A City Council committee has okayed a major change in the city’s Business Income and Receipts Tax, but any final vote may not come for many months.
City council and the mayor are split over extending a grace period for those whose appeals are still pending when the bills come due.
Over the objections of the Nutter administration, a City Council committee has approved its own plan to funnel an extra $50 million to the city’s cash-starved school district.
Rob Dubow says the Philadelphia school district’s budget woes could get worse if City Council doesn’t approve a bill to make permanent the once-temporary hike in the sales tax.
PICA Board chairman Sam Katz says he wants more information from the Nutter administration about money the city would have to set aside for unresolved municipal labor contracts.
Rob Dubow, the mayor’s finance director, argued against raising the city’s “U&O” business tax and in favor of boosting taxes on liquor and cigarettes.
The discussion, titled “Philadelphia Taxes — Past, Present and Future.” was organized by the Pew Charitable Trusts and Temple University’s Center on Regional Politics.
City Council members are wondering how they and the mayor will come up with an extra $60-million for the school district and whether the state will do its share.
“We’re giving away money (through the abatement) that we don’t necessarily need to give away,” Goode said. “And at the same time, driving up tax bills for everyone else.”
The Nutter administration is standing firm in its decision to bar reporters and the public from a meeting this week with Wall Street investors, despite a protest from several media outlets.
City Council president Darrell Clarke and others on Council questioned the mayor’s finance director, Rob Dubow, over whether the mayor himself will present a plan to raise an extra $60 million for the school district, or whether that political hot potato will fall in the lap of Council.
The chambers of Philadelphia City Council were packed to the rafters with angry union members as mayor Michael Nutter prepared to unveil his new budget.
Aides to the mayor were in the hot seat Wednesday as city council members grilled them over the controversial new property assessments that have some residents fuming.
The Council hearing came one day after the administration decided to continue the legal battle and appeal the arbitration award in Commonwealth Court.
City controller Alan Butkovitz says his office found numerous mistakes in the books for Fiscal Year 2011, which ended on June 30th of last year. The city finance director notes they represented accounting errors, not misplaced funds.