Slashdot Mirror
Philly Requiring Bloggers To Pay $300
Kurofuneparry writes "Pennsylvania generally and Philadelphia specifically have had a number of budget issues and some bloggers are seeing the results. From the article: '... 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.'"
So she says he runs a blog with ads and profits from, but is surprised that she actually needs to pay taxes and the other usual legistation while running a business? Yes, just like the Google, IGN or other huge sites on the internet that make money by advertising, he is also running a business.
It also looks like she only made like $50 between several years. That comes down to like $1-2 a month. Why not just drop the ads and continue blogging? If you really need a few dollars, just find a few bottles from the street and return them to stores.
If you RTFA, the $300 is the Philadelphia business privelege tax, so she's not being forced to pay for blogging, she's being forced to pay for blogging for money. Which is perhaps ridiculous, but no less ridiculous than it is for any other person in the city who has to pay it.
It seems that the state only knows about these bloggers because they reported income made from blogs on their taxes. Seems like the lesson here is to not report small gains on your taxes else your state will fleece you.
This is sad because these people did pay taxes on this tiny amount of income already on their income tax. By trying to be good citizens and play by the rules they are rewarded with a fee that would either put them out of business or make them less honest about their income in the future.
I'm sure I will get flamed for this..
While I personnaly do not consider people blogging, to be business entities, I do not make up the rules. Whether or not the rule is flawed here is not the point, until said rule is changed people will have to abide by it. I consider a blog by a corporate entity an extension of the business they are running or services they are providing.
That being said, there should be some common sense involved when enforcing it based on the amount of income a blog generates. In the case of those referenced in to article, making them pay seems a little ridiculous.
I came, I conquered, I coredumped
The IRS would consider this to be nothing more than a hobby. They define a business as an entity that is expected to make a profit. This clearly would not be expected to make a profit.
All those ads, Examiner.com payments, "send paypal donation" buttons, etc. have been untaxed income for a long time. All that's happening now is that states are awakening and correcting the balance.
Asking for a business license so that you can publish content and be paid for it is not an unfair thing. In fact, it's fair to those who want to sell hot dogs instead, and also have to get licensed as a result.
Futurist Traditionalism
However, since she can prove she loses money, she should ask the city to exempt her from ALL municipal taxes, as she is obviously a non-profit.
Being unprofitable is not the same as being a non-profit.
Being from Philly, I have had similar experiences. In my case, my website was registered to a Philly address, so they automatically sent out the "you must have a business license" letter. I was making no money. It's their number one automatic letter. My 3 year old daughter got one, once, even. (we're not sure how, in that case). All a person has to do is call the number on the letter and say "this isn't a business" and they'll put a check-mark in the "not a business" box. They don't care about the miniscule $50 every two months businesses. Just the profitable ones. This is why, when I lived in Philly, I always had a PO box or location outside the limits for business/website purposes. Mostly to avoid the hassle. The current township I live in is MUCH more reasonable, thankfully.