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Philly Adjusts Occupancy Tax For Eateries Based On Capacity

By Paul Williams · February 19, 2021, 2:32 PM EST

Philadelphia will base the city's use and occupancy tax for restaurants and bars on their allowable occupancy percentage for indoor dining amid restrictions issued to contain the novel coronavirus, according to a special regulation from the city Department of Revenue.

The department's Thursday regulation said that while the city limits occupancy for restaurants and bars, the tax for affected businesses will correlate with their occupancy limits. For example, restaurants that are limited to 25% capacity will only be assessed the use and occupancy tax on 25% of their indoor dining room space, according to the regulation.

The use and occupancy tax is levied on owners and landlords of business property at 1.21% of the assessed property's value, with a $2,000 annual tax exemption, according to the department.

--Editing by Vincent Sherry. 

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