Effective July 1, 2014, Philadelphia will add 1% to its sales and use tax rates. However, the current rate of 2% will decrease to 1% on June 30, 2014. Accordingly, Philadelphia’s total sales and use tax rate effective July 1, 2014, will remain at 2%.The ordinance stipulates the use of the revenue to be used for the Philadelphia School District primarily and then to the City in the first few years. Effective for fiscal year 2018, the revenue will be split 50 percent between the School District and the City. (Ordinance (Bill No. 140489), Laws 2014, effective June 12, 2014)