December 16th, 2010

City Council and Mayor Michael Nutter are working together to create new legislation that will address the ongoing goals of improving Philadelphia’s economy.

On Wednesday, December 15, 2010, the City of Philadelphia issued this press release:

Mayor Michael A. Nutter and City Council have reached an agreement to work together to improve the city’s business tax structure. Potential new legislation would address the ongoing goals of improving Philadelphia’s economy, helping small businesses and removing disincentives for locating businesses in the city.

“Today, we are marking a collaborative effort with City Council. We will create new legislation that attracts new businesses and entrepreneurs to Philadelphia while maintaining the tax revenue the City needs to provide services to our citizens,” said Mayor Nutter. “I would also like to thank Councilwoman Sanchez and Councilman Green for their continued leadership on this issue.”
Council President Anna C. Verna said, “We have formed a partnership with the Administration to work together and address this very important issue.”

The Administration and Council will work together to address four major concerns identified during the ongoing Council hearings: helping small businesses; removing the disincentive for businesses to locate inside the city; advocating for changes to state law to streamline the process of claiming deductions from income earned within Philadelphia; and identifying the appropriate balance between net income and gross receipts reductions in any future tax reduction proposal. The Administration and Council will maintain an ongoing dialogue as potential new legislation is drafted.

“I want to thank the Mayor and his team for working with us over the last two years, and joining us in this vigorous debate on Philadelphia’s business tax policies. We will continue to work with him, our council colleagues, and all other stakeholders to craft a tax code that is efficient, fair, and supportive of small and Philadelphia based businesses,” said Councilwoman Maria Quiñones-Sánchez.

“We’re eager to continue to work with our Council colleagues, the Nutter Administration, local business owners and other stakeholders to put in place a business tax system for the 21st century—let’s make it clear that Philadelphia is open for business,” said Councilman Bill Green.

City Controller Alan Butkovitz applauded Mayor Nutter and City Council for “taking a targeted approach to very specific inefficiencies and unfairness in the current business tax structure. As we go forward, it’s important that we be mindful of avoiding radical steps that could undermine employment in Philadelphia. I look forward to a very careful and deliberative approach as these issues are developed.”

City Councilman W. Wilson Goode Jr. said that he and then City Councilman Michael Nutter began working on business tax reform issues in 2004. “When Mayor Nutter assumed his duties in 2008, I introduced a business tax reform proposal as did the Nutter administration. We later agreed to combine our efforts. Clearly, it took compromise and consensus to enact comprehensive business tax reform. Today, I believe Mayor Nutter is committed to enacting the best proposal we can achieve and will work with City Council as he’s done in the past.”