Cash-strapped Philly: Bloggers must pay for business license

Cash-strapped Philly: Bloggers must pay for business license

Lindsay Goldwert
New York Daily News
Monday, August 23rd 2010

How does a financially strapped city with a shrinking manufacturing base and rising unemployment attempt to make a little extra cash?

Tax the bloggers.

Philadelphia is demanding that bloggers pay $300 for a business license, whether or not the blog brings in a fraction of that amount in profit, according to the Philadelphia City Paper.

Marilyn Bess blogs about eco-friendly living in Philadelphia and the surrounding areas. She occasionally contributes to the DIY site eHow.com. Her profit in the last few years - $50.

She told the City Paper that she received a letter from the city in May, demanding the $300 for a "business privilege license."

According to the city's website, every individual, partnership, association and corporation engaged in a business, profession or other activity for profit within the city of Philadelphia must file a Business Privilege Tax Return.

Whether the blog earns a profit does not matter.

Andrea Mannino of the Philadelphia Department of Revenue, told the City Paper that by choosing the option to make money from ads — regardless of how much or little money is actually generated — qualifies a blog as a business.

"It sounds ridiculous," blog and social media author Debbie Weil told the Daily News. "Does the city have the resources to go after every blogger? I'm not sure they understand the difference between blogging for business and personal satisfaction."

Joey Sweeney, editor of the Philadelphia nightlife and gossip blog Philebrity.com told the Daily News that the site had already acquired the business license.
"Since our business model relies on advertising sales, it makes complete sense that we'd need a business license, as we're in business every bit as much as a corner store," said Sweeney. "However, where people who mostly blog as a hobby and are making little to no money at all via their online pursuits, it doesn't really seem fair."

These business privilege taxes and licenses are far from popular in Philadelphia. Smaller vendors have been crying foul about the city randomly cracking down on licenses and fees.

Many Philadelphians who didn't know that they owed taxes on their unprofitable blogs missed out on tax amnesty offered back in the spring.

Still, not all bloggers are concerned with rushing to print out new tax forms. Many didn't even know about it until it was reported on Monday.

"It wouldn't affect me in the least,” says 'Mike Meech', author of the Phillies blog Fightins.com. "I write under a pseudonym so they'd be sending a $300 bill to a fictitious name."

Are New York City bloggers next?

"I don't think that's on our radar," said Abby Lootens, from NYC Dept. of Consumer Affairs.

lol, that's insane. Sounds as though Gordon Brown already has himself a job as fiscal advisor

Yeah, charging people who don't make a profit, or barely even, a tax. Real bright way to get yourself voted out of office.