Ntter administration touts crackdown on tax delinquent city workers

As noted in today's Inquirer, the Nutter administration is taking steps with City Controller Alan Butkovitz to collect past due taxes from city workers. The press release describing the effort is below.

CITY OF PHILADELPHIA ANNOUNCES FURTHER MEASURES TO CRACK DOWN ON EMPLOYEE TAX DELINQUENCY

Philadelphia, July 29 – The City of Philadelphia announced today two additional tough measures to collect taxes owed by City employees. These measures are the next stage of a process which has already generated $1 million in back taxes paid since late May.

"Our position on delinquent taxes is clear: if you owe, you must pay," said Mayor Michael A. Nutter. "My Administration has pursued aggressively all back taxes in Philadelphia and it is especially important that city employees are fully paid up."

The City's Department of Revenue has requested that City Controller Alan Butkovitz send a letter to remaining approximately 1,300 tax delinquent city employees informing them that they have 30 days to settle their debt or enter into payment plans to pay any taxes that they owe. If they fail to comply within 30 days the City has asked the City Controller for the authorization to withhold wages from tax delinquent employees to fulfill their obligations.

State law authorizes the City Controller to withhold up to 20% of a City employee's wages. The Revenue Department has requested that the City Controller recommend that the full 20% be deducted each pay period to settle the debt as quickly as possible.

In addition the City of Philadelphia is finalizing a policy which will require any applicant for a City position to enter into a payment agreement to pay any back taxes that they owe as a condition of their employment. This policy is expected to be implemented in the coming weeks.

The Nutter Administration has aggressively pursued taxes that are owed to the City of Philadelphia. Since November 2008 the Administration has published three lists of business tax delinquents, generating $4 million in taxes paid and payment agreements entered into. In addition the City has also launched a tax fraud hotline (215-686-3852) and has conducted a review of quasi-governmental agency vendors to ensure that the agencies withhold payments from tax-delinquent vendors until their tax debts are satisfied by payment or agreement.

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