Since the financial crises of the late 2000s, out-of-town developers and institutional funds have flooded Philadelphia to capitalize on real estate opportunities. However, few out-of-state developers knew about the city’s hefty and rather confusing School District Business Use and Occupancy tax—also known as “U&O.” This article takes a closer look that this tax and explores opportunities for you to ease your burden and focus on growth. Who Gets Pegged With the Tax? U&O is imposed on businesses who use or occupy real estate within the City of Philadelphia School District to engage in any business, trade, occupation, profession, vocation or any other commercial or industrial activity. The user is subject to the tax, but landlords and their rental agents collect it on a monthly basis from their tenants. While the tax is collected by the City, the Commissioner of Revenue administers the tax and the generated revenue is used to fund the school district.