and is liable in the first instance to the materialmen, suppliers, laborers or subcontractors as distinguished from merely guaranteeing payments to them or undertaking to reimburse the general contractor for the cost of such materials, services or subcontracts, and (b) agrees to make payment directly to the materialmen, suppliers, laborers or subcontractors. Such sales or services will be regarded as made directly to the owner, in which case the general contractor will not be required to include such payments in his gross receipts.
Government contracts. Receipts from the performance of contracts entered into with the City of Philadelphia, or the Commonwealth of Pennsylvania, or the United States Government or any subdivision of such Governments, are to be included in the measure of the tax.
SECTION 313. CONTRACTORS PERFORMING LONG-TERM BUILDING OR CONSTRUCTION CONTRACTS.
Neither the completed contract method nor the percentage of completion method of accounting for income, nor a combination thereof, may be used as the basis for computing gross receipts received during the year used as the measure of the tax. A person who keeps his books on the completed contract or percentage of completion method of accounting, or a combination thereof, must report receipts either on the basis of receipts actually or constructively received (cash basis) during the period used as the measure of the tax, or on the basis of billings rendered (accrual basis) during the period used as the measure of the tax. The method used must be that one which is consistent with the basis used for reporting receipts on the 1984 Mercantile License Tax. A taxpayer who keeps his books on the completed contract or percentage of completion method of accounting, or a combination thereof, and who was not liable for the 1984 Mercantile License Tax, shall report receipts on the accrual basis.
SECTION 314. CONTRACTORS WHO REPAIR, ALTER AND IMPROVE TANGIBLE PERSONAL PROPERTY.
Persons engaged in business in Philadelphia as contractors who repair, alter and improve tangible personal property for the account of others are subject to tax under the provisions of the Business Privilege Tax Ordinance. When contractors perform labor or services on articles of tangible personal property furnished by the other party to the contract, such contractors are required to report only the amount due them for labor or services rendered.
SECTION 315. REAL ESTATE.
Real estate brokers and agents are required to include in taxable receipts the commissions and fees received for services rendered as agent in promoting the purchase and sale of real property for others.
If a person is engaged in the business of taking title to real property and selling same, he is required to include the gross selling price of the property as taxable receipts. The same person may be taxed both as a broker and as a seller, depending on the nature of the transactions. If he