acts as a broker or agent, his tax is based on commissions. If he buys and sells real estate either in his own name or in the name of a straw party, he is taxed on the gross selling price of the real estate.
SECTION 316. BUILDINGS, HOTELS, APARTMENT HOUSES, BOARDING HOUSES, NURSING HOMES, ETC.
Persons operating hotels, apartment houses, boarding houses, nursing homes, rooming houses and all other such establishments must include receipts from renting of rooms, furnishing of meals and any other services rendered.
Any person carrying on the business of renting buildings, offices, space, stores, dwellings, houses, etc., shall include gross rentals received in the tax base. No deductions may be made for depreciation, cost of maintenance, repairs, etc.
Persons operating private hospitals, nursing homes and sanitariums are subject to tax. The law exempts such institutions only when they are operated by a non-profit corporation or association organized for religious, charitable or educational purposes.
SECTION 317. INSURANCE COMPANIES.
Insurance companies, whether mutual or stock companies, domestic or foreign, are subject to tax for the privilege of carrying on business in Philadelphia. The tax for the privilege of writing insurance is based on premiums received from risks in Philadelphia, without any deductions therefrom for any cost or expenses whatsoever.
Reinsurance assumed shall not be included in the tax base; reinsurance ceded is not deductible from gross receipts.
Receipts from premiums include gross direct premiums less return premiums thereon. Dividends credited to policyholders may be deducted if such dividends are in the nature of an adjustment of the premiums charged.
Receipts from servicing mortgages, operating hotels and other non-premium business receipts are to be included in the tax base.
SECTION 318. INSURANCE AGENTS, BROKERS AND UNDERWRITERS.
Subject to the provisions of subsections 302(4) and 302(6), agents for insurance companies are required to report as gross receipts the entire commissions received as compensation for their own efforts on policies sold by them directly, and the over-riding commissions received by them upon business produced by brokers or sub-agents.
Brokers or Subagents. Subject to the provisions of subsections 302(4) and 302(6), brokers or sub-agents are required to report as gross receipts the commissions received as compensation for their services.