City Of Philadelphia Announces Further Measures To Crack Down On Employee Tax Delinquency

Philadelphia, July 29 – The City of Philadelphia announced today two additional toughrnmeasures to collect taxes owed by City employees. These measures are the next stage of a processrnwhich has already generated $1 million in back taxes paid since late May.rnrn“Our position on delinquent taxes is clear: if you owe, you must pay,” said Mayor Michael A.rnNutter. “My Administration has pursued aggressively all back taxes in Philadelphia and it isrnespecially important that city employees are fully paid up.”rnrnThe City’s Department of Revenue has requested that City Controller Alan Butkovitz send a letterrnto remaining approximately 1,300 tax delinquent city employees informing them that they have 30rndays to settle their debt or enter into payment plans to pay any taxes that they owe. If they fail torncomply within 30 days the City has asked the City Controller for the authorization to withholdrnwages from tax delinquent employees to fulfill their obligations.rnrnState law authorizes the City Controller to withhold up to 20% of a City employee’s wages. ThernRevenue Department has requested that the City Controller recommend that the full 20% berndeducted each pay period to settle the debt as quickly as possible.rnrnIn addition the City of Philadelphia is finalizing a policy which will require any applicant for a Cityrnposition to enter into a payment agreement to pay any back taxes that they owe as a condition ofrntheir employment. This policy is expected to be implemented in the coming weeks.rnrnThe Nutter Administration has aggressively pursued taxes that are owed to the City of Philadelphia.rnSince November 2008 the Administration has published three lists of business tax delinquents,rngenerating $4 million in taxes paid and payment agreements entered into. In addition the City hasrnalso launched a tax fraud hotline (215-686-3852) and has conducted a review of quasigovernmentalrnagency vendors to ensure that the agencies withhold payments from tax-delinquentrnvendors until their tax debts are satisfied by payment or agreement.