Council Gives Preliminary Approval To 1.34% Tax Rate
By Mike Dunn
PHILADELPHIA (CBS) - Philadelphia's controversial new property tax system is now a step closer to reality, following a preliminary vote Wednesday in City Council.
After days and weeks of private negotiating led by Council President Darrell Clarke, council members gave initial approval to a property tax rate of 1.34%. And they agreed set the homestead exemption at $30,000.
They set aside $20-million for other relief for residents of gentrified neighborhoods, and they agreed to a deferral program for property owners who face steep increases under the new values.
Clarke is pleased with the whole package:
"I think this was a reasonable approach to providing this level of a rate, in addition to which having significant measures for protection of individuals who may find themselves in a position where they can't pay their tax bills."
Council still must vote on the operating budget and is still weighing the mayor's proposal for a hike in the liquor by the drink tax as part of the city's bailout of the School District.
