The Use and Occupancy tax for restaurants will be based on the occupancy allowed by Philadelphia Department of Public Health. This is in line with the previous post published on our site to pay the proportionate taxes and how to request a refund.
Emergency Use & Occupancy Tax Regulation: Yesterday, February 18, the Department of Revenue published an updated emergency regulation aimed at providing Philadelphia restaurants and bars with additional relief during the COVID-19 pandemic. For restaurants and bars subject to capacity limitations, this regulation exempts a percentage of the dining room space from Use & Occupancy Tax. The exemption is based on the allowable percent capacity for the square footage of the business used for indoor dining (dining room space) during the period when the Philadelphia Department of Public Health limits indoor dining. For Use & Occupancy Tax purposes, 25 percent of the restaurant’s indoor dining room space will be subject to Use & Occupancy Tax. Restaurants that qualify for higher occupancy rates of 50 percent are subject to 50 percent Use & Occupancy Tax for the indoor dining room. This regulation is effective immediately and remains in effect while the Philadelphia Department of Public Health limits occupancy for restaurants and bars.
Additionally, you can find the appropriate guidance for this Use and Occupancy refund here – https://www.phila.gov/media/20200504113159/Use-and-Occupancy-UO-Tax-refund-covid-19-guidance-050420.pdf