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Heard in the Hall

Property tax back from the dead - for now

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

66 comments

Property tax back from the dead - for now

POSTED: Thursday, June 16, 2011, 2:58 PM

Jeff Shields

City Council would raise property taxes by 3.5 percent instead of introducing a tax on sugary drinks, in a proposal Thursday to rescue the Philadelphia School District from the $629 million financial chasm it has fallen into.

In a deal that must weather the test of time -- perhaps an hour or two -- a mjaority of Council members have decided that a property tax hike is preferable to painful cuts in the city budget or a "soda tax" that might go down in a court battle. They reached that conclusion about 2 p.m. after a morning of testimony on the city budget, followed by closed-door bargaining in President Anna C. Verna's office. Members shuttled in and out to avoid having a quorum and therefore a violation of the state Sunhine Act, as reporters stood outside counting bodies.

Council is expected to vote the budget out of committee today for a final vote on June 23.

A day of fevered negotiation started with any property tax proposal dead by most accounts, and Mayor Nutter close to a majority for the tax on sugary drinks, at 1-cents per ounce, rather than the 2-cents per ounce that Nutter wanted.

The deal has to be consummated by Council in a committee vote, but that won't happen until later this afternoon. Given the ephemeral nature of the talks, it could crumble at any time. As of 2:50 p.m., it appeared to be holding steady, as Council took care of other business, including major bills on DROP, paid sick leave, the handling of homeless people on city streets, and signs in the Market East corridor.

A 3.5 percent increase, which follows a 10 percent hike last year, would generate an additional $37 million, all of it for schools. The deal reportedly also includes $6 million by raising street parking rates in Center City and University City, and up to $10 million from the city's fund balance, which could result in cuts from the city budget.

That's a maximum of $53 million, significantly less than the $102 million requested by Superintendent Arlene Ackerman.

Click herefor Philly.com's politics page.

66 comments

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Comments (67)

1 like this / 0 don't • Posted 3:18 PM, 06/16/2011

Why can't we take the tax recieved on profits from casino revenue to plug the gap instead of giving property tax refunds to certain residents before increasing everyone else's taxes?

— dankil13

0 like this / 0 don't • Posted 3:21 PM, 06/16/2011

An exodus of property owners will leave the city with just the soda swilling free loaders. Why doesn`t "Big Soda " donate to the schools??/

— patty b

2 like this / 0 don't • Posted 4:09 PM, 06/16/2011

And where will those who "exodus" go? Property taxes everywhere else are much higher than Philly. I think the soda tax is better than the homeowner hike, I don't understand why it's so hard to pass. Its an optional tax, dont drink soda, dont pay the tax. Simple

— FishtownYo

0 like this / 0 don't • Posted 6:44 PM, 06/16/2011

The overall tax burden in Philly is a bit higher than anywhere close. In surrounding counties, the taxes get you good schools, public safety, green space, and clean streets. These are the things I weigh when I consider participating in the exodus.

— T

1 like this / 0 don't • Posted 4:15 PM, 06/16/2011

Big soda does provide a lot for the children in Philadelphia, especially in poor neighborhoods. They produce a product with little or none nutritional value that causes obesity in children as well as the health problems that causes. So why should you expect them to contribute any more than that?

— mindstorms

0 like this / 0 don't • Posted 3:37 PM, 06/16/2011

what a joke.. some of us dont want to subsidize what are already failing schools and leadership.. what an insult to the hard working tax paying homeowning citizens of the city. the entire council should be ashamed of themselves. but they wont.

— karona

0 like this / 0 don't • Posted 3:39 PM, 06/16/2011

Since many older residents get their property tax refunded from state lottery funds, would not a portion of any property tax increase actually then come from state funds?
Amazing how a media campaign by a business group can so easily kill a revenue source.

— atp2007

1 like this / 0 don't • Posted 3:41 PM, 06/16/2011

If these kids parents fed them, we'd have our property taxes REDUCED. How about an additional 1-2% increase on the income tax of city/public employees, instead? See, as a property owner in this city I do not have a union to fight for my money.

— jabs69

0 like this / 0 don't • Posted 3:42 PM, 06/16/2011

"Members shuttled in and out to avoid having a quorum and therefore a violation of the state Sunhine Act,"
Doesn't anyone care about ethics? I mean, sure, they're not violating the letter, but what about the spirit??? You can have open meetings that don't include public comment periods.

— citylumberjack

0 like this / 0 don't • Posted 3:50 PM, 06/16/2011

they are digging up mayfair and performing "improvements" on the streets when none were needed. Why are we spending the money to put benches and trees, that will just be destroyed by the end of summer, when we could be putting it to good use.

— qwerty83

0 like this / 0 don't • Posted 3:51 PM, 06/16/2011

So now they want more property tax on top of the
TEMP tax i just get hit with
i am being taxed out of my house and there is no end in sight
I would not mind as much is EVERYONE in the city wass paying but i dont think that is the case
The northeast gets another hit
remember this at election time

— joseph phillips