Tuesday, May 5, 2015

Change To 10-Year Tax Abatement Proposed In City Council

City Councilman Darrell Clarke introduced legislation this morning that would change the city's 10-year property tax abatement on new residential housing and offer a rebate on the city's real estate transfer tax for people who buy existing homes. Clarke proposes to keep the property tax abatement at 10 years but reduce the amount from 100 percent of the tax to 80 percent. He also wants buyers of existing homes to get a rebate -- a set dollar amount still to be determined -- on the real estate transfer tax. That rebate would only be available during a 12-month period. Home buyers would receive the money across five years.

Change To 10-Year Tax Abatement Proposed In City Council

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City Councilman Darrell Clarke introduced legislation this morning that would change the city's 10-year property tax abatement on new residential, commercial and industrial housing and offer a rebate on the city's real estate transfer tax for people who buy existing homes.  Clarke proposes to keep the property tax abatement at 10 years but reduce the amount from 100 percent of the tax to 80 percent.  He also wants buyers of existing homes to get a rebate -- a set dollar amount still to be determined -- on the city's share of the real estate transfer tax.  That rebate would only be available during a 12-month period.  Home buyers would receive the money across five years.

Clarke said his proposals are designed to bring more money into the city as it experiences serious budget trouble.  He considered other ideas for changing the property tax abatement, including reducing the number of years available or having it decrease several times over the 10-year period.  He decided to use the 80 percent figure to give home-buyers a consistent number to count on.  "I think at this point it could probably withstand some level of tweaking," Clarke said. "While we want to alter it, we don't want to see it go away." 

Clarke said he had brief discussions with Nutter's staff about the real estate property tax rebate but not about the proposed change to the 10-year tax abatement. "I anticipate I will be getting a phone call," he joked to reporters.

About this blog
William Bender, a Drexel graduate who landed at the Daily News in 2007, has covered everything from South Philly mobsters to doomsday hucksters. He occasionally writes about local food trucks and always eats everything on his plate, whether it be a bloody rib eye or a corrupt politician. E-mail tips to benderw@phillynews.com
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David Gambacorta, has been a reporter with the Daily News since 2005, covering crime, police corruption and all of the other bizarre things that happen in Philadelphia. Now he’s covering the 2015 mayor’s race, because he enjoys a good circus just as much as the next guy. He’s always looking to get a cup of coffee. Send news tips and other musings on life to gambacd@phillynews.com
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