Philadelphia businesses have been unable to
use and occupy
their business space since being ordered to close on March 17, 2020, unless characterized as an “essential” business permitted to continue operating. These nonessential businesses are not required to pay the Philadelphia Use & Occupancy (U&O) Tax during the shutdown.
According to the Department of Revenue, “businesses that do not have access to their place of business by order of the Mayor beginning March 17, 2020, are not considered to “occupy” the space. Businesses that continue operations, businesses that have employees on-site, and businesses that maintain employee access to their place of business throughout the Mayor’s order, should file and pay the Use & Occupancy Tax as normal.”
The U&O Regulations remain in effect with regards to forms and due dates.
Any portion of the U&O Tax collected by Landlords (through rent collection) must be refunded to tenants. The U&O Tax will be applied to all property used for business purposes once the shutdown is lifted.
