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Authorizing the Council Committee of the Whole to hold hearings on the findings and recommendations of the Tax Reform Commission’s final report, released on November 15, 2003; and, further authorizing the Committee to seek advice and recommendations on tax policy and tax reform from citizens, financial experts, economists, academia, business executives, and state legislative and executive branch officials.
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WHEREAS, City Council is the body authorized by the City Charter to levy taxes and to legislatively determine the rates of such taxes; and
WHEREAS, City Council must be prepared to analyze, evaluate, and make decisions on future tax policy and its impact on the overall general fund budget, the five-year fiscal plan, the delivery of City services, and the business climate of our City; and
WHEREAS, Despite moving from fiscal crisis to regular budgetary surpluses and after small-scale tax reductions, Philadelphia’s population loss continued throughout the 1990s and Philadelphia has continuously lagged behind the nation, the Greater Philadelphia Region, and competitor cities in terms of economic growth; and
WHEREAS, The current tax structure presents a competitive disadvantage as the pull exerted by all that the City has to offer is offset by the push of exorbitant taxes that provide a reason for residents and businesses not to locate within the City; and
WHEREAS, There was submitted for the approval or disapproval of the qualified electors of the City of Philadelphia at the election held November 5, 2002, an amendment to the Philadelphia Home Rule Charter relating to the creation, appointment, powers, and duties of a Philadelphia Tax Reform Commission, as ordained by The Council of the City of Philadelphia; and
WHEREAS, In November 2002, 170,000 voters in Philadelphia, with a margin of four-to-one, supported the creation of the first independent Tax Reform Commission in Philadelphia’s history; and
WHEREAS, The Tax Reform Commission’s 15 Commissioners and 23 Advisory Committee members spent 10 months, 10,000 hours, and $500,000 taxpayer dollars conducting a comprehensive review of the City’s tax structure; and
WHEREAS, The Tax Reform Commission released its final report on November 15, 2003; and
WHEREAS, On January 22, 2004, all bills that were included in Volume II of the Tax Reform Commission’s final report were introduced in City Council as a legislative package that the Commission believes is “the best way to reduce Philadelphia’s tax burden, create a fair tax system, and improve the local economy”; and
WHEREAS, It is in the interest of this Council to reduce taxes of Philadelphia residents, workers, and businesses in an equitable manner; reform the tax structure to enhance and improve the City's ability to compete with other jurisdictions in the region and throughout the nation in attracting new residents, businesses, and jobs and retaining current residents, businesses, and jobs; and provide tax fairness and tax equity in apportioning tax burdens; now therefore
RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That the Council Committee of the Whole to hold hearings on the findings and recommendations of the Tax Reform Commission; and, further authorizing the Committee to seek advice and recommendations on tax policy and tax reform from citizens, financial experts, economists, academia, business executives, and state legislative and executive branch officials.
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