Stature Software

Posts Tagged ‘blogger’

Bloggers Pay Up in Philly

August 25th, 2010 by Erin Posted in Small Business | No Comments »

It doesn’t pay to be a blogger, at least not in Philadelphia. In fact, some bloggers have to pay themselves – and not just for a snazzy WordPress template either.

You know those little Amazon ads you find in the corners of blogs? You know the ones that link to books that people recommend? They’re helpful, sure. But buy one, and you risk holding some Philadelphia bloggers responsible for getting a business license.

Yes, you read that right.

Since a percentage of that Amazon purchase – or any purchase from an enabled advertisement –  is money in the blogger’s pocket, the city of Philadelphia considers that business revenue. Thus it is demanding that bloggers who report even a meager $11 in revenue pay to get a business license.

The license is $300 for a lifetime or $50 a year. And, the city only knows about the ads bloggers are placing on their sites if they report that income on their taxes.

Why a blogger would report $11 baffles me, but still… something is seriously wrong with this picture.

Sean Barry, a Philadelphia blogger, writes Circle of Fits from his free Blogger account. He earned $11 in profit over two years and received a letter from Philadelphia city officials.

Barry writes:

I never expected Circle of Fits to “make money” or be deemed a “business”… I put ads on it as an experiment, and I don’t ever expect anyone to click on them..I don’t even know how to put the time in to learn how to control which ones are being presented.

Bloggers are just a subset of workers affected by this regressive tax. According to the city’s strict rules, any freelancer based in the city qualifies as a business and needs to get the license.

It seems to me that the city of Philadelphia is trying to set a new precedent for microbusinesses.

Should a person who bakes and sells homemade pies out of his or her home be required to purchase a business license? Yes – definitely.

But to call a blogger who makes less than $20 over two years a microbusiness owner is just ridiculous.

This is the time to promote economic growth, not hit workers and entrepreneurs where it hurts the most.

 Tags: amazon ads, blog revenue, blogger, bloggers pay up in philly, business license, microbusiness, philadelphia bloggers