Philadelphia BIRT and NPT taxes and returns

[Margaret CPA in OH]

A new client in Philadelphia has begun a multi-member LLC based in TX taxed as partnership.  My understanding, shaky at the moment, is that she will have to file a Business Income and Receipts Tax AND a Net Profits Tax return.  This seems overkill but here she is.

I am confused, however, about the statement that if there are less than or equal to $100,000 in Philadelphia taxable gross receipts, a NTL (No Tax Liability) form can be filed instead.  I'm wondering why gross receipts would be taxed if there may be a net loss and possibly even no money to pay tax.  And I'm wondering whether this means 100% of the gross receipts or only this client's share, about 18%.  The form seems to have a $100,000 exclusion before tax but not sure whether 100% or her share is to be shown.

Maybe I can convince her to move to the suburbs...  Thanks for any help!

[Lee B]

Oregon has Commercial Activities Tax based on gross receipts which is due and payable even if you have a loss.

In my state the partnership would pay the tax.

Some people refer to it as a "back door" sales tax.