Crosstown Coalition

The Crosstown Coalition invites Philadelphians to discuss mayoral candidates' answers to questions posed by the Coalition. Questions were generated by citizen responses to a questionnaire sent in Feb, 2007. We encourage you to read candidate answers and comment on what you think. By: Bella Vista United Civic Assoc, Center City Residents' Assoc, Logan Square Neighborhood Assoc, Old City Civic Assoc, Queen Village Neighborhood Assoc, Society Hill Civic Assoc, Washington Square West Civic Assoc.

Showing posts with label 02. TAXES AND ECONOMIC DEVELOPMENT. Show all posts

Showing posts with label 02. TAXES AND ECONOMIC DEVELOPMENT. Show all posts

Thursday, April 5, 2007

BUSINESS TAXES

84% of the respondents believe that the current City business tax structure discourages job growth and hampers business development. The 2003 Tax Reform Commission recommended phasing out both the net income and gross receipts portion of the Business Privilege Tax over ten years, ten per percent a year.

Would you commit to following the Commission’s schedule? If not, what would you do instead? If you disagree with the Commission’s schedule, what do you recommend regarding the Business Privilege tax?

WANT TO COMMENT? Learn how to add your comments.

FATTAH: Business Tax

I support overhauling the onerous business privilege tax, but believe that we must balance this with the need to provide city services. I have called for immediately eliminating the gross receipts portion of the BPT and replacing the net income portion with a simple charge on net profits. This change will increase the competitiveness of city businesses, make Philadelphia more attractive as a place to do business and grow jobs.

WANT TO COMMENT? Learn how to add your comments.

KNOX: Business Tax

My primary concern with the Business Privilege tax is the gross receipts portion. It drives businesses and jobs out of the city. I favor addressing the net profits portion once the gross receipts portion has been eliminated and the wage tax has been addressed. At that time, we should work to lower the net profits portion to a tandem with the wage tax.

WANT TO COMMENT? Learn how to add your comments.

NUTTER: Business Taxes

I support the phased elimination of the gross receipts portion of the BPT and the phased reduction of the net income portion of the BPT to a rate equal to the rate for the Wage Tax.

WANT TO COMMENT? Learn how to add your comments.

BRADY: Business Taxes

As Mayor, I will work to eliminate the gross receipts portion of the Business Privilege Tax over an 8 year period. It has been estimated that for every 500,000 square feet of occupied office space, $11.1 million dollars in tax revenue is generated. Barriers to economic development, such as the gross receipts tax must be removed; as the revenue which would be generated by business locating in the City would be sufficient to offset any loss of tax dollars. Any such reduction would be done so sensibly, without a negative impact on City services.

WANT TO COMMENT? Learn how to add your comments.

EVANS: Business Taxes

I do believe that the gross receipts portion of the Business Privilege Tax is onerous and needs to be phased out. I think we need to balance its elimination, however, with the more immediate need to reduce the level of violence in Philadelphia. As Mayor, my top priority will be to make Philadelphia the safest big city in America; subsequent to that, we will do what we can afford in terms of ongoing tax reduction.

WANT TO COMMENT? Learn how to add your comments.

WAGE TAX

The Tax Reform Commission recommended that the wage tax, 4.26% for residents and 3.7557% for non-residents in tax year 2007, be reduced to 3.25% for both residents and non-residents by the year 2015.

Legislation has been passed to implement this ten-year reduction plan. Do you support the continued implementation of this plan? If not, what would you do instead?

WANT TO COMMENT? Learn how to add your comments.

KNOX: Wage Tax

I support the current schedule and will push for a more aggressive one depending on available revenues.

WANT TO COMMENT? Learn how to add your comments.

NUTTER: Wage Tax

Yes.

WANT TO COMMENT? Learn how to add your comments.

BRADY: Wage Tax

Future reductions in the City wage tax are tied to revenue streams from newly licensed gambling halls. As Mayor, I will work to make sure that as these streams of revenue become available, they are correctly applied to the reduction of the wage tax.

WANT TO COMMENT? Learn how to add your comments.

EVANS: Wage Tax

I do believe that in order to attract businesses and to achieve job growth, we must have a competitive tax structure. For this reason, I supported Governor Ed Rendell’s gaming legislation which would provide revenues to cut the wage tax in Philadelphia. I will also continue to support its reduction and to look at studies, including those from the Tax Reform Commission, to seek ways to make our tax structure fair and balanced for all.

WANT TO COMMENT? Learn how to add your comments.

FATTAH: Wage Tax

I support continuing the reductions in the city wage tax on the schedule passed by City Council.

WANT TO COMMENT? Learn how to add your comments.

REAL ESTATE TAX

86% of all respondents stated that it was either important or very important that the City institute transition rules to phase the changes in real estate tax assessment methods.

Three questions:

a. Do you believe that the tax changes should neither increase nor decrease total real estate tax receipts for the City?

b. The Tax Reform Commission recommended a three-year buffering program so that tax rates are applied to a rolling average of three years’ worth of assessments to eliminate spikes in a taxpayer’s bottom line tax bill. Would you support legislation to implement such a buffering program? If not, what would you do?

c. Deferments have been proposed to ameliorate the impact of increased tax bills for residents who are house rich but income poor with the tax deferments being paid at the sale of the house. How would you structure a deferment program and how would you define the appropriate income levels for participants in such a program?

WANT TO COMMENT? Learn how to add your comments.

NUTTER: Real Estate Tax

a. The full-value project of the BRT should be matched by a proportional reduction in the millage rate. The BRT’s current fractional assessment (0.32 of BRT assessed value) would thus require a rate reduction to approximately one-third the current millage rate of 0.08264, in order to be revenue neutral.

b. A three-year average would introduce some buffering, but we should simply have an outcomes-based rather than process-based rule. Please see below.
c. First, I will propose and work with City Council to enact a homestead exemption that will exclude some fraction of assessed value from taxation for all property owners. The value of the exemption will be calculated to have minimal impact on overall revenue generated by the property tax and will make the property tax progressive. Second. I will propose and work with City Council to enact a cap and deferral plan for paying property taxes that will protect property owners from unreasonably large and rapid increases in their taxes. Under my plan, no property owner would ever face an increase in their property tax exceeding 10 percent in a single year. Property owners who qualify on the basis of low and/or fixed incomes would have lower caps, including zero increases for very low-income owners. In all cases, the amount of tax owed by the property owner above the capped amount would be deferred until the sale of the property. This two-part reform will allow people to participate in the enormous appreciation in property values underway in many Philadelphia neighborhoods while preserving peoples’ option to stay for as long as they want.

WANT TO COMMENT? Learn how to add your comments.

BRADY: Real Estate Tax

As Mayor, I would work to ensure that real estate taxes are administered in a fair and equitable manner. Too often, taxes within the City act as a disincentive for those who are interested in locating businesses here. As Mayor, I would work to create a tax environment that welcomes investment, and remains fair to the residents of the City. With regard to assessments, the administration of property taxes should be predictable and fair, and should not lead to the disenfranchisement of homeowners. The American dream of homeownership should not be cut short by unfair governmental practices.

WANT TO COMMENT? Learn how to add your comments.

EVANS: Real Estate Tax

a. Yes, I believe the move to full assessment should be revenue neutral.

b. Yes, I would support such legislation.

c. I am concerned with how reassessment would impact homeowners whose property values have increased but who are income poor. For that reason, I have supported a series of state initiatives which would give such homeowners tools to minimize the impact of increased assessments. I would support additional deferment programs and would work with City Council to design the appropriate income levels and implementation for such programs.

WANT TO COMMENT? Learn how to add your comments.

FATTAH: Real Estate Tax

a. Yes. In my fiscal policy I stated my commitment to making the re-assessment revenue-neutral for the city.

b. I have said that this re-assessment should not unduly hurt our residents, to this end I have pledged to support efforts to provide a homestead exemption to Philadelphia homeowners and a phase-in of the reassessment to ease the impact on homeowners. I would also consider a buffering program or deferments as ways to mitigate the impact of the re-assessment on Philadelphia homeowners.

c. I have said that this re-assessment should not unduly hurt our residents, to this end I have pledged to support efforts to provide a homestead exemption to Philadelphia homeowners and a phase-in of the reassessment to ease the impact on homeowners. I would also consider a buffering program or deferments as ways to mitigate the impact of the re-assessment on Philadelphia homeowners.

WANT TO COMMENT? Learn how to add your comments.

KNOX: Real Estate Tax

a. I believe that the current move to full assessment should be revenue neutral.

b. I support the concept of a buffering program. However, I favor a cap on increases and decreases rather than a system of rolling averages.

c. Deferments are well worth exploring and I support them for the elderly, infirm, or disabled who are living on fixed income. As Mayor, I will convene a panel of real estate and tax experts to recommend an actionable deferment policy.

WANT TO COMMENT? Learn how to add your comments.

BUDGET TRANSPARENCY

92% of those surveyed stated it was important to present a budget displaying bottom-line figures for the costs of city services. For example, the current budget lists police pensions as a separate line item dealing with pensions for all employees rather than allocating this expense to the cost of policing.

a. Are you willing to publish a budget that details the total cost of each governmental activity such as sanitation, police, recreation, etc? If not, why not? If so, how would you implement this revision and when would it be implemented?

b. Will you commit to a budget process where all planned expenditures are included and supplemental appropriations go through the same public comment and hearing process as the main budget?

WANT TO COMMENT? Learn how to add your comments.

BRADY: Budget Transparency

I would consider the change, but not commit to it definitively before consulting with City Council and PICA.

WANT TO COMMENT? Learn how to add your comments.

Subscribe to: Posts (Atom)