City Council today gave preliminary approval to a temporary 9.9 percent property tax increase, but did not move Mayor Nutter's proposed soda tax legislation out of committee.
Nutter lobbied hard for a soda tax as part of his $3.9 billion budget plan. He originally proposed a tax of 2 cents per ounce, which faced massive opposition from the soda industry, local unions and business owners – who launched a huge campaign against the proposal. More recently he was gathering votes for a 3/4 cent per ounce tax, but couldn't get to 9 votes in time today.
"We need nine votes," said Councilwoman Marian Tasco. "The mayor has a week to talk to people."
Nutter’s original budget proposal also included a $300 per-household trash fee. But council balked at the trash fee, preferring a property tax hike, which they said was less regressive. Still, many members didn’t want to do a double-digit property hike, which led to the 9.9 percent agreement, set to last for two years.
The tax proposal must get final approval from Council next week.
Nutter has put the budget deficit for the coming fiscal year at up to $150 million. The property tax plan yields about $88 million annually. Nutter also agreed to cut an additional $17 million. If Nutter does not get the soda tax in some form, his aides have argued that the city's surplus fund balance will dip dangerously low. But some on Council weren't so sure.
"We have a proposal without sugar [beverage tax], which gives a $40 million plus fund balance," Councilman Darrell Clarke said.
Council also approved proposals to tax some tobacco products and increase trash collection fees for commercial properties, which will enhance revenues further.
Why are we talking about the city's "Surplus fund"? Whats that for exactly, an emergency? Aren't we there already? That's like me not having enough in your checking account to pay my bills but having a decent savings account for a rainy day. Completely Nonsensical! (Welcome to Philadelphia!)— kennedy2- A 10% property tax hike? ARE THEY OUT OF THEIR MINDS??? How about getting rid of DROP?? Or getting rid of the pension plans for all future city employees hired after 6/30/2010? There's still plenty of fat that can be cut in that budget.— F. Harry Stowe
- F. Harry Stowe > of course they should abolish DROP but they'll never do that because they are the beneficiaries of the program. A total conflict of interest. & btw - yes they are out of their minds.— kennedy2
- This is a total joke, if the city would stop caving into every union demand at contract time that would save money. Also cut the size of .gov and the many many forms of waste.— Taxpaying Voter
- Sometimes I wonder if they pump CO2 into that illustrious chamber. I bet Ex-Mayor Goode has a solution for council.— samson
- Council members currently in DROP who have not ruled out seeking reelection are: Anna Verna, Marian B. Tasco, Frank Rizzo, Frank DiCicco, Jack Kelly, and Donna Reed Miller...Money for At-Large, http://www.elmermoney.com/— emoney
- They certainly appear to be nuts. Announcing a 10% increase in real estate taxes when no cuts are announced is lunacy. Just amazing. What everyone should do is appeal their property taxes this year to reverse the hidden property taxes they have been hitting us with every year.— Palestra Jon
- Everybody complains, but guess what'll happen at election time? You people will keep electing the same "leadership". How about saving some money by reducing city council? Imaging the money we could save by only having 9 council people.— TyroneShoes
- Law of diminishing returns. People who can afford to move (including police and fire workers, now that they're permitted) will be heading for the exits. I left 4 years ago when I realized that the increased suburban property tax would be more than covered by the wage tax savings. The poor, for whom taxes are irrelevant, will remain, leeching off the system.
- Perhaps Pew will use the money to fund a soda buy back program. Bring in your un-drank or (partially drank) soda for a cash reward.— bobcitydoc
- "Philly Jobs Not Taxes" - ROTFLAMO. Be careful what you wish for.....— HazmatCorntail
Comment removed.- This is an absolute disgrace. The choice between hitting everyone with a property tax hike versus making people who choose to drink soda pay extra for the pleasure is an absolute no brainer. The soda manufacturers have a strong lobby. Who is lobbying for the PEOPLE? Shouldn't it be the council? Aren't they supposed to make decisions in the best interest of the people? This is such a no brainer it makes me sick. Almost as sick as I would get if I drank soda (obesity, diabetes, etc.).— AntiWaste
- voting is the answer. i did not vote for mayor nutter and won't as I have dicided to vote rebublican which i have never done in the past. I am sick of all the crazies what about city workers just like all of the other cities. why blame us for the financial problems. how about the memthodone program that is like a life style and should only be a temp. and why do they get free transpasses. food stamps welfare. maybe this needs to be investigated. how much does that cost the city and tax payers— bellan
- Remember this on election day, these poor excuse for city leaders need to be kicked out of office once and for all.— Taxpaying Voter
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David Gambacorta spent a small eternity writing about cops, drug dealers and serial killers. Now he’s writing about power and politics – which sometimes reminds him of the old crime beat. He joined the Daily News in 2005. And yes, he knows you’re not quite sure how to pronounce his last name. E-mail tips to gambacd@phillynews.com
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Catherine Lucey joined the Daily News in 2002 and has written about murderous drug gangs, political protesters and Harry Potter. After covering the 2007 mayoral election, she moved over to the City Hall bureau where she has been reporting on the Nutter administration.
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Jan Ransom, a native New Yorker, joined the Daily News in 2010 after graduating from Howard University. She has since written about the difficulty of filing police complaints, tax deadbeats and life after violent home invasions. She joined the Daily News City Hall Bureau in 2011 and has plunged headfirst into reporting on administration budget battles and City Council shenanigans.
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