Controller says many out of town contractors owe money

Philadelphia’s City Controller says the city should go after money from businesses who skirt the law and avoid paying some city taxes.

Philadelphia’s City Controller says the city should go after money from businesses who skirt the law and avoid paying some city taxes.
Controller Alan Butkovitz says millions of dollars in city wage and business taxes are not collected because of out of town contractors and businesses who don’t pay city taxes when they work in Philadelphia.

“There is among other things a significant underground economy problem in Philadelphia, in there’s a lot of undocumented workers and a lot of work that is not being reported.”

Ironworkers union Business Manager Joe Dougherty says his people see contractors skirting the rules all the time.

Dougherty: Mostly in residential areas, but you do see them in parts of Center City where the work is being done inside an existing building.”

City officials say they are reviving their site inspections, with the hopes of collecting fines and taxes from contractors who don’t pay.  Butkovitz is also calling for an amnesty for those who pay the taxes voluntarily.