Council to seek outside counsel to modernize business‑privilege and mercantile tax rules

Council moved Resolution 22 of 2026 to the legislative agenda, authorizing the city to negotiate with McCormick Law Firm to serve as special counsel to review and revise the city’s business‑privilege and mercantile tax ordinance and accompanying rules and regulations.

Nick Grimes of McCormick told the council that the city’s rules and regulations were last updated around 2001 and that changes in state law and case law require updates to ensure clarity for taxpayers and uniform enforcement. "It sounds like it's time for Harrisburg to review the rules and regulations specifically around the business privilege tax," Grimes said, noting an initial review could be completed within weeks and changes to ordinances would require careful sequencing to preserve legal compliance.

Council members asked about fees and timelines. Grimes confirmed the proposal listed $250 per hour for lawyers and $150 per hour for paralegals and gave a wide estimated project range: in some cases work might be as low as about $10,000; in more complex matters involving executive sessions and detailed ordinance drafting it could approach $20,000. He emphasized that ordinance amendments carry particular legal risks under state tax reform rules and may require three readings and budget timing coordination.

Vice President Jones and other members discussed using the review to reduce administrative red tape for small businesses and to modernize examples and guidance to reflect current business models, including interstate ecommerce and service companies. Mike Hughes, the city’s tax administrator, said the administration supports an updated rules package with an aim to have new rules in place for the next tax year if complications do not arise.

The committee voted to place Resolution 22 on the legislative agenda for formal consideration; the contract and scope will return to the council for authorization and, if necessary, ordinance readings.