Does state law require AVI to be revenue neutral?
State Rep. Mike O'Brien today tried to throw another wrench in the complex debate over Mayor Nutter's proposal to move to a property tax system based on market values and to collect an additional $94 million for schools.
Does state law require AVI to be revenue neutral?
Catherine Lucey
UPDATED: This post has been updated to reflect additional comment from the Nutter administration.
This property tax debate just keeps getting stickier and stickier.
State Rep. Mike O'Brien today tried to throw another wrench in the complex debate over Mayor Nutter's proposal to move to a property tax system based on market values and to collect an additional $94 million for schools.
During a hearing held in Philadelphia on an alternative proposal to raise funds for schools, O'Brien questioned whether the adminstration had the authority to raise extra revenue with the property tax plan -- known as the Actual Value Initiative. He cited a provision in state law, under the "Taxpayer Relief Act of 2006," saying the his read of the law was that any change in property reassessments would have to be revenue neutral in the first year.
"Quite honestly, gentlemen, Houston we have a problem," O'Brien said to Finance Director Rob Dubow.
After his testimony, Dubow declined to comment on O'Brien's statement, saying he had to check into the law. Dubow later said that the city law department's interpretation of the law was that it does not apply to Philadelphia.
O'Brien and State. Rep. Rosita Youngblood held the hearing on their proposal that wage-tax relief that comes to the city from state taxes on Pennsylvania casino profits be diverted to the Philadelphia School District to help close a budget deficit. The duo have proposed the strategy, which would bring in roughly $86 million for schools, as an alternative to the Nutter administration's plan.
Dubow said the proposal would force the city to raise the wage tax or cut the budget elsewhere to maintain the current tax rates of 3.93 percent for city residents and 3.5 percent for nonresidents.
Thanks to these stand-up legislators. No sheep, these two.— grouchy- Great, now they're looking to raise the wage tax ... it never ends down @ city hall. Just implement AVI with a 1.25% tax rate & set up a process for appeals AND BE DONE WITH IT! By doing so the city will have the $$ they (& the bottomless pit PSD) need. Yes, those who have been getting away with paying too little for 25 years will get hit. But they'll finally be paying their fair share. Would be nice for our city's property tax rate to make sense for once.— Kennedy
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- So..Dubow says the law "doesn't apply to Philadelphia". What the Hell is this clown talking about? An interpretation by an incompetent "in the political pocket" law department attorney has no bearing or weight. They've been told what to say by the inbred, deranged Democratic leadership. They can blither/blather all day long. The State will make the decision. Philadelphia is one city in Pa., not the "Kingdom of Idiots" it makes itself out to be..We are not above the law--we're included--unless the wording specifically excludes Phila.— oblekr
- This is the same lame Law Department that says that it cannot get rid of DROP either.— 19130FM
- The city can't force collection of overdue property taxes from owners, they can foreclose and auction. The price paid at auction will have no relationship with pastdue taxes. The $472,000,000 CP cites is just a historical bookkeeping number, it doesn't represent realizable collections.— twg
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- "Dubow later said that the city law department's interpretation of the law was that it does not apply to Philadelphia." --- WHAT? So Philly is no longer part of Pennsylvania? I suppose the city's law department is just as incompetent as the rest of the city government.— psyrus
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- If they hike the wage tax, I'm outta here. It's cheaper to live in San Diego than it is to live in Philly.— flyers2thecup
nutter will stop at nothing to raise taxes every year and crucify the honest, hardworking TAXPAYERS of this city— barry m goldwater- Comment removed.
