Title
Authorizing the Council Committee of the Whole to conduct hearings for the purpose of receiving testimony from representatives of the restaurant, hotel and hospitality industry and the Greater Philadelphia Chamber of Commerce in order to assess the impact of the severe downturn in the national and local economy on these industries in Philadelphia and the impact of state and local taxes on these industries; and also asking that the General Assembly explore any options to enable the repeal of the Philadelphia School District's liquor sales tax by the enactment of a new revenue source that will replace the revenues raised by the liquor sales tax in order to help improve the business climate and promotion of the restaurant, hotel and hospitality industries in Philadelphia.
Body
WHEREAS, The need for sufficient funds and stable, predictable funding sources, is a fundamental element in solving the Philadelphia public school financial crisis; and
WHEREAS, One of the funding sources that now supports the public schools is the 10% "liquor-by-the-drink" sales tax imposed by the Board of Education as authorized by City ordinance. The liquor sales tax raised approximately $25 million for the School District during the last fiscal year; and
WHEREAS, The restaurant, hotel and hospitality industry is the only industry that bears the burden of a separate and targeted tax for school funding in Philadelphia; and
WHEREAS, The School District, in conjunction with Gov. Ridge, Lt. Gov. Schweiker and Mayor Street, is working to find a long term solution to its present $216 million deficit which is expected to grow to over $1 billion in future years; and
WHEREAS, Since the Commonwealth and the City are presently engaged in discussions and negotiations related to school funding, it is appropriate to re-examine the complete school funding formula and the sources of funding; and
WHEREAS, The restaurant, hotel and hospitality industries were already exp...
Click here for full text