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Small‑business owners, gig workers and parking industry warn proposed tax changes could hurt local firms
Summary
Multiple business owners and industry representatives testified that proposed tax changes — including changes to the unincorporated business tax, removal of a $100,000 exemption and the use and occupancy (UNO) tax on private parking — would increase costs, drive businesses out of the city or reduce services.
Business owners, trade groups and the parking industry warned City Council that proposed tax changes in the FY 2026 discussion could harm small businesses, gig economy workers and parking operators.
Several small business owners said rising costs and proposed tax changes are making it harder to retain employees and remain competitive. Anthony Mohammed, owner of AM Electric Incorporated in North Philadelphia, described his company as a small employer of about 10 staff and said, "The city's business taxes are holding us back. Plain and simple." He said rising tax bills had constrained his ability to offer benefits and retain workers.
Owners and accountants representing immigrant and small‑scale businesses raised concerns about eliminating a $100,000 exemption for unincorporated businesses and the proposed structure of the new tax. Jigar Mehta testified using an example a constituent provided and warned the combined effect of the proposals could be severe for 1099 contractors and unincorporated proprietors, saying for a person with $100,000 revenue and $65,000 income, "the impact on that person making $65,000 for that first year is gonna be $4,437. They ain't making it." Witnesses urged keeping the receipts component and removing the net‑income component for unincorporated taxpayers to avoid double taxation.
Parking industry representatives and hotel operators said Center City has lost thousands of parking spaces and that off‑street parking faces an outsized tax burden. Robert Zuritsky representing the parking industry urged eliminating the UNO tax on parking facilities and offsetting the revenue with higher street‑meter rates in commercial areas. Cornel Goldman, a hotel general manager, said high parking taxes are passed to guests and employees and asked council not to raise parking taxes.
Council members responded in part, with Council Member Isaiah Thomas and Council Member Jeffrey J. Young highlighting risks to gig workers and 1099 earners if the exemption is removed. No tax ordinance votes occurred at the hearing; speakers asked council to reconsider or adjust proposals before final votes.
