Philadelphia Begins Charging Blogs $300 Per Year
Posted by Jim Hoft on Sunday, August 22, 2010, 2:17 PM
(Updated by Warner Todd Huston)
Are you a blogger in the city of Philadelphia, Pennsylvania? Do you have Google Adsense or some other sort of low-return ads on your blog? If so expect a letter soon from your friendly city treasurer demanding that you pay a $300 tax on your “money making business.”
For most people that maintain an active blog it is just a hobby. Some people blog daily but most only do so a few times a month. Many bloggers also participate in Google’s advertising program called Adsense but few make much more than $20 or $30 a year from the effort.
But according to the City of Philadelphia, you have a lucrative business one that you need to register with the city and either pay $50 a year tax or a “lifetime” fee of $300 to be allowed to operate.
Naturally the Philly bloggers that have gotten this letter are flabbergasted. None of them were even aware they have a taxable business with their blog. Ah, but the city disagrees.
Here’s one way to shut down dissent…
Cash-strapped Philadelphia recently began charging blogs $300 per year for their business license.
City Paper reported:
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 $300, the price of a business privilege license.
“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’s not alone. After dutifully reporting even the smallest profits on their tax filings this year, a number — though no one knows exactly what that number is — of Philadelphia bloggers were dispatched letters informing them that they owe $300 for a privilege license, plus taxes on any profits they made.
Even if, as with Sean Barry, that profit is $11 over two years.
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Published May 24, 2012 at 8:46 pm - 91 Comments
DINORight commented:
Time to take the city to court. These individuals need a good lawyer/law organization, who would be able to bring a class action suit against the city for burdensome taxes used to punish them and stifle their first amendment rights.
Their free speech is being blocked, freedom of assembly (online blogging is a form of assembly – virtual, perhaps, but still a group assembling to discuss a topic), etc., in the form of a tax on a non-profit seeking hobby or activity. In essence, the suit should state that these individuals are not running any businesses and are being treated as such, for the state to steal monies via taxing them, in essence forcing them to be silenced.
I am sure there are lawyers who would pursue this first amendment infringement.
Donald Kotowski commented:
I suspect that the amounts of money referred to in this post is really REVENUE. Not profit. Two different animals. It will cost the Revenuers more to process any tax returns than any benefits they might receive from these minimal returns. Your government in action.
Multitude commented:
The King of England had a similar licensing approach for early printing presses, requiring his authorization prior to ownership of the presses and appropriately tying the retention and re-issuance of the license to continued favor with the King.
It’s not surprising that Philly would desire to keep tabs on who’s writing what, given that it’s made a sizable investment over the decades in ensuring the local newsmedia stays in line with the Democratic machine. To think that Philly citizens believe they have a right to free speech, a right of free association, etc. in an era of creative constitutional interpretation!
Stephana commented:
time to start shooting.
Timon commented:
Is it more about the money or is there actually contempt for the bloggers? It makes sense to have an income limit before the state really cares about blogging as a business. The proposal for a $100,000 limit reported in the article is probably excessive, by about twenty- or fifty- or an hundredfold. (Yeah, I went to Church today).
Kenny Solomon commented:
Question: Does the City Of Philadelphia own the service host for the blog ?
If not, then these two things should be the only reactions:
1. Go direct to the SCOTUS on a 1st Amendment violation charge.
2. Arm up and make it highly visible and known.
Robert commented:
This is the city being heavy-handed and also grubbing for fees, any money generated by citizens that they can get their greedy paws on. There should be some minimal amount like $1,000 or so under which the city has no jurisdiction.
Like with traffic light cameras, they are abusing their authority to generate revenue to pay for their bloated salaries and pensions, which they will then be caterwauling to the American public to cover.
JPL17 commented:
Most Philly bloggers are lefties anyway, so who cares if they get gouged by the city. They’re living in their Socialist Paradise…let them pay for it.
As to conservative Philly bloggers, why don’t you vote with your feet and move to one of the surrounding counties, like Bucks? We’ve got no “business privilege license,” “wage tax,” or “business privilege tax” here (PLUS we could use your vote to help us oust that ultra-left FAKE blue dog, Patrick Murphy!).
Andreas K. commented:
Blogs are now business? I guess someone is really scared of the conservative bloggers.
But I find it amusing that the first to scream seems to be an enviro-nitwit.
Kenny Solomon commented:
“…..so who cares if they get gouged by the city.”
JPL17…… Your lovely ultra-thoughtful governor can make that an exec order to get revenue in PA – that hits everyone, no matter where you are in the state.
This needs to be met with force – real legal force – not just a no, not just a hell no.
dunce commented:
The way to get around this is the ACORN way. Set up as a nonprofit and usually be exempt from most reporting requirements.Revenue can be directed to salaries and office expenses.Like ACORN you may also apply for govt. grants to support your activity.Turnabout is fair play.
Peggy commented:
How did the city find the bloggers? Do these bloggers put their full names and locations on their blogs? Did the city subpoena records from ISPs, cable and telco’s to get names of those who blog?
crosspatch commented:
My guess is that if you show ads on your blog, like google ads, for example, you are going to be considered a business.
JPL17 commented:
“Your lovely ultra-thoughtful governor can make that an exec order to get revenue in PA ….”
Kenny Solomon, I’m no fan of Fast Eddie…but as far as I’m aware, he has no authority to impose a statewide tax by executive order. Do you have a source for saying he does?
“This needs to be met with force – real legal force – not just a no, not just a hell no.”
I hate Philly’s “business privilege license” and “business privilege tax” as much as anyone. They’re hateful, stupid and economy-wrecking because they have to be paid by ANYONE who receives ANY money for goods or services in Philly, REGARDLESS of whether he/she nets a profit. (Including me, when I ran a small business there.) But as far as I know, they’re perfectly constitutional. If you have a source for saying otherwise, I’d be happy to learn of it.
mackykam commented:
What happens when a city needs to pay off its union members and welfare recipients? Go after anyone they think might make a penny.
Necropheliadelphia: killed by democrat pols.
80% of its black population: fatherless, illegitimates and barely educated.
Just listen to some of Temple University’s lib professors on TV; they sound barely capable of conversational english.
Dem pols just want to go after free speech.
Too bad they dropped a bomb on black residents years ago. Certainly it would have been more efficacious to do so on City Hall.
Bobbi commented:
adsense revenue from a blog fora small time blogger will usually run very well short of the $600 that is required to report as income to the IRS.
So, this is a violation of the First Amendment.
Kenny Solomon commented:
Governor Rendell can do whatever he wants – he’s a Democrat, supporter of O-I-Won. Betcha he tries it on for size, or at least within a day or two, you’ll see it proposed in the state legislature.
Nobody’s gonna stop him and the state short of an uprising……. it’s a national malaise, not just in Philly.
A friend weight in on this thing too……..
To our friends on the left…… A “common sense regulation” sucks when it hits home, doesn’t it. So of course, this is when you say ‘Well nobody is saying you can’t have a blog, so it isn’t infringement’.
Plutarch commented:
Democrats in charge.
Nobody’s safe.
Time to flush them all.
Backbone commented:
These people were idiots to report their income. You have to stay below the radar and not bring attention to yourself. It is EXACTLY the same as it was for people living in the Soviet Union.
This will will hit the trash heap the moment a 1st amendment challenge is ruled upon in the courts but until then the local bureaucrats will get to harass a lot of people and intimidate them into silence. Then they can just pass another nuisance law to replace the one that is struck down. Just look at what Chicago is doing with the 2nd amendment to see how they play the game.
Eventually someone is going to respond to force with force. It will be interesting to see what happens. The news media will go into a tizzy but I think it would be a very good thing if the people who pass these sorts of laws had to always look over their shoulders just like the taxpayer always has to look over his.
If nothing else find the guy responsible for the law and flatten his tires. That should come out to around $300… before taxes ;o)
Bob commented:
Maybe she should move the blog to another town. Just drive across the city limits to a free wi-fi spot and do your blog there. Tell the city to spend money on a lawyer to prove she has a city business
chuck in st paul commented:
This should be ‘hobby income’ and unless in some very particular class, not subject to a business license.
2) yeah, I agree she shouldn’t have declared it in the first place
3) yeah (redux) she should move the heck out, but then from the sounds of it she’s there for the handouts and free stuff, so…
4) tough $hit wench, what goes around comes around ya hippie pocket picker
How’s all that Hope and Change workin’ for ya?
Saint commented:
If she’s clever, she’ll sue Philadelphia for trying to infringe on her constitutional rights. I can almost guarantee you she’ll win.
Chip Bennett commented:
This is clearly a First Amendment case.
Joe Bean commented:
Stop.
.
Look people you shouldn’t have to sue to get a hall pass on your right to express yourself
Rock commented:
Well so much for being the City of Brotherly Love. Suggested new motto Greed is Good.
aro5o75 commented:
Meanwhile from the left coast and California Gov. Ahhnold Kennedy is this little gem, we all know who will be paying for this;
http://news.yahoo.com/s/ap/20100822/ap_on_bi_ge/us_taj_mahal_schools
Stanley commented:
National Survey
Do you think Obama is a Muslim?
Call our 1-800-
.75 charge
At least, you have a choice.
MikeSilver commented:
Probably a loser case in court. As long as the tax is a business license tax that applies to all businesses not just bloggers, it will be held constitutional. As for making money, there are alot of businesses that lose more than $11 such as FNMA and GM, that have to pay the tax.
Bummer for her. She should relocate her blog outside Philly or declare its location at its webhost location.
crosspatch commented:
“These people were idiots to report their income.”
If a firm such as Google paid them even $11, they may also have given them a form 1099 which means it was reported to the govt. anyway.
LibertyAtStake commented:
How do we “flame” Phillie’s tax collector?
http://libertyatstake.blogspot.com/
“Because the Only Good Progressive is a Failed Progressive”
pst314 commented:
Remember the Stamp Act? Government blood-suckers, please go to hell immediately.
Barry Popik commented:
This is the same Phladelphia that’s taxing soda, isn’t it? I don’t live there, but this bad idea could spread elsewhere.
I have a blog. Kids selling lemonade at the corner or girl scout cookies make more money than I do. They usually don’t report anything.
How much should I pay to I blog my opinions? What benefit (extra services) does such a tax do for the bloggers who pay it?
Why don’t journalists have a tax?
StandUp4Chuck commented:
Tell the city of Philly to f-off. Vote with your feet and move. On second though, if your a liberal, stay put. We dont need you to go and ruin another American city. You already have San Fran, NY city, and this wonderful example. Seriously, how do they plan to enforce this?
Amateur CPA commented:
What I would do is keep good records regarding all my business expenses. Phone, internet, car, paper, business promotion, insurance, home office, seminars, etc, and file a schedule C deducting the loss from my other income. Hey, they made it a business not a hobby.
locomotivebreath1901 commented:
One can get paid for blogging??
Who knew?
Hey. If some pencil pushing fascist can hound a kid with a lemonade stand for a ‘health and occupation’ license, it appears that anything is fair game for a gub’mint extortion.
But… if the blogger’s host server IS NOT within the city limits of Philadelphia, is that blogger’s ‘business’ truly located within the city limits and subject to taxes??
What would W.C. Fields do?
Larry Sheldon commented:
Ironic that it starts in Philadelphia.
RickZ commented:
Philthadelphia strikes again.
burt commented:
Good reason to leave Philadelphia. The city will lose more than $300 when you leave town.
New York is proud of getting rid of Rush Limbaugh. Rush is laughing all the way to the bank.
Email Form commented:
Took me time to read all the comments, but I really enjoyed the article. It proved to be Very helpful to me and I am sure to all the commenters here! It’s always nice when you can not only be informed, but also entertained!
- John
Lidia commented:
Whether or not charging bloggers a “business privilege license” will withstand a court challenge, I suppose, is anyone’s guess — but I guarantee plenty of other cities are going to try it shortly.
Hell, I’m sure our ruling class here in Los Angeles is gnashing its teeth over the fact that Philly thought of it before they did.