, anyone who reported business income to the IRS,  from a blog or freelance writing or anything else, should have received the same form letter as Bess. 

The notion that even the smallest of businesses is supposed to fork over money — potentially more than they earned — for a privilege license has generated some controversy.  In June, City Council members Bill Green and Maria Quiñones-Sánchez unveiled a proposal to reform the city's business privilege tax in an effort to make Philly a more attractive place for small businesses. If their bill passes, bloggers will still have to get a privilege license if their sites are designed to make money, but they would no longer have to pay taxes on their first $100,000 in profit. (If bloggers don't want to fork over $300 for a lifetime license, Green suggests they take the city's $50-a-year plan.)

Their bill will be officially introduced in September. "There's a lot of support and interest in this idea," Green says.

Perhaps, but it doesn't change the fact that the city thinks Marilyn Bess should pay the same for a privilege license as, say, City Paper. "I definitely don't want to see people paying more in taxes and fees than what [we] earn," says Bess. "But I do think the city needs to establish a minimal amount of money that they won't tax, whether you're a bike messenger, microblogger or a freelance typist."

(editorial@citypaper.net)

Comments

Are kid lemonade stands next ???
Marilyn & Barry should look into afiliating with a non-profit group since they don't seem to want to operate for profit. Might be a way to avoid the city money grubbers.
by Dreamer on August 21st 2010 1:25 PM

Activity for profit? I guess that means the homeless person picking up soda cans better cough up $300. Same for the kid who mows your lawn, your babysitter and your own kids who do household chores for their allowance.
by j r on August 21st 2010 2:09 PM

Just tell them to fuck off, move, and never buy any thing in the city again.

People are more important than institutions!
by garry on August 21st 2010 3:20 PM

I would give $300 for a homeless person to get a license for begging and the resulting legal meltdown as the city tries to reconcile seeming to endorse the idea of panhandling for profit and anti-panhandling laws.
by Rob on August 21st 2010 3:36 PM

Lemonade stands already being shutdown.

http://www.msnbc.msn.com/id/38592078/ns/us_news-life/?GT1=43001

by Hmmmm on August 21st 2010 4:43 PM

Anyone who pushes the notion that engaging in business is a privilege to be licensed is a tyrant, end of story. They should not be tolerated. All people have an inalienable right to engage in in commerce for their living.
by David Shapley on August 21st 2010 4:48 PM

It's TAR AND FEATHERS time, to be followed by running those idiots out of town on a rail. TOO MUCH!
by Gordon Wagner on August 21st 2010 5:02 PM

"Land of the free? Whoever told you that is your enemy"
by F the british commonwealth and their puppet freemasons spreading worldwide slavery on August 21st 2010 6:16 PM

Work, or operating a business a privilege??? They gotta be kidding..Totally outrageous..Corruption at work in full force..Bet they learned from JAN-Bama and Blago..Plenty other sources of revenue for cities without running citizens out..Even a license to operate a storefront business is uncalled for to me..
City thieves at work..
by Choctaw on August 21st 2010 6:17 PM

Actually...kids lemonade stands have been shut down for the same reason. lol Its all ridiculous.
by FireEyes on August 21st 2010 8:10 PM

Heck, if they can't shut you down because of "Freedom of Speech", they'll just tax and fine you until you run out of money and are forced to shut down.
by Bill Bobaggins on August 21st 2010 9:19 PM

When will my fellow Pennsylvanians in Philly WAKE UP and REVOLT?

I love my brothers and sisters from down that way, but damn your stupid for allowing the constant abuse from your city government.
by JDouglasFisher on August 21st 2010 10:06 PM

This is nonsense! Blogs are simply speech. The 1st ammendment of the US Constitution and Article 19 of the Universal Declaration of Human Rights, adopted in 1948, which states that:

"Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers."
by perivale benway on August 21st 2010 10:34 PM

The Blog should start a Re-call on the city officials and throw them out of office and elect people who will reverse this awful idea.
by l own myself on August 22nd 2010 12:47 AM

LOL, tell the city to take a flying leap!

www.privacy-tools.eu.tc
by Jo Dean on August 22nd 2010 12:58 AM

If it's not a business then why does she have ads on the site?
by Captain Obvious on August 22nd 2010 2:07 AM

People need to stop paying this nonsense license and tax. Take the bums to court! 100,000 people resisting this nonsense will clog the courts, this will force them to come to a more Constitutional solution.
by BOBT12 on August 22nd 2010 2:56 AM

Ah, yes. The government makes enemies of its own citizens. The more enemies it makes, the quicker people will wake up.
by Joe R. on August 22nd 2010 3:30 AM

This is purely an issue between the individual and the IRS.. if need be. There are no middlemen. What the City Of Philadelphia is doing is illegal under the auspices of individual tax provisions.
by gumBO on August 22nd 2010 5:29 AM

I usually don't comment on articles like this, but this is absolutely outrageous. Requiring a business license for a blog shows historic incompetence in government. The growth of the internet (which now is driving world productivity) comes from the idea that there is no barrier to entry. Not only that, but the government will now make less in tax revenues, because so much fewer blogs will become lucrative. Free blogging has enabled one of the biggest sources of learning and sharing for the masses since the world began. Great job stifling innovation, Philly.
by Kevin Barry on August 22nd 2010 6:20 AM

I'm sorry - free speech is a right. So anything or anyone who tries to impose a license or a fee on free speech, is breaking that amendment guaranteeing a right to freedom of speech.

Secondly, why not simply remove your own adverts that could be conceived as lucrative (what a laugh) ?

Thirdly, think location. If you know the server is out of the country, then so is the revenue stream. Have an off-shore account or something to "rake in those profits".

There has to be a work around to this insanity.
by Simon Miller on August 22nd 2010 7:14 AM

I see this differently than most. The city though morally wrong is simply excising what it can from its SUBJECTS! If one is ignorant enough to sign a 1040, w2, claim to be a U.S. citizen on say a voter registration form that man or woman is made a subject by their own signature and now has NO recourse against their masters. Thew issue here is of STATUS. This is a farm animal bleating about her treatment by her OWNER! No other OWNER OR animal has any right to object to this. Watch how she is treated by her owners. She will be treated EXACTLY as a farmer would treat a belligerent sheep! If one wants to remain ignorant AND free one wants what never was or can ever be! Learn to step OUT of "taxpayer" status or accept your yolk!
by Joe on August 22nd 2010 8:25 AM

I'm not sure I understand what the big deal is here. I have a blog as well. I do not place ads on it or otherwise make a dime off of it. It is not a business. These people have blogs. They place ads on it with intent to bring in revenue, however paltry. They run businesses, like it or not. If they don't do it for the revenue, then why not just remove the ads? I feel like the city is being made the bad guy here, but it is the blog owners who are in denial about what they are doing.
by Anthony on August 22nd 2010 11:21 AM

I am curious- how did the city get these bloggers' addresses?
by AJ Lynch on August 22nd 2010 11:21 AM

Fuck and nuke Philadelphia. It's full of shit.
by Phyliss Fucka on August 22nd 2010 12:18 PM

Fuck and nuke Philadelphia. It's full of shit.
by Phyliss Fucka on August 22nd 2010 12:18 PM

She should vote with her feet. Get the heck out of that city and go elsewhere, perhaps somewhere with better job prospects.
by Carmen on August 22nd 2010 12:48 PM

I ran into a similar problem in Ft. Myers, FL. Got a detailed tax bill listing the computer I used as "tools" for a business, blah, blah. (Ironically the computer wasn't even mine, it was borrowed.) Needless to say, I don't live there anymore.
by Phil L on August 22nd 2010 1:36 PM

Actually, if you click through to Ms. Philly Organic, you'll see there aren't any ads on that site.

@Anthony, so you think it's okay to require a $300 licence because someone earned 50 bucks? How much do you pay in wage tax each year?
by Number10ox on August 22nd 2010 2:18 PM

As Federal funds to the states dry up, each state and city/town is scrambling to find money sources to replace it to keep its infrastructure intact whether it is “legal” (in the typical Capitalist’s Orwellian terms) or not. All cities and towns will be the first to be affected as the Depression deepens, so there is simply no place left to run to … at least Bess was willing to take a stand and fight for her freedom of speech.
by ArgentoRose on August 22nd 2010 2:26 PM

Just change the name of the blogs. Go drive across the city limits to a free wi-fi spot and upload from there. Tell the city to stick it you don't have a business in town.
by Bob on August 22nd 2010 2:27 PM

@Number10ox I think most people are missing the point is all. You have to pay a fee to be in business. By collecting money on an ongoing basis and hoping to collect more of it in the future, you are in business, regardless of the amount. If you do not want to be categorized as a business, cease collecting money. Really simple.

As everyone here is noting, it's only $50, with very little potential to ever be anything more. People are using this as reasoning for why Philly should change/ignore the rules. But that's faulty logic. From my standpoint, the issue is: if it's only $50, then why even bother collecting it? Just turn the blog into what it is - a hobby - and stop bringing money into it in any capacity. This will get rid of the "business" delegation, and rightfully so.
by Anthony on August 22nd 2010 2:40 PM

On the contrary: declare your money-losing blog as a business, and then claim heavy losses year after year until the city realizes it's losing more money than it's gaining. Either way, you win.
by Justin Kownacki on August 22nd 2010 2:49 PM

It sucks, but it applies to everyone, not just bloggers. I sell handmade jewelry via the internet and have to have a biz license in my city. As for free speech, newspapers, radio stations, TV stations and magazines also pay taxes, licensing fees, etc. You engage in any activity that brings in money, no matter how little the amount, and you are "in business." As far as I know, most cities have business license requirements, and many also have zoning requirements, so moving isn't going to help, unless you're moving to some unincorporated area outside city/county limits. If they don't want to pay for a license, then they should cease any and all money-related activity, or go through the process of becoming a non-profit. I blog, and I get no money at all for it -- and so I have nothing to claim on taxes -- because I don't sell anything and I don't have ads. Or, if they want to continue taking in money, they should write off the $300 as a business expense (schedule C for federal taxes).
by Jen on August 22nd 2010 3:00 PM

I've been running a small business in L.A. for a few years now and the way they structure it is if you earned less than $100k gross you are exempt from city taxes. Philly needs to get with the program, there's a reason people don't start web companies there
by Ron on August 22nd 2010 3:01 PM

A hint: Get a PO box right outside the city, register your "business" at the PO box, and then tell the city to go fuck itself (it doesn't matter where you operate it from, it goes by where its registered.)
by Anita on August 22nd 2010 3:19 PM

Go fuck yourself Philly! We'll move our businesses elsewhere! Most places in the US incentivize business. Go fuck yourself! Go fuck yourself! Go fuck yourself!
by Matt on August 22nd 2010 3:19 PM

I wonder how many people here commenting vote democrat and want to keep raising taxes on the "evil" rich? The problem isn't with the city following the law it is with the citizens who allowed the law to be passed in the first place.
by GOLDNSQUID on August 22nd 2010 3:30 PM

It's not a tax or license on starting a blog. Only if you run ads. If you have a blog without ads, you don't have to buy a business privilege license.

This is not a first amendment issue.
by Beth on August 22nd 2010 3:39 PM

@Jen and @Beth - Exactly. This is about businesses, not blogs. Everyone seems to think Philly is directly targeting blogs. They're simply targeting blogs that *make money* (businesses, for all intents and purposes!)...

As I've been saying, if you want to avoid the fee, cease seeking financial compensation of any kind for your blog and you'll have no issues! The government won't charge you for saying what you want to say, unless you turn that activity into a revenue generator, however minimal.
by Anthony on August 22nd 2010 3:49 PM

"It's not a tax or license on starting a blog. Only if you run ads. If you have a blog without ads, you don't have to buy a business privilege license."
I went to the blog in question......didn't see any ads.....not even Google adsense ads. So much for that theory.
by Robert on August 22nd 2010 4:29 PM

So American people, is the hard part saying no? Or is it simply finding the most effective, united way to say no, whatever, until you do say no they will just keep on wrecking your country and your futures. (Hint: The ballot box no longer works.)
by Paul on August 22nd 2010 5:04 PM

Amazing how many comments seem to be in support of Big Brother.

This looks like a case made for the Institute for Justice (IJ dot org):
"we engage in cutting-edge litigation and advocacy both in the courts of law and in the court of public opinion on behalf of individuals whose most basic rights are denied by the government--like the right to earn an honest living, private property rights, and the right to free speech, especially in the areas of commercial and Internet speech. As Wired magazine said, the Institute for Justice 'helps individuals subject to wacky government regulations'.”
by Jim on August 22nd 2010 5:18 PM

@Robert In the case of the blog in question, who knows how the revenue was made? Maybe there were ads in the past. Or maybe the revenue was not from ads at all - perhaps there were a couple individually sponsored posts, for example. The point is - the blog brought in $50. It doesn't matter how that happened, so much as the fact that it did. It wasn't an accident, whether it was generated from ads or not. In order to be classified as hobby, all the owner had to do was not seek/accept any money, for anything, ads or otherwise.
by Anthony on August 22nd 2010 5:22 PM

Someone needs to take it to the courts. The city is effectively charging for free speech on private property.
by Benson on August 22nd 2010 5:25 PM

Two words, Philly: Blow me.
by Ray on August 22nd 2010 5:26 PM

@Jim How in the world is this a wacky regulation? It's one that's been in place for who knows how long, and for nearly any legitimate business, is something that's pretty standard and widely understood with little-to-no dissatisfaction. That it happens to negatively affect an extremely small population of low-revenue bloggers in the city is an unintended side effect of a largely *normal* practice. Regardless, there is an easy way out of it for these bloggers: stop collecting stupid-low revenue and start doing it like any other hobby.

The major complaint here seems to be that blogging is a hobby and therefore should not be taxed like a business. Long story short, if that's the case, then these bloggers should cease bringing in any revenue and act like they're conducting a hobby.
by Anthony on August 22nd 2010 5:27 PM

Thanks for the comment. That'll be $0.50, please.
by Ray on August 22nd 2010 5:33 PM

I read about this story on freerepublic and must say that, since I am a conservative, I find this to be an outrageous abuse of government power! True I believe the government has to power to control what I watch, who I have sex with and what sex acts a husband and wife do to each other but a government restricting business? That is just insance.
by Jim Rob on August 22nd 2010 5:47 PM

How about every blog owner claims heavy losses and demands a bail out from the government on the basis they are too big to fail?
by Mr Peanut on August 22nd 2010 6:00 PM

I am glad to see so many comments here. Let's keep it up and make our voices heard - this city's "business privilege taxes" are preposterous and have continued to penalize my small business AND my husband's small amount of freelance writing revenue. People outside Philadelphia can't even fathom the insanity of it all
by Paige on August 22nd 2010 6:14 PM

Liberals have never met a tax they didn't like, unless of course it's one THEY have to pay.

Think about what regulations like this really are (and they are everywhere, this is nothing new), protection money, thats all. The City/County/State/Feds need to get THEIR cut of YOUR production. How else are they going to buy elections so they can stay in power to continue to lord over all of us?
It's nice to see people against this, but ask yourself, are you just as outraged that Walmart or Home Depot also have to pay that $300? Of course not, thats "different".
There in lies the problem and the ultimate destruction of this country, which isn't far off.
by LMAO on August 22nd 2010 6:52 PM

Who's idea was this?? Had to be a DEM;all they like to do is tax and spend. They don't care about 'little people' and small business. Look at DC for example. Sad day when cities start coming after people who are lucky to make a few bucks blogging or like others said babysitting, selling lemonade or cutting grass. Ridiculous!
by freedom4usa on August 22nd 2010 7:27 PM

From the city that uses your tax dollars for solar powers garbage cans that don't work; We got a Tax and spend liberal ala obama jr thinking he can solve the budget crisis by economically choking it's citizens. This administration is an f-ing joke... WAKE UP PHILLY!!! STOP ELECTING THESE CLOWNS and you won't have this BS nonsense to deal with.. btw register your blog at a PO box outside the city and tell these a-holes to go pound sand!!!
by StJames888 on August 22nd 2010 7:45 PM

Tell Philly to go fuck itself and publish anyway.
by Tatiana Covington on August 22nd 2010 8:35 PM

Tell the shysters at town hall to kiss your backside.
by Johnny Reb on August 22nd 2010 9:08 PM

They need to spend less on crack and bribes. This is just another reason to fire every dem this side of Moscow and then the republicans who lie to get elected get burned at the political stake in 2 years.
by chicagoray on August 22nd 2010 10:22 PM

Someone has to pay Arlene Ackerman's salary.
by Shotime on August 22nd 2010 10:39 PM

Move to Texas. We don't have idiotic taxes like this and we don't have a state income tax.
by tested on August 22nd 2010 10:39 PM

See you November 2nd.
by Harriman McNeal on August 22nd 2010 10:57 PM

I always wanted to visit Philly. Not now though. Apparently now that their taxing Free Speech, they don't need my dime. City of Brotherly Love My Arse!!!!
by Stephen H. on August 22nd 2010 11:16 PM

Didn't Philly declare war on outrageous taxes 230 years ago? Looks like they won the battle and lost the war - there's a tsunami of tax hikes coming, not just this $300 free speech tax.
by lamo on August 22nd 2010 11:25 PM

WTF? Is Filthadelphia turning into San Francisco or smth? You suck Filthadelphia, and fuck Michael Vick
by Filthadelphia Sucks on August 23rd 2010 12:38 AM

This is all unbelievable....this is not a freedom.... This is in no case a sane thing to do...
by Sachin on August 23rd 2010 12:44 AM

You cannot (or should not, rather) tax people on money they MAY theoretically earn thanks to the fact she (may have had?) ads on her site. Tax should be on earnings not potential future earnings (even in the absence of said earnings!) Did she make money on those ads? No, but she COULD have! Oh em gee! She might have made money, which means she is now a business! That'll be $300 please.

I agree bloggers making money need to be taxed. But there needs to be a threshold on tax paid in relation to money earned and that threshold shouldn't be $50 a year in any reality. As for the 'she chose to put ads on her site, so she deserves to pay', people-- I don't fee that's right. If you start a blog, you won't have readers right away. If you put an ad on your site with the intention to make money and nobody clicks on it, you won't be in business, at all. $300 of nothing is still nothing.
by Duns on August 23rd 2010 1:28 AM

The parasites should be EXPOSED and then run out of town.

People should learn the names of freeloading parasites like Andrea Mannino, who collects her six-figure salary (and generous taxpayer financed pension) by nickel-and-diming taxpayers like this, and the Democrat scumbags who support her.
by Thomas on August 23rd 2010 2:10 AM

Wow. I would never move to Philly. Quit complaining about your crumby officials and get involved. Its amazing how the govt continues to screw you... and you take it.

RON PAUL 2012

by PJ McFlur on August 23rd 2010 2:36 AM



Wake the **** up Philly. Properly represent and kick your bums out of office. Seems Liberty Hall needs more patriots instead of tourists to respect it.
by PJ McFlur on August 23rd 2010 2:41 AM

Wow, Philly just cut their own throats.

Mass move out, mass registration out of town, bad mouthing on the Interwebz, people voted out of office. All in one perfect move.

Idiots...

by docjohn52 on August 23rd 2010 2:57 AM

Wow, Philly just cut their own throats.

Mass move out, mass registration out of town, bad mouthing on the Interwebz, people voted out of office. All in one perfect move.

Idiots...

by docjohn52 on August 23rd 2010 2:58 AM

Americans either elected these tyrant politicians or they did so by the default of not voting. Now they want to cry. Time to get off your knees America, grow some spine, stand on your own two feet, give yourselves a swift kick in the ass for ever letting these Soviets occupy our public offices and then vote these unAmerican scoundrels out of office in November!
by trestradapalma on August 23rd 2010 5:42 AM

At some point the lights will come on and people will start voting for Libertarians.
by Carl Darby on August 23rd 2010 6:18 AM

Seems like a simple response resolves this issue... close, and re-open without ad revenue. Biz licenses are not new. But you need revenue to want to be a biz. close down, re-open without ads. If you have traffic to support your biz, put ads out there when you do.
by Megreen on August 23rd 2010 6:18 AM

While I am buoyed but the majority responses of outrage, I am literally horrified at the number of people in these comments who think this is OK. You people who think this is all OK, as our country slides deeper into depression and collapse -- you need to look into the nearest mirror and find the cause for our great nations's collapse and failure. It's people like you who think tyranny os OK so long as we elect our tyrants who have brought this crisis upon us, and when our nation is left nothing but smoldering ruins, it will be you who have caused it. Thanks, but no thanks.
by Glen on August 23rd 2010 6:58 AM

Just Wait. We The People WILL NOT stand for this! Let it be known to ALL other states as well that try this, don't think so. The city of Philly is going to get an ear full along with ALL of it's representatives. The T.O.Y.S. Party is growing by the millions because of thing like this.
by Montagraph on August 23rd 2010 7:03 AM

This paragraph in the editorial is a problem:

"It would be one thing if Bess' website were, well, an actual business, or if the amount of money the city wanted didn't outpace her earnings six-fold. Sure, the city has its rules; and yes, cash-strapped cities can't very well ignore potential sources of income. But at the same time, there must be some room for discretion and common sense."

Once you start hemming and hawing, and giving political bureaucrats an avenue to exercise their alleged common sense, you have crafted a situation that will be rife with favoritism is will inevitably become a restriction on free speech.
by karlub on August 23rd 2010 7:21 AM

that is some kind of kook juice religion that can lead the average person to believe that being robbed systematically and officially is nobler than being robbed opportunistically and informally. slaves basking in "freedom" jive. sickening. you are not the state. the state is not you. they are P-A-R-A-S-I-T-E-S. downal wyth bluddy behg hid. MYOB.
by charley hardman on August 23rd 2010 7:52 AM

that is some kind of kook juice religion that can lead the average person to believe that being robbed systematically and officially is nobler than being robbed opportunistically and informally. slaves basking in "freedom" jive. sickening. you are not the state. the state is not you. they are P-A-R-A-S-I-T-E-S. downal wyth bluddy behg hid. MYOB.
by charley hardman on August 23rd 2010 7:52 AM

This question is very simple. Yes if you live in Philly the local government has the right to tax you on your income. If you run and online store selling products; yes the federal, state and local governments have the right to tax you on that income from your web site.
So does this mean that Philly can require a business license fee for your blog site? Not unless your server is located within it's jurisdiction or you have a physical location within the city. Your home may qualify as that physical location if you don't file a business license with another state or locality.
So unless the blog is hosted in Philly then they can't require a fee but can request you submit and earnings from your site to pay taxes.
I design web sites for clients and they frequently request a blog on the site. I will inform them of Philly's business license fee and suggest they don't host on a server located in Philly or the state for that matter.

by Dick on August 23rd 2010 8:17 AM

"Yes if you live in Philly the local government has the right to tax you on your income." They don't have the right, they just have to necessary force and numbers to extort money like any other gang.
by T13 on August 23rd 2010 8:40 AM

So in Philly free speech costs $300? Good thing the current administration wasn't around when Ben Franklin was distributing Poor Richard's Almanack!
by Juan Offhue on August 23rd 2010 9:18 AM

Perhaps someone should print the names and addresses of the tyrants who passed this bill and they could receive the opinions of the masses who they are paid to represent.
by Michael B on August 23rd 2010 9:23 AM

Nothing I've ever read about Philly, nor my one weekend trip to it, persuade me to have anything to do with the third world shithole. It seems like all the dysgenic trash who couldn't make a go of it in Baltimore or NYC moved there and are wallowing in shit while beating each other to death. Then the cops come along and set everyone on fire.

If you choose to live there, you pretty much deserve whatever happens to you.
by Iman Azol on August 23rd 2010 9:29 AM

If you have your own domain name make your listing private. Anyone can easily look up whatever information you gave to the company that you use for domain services, name, address, telephone numbers etc...
by Michael Howard on August 23rd 2010 9:33 AM

This is just the first step to limiting free speech. First, require a license, second limit licenses, third selectively grant licenses.
by Dennis Hoyle on August 23rd 2010 9:37 AM

That sickens me.
Demanding 6 times the amount to a person with no full time job?
I think there's even mafia member reading this right now thinking "damn that's harsh"...
Fuck governments. They're meant to be their for the people, now they're becoming less than useless, but actually negligible and harmful. Time to fuck off in my opinion
by Dima on August 23rd 2010 9:39 AM

For crying out loud! I will eat a hatful of sh.t, if all that work to keep tabs on bloggers is not way more than they collect. That reason alone should put some common sense into these lunatics. But just the idea, as a whole, is just mind blowing. If I were living in Philly, I'd be packing right about now. If a city, any city, gets so desperate that they will have go after people who really are not even earning anything, then it simply means, that city is in deep trouble. What's next-the beggers!? In fact, from what I understand, some beggers do very well. But since they are not signing up for a license of any kind, they do not have to worry about it. So what they should do, is set up these tax collectors, sort of like Meter Maids, have them follow up on these people and make them pay! Wow, what a great idea!
by Harry on August 23rd 2010 9:40 AM

Its time to face facts. Either we have to take back government or suck it up and let them take our checks and hope we have enough to get by. The world is set up for the working person to pay for it all. Taxed at every turn and its just wasted on goverment, in programs etc. If the tax money went to good its ok but it never is. The only thing I know is force a election to vote them out of office to change things or move out of the city. The world has changed to the point that everyone wants your money everhow they can get it. Talking wont change that. You have to either get rid of the people causing the taxes or you have to get out of the city to keep your money. Start a petition to cause a emergency election to vote a new group in office.
by mike c on August 23rd 2010 9:54 AM

I'm from Houston, and am a serial entrepreneur. I have started built and sold 5 companies. To start a business in Houston it is as simple as getting a DBA for $12 at the county clerk's office. It seems that philly and other large cities are having issues because they have set a high barriers for start up companies. It would seem to me the more folks working for themselves and for these "new" start ups would generate income and drop unemployment for the cities(broadening the tax base). Fewer people would be demanding social services also reducing the need for higher taxes. My first biz was a produce company while i was in college. There is no way i could have entered in to that biz on a shoe string budget if i was going to get hit by government with huge fees just to try out an idea! Oh, our in texas dba's last 10 years with no additional fee!

Why do you think Texas has only a 8.2 unemployment rate????
by akb on August 23rd 2010 10:00 AM

For crying out loud! I will eat a hatful of sh.t, if all that work to keep tabs on bloggers is not way more than they collect. That reason alone should put some common sense into these lunatics. But just the idea, as a whole, is just mind blowing. If I were living in Philly, I'd be packing right about now. If a city, any city, gets so desperate that they will have go after people who really are not even earning anything, then it simply means, that city is in deep trouble. What's next-the beggers!? In fact, from what I understand, some beggers do very well. But since they are not signing up for a license of any kind, they do not have to worry about it. So what they should do, is set up these tax collectors, sort of like Meter Maids, have them follow up on these people and make them pay! Wow, what a great idea!
by Harry on August 23rd 2010 10:04 AM

Yes sir Mike C. You are absolutely right. Find out whom is responsible for this and vote them out.
TEA
by Dick on August 23rd 2010 10:05 AM

The BPT should be completely scrapped. It's not exactly helping bring or keep businesses in the city and given the plethora of business in the suburban townships and in Conshohocken someone at City Hall should have the bright idea to realize that overt taxation will drive businesses to more friendly confines.

As a blogger who lives in suburban Philadelphia (thankfully outside of the tax paws of the idiots at City Hall), the idea of having to pay a fee for the right to make a few bucks is a joke.
by Dickie Dunn on August 23rd 2010 10:07 AM

It is sick and disturbing irony that this law is being foisted on citizens of the same city which hosted the United States Constitutional Convention from May 25 to September 17, 1787.

Remember this the next time you visit a voting booth.
by Jeff Bauer on August 23rd 2010 10:12 AM

http://legislation.phila.gov/calendar/ Should be able to find doc here.
by Dick on August 23rd 2010 10:13 AM

Go here http://legislation.phila.gov/transcripts/Public%20Hearings/commerce/2010/ce060310.pdf it list the committee that voted for it and the bill is 100369. You can find out exactly what they did with this transcript!
by Dick on August 23rd 2010 10:21 AM

Judging by the comments, most don't know how to think critically. Anthony is right on, if it's making money (even $1) it is considered a business by numerous laws that have been established over the past 100 years in Philly. If you don't like it, change it thru legislation - don't just vent with a bleeding heart crying "Oh that's so unfair, what's next - lemonade stands?" Do something about it. After all, that's why those laws are on the books anyway, folks like you and me that haven't gotten involved.
by Mart on August 23rd 2010 10:22 AM

The occasion to pursue a livelihood is protected and included as part of the clause of Liberty as a Right within the Constitution of the United States. Constitutional Rights are not subject to taxation of the imposition of fees. If a fee could be properly levied upon a Right, it could be priced out of existance.

City Occupational Licenses and fees such as in the article cannot withstand a challenge in court. Ref. http://www.usa-the-republic.com/revenue/liberty/index.html
by olde reb on August 23rd 2010 10:32 AM

sounds like the poll taxes from years back only this tax restricts freedom of speech!

I like the examples of having everyone who has a kid mowing a lawn, running a lemonade stand, baby sitting, washing cars, etc., and homeless collecting cans, pan-handling, etc. to call the city -- better yet - stop by in person to the city hall office to request forms, help filling out the forms and any general questions about the process....
by Mark on August 23rd 2010 10:33 AM

Best way to fight this is to claim that the business is not located in the city. Since your hosting is most likely somewhere else, this is true. That is how most websites get around local laws and regulations.
by Aaron on August 23rd 2010 10:34 AM

Socialism marches on! This is why I do not enter the city of Filthadelphia for any reason. As The Joker said in Batman, "What this city needs is a good enema!". Start with Nutter and work your way up. from there. Vote in November and fire the bums!
by The Warrior on August 23rd 2010 10:48 AM

It's time for another revolution, people!

These maggot politicians need to understand the people aren't going to take this.
by Cornelius on August 23rd 2010 10:56 AM

hobby: an activity or interest pursued for pleasure or relaxation and not as a main occupation.

A hobby need not be something that COSTS YOU MONEY. And what about everyone selling something on Craig's List in Philadelphia?
Or anyone from Philadelphia selling things on EBAY or Amazon?

I'll bet they guy selling crack to the Mayor never paid $300.

This is a fine example why Philly is one of the worst dumps in America. It's leaders have no idea what makes this nation great. We should take up a collection (in one of the other original colonies) to move the liberty bell to someplace worthy.
by SickN Tired on August 23rd 2010 11:00 AM

Bloggers! embrace this! THIS IS GOOD NEWS NOT BAD. If the government call your hobby a business, then it is a business. All of a sudden you have tax deductions. Deduct part of you electricity, deduct your internet access, deduct the cost of you new computer. The $300 will come back and then some.

Business are allowed to deduct expenses, the government can't call your blog a business on the revenue side, but not on the expense side. You are now sanctioned to make big time deductions! this is good news!
by Taxman on August 23rd 2010 11:06 AM

Dreamer Said [ Are kid lemonade stands next ???]
Maybe in philly they will get to it soon but they are already going after kids for that in oregon this year the local town demanded a little 9 yr old girl get a buisness license to sell lemonade in front of her house. maybe they need to be reminded what Thomas Jefferson once said about good govt ..
[A wise and frugal government, which shall leave men free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor and bread it has earned - this is the sum of good government]
by woodbutcher on August 23rd 2010 11:09 AM

So, if I blog physically from Ohio, but the server is in Allentown and a reader in Philly reads my blog from her living room, who do I owe money to? What if I am attending a convention in Philly and update me blog in Philly, do I have to get some sort of guest vendor license to update my blog or do I have to wait until I get back to my office in Ohio? What about tweeting? Can I send tweets from the convention in Philly without a business license? Clear signs government does not understand almost anything about the Internet. (Oh, City of Philly, if you want to send me a letter, make sure you spell my name correctly and be assured that even though you are on my top 5 list of cool cities to visit, if I get said letter, you will never see my hairy butt there again.... even for a Sarcone's Italian...)
by Rufus Dogg on August 23rd 2010 11:12 AM

"Business Privilege" was only one of the reasons I was SO happy to move my design studio out of Philadelphia six years ago. And the brain drain continues while Philly officials scratch their heads wondering why they can't do a damn thing to get the city back on its feet.
by phormerdelphian on August 23rd 2010 11:24 AM

I was hit with this too as a freelancer. I have no problem paying a tax on my income but the flat $300 is ridiculous when it may outstrip what you actually earn--if you earn anything in a given year. The fee should be on a sliding scale.
by Dan on August 23rd 2010 11:26 AM

If you blog maybe it's time to take any mention of your location off the thing. This is absolutely absurd.
by zelda del west on August 23rd 2010 11:27 AM

Yet another reason I thank God that I live in the western part of our state. It is time to chop philly out of PA and to donate it to NJ where it belongs.
by Greg on August 23rd 2010 11:29 AM

Wow - so lame. What next? My Twitter stream? What if I put an affiliate link in a Facebook post?
by James on August 23rd 2010 11:41 AM

In this Morning's Inquirer there is an article that indicates Mayor Nutter reduced the number of "free parking passes" from 1300 to about 1000. The passes are issued as courtesies to politically connected people and people doing business with the city. The free passes save each individual $3500 to $4500 per year. But these political giveaways are costing the taxpayers of Phila about $4million per year. Seems to me $4mil is a whole lot of blogs.
by alkemy on August 23rd 2010 12:21 PM

How on earth did the tax collectors find this woman? Did she register somewhere as a business. I run a blog but no-one knows my address. Please explain to an ignorant foreigner how the council tracked this woman down.
by MarkS on August 23rd 2010 12:23 PM

I just wanted to say that Pilly Government can go F itself. They can send me all the notices they want and I will just laugh and send them back with as return to sender. LEt 'em prove I even have a blog or even know what one is - government people are so stupid - there really should be an open season to hunt them -

David T. McKee
by David T McKee on August 23rd 2010 12:24 PM

I guess this doesn't apply to me. My blog is hosted out of state and I update it from work in the suburbs.

Surely just the fact that my domain(which is nothing without the server, which again is out of state) is registered to my home in philly doesn't open me up to taxation. I'm sure business owners who run stores outside the city don't pay this fee. Same deal here.

by Eric on August 23rd 2010 12:30 PM

Watch this space. There's a movement afoot to require a credit card number and a $1 fee to write comments on newspaper websites.
by MaggieL on August 23rd 2010 12:33 PM

If she was an illegal, she could live in So CA and be given to instead of taken from. But as a resident, naturalized, American, etc. individual - well, that's why USA has a govt infrastructure supplement program in progress. Typical snafu.
by Jubilee on August 23rd 2010 12:37 PM

I'm glad I don't live in Philadelphia, isn't that where the Liberty Bell is, so much for Freedom & Liberty - government (like the Mafia) always wants "their" cut of someone else's life.
Hope this sick Tax regulation doesn't spread - well even if it does, they can go to hell if they think they'd get that money from me!
Stand up for your rights people, say NO!
by enemyartistkristofeR on August 23rd 2010 12:41 PM

Answer to MarkS - our webpage is pretty much just a small info board with low hits. Any little change to text on it somehow ends up cataloging to S+P and Fortune500 phone solicitation lists. We've checked, our ISP isn't the source. We also receive outlandish monitoring communications.
by Jubilee on August 23rd 2010 12:42 PM

So, Freedom of Speech is a privilege and not a right, in the city of Philadelphia that costs you a $300 per year tax to engage in. Anyone that wishes to, exercise your constitutional right, to contact these worthless A-Holes can write them at these email addresses:

Philadelphia Mayor's Office
Michael.nutter@phila.gov, mayor.nutter@phila.gov

Philadelphia City Council
Frank.dicicco@phila.gov, Anna.verna@phila.gov, Jannie.l.blackwell@phila.gov, curtis.jones.jr@phila.gov, Darrell.clarke@phila.gov, Joan.krajewski@phila.gov, maria.q.sanchez@phila.gov, Donna.miller@phila.gov, Marian.tasco@phila.gov, Brian.o'neill@phila.gov, Wilson.goode@phila.gov, bill.green@phila.gov, bill.greenlee@phila.gov, Kelly-at-large@phila.gov, Kenney-at-large@phila.gov, Blondell.reynolds.brown@phila.gov, Frank.rizzo@phila.gov

If you wish or desire to remain anonymous in communicating with these fascist pigs; the German Privacy Foundation can assist you in sending anonymous emails. Its URL is: https://www.awxcnx.de/mm-anon-email.htm
by Samual Adams on August 23rd 2010 12:45 PM

I see people here defending this TAX on business as opposed to blogs - Screw that too - Again, it's like the mafia wanting to get a cut from people own earnings. Someone makes money, it is their money, not the cities, not the states and not the federal governments either!
Say NO to An Income Tax of Any kind. Besides TAXES fund WAR & Death!
by enemyartistkristofeR on August 23rd 2010 12:45 PM

This is just another way for them to steal from their citizens. Next you will all get taxed if you sell goods through Amazon like they did in Colorado. So Amazon just fired all their CO affiliates. lol.. government is destined to completely destroy our country and economy unless we fight back.
by GMartine on August 23rd 2010 12:56 PM

Uh, move.
by Andrew on August 23rd 2010 1:01 PM

Uh, move.
by Andrew on August 23rd 2010 1:01 PM

And how many people are moving into the city vs. fleeing?
by Jonathan Frei on August 23rd 2010 1:39 PM

What this City is proposing to do is illegal. A hobby is not a business. This idea is tantamount to taxing someone for collecting commemorative soda bottles.

Bloggers can show that their hobby is just that by outlining cost of the Internet connection and hours dedicated to this activity minus so called "profits." It can only be viewed as business if it's intention is to derive a significant profit.

Don't let these uncreative elected officials try to reach any further into your pocket. They only have to look at the salaries of the Ackerman, Greene, and other fat cats to figure out where the real cutting and taxing needs to begin.

Taken from the IRS website."Hobby Expenses: You can generally deduct hobby expenses, but only up to the amount of hobby income. A hobby is not a business because it is not carried on to make a profit. See Not-for-Profit Activities in chapter 1 of Publication 535.

by SistaBlogger on August 23rd 2010 1:39 PM

To put this on a national level look at this tax law changes your president has done to us this year the 300.00 will be nothing once you see the tax on health insurance. Just wait 401ks will be next... Enjoy...
http://moneycentral.msn.com/community/message/thread.asp?board=MarketTalkWithJimJubak&ThreadID=1795804
by mike c on August 23rd 2010 1:49 PM

Of all cities for this to happen in. How rich the irony. What do the lads at constitution hall think of this?
by Lom Ox on August 23rd 2010 1:49 PM

These are the wages of liberalism.
by Cromulent on August 23rd 2010 1:58 PM

This is what she gets for being an honest citizen and reporting her blog income to the IRS.
by karenk on August 23rd 2010 2:07 PM

"Long story short, if that's the case, then these bloggers should cease bringing in any revenue and act like they're conducting a hobby."

Anthony, you don't know what you are talking about.

FYI, If they declare this as a business on their Federal Income taxes, unless they show a certain level of profit, the Federal Government will tell them it's not a business, it's a hobby. That's because finding a way to pick up a few bucks in pocket change does not make you a business.

The law itself is immoral and an example of what is wrong with government today. Those who support it are examples of what's wrong with our public schools.

Citizens are simply not properly seen as primarily sources of income for the state, at least not in what ought to be a free country.
by DeputyHeadmistress on August 23rd 2010 2:13 PM

There is NO WAY this UNCONSTITIONAL "law" be allowed to continue.

Why don't we require EVERY elected "official" to take a drug test because they must BE HIGH to think up such a stupid idea!
by Alexander Hamilton on August 23rd 2010 2:15 PM

I have a fulltime job and I freelance part time for a magazine and a blog. I was told when I had my taxes dome (H&R Block) that I needed to get a business privilege license. So I had to shell out $300. I still think I was ripped off, as I have never heard of freelancers having to do this. (I handled my taxes the way I should, with my 1099 from my freelancing clients). Did I get hosed, or is this a legit charge that anyone who does more than $1000 a year freelancing has to pay? It is a one-time fee, but still.
by me on August 23rd 2010 2:16 PM

Doron answered my question in the above link. This still sucks.
by me on August 23rd 2010 2:26 PM

Well, I certainly hope this paper has paid their reporting taxes and I was curious if there was any tax on reading this article. I'd hate to incur a guilt tax on top of any disgust tax liability I may have already incurred. Do I only owe tax on realized disgust or is that on the gross? Is there a tax on confusion?
by robertelegal on August 23rd 2010 2:39 PM

Like hell I will pay this. Come and try and get it you bunch of New World Order Scumbags
by The Mad Ape on August 23rd 2010 2:46 PM

Finally someone with sense@DeputyHeadMistress...

What people don't understand is that bloggers ARE ALREADY TAXED..Big and small claim their revenue on their taxes every year and therefore have to pay taxes for it unless deemed to little for the government to give a crap.

And bloggers aren't saying they won't pay, but man--300 dollars for making 11 bucks over 2 years? It costs more to host the site!
For all those so ready and willing to dump taxes on bloggers:
If you collect allowance, get money from parents, have a bake sale, yard sale, fix your friends car--then shouldn't legislature be drawn up for you to be taxed as well?
by BS on August 23rd 2010 2:50 PM

This is patently absurd. Anything you do can potentially make a profit...even, as stated before, collecting cans.

Every single hobby can lead to a business. So are they going to require a fee from every quilter, stamp collector and R/C airplane enthusiast out there as well?

After all, someone might accidentally make a buck or two selling a quilt to a friend. Can't let that go without taxing the crap out of it!
by sorien on August 23rd 2010 3:00 PM

I'm not paying a fucking dime to that town. Those city council members should just SMILE!!!....and blow me!!!
by Mel Gibson on August 23rd 2010 3:04 PM

Wow. Just one more reason that I'll be moving OUT of Philadelphia as soon as possible. This type of short-sightedness is why this city is in the horrible condition it's in. Businesses don't want to be here, citizens don't want to live here b/c the schools are crap, and the politicians are mis-managing our tax dollars.
by Anonymous Blogger on August 23rd 2010 3:16 PM

Wow, simply WOW. I sure hope New Jersey doesn't try this utter sham. I mean what happens if you say
No, I won't pay it", can they somehow seize a blog that I may pay to host myself? I mean I currently use Blogspot but if NJ tried this I'd simply buy my own URL and host my site offshore, good luck collecting. Philadelphia taxing free speech, amazing...
by Johnny Action Space Punk on August 23rd 2010 3:17 PM

Mark S and others who asked, the city got her address, as the article said, because they duly complied with the law and reported the extra few bucks to the federal government on their IRS forms.
IF you get two bucks babysitting, you are supposed to report that as income, even though you might have spent five bucks feeding the kids and buying crayons for them to color- and the government won't let you deduct that as an 'expense' because your babysitting would only be a hobby until it reached a certain level of gross income.

I find it unfathomable that people who have the brains to read and write do not see the obvious problems with charging somebody 300 dollars because they have the 'potential' to make more. Starting a business is NOT a privilege granted by the government, at least not morally.
Engaging in commerce, seeking to support yourself, in a reasonable country under a reasonable government would be the responsible, grown up thing to do, not an activity to be punished through taxation, licensing, and fees.
by DeputyHeadmistress on August 23rd 2010 3:21 PM

http://taxthisphilly.wordpress.com/2010/08/23/f-u-philly-blogger-tax/
by TaxThisPhilly on August 23rd 2010 3:21 PM

Whats the big deal? A lot of people are confusing this and calling it a "blog tax" which it is not. The $300 is not a tax, its a one time cost. This business privilege license has been around forever and wasn't created for bloggers. If blogging is a hobby, why run ads? It is much easier to track down a blog with ads then somebody selling collector stamps out of their garage.

If your blog is operated as a non profit then just give the city your IRS exempt letter. http://bit.ly/abt2s4
by Michael on August 23rd 2010 3:22 PM

Michael: "If blogging is a hobby, why run ads""

That is just so wrong. Period. Lots of hobbies also bring in a few dollars of income. Legally. They are recognized as HOBBIES by the Federal government, even if they bring in some income.
People make dolls as a hobby, and might sell a couple to pay for their supplies. They pay taxes on the money they made, they don't get to deduct expenses, and they are NOT a business.
Lots of people garden as a hobby. They might sell a few plants, or barter some produce for a haircut or babysitting. Legally, the haircut is taxable income, but the government still recognizes that the gardening is a HOBBY, not a business.

It is a big deal because the business privilege license is a grotesque misuse of government power. You should not have to pay the government for the 'privilege' of having a hobby that occasionally makes a few bucks.
Bloggers ALREADY pay income tax on any income made, whether that is ten bucks, fifty, or three hundred.
But unless they bring in over a certain threshold (one determined by the IRS), they don't get to act as a business and deduct business expenses, ergo, forcing them to pay for a business license is a big deal and wrong.

And having to pay for the privilege of POSSIBLY making money they haven't actually made yet is outrageous. IF you can't see this, you deserve the government we've got, but the rest of us don't.
by DeputyHeadmistress on August 23rd 2010 3:31 PM

The cities are getting very greedy these days.
BTW a little girl's lemonade stand was shut down because she had no permit plus she would have had to file with the IRS on her profits.
Talk about being a schmuck!!! IRS fits in there.
by Smoke on August 23rd 2010 3:35 PM

The biggest problem with local taxes is sheer complexity and inconsistency, which is a full-employment program for accountants. Local and state taxes should work like this:

1. What was your federal adjusted gross income (line X of your 1040 form)?

______

2. Calculate Y% of that and write it here:

______

3. Send us a check for that much. Thanks, you're done.

Something similar will work for small business taxes.

Many small businesses are stuck paying as much to calculate their local taxes as they actually pay *in* local taxes.

by Tom Boutell on August 23rd 2010 3:36 PM

Hey, look on the bright side. If this is a business, you can also right off the losses. In other words, if your business is writing about concerts, you can write off all the concerts. And since they said your business doesn't have to be profitable, you may pay $300 for the business, but you can write off thousands more. May I suggest starting a beer blog? Yes, all those beers are a write-off.

by Erik on August 23rd 2010 3:41 PM

So how much does it cost to set yourself up as a non-profit?
by Shane on August 23rd 2010 3:42 PM

This is an infringement on freedom of speech. Most bloggers don't make money off of their opinions. Even if they do, its not going to cover the cost of a "fee" to have the "privilege" of putting their thought in a public forum.
by William A Manning on August 23rd 2010 4:29 PM

IF a blogger MIGHT make money, AND the city wants its cut, then it follows that the city should tax everyone because they COULD (and SHOULD) have a money-making blog to help the city raise funds. Like land sitting idle which a municipality can convert to a better use, the city should REQUIRE a certain ROI from all of its citizenry. Anyone not pouring enough cash into the bureaucratic coffers should get evicted from the city.

On the other hand, a city passing a law might make it legal but it doesn't make it right. I feel less and less responsibility each day to follow these types of governmental mandates. If I lived in Philly, I would do whatever I could not to pay this type of asinine fee.
by Rick on August 23rd 2010 4:37 PM

Business licenses always struck me as a very un-American idea, like something you'd get in some Socialist dystopia. Which is why I refuse to get a license and do all my business on a strictly cash basis :)
by Mike Grant on August 23rd 2010 4:37 PM

Foobooz and Arthur Etchells have been running that as a rogue business for a long time i guess without paying their fair share. The city should also check out the zoning on 723 S 19th St 19146 where they have run the business from, it does seem to have proper use and occupancy as a business
by foondleboyz on August 23rd 2010 4:51 PM

Tar and Feathers time? More like black flag and sharp knives time.
by John Q. Galt on August 23rd 2010 4:51 PM

If I were going to be taxed on the profits, then I would claim all other necessities as a write-off. Computer, chair, keyboard, mouse, monitor, hosting fees and everything else should be claimed -- thus providing much more than a 300 return at the end of the year.
by Philly Sucks on August 23rd 2010 5:08 PM

Activity for profit? The homeless person (better cough up $300) started picking up soda cans because he lost his job. The FEDS took his bank account (life savings) due to back taxes on the job he lost. The CITY took his HOME because of nonpayment of property TAXES. Now that the homeless found that they can turn city street trash into big business, their $20 a week MUST be taxed so that they can not afford to have more than cardboard boxes to live in or eat any better than fast food scraps.
As for the kids who mow lawns, your babysitters and your own kids who do household chores for their allowance, they must be taught early to pay, pay and pay again to the bloated fat ones. Blog your way to homelessness. Is there a “tax for profit” tax?
by John on August 23rd 2010 5:25 PM

Does the city send dunning letters to all drug dealers within the city limits? They are operating a Business!
by Clarence on August 23rd 2010 6:12 PM

Imagine that. So how much in actual collection fees is the city of wasted money amassing? If their people have that much free time on their hand, I spot a department that needs MANY lay-offs!
by Provoking Thought on August 23rd 2010 6:17 PM

This is ridiculous, as you mostly say. If the city wants to bring in money, they should make their way to my neighborhood (Fishtown) and start ticketing all the fools who park on the sidewalk. Easy money.
by Robin on August 23rd 2010 6:21 PM

This is ridiculous!! You people should be taxed at 100% of your potential earnings using whatever metrics the bureaucrats decide. If you don't pay then you get locked up until you earn enough to pay. In the mean time, you can work on the City chain gang cleaning government toilets and picking up paper and cigarette butts at fifty cents an hour until your debt is paid. Nuff said...
by Crabbe Nebulae on August 23rd 2010 6:22 PM

Time to cut spending! It is the spending and money mismanagement. Elected officials have gotten enough money. It burns their hands. They cannot spend it fast enough. Is it about the tax money or control?
by Ca Voter on August 23rd 2010 6:23 PM

We have been living in Canada since January and are now moving back to the states. Philadelphia just removed itself from our choices of places to live.
by Erik on August 23rd 2010 7:52 PM

Pay the tax, lay yourself off, collect unemployment.
by Austin on August 23rd 2010 8:15 PM

I certainly agree that publishing a blog on the internet is an exercise of free speech and should not be taxed. Most of this valid uproar could have been avoided by the people who pursue and enforce this tax honorably conceding that Commercial Blogs and Professional Blogs (i.e., websites that are operated to generate revenue above some reasonably level) should be required to obtain the usual Business Privilege License that all businesses (again, reporting income above a certain reasonable level) in the city are required to obtain. The idea that this is a special tax on blogs is ridiculous. The city is just trying to go after any kind of internet revenue-generating operation, and add those types of "businesses" to its list of licensable businesses. Once they come up with a reasonable level of income, above which a site could be deemed a Commercial or Professional Blog, I think the dust will settle on this understandable uproar, and the amateurs will resume blogging for a hobby (even with a small income), once again contributing to the enrichment of society.
by Reed in PA on August 23rd 2010 9:34 PM

The above assumes that the Professional blogger concedes that they are operating a business in/from a particular location within the city, and have no issue with paying the usual income taxes. (which settles the “No, I am not running a business issue.”)
by Reed in PA on August 23rd 2010 9:42 PM

This is par for the course of the city of Philadelphia, and why it has gone from being the second city in the country to the sixth (and falling). The city LOVES its shakedowns to keep the generous salaries and gold-plated pensions of city employees intact. Any suburbanite who made the mistake of parking downtown to shop -- and getting a $150 ticket -- will tell you he decided long ago to bail on shopping downtown (which is why Center City's retail establishments are so empty). When the city faced a budget crisis, rather than cut salaries and staffing of "assistants to city council" who make $90K+ per year, they went to shut down libraries in the poorest neighborhoods in the city. And now, if you're a tech-savvy person who operates a blog of some sort, the city wants its pound of flesh.

We can see what the city's aggressive shakedowns have done to the health of the city economy -- twice the unemployment rate of the burbs, an empty retail sector downtown, and over half of the city's land area dominated by the utter economic desolation of North Philadelphia -- destroyed by years of city corruption and shakedowns.

Someday we'll change, and the city of Philadelphia will be competitive again... maybe. Until then, we'll continue to get $150 parking tickets for being crooked in a parking space and nastygrams with $300 "blog privilege fees" attached until we finally decide to join the hundreds of thousands of others who have said "enough" and left the city, never to return.
by Brian Miller on August 23rd 2010 9:59 PM

"If I were going to be taxed on the profits, then I would claim all other necessities as a write-off. Computer, chair, keyboard, mouse, monitor, hosting fees and everything else should be claimed -- thus providing much more than a 300 return at the end of the year."

Ah, but that won't work. You see, the business "privilege" license is $300. And the business "privilege" tax, which is a separate tax that licensed businesses have to pay, is a percentage of REVENUE, not profit. If you run a business that breaks even or loses money, you will pay just as much as a comparable-revenue business that made a decent profit.

This is why Philadelphia's skyscrapers are some of the emptiest in the northeast and why unemployment rates are so much higher.
by Brian Miller on August 23rd 2010 10:12 PM

Here's a loophole...have friends or family members you trust in other states/nations open up a blog account with ads for you, and then have them send you the money via paypal as a gift (hence the trust aspect). That way you can keep blogging and make your $50 per year without having to pay this stupid fee. It does make me wonder what's next...taxing kids who trade baseball cards at school? Creating a fee for friends who give hand-me-downs to new parents?
by pepe on August 23rd 2010 10:16 PM

NO US Elections in 2010?

Look at:

puffiewarning.wordpress.com

Be sure to look at the Archives

Is this what the Left is planning?

Is this what some of the Democratic supporters are
planning? Are some of these supporters
putting in a powder they call "Jock Strap"?

Is their budget about $100,000 to allow sending
75,000 Puffies to Republicans, their offices, and the
homes of their supporters?

Are they trying to give Obama a reason to issue
a Presidential Order to shut down the 2010 elections
until the Puffie issue is resolved?

Are huge numbers of 99ers also playing Puffie to
force the US Government to take some action?
Is this Puffie stuff just a low cost US civil war?

GHU
by Don Parks on August 23rd 2010 11:12 PM

I don't even live in Philly. My business isn't located in Philly. The people who pay me aren't even in Philly, but because I perform in Philly and that's why I am getting paid, I had to pay the 300.00 fee.
They also sued me for back taxes, to the tune of 16000. After two court dates, I ended up paying 2.00 plus one dollar toward the nest year, which I ended up getting back. What a waste of the city's money!
by Alisa on August 23rd 2010 11:39 PM

Finally I have an excuse to stop lending other people money.
by Scott on August 24th 2010 2:24 AM

I hope they don't find out about those soft pretzels I sold as kid out of a soda box. Thats a whole $20 to $30 I made without a business privilege license. My god i probably owes millions in back taxes on that money.
by michael shaw on August 24th 2010 2:34 AM

this is dumb as shit
by seriously on August 24th 2010 6:27 AM

I know how the city can save money...how about ELIMINATING the jobs of people that sit on a computer all day and look for local blogs of others that MAY be lucritive. Just a thought.
by A. Ellwood on August 24th 2010 10:04 AM

Never give this crooked city anything. Defy them, go to the stake, refuse, refuse!
by JudeThom on August 24th 2010 10:46 AM

Wonder if they charge convicted drug dealers or prostitutes $300? If convicted, they DID make money on a business, right?
by Jenna Tailya on August 24th 2010 12:16 PM

Some clarification is needed concerning whom this will affect.

As a couple of commenters pointed out, web hosting can be done anywhere, but this article cites two blogs that awhat is wrongre not even on their own domains, blogspot and wordpress.comno no no, so I don't think hosting matters.

Philly sounds as unfriendly to business / entrepreneurs as where I live - Portland Oregon
by Scott on August 24th 2010 3:54 PM

This is not a freedom of speech issue. Not all blog writers were asked to pay a licensing fee, only those that choose to have revenue generating ads on their web pages. If your ads are not generating sufficient revenue to cover the cost of doing business in the city, than don't have ads on your site! It's not rocket science people.
by Bobby the Blogger on August 24th 2010 5:41 PM

I thing Jenna Tailya is on to something. Make sure that the criminals are paying up first! A business is a business, whether you are charging for lying on you back or selling weed. It's a business so whenever caught, charge them the $300.
by dandaman on August 24th 2010 5:59 PM

No, Bobby, it is a right to engage in commerce. The whole idea that the city has the right to grant a 300 dollar license for the privilege of starting a 'business' that *might* make money is illiberal and antithetical to the liberties of a free people to begin with.

The people already paid taxes on the actual income from the blog. That's how the city found them- they reported the tiny income. The additional 300 dollars is the problem here, NOT the ads. It should NOT cost you money to allow ads on your site.
by DeputyHeadmistress on August 24th 2010 6:28 PM

If this stops Arthur Kade from blogging, it will all be worth it
by Alfie Noakes on August 24th 2010 9:32 PM

If your doing someting (like a blog/website with ads from ad networks or affiliate links) and earn money in the form of a commission, you are NOT a business. Unless your taking money directly for a product or service, it's not a business. Receiving a commission from someone else's business is not a business in itself, just ask any MLM pusher. All you are required to do is report it as income like any job.

If I was them, I'd put up a bunch of ads from networks and affiliates and tell them (philly)to kiss off.
by Phil on August 24th 2010 9:38 PM

I'm a freelancer who has been asking accountants from this region about whether or not/how to deal with business privilege tax for 3 years. Every time the city puts on a "Taxes for Artists" workshop, I go and ask about it. The answer is always, "I don't know or understand it, and nobody does. You're on your own."

Now, the city's new "Revenue Collection Bureau, Inc.", a private corporation, is sending me paperwork requiring all of my financial information since 1998, the year I turned 14, and I didn't set foot in Philadelphia for the first time until 2005.

Existing well below the poverty line, I make under 9K/yr before my studio and commission-related write-offs, and just about 2K/yr afterward. Now, this "Bureau" has opened a can of Audit on me that I can't close without going into a payment plan for thousands of dollars for an accountant or tax lawyer to help make sense of the paperwork-which targets actual businesses, and is totally irrelevant to individual freelancers like me. In a city with so few jobs, lots of people, especially the creative professionals that make this place desirable to out-of-towners in the first place, exist by piecing together just enough work to support themselves without leaning on public services, and then we get sentenced to this. Fuck this city. It's not worth it.
by Vero on August 24th 2010 10:08 PM

It is understandable that the city tries to collect fees for a professional license, but just publishing a few articles on a website does not mean that the activity is professional, even if some income is made.
by HP on August 25th 2010 2:03 AM

Agreed! Amazingly foster care & respite host families are tax free! Seems I have heard of the IRS wanting money from kids for "business ventures". Also does it appear the government wants to discourage profit & enterprise? We can be unemployed, get welfare, bust the economy, etc....
by Dz on August 25th 2010 3:52 AM

Insane in the membrane. What do they smoke? 300,-$ for a blog with adds...retarded. It's like setting up a barrier for free speech.
by radical on August 25th 2010 10:10 AM

I think Philadelphia has just gotten itself into a blog war and just kicked off a major battle. If it heads into court next, money will have to be spent trying to defend themselves. Money that Philadelphia doesn't have. If Philadelphia loses the court battle, the city will be worse off than it is already. I urge Philadelphia to reconsider their decision before the pass the law. The court will NOT be on their side in this.
by Sherlock Steve on August 25th 2010 10:20 AM

Since we are posting information on this blog will we have to pay a "post" fee next?

There are so many blogs which really help people, this really doesn't make any sense.

by james on August 25th 2010 12:15 PM

The outrage is misplaced. A blogger has full control over whether to run ads or other money-making schemes in connection with the blog. If the blogger decides to run ads, then the blogger is using the blog like newspapers use their articles--as a money-making business. Businesses are appropriately licensed so that the local government can apply whatever regulations apply to each business in an industry, rather than the unlicensed business flying under the table in unfair competition with its competitors.

Blogging itself is protected by the First Amendment, but businesses are always subject to complying with the laws that are set up to regulate the way commerce works. Commerce without that kind of a stable, workable legal system generally fails miserably because brute force is used, abuses occur, and customers can't use the markets fairly. Most of the libertarian comments here display an abject ignorance of the way markets developed and the way they really work because they are based on ideology and not on practical understanding of human affairs.
by Linda M. Beale on August 25th 2010 12:55 PM

http://citypaper.net/articles/2010/08/19/blogging-business-privilege-tax-philadelphia
by Sensationalism that rivals Fox News. on August 25th 2010 1:46 PM

-- Apparently this posting bit doesn't work so well in Chrome via Windows 7's XP mode...

I've always taken the City Paper with a bucket of salt, and it looks like my skepticism is justified. The few that have actually been contacted were apparently people that listed something on their Federal taxes and then neglected to put it on the Philly taxes. The actual letter never said anything about web revenue.

"Of the two bloggers quoted in the City Paper, one had received nothing from the city. The other got a form letter the city sends to federal tax filers who may not have reported income to the city. It never mentioned blogging."

http://whyy.org/cms/news/regional-news/2010/08/23/philadelphia-bloggers-to-start-paying-business-taxes/44153

http://whyy.org/cms/news/government-politics/2010/08/24/blogger-tax-story-outruns-the-truth/44242
by Sensationalism that rivals Fox News on August 25th 2010 1:48 PM

Heh. Got directed to this article from, of all places...a blog!

Truly ironic that this is happening in the same place rather famous for commiting Destruction of Property *because* of rediculous taxation. Has anyone checked to see if any of the people behind this can trace a lineage directly back to old George III? :-) I bet if any Brits are reading about this fiasco, they're laughing their butts off.

Meanwhile, and more seriously--a fee for *potential* profits is kinda silly, especially for something even that most fanatic of money-grubbing agencies, the IRS, turns their nose up at--at the very least, it *should* be on a sliding scale based on actual revenue, with a $300 cap.
by ChrisForsyth on August 25th 2010 2:58 PM

Wow. Truly bizarre.

Ironic in a city with a Liberty Bell. You can hide behind the laws and rationalize it but it doesn't make it right.

The more numerous the laws, the more corrupt the state as Tacitus once said.

I live in Montreal and hopefully this nonsense doesn't find its way here. I'm not holding my breath.
by Alex on August 25th 2010 9:03 PM

There is a minimal amount "Bess", it is $400.00 net earnings. You obviously didn't read your letter, or you've chosen to blow up certain things. Maybe to get more traffic to your blog? Hehehe. That goes to the writer of this article as well for not verifying her story. It's not $300.00, it is $50.00 or $300.00 for a lifetime license. And as for the taxes, you must report all income, but will not be taxed up to $400.00. In other words, you're full of it. If you represent yourself as self employed or owning a business, be prepared to pay taxes like everyone else. A simple call to the IRS and you would have had your story straight.
by sally on August 26th 2010 7:22 AM

To the folks screaming that said tax is reasonable, fair and necessary - would you be so kind as to enumerate a list of benefits such a small business receives by said taxes/fees?

Even the IRS attempts to reach out to their community in newsletters that describe "your taxes at work."

Also, with said list, could someone be so kind as to point out which of these privilege to do business fees are not duplicated in other taxes paid by said entities?
by hondo on August 26th 2010 10:07 AM

this is bullshit..next they will start charging people for the blog posts on their myspace or facebook pages...simple and plain..there is always ways around this...like the fact that the city cant charge businesses that are not in their city or state...and if you blog on a blog website...you basically work under that website...so if your blog host is in new york...thats were your business is located even if you live in philly...so fuck them
by sinpros on August 27th 2010 8:55 PM

A $300 "Business Privilege License" because the blog has the "potential to make money"? What next, assessing the fee on every human being since they too have the "potential to make money"? What a bunch of BS.
by Kira on August 28th 2010 5:12 PM

@Dreamer
Actually, in Portland, Oregon they have already gone after kids lemonade stands.

But this sounds like a 1st Amendment issue. Taxing someone's blog sounds like an attempt to infringe on that person's freedom of speech (or freedom of the press, if you choose to look upon a blog as a media source). What that person has to say (or print) is irrelevant. They have the right to say it without government regulating their words by way of a tax. I hope Ms Bess takes this to court.
by Gene on August 29th 2010 1:39 AM

Since CP won't cross link to their correction and clarification of this article...
http://citypaper.net/blogs/clog/2010/08/23/phillys-blogger-fee-goes-viral-also-some-clarifications/
by Why is there no update to this article? on August 30th 2010 3:11 PM

@ "Why is there no update to this article?"

That Clog update is actually prominently cross-linked in a box above the fold of this article, and has been since the day the post was published.
by Drew Lazor on August 30th 2010 3:17 PM

So, I use my blog as a diary which anyone that visits can read, therefore I feel that I'm not actually selling anything. As for making money? Ha! Surely it would be better to ask visitors to donate instead, and maybe register yourself as a charity? The amount of time and money I've spent running my system *definitely* makes me feel as though I qualify or charity status!
by Peter Garner on August 31st 2010 11:36 AM

so i wonder if the twist is that noW that she has to report that as income..i wonder if she then could start to write-off all the time spent, electricity, food, dinner while talking about the blog, computer costs, maintainance etc. etc ..there's the $300 priviledge tax ..here's the extra $5000 in tax write-offs ..oh and it's retroactive for all the expenses I didn't write off for the last 5 years
by poor artist guy on September 7th 2010 12:54 PM

DOJ Charges PA Swim Club With Racism From the Philadelphia Inquirer U.S. charges Montco swim club with racism

By Derrick Nunnally January 14, 2010 The U.S. Justice Department accused a Huntingdon Valley swim club of racism in a federal lawsuit filed yesterday as the club deals with ongoing bankruptcy proceedings. The Valley Club, which revoked its contract with the Creative Steps day camp after 56 black and Latino children visited June 29, is charged in the suit with making a no-summer-campers rule the next day "in response to racially motivated opposition from Valley Club members . . . with the intention of preventing the children of Creative Steps from returning.

Does anyone enforce the Law? Why is this company never questioned? How about taxpayers money for pool beneficiaries? Collaborate, is that a new word for buying the business? Is this considered Honest Fraud under the new Federal thinking that taxpayers would never approve?

AmeriChoice is proud to collaborate with Mayor Nutter’s administration for the second consecutive year to help overcome the obstacles that could have resulted in the City closing its pools this summer,said Executive Director of Pennsylvania East AmeriChoice Ernie Monfiletto. Following the check presentation, AmeriChoice was presented with a health care Innovation Award by the National Association of Health Services Executives in recognition of its services to its Medicaid and Children’s Health Insurance (CHIP) members. Hey, and this is all on film with current and potential beneficiaries applauding.

2009 and 2010 $120,000 blatant inducements from your tax dollars for the protected Medicaid vendor. Philadelphia PA Mayor Nutter received two years in a row $60,000 checks to help keep open and operate the city swimming pools. These checks came from AmeriChoice Health and on the surface seems like fine gifts.Yet, they are Bribes non the less, these checks come from a company who receives all its money from the Federal Government as a vendor for Medicare Medicaid services is not allowed to offer bribes kickbacks and money gifts of any kind inducements in order to promote its share of the market place. This is not allowed as a use of your taxpayers dollars yet it happens.What will it really cost the City of Philadelphia to receive this money? Americhoice Health has a long history of corruption over the years yet seems to be protected by those who are responsible to over see their actions why is that? Inducement. Section 1128A(a)(5) of the Act bars the offering of remuneration to Medicare or Medicaid beneficiaries where the person offering the remuneration knows or should know that the remuneration is likely to influence the beneficiary to order or receive items or services from a particular provider. The "should know" standard is met if a provider acts with deliberate ignorance or reckless disregard. No proof of specific intent is required. (See 42 CFR 1003.101.)

Among its provisions, the anti-kickback statute penalizes anyone who knowingly and willfully solicits, receives, offers or pays remuneration in cash or in kind to induce, or in return for: A. Referring an individual to a person for the furnishing, or arranging for the furnishing, of any item or service payable under the Medicare or Medicaid program; or B. Purchasing, leasing or ordering , or arranging for or recommending purchasing, leasing or ordering, any goods, facility, service or item payable under the Medicare or Medicaid program. Violators are subject to criminal penalties, or exclusion from participation in the Medicare and Medicaid rograms, or both. A violation of the anti-kickback law is a felony offense that carries criminal fines of up to $25,000 per violation, imprisonment for up to five years and exclusion from government health care programs.The federal anti-kickback statute, 42 U.S.C.§ 1320a-7b(b), prohibits individuals or entities from knowingly and willfully offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid or any other federally funded program. For purposes of the anti-kickback statute, "remuneration" includes the transfer of anything of value, directly or indirectly, overtly or covertly, in cash or in-kind

If this were any one person they would be in jail now, if the FBI were called in on this matter they would be in jail now, if the IRS were notified they would be in jail now. Since all Ameri-Choice checks come from the United Health's home office they should be held equally responsible for any bribes, kickbacks, Stark, Fraud and inducements violations that have occured. Federal and State Governments have developed such a depended position with this company that laws and rules no longer apply for them.This role is nothing new for the AmeriChoice people and its been going on for years, look at some of the prior news articles that date back for years only now they can afford to hire the best of Law firms and give the most for Political contributations all on the back of the taxpayer.
by rudy on October 14th 2010 8:05 AM

Stupidity. Government at every level operates only with the consent of the governed.


If each of us simply ignores this, or any, 'law' it becomes unenforceable.
by Mark Peterson on November 12th 2010 5:54 PM

$300 for Blogging License?? Imaginative and creative. Or extortion? UM ... If you don't make money from your blog do you get a refund? Nah! I don't live in Philly. But I guess this idea will catch on. I'll just wait for it to come to my city. Cedar Park, Texas.
by Treathyl FOX on January 8th 2011 10:56 AM

If her blog is a business it must mean her living room is an office space, her office supplies, coffee, printer ink, paypal fees, internet connection, magazines she buys to educate herself on the subject, etc. are all tax deductibles...and maybe she can even file for bankruptcy in a couple years after emptying her bank account for "office goodies"...maybe only then the government will realize how stupid they are but would it really matter when they could turn around and tax you on something else? You vote for them...
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