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Wednesday, September 24, 2008
Council Tax Break Proposal On Hold Due To City Budget Woes
A proposal by City Councilman W. Wilson Goode Jr. to expand a program that gives companies breaks on their city business privilege taxes if they support community development corporations is on hold because Mayor Nutter is worried about the city budget.  Goode, chairman of Council's Committee on Commerce & Economic Development, held a hearing on the issue this morning but decided to not move forward for at least another week.
 
Revenue Commissioner Keith Richardson testified that Nutter supported the program, started with 10 companies in 2001, when he served on Council.  But Nutter is concerned about expanding the program at a time when the city's tax receipts are falling and a $450 million gap has opened in the city's five-year financial plan.  "In this challenging environment, Mayor Nutter wants to have the opportunity to further discuss this program in the full context of our financial climate before any action is taken to expand it," Richardson said.
 
Committee members are willing to have that discussion. But they made it clear to Richardson that they expect the city's Commerce Department to come prepared to discuss what economic impact the program has had on neighborhoods served by CDCs supported by local companies.   The program, which was expanded to 15 companies in 2002 and then 25 companies in 2004, gives them an annual $100,000 break on their BPT bills for 10 years if they donate $100,000 a year for 10 years to their local CDCs.
Posted by Chris Brennan @ 2:43 PM  Permalink | Post a comment
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About Chris Brennan and Catherine Lucey
PhillyClout
Chris Brennan, a native Philadelphian and graduate of Temple University, joined the Daily News in 1999. He has written about SEPTA, the Philadelphia School District, the legalization of casino gambling, state government, the mayor, the governor, City Council and political campaigns.

Catherine Lucey joined the Daily News in 2002. Since then she has written about murderous drug gangs, political protesters and Harry Potter. For the past two years, she covered the 2007 mayoral election. Now that the battle is over, she has moved down to the City Hall bureau where she will report on the Nutter administration.

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Catherine Lucey
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