Title
Authorizing the City Council Committee on Rules to hold public hearings to investigate strategies and offer recommendations for the improvement of collection procedures, to increase current and delinquent revenues from the School Income Tax.
Body
WHEREAS, The School District of Philadelphia is faced with a $304 million spending gap in the next fiscal year; and
WHEREAS, It is imperative that the City of Philadelphia determine an appropriate method for creating increased revenue for the School District, in order to improve the bleak funding situation faced by the City's public schools; and
WHEREAS, The School Income Tax is estimated to create $27,750,000 in revenue for the School District of Philadelphia in fiscal year 2013-2014, with more funds being available through proper enforcement; and
WHEREAS, Ineffective delinquent-tax collection has cost the School District over $5,702,898.34 in known School Income Tax revenues alone, which would greatly aid the District if recovered; and
WHEREAS, If collections are improved, according to Finance Director Rob Dubow, the City could raise an additional $28 million a year in revenues - $15 million through better collection of current taxes, and $13 million a year in delinquent taxes, with collections of the School Income Tax being part of this total; and
WHEREAS, City Council has recently passed a bill to improve the collections process of delinquent property taxes, and the City should also benefit from improving the procedures regarding the School Income Tax; and
WHEREAS, The City of Philadelphia can improve its strategy to collect these large sums in delinquent and poorly reported School Income Taxes; now, therefore, be it
RESOLVED BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That the Committee on Rules is hereby authorized to hold hearings to investigate strategies and offer recommendations for the improvement of collection procedures to increase current and delinquent revenue gleaned fr...
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