Thankfully, often cooler heads prevail. Everyday, it seems, we see examples where agencies and organizations implement a new policy or process only to encounter unintended consequences. Philadelphia’s recent extension of their business license policy to include bloggers who don’t generate income is one such example.
In August, the city sent letters to bloggers indicating they may be required to obtain a business license which costs $50 annually, or $300 for a lifetime license. The city didn’t specifically intend to target bloggers; rather it was seeking to cast a wider net on businesses that may be subject to the existing requirement. Nonetheless, the move created a wave of backlash from writers who blog for fun and generate no income from their internet activities.
Today’s online edition of the Philadelphia Inquirer is reporting that Councilman Bill Green has introduced legislation that would exempt bloggers, and others posting on the internet as a hobby from certain taxes.
Green was quoted as saying …”To require a hobbyist with incidental income to get a $50 license, fill out a business-tax return, and pay nominal tax makes absolutely no sense.”
The Mayor’s spokesman indicated that the administration has no comment until it’s able to review Green’s proposal.
As municipalities continue to seek ways to improve and stabilize their cash flow, I think it’s fair to say that well intentioned policies may sometimes lead to unintended consequences. It pays for businesses to remain in tune with agencies that have compliance oversight.
Steve Elias – Team Leader, Business License Research Team, Corporation Service Company.
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