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Council proposes 12 percent property tax hike

Philadelphia City Hall and political coverage from the Philadelphia Inquirer City Hall bureau.

21 comments

Council proposes 12 percent property tax hike

POSTED: Thursday, March 25, 2010, 12:27 PM

City Councilman Frank DiCicco Thursday proposed a 12 percent property tax increase to replace Mayor Nutter's proposed $300 trash fee, a plan DiCicco describes as more equitable despite the city's flawed property assessment system.

The proposal appears to have support on Council, and was co-sponsored by Majority Leader Marian B. Tasco and at-large Councilman James F. Kenney.

"At the end of the day, I'll do what I have to do to close the $150 million gap," Tasco said Thursday before Council's regular session, at which DiCicco introduced his bill.

Nutter, in his budget address March 4, proposed the trash fee and a 2-cents-per-ounce tax on sweet drinks as a way to fill an estimated $150 million hole in his proposed $3.9 billion budget. The trash fee would raise $107 million; the sweet drink tax $57 million toward the general fund ($38 million the first year) and $20 million for anti-obesity programs. DiCicco's proposal is meant to generate $107 million, making unnecessary the trash fee.

DiCicco's legislation would raise the property tax rate by $1, changing the millage rage from $3.31 per $100 of assessed value to $4.31 for every $100 of assessed value. City Council has not raised property taxes since 1989 - a convenient political arrangement in which the appointed Board of Revision of Taxes has essentially raised money for the elected Council and Mayor by hiking individual assessments.

DiCicco said he recognized the inequities inherent in the city's assessed property values, which Nutter and the Board of Revision of Taxes ordered frozen this year because of inaccuracies and wide disparities among assessed values for similar properties, but "We're not going to be able to change that overnight."

Supporters say the property tax gives greater protection to low income residents, who are eligible for property tax rebates, and allows residents to deduct the increase on their taxes. Opponents question whether such an attempt can be successfully challenged in court given admitted state of assessments.

Nutter has said he was willing to work with Council on a compromise to his trash fee, though last week budget director Steve Agostini was wary of a property tax hike. "While the administration will move to fix the assessment system as quickly as possible, the data cleanup process could take two years," Agostini told Council during budget hearings. "Without these fixes in place, the administration remains uncomfortable proposing an increase in property-tax rates."

No word yet from Nutter on today's legislation.

Click here for Philly.com's politics page.

21 comments
Comments  (21)
  • 0 like this / 0 don't   •   Posted 7:23 AM, 03/30/2010
    Another one of our morons in City Council. Where were they when the city left over 500 million dollars in taxes go uncollected, this didn't happen overnight. Council needs to go each and every last one of them.
    MCC
  • 0 like this / 0 don't   •   Posted 5:16 PM, 03/29/2010
    What the hell do they need $3.9B for? This city isn't that big.
  • 0 like this / 0 don't   •   Posted 5:38 AM, 03/28/2010
    Any of you 'ranters' heard of DROP? This Council could care less on doing what is needed or right - they have their's! I have been hearing to vote them out of the last 15 years - other than going to jail,, who was voted out? The Democratic Party has driven down incentive in people by the ever increasing entitlement programs - this new HealthCare Bill will cost many job losses - AT&T will be hit for $ 1 Billion; Deere $ 150 Million; Caterpillar $ 100 Million, 3M $ 90 Million and the list goes on - does anyone see these companies hiring workers? Democrat Leaders and Union Leaders are living the good life - crumbs to the idiots who follow them!
    cheshilguy
  • Comment removed.
  • 0 like this / 0 don't   •   Posted 5:10 PM, 03/26/2010
    TASCO AND DICICCO ARE TAKING $400,00.00 EACH IN DROP! BET ALL YOU DEMOCRATS VOTE THE SAME PEOPLE IN AGAIN.
    dolce
  • 0 like this / 0 don't   •   Posted 10:11 AM, 03/26/2010
    los angeles has 15 members on city council with a population of over 4 million people while philadelphia has 17 members on city council for just 1.5 million people. before any taxes are raised, city council needs to be reduced.
    bill634
  • 0 like this / 0 don't   •   Posted 8:00 PM, 03/25/2010
    I've been emailing since this nonsense popped up again. We will see what good its done. Their jobs depend on them doing what the majority wants. Hmmm. Where have I heard that before?
    psyrus
  • 0 like this / 0 don't   •   Posted 7:22 PM, 03/25/2010
    I'm so tired of being a homeowner in this city.I must escape this madness and unending tax hikes to carry the less fortunate than me.
    phillydog17
  • 0 like this / 0 don't   •   Posted 7:20 PM, 03/25/2010
    Why not a flat emergency municipal services taxes paid by renters who are not in poverty. They use city services too and are equal burdens on the infrastructure.
    Steelmanpa
  • 0 like this / 0 don't   •   Posted 6:46 PM, 03/25/2010
    Terrible hair piece Frank. Vote out all incumbents on November...
    The Monk of Magdalena
  • 0 like this / 0 don't   •   Posted 4:04 PM, 03/25/2010
    Believe me Landfill I have. Hopefully all us other "ranters" are doing the same.
    Kennedy
  • 0 like this / 0 don't   •   Posted 3:35 PM, 03/25/2010
    Please for the love of God e-mail/call your councilman/woman and express your frustration instead of just ranting on Philly.com. COLLECT OUTSTANDING TAXES BEFORE MAKING NEW TAXES.
    Landfill
  • 0 like this / 0 don't   •   Posted 3:21 PM, 03/25/2010
    Property taxes haven't been touched in 21 years? That's all you need to about the city. Fix the Tax assessments/revisions and stop letting people pay $1,000 taxes on a 350k home and you'll be surprise how much money you'll have. But again ... this is too much work for our buddies @ city hall.
    Kennedy
  • 0 like this / 0 don't   •   Posted 3:17 PM, 03/25/2010
    $150 million hole in his proposed $3.9 billion budget?? Make it a $3.75 million budget. Easy right?
    Kennedy
  • 0 like this / 0 don't   •   Posted 3:13 PM, 03/25/2010
    Good lord what has this buffon done now?
    uandwhosearmy
  • 0 like this / 0 don't   •   Posted 3:12 PM, 03/25/2010
    DiCicco - You're a real POS.
    ddgg2
  • 0 like this / 0 don't   •   Posted 3:07 PM, 03/25/2010
    BTW> I neglected to mention Councilman KENNEY. He's out of touch also. No one wants to do the hard work of collecting back property taxes or bail or water & gas bills. Instead it's just more convenient to tax the citizens to death. REAL SMART GUYS. These council members should be voted out next election cycle. If they aren't working in our best interest then they shouldn't be doing the job.
    Kennedy
  • 0 like this / 0 don't   •   Posted 2:57 PM, 03/25/2010
    Tasco - MORON, DiCICCO - DOPE Goode JR, - NO GOOD. Does anyone in city council have a brain cell? We pay these people 125k a year + perks like a co. car. W/ all the money owed the city & a city worker headcount 10,000 more than Phoenix (comparably sized) how dare they come to us and ask us for one red cent?? CLEAN UP THE CITY. Collect on the debts owed to you & cut the fat. If they ever did that we'd have a nice surplus not a deficit. Start working on it city hall! Or start getting your resumes ready come 2011.
    Kennedy
  • 0 like this / 0 don't   •   Posted 2:48 PM, 03/25/2010
    ""At the end of the day, I'll do what I have to do to close the $150 million gap," Tasco said" --- WHAT? How about going after that $500 million in owed taxes? How about cutting some of the non-essential social programs. How are they working out? Flash mobs (riots). Oh yeah, I guess they aren't doing too much huh. Any Council member that votes to increase taxes while adding new spending without removing entitlement programs needs to go.
    psyrus
  • 0 like this / 0 don't   •   Posted 2:31 PM, 03/25/2010
    Another quick fix on the back of those who pay their taxes. Past time to collect from those who are delinquent on their taxes Mr. DiCicco. Get rolling. Time to end the real estate tax abatement and rewrite it ending the abatement when the original recipient of the priviledge sells the property. To clarify if the original purchaser sells the property at year 5 the person who buys the property does not get the remaining 5 years of the abatement. Consider the people who work here, pay taxes here and live here. As more well paid knowledge workers get fed up with the lack of foresight, intelligence, planning and obvious greed of our elected officials leave Philadelphia, where does that leave the city? Think Detroit and Buffalo. Casinos, another shortsighted nonsolution. End gov. paid pensions. 401Ks for everybody.
    Spenn
  • 0 like this / 0 don't   •   Posted 12:55 PM, 03/25/2010
    I appreciate Diciccio's committment to closing the budget gap. Unforunately any attempt to do so that does not also address the infamous waste in our city's government lacks credibility.
    duder


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