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Taxing Wealthy Assets Like Stocks and Bonds Annually

Official:Amending Chapter 19-1100 of The Philadelphia Code (“Personal Property Taxes”) by deleting all existing Sections and replacing them with an annual tax on certain intangible personal property, all under certain terms and conditions.

Sponsor: Councilmember Brooks

Introduced: March 27, 2025

finance government taxation

Plain-Language Summary

This bill proposes to replace the current personal property tax system with an annual tax on intangible personal property, affecting certain property owners in Philadelphia.

What This Bill Does

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Replaces the current personal property tax system with an annual tax on intangible personal property, with a threshold of $100,000.
Defines intangible personal property as all personal property with value derived from representation, including stocks, shares, notes, bonds, and other financial instruments.
Exempts certain types of intangible personal property from taxation, including public loans issued by the Commonwealth or the United States, and savings deposits and accounts issued by private banks.
Imposes a tax on the value of intangible personal property owned by natural persons who are residents of the City of Philadelphia.

Both Sides

AI-written arguments. Every figure is checked against the bill text.

The case for

This bill shifts the tax burden from tangible assets like homes and businesses to wealth derived from investments, affecting high-net-worth residents. Those with assets above $100,000 will be subject to taxation, potentially generating new revenue for the city. The exemption for certain financial instruments helps mitigate the impact on middle-class savers and aligns with the tax system's focus on wealth rather than income.

The case against

This bill unfairly burdens Philadelphia residents with a new tax on their investments, forcing them to pay an annual tax on their savings and investments, including stocks, bonds, and notes, regardless of the value of those investments. The tax will not affect non-residents or those with smaller investment portfolios, placing an undue burden on long-term investors and savers in the city. The exemption for public loans and private bank savings deposits creates a double standard, favoring those who can take advantage of public loans or bank savings over those who rely on investments in the private market.

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