Mayor announces wage tax reducations/property tax reassessments (Philadelphia, Penn: real estate, credit)

[bridge12]

https://www.phila.gov/2022-05-03-pro...-need-to-know/

Overall, property tax assessments are up 21%. So expect a bump in property taxes for most folks. However, the homestead exemption will be increased to $65,000 from the current $45,000.

Some details about the wage tax reduction:

Under the plan, the residential rate would be reduced over the next two years to 3.7 percent (from the current 3.8398 percent), and the non-resident rate would be reduced to 3.44 percent (from the current 3.4481 percent). These would be the lowest wage tax rates in Philadelphia since 1976.

I don't often hand it to Kenney but this is a good move. My only concern is that the property tax backdoor increase will end up hurting renters.

[FKD19124]

must be an election year

[bridge12]

Originally Posted by FKD19124

must be an election year

Not for him. Don't really see how this has anything to do with that, especially given that Democrats in gentrifying neighborhoods will be "hurt" the most by the increase in property tax assessments.

[Angus215]

" . . .and the non-resident rate would be reduced to 3.44 percent (from the current 3.4481 percent)."

A 0.0081% reduction? Uh, don't think that's going to help bring back the suburban commuters. But of course, commuters don't get to vote . . . taxation without representation, if you will.

[thedirtypirate]

It is a minuscule change but at least it isn't going in the other direction! ...but wait until all the whining about the assessments begins. The city oligarchy (the people who work for the city and/or people in the the non-profit-sphere) will cry foul. It's all they know how to do. They try to block new houses from getting built to keep the 'culture'. This forces more people to look at existing housing stock. Which in turns makes prices rise. They're the victim in every scenario.

[ElijahAstin]

Originally Posted by Angus215

" . . .and the non-resident rate would be reduced to 3.44 percent (from the current 3.4481 percent)."

A 0.0081% reduction? Uh, don't think that's going to help bring back the suburban commuters. But of course, commuters don't get to vote . . . taxation without representation, if you will.

And nearly all of the suburban boroughs and townships have 1% earned income taxes (with a handful of notable exceptions), so if you work outside the suburb in which you live, that’s also “taxation without representation.”

[cpomp]

Originally Posted by thedirtypirate

It is a minuscule change but at least it isn't going in the other direction! ...but wait until all the whining about the assessments begins. The city oligarchy (the people who work for the city and/or people in the the non-profit-sphere) will cry foul. It's all they know how to do. They try to block new houses from getting built to keep the 'culture'. This forces more people to look at existing housing stock. Which in turns makes prices rise. They're the victim in every scenario.

Agree, have to start somewhere. I just hope certain Council members don't oppose this idea since it's against their interests to have a thriving metropolis. But the Mayoral candidates view on the tax structure will be important for the 2023 Mayoral race.

And Pennsylvania House passed a corporate next income tax reduction of 1%. So if Philadelphia can lessen it's reliance on wage taxes and the gross-receipts portion of the BIRT, and transition toward real estate tax base, then we may get somewhere.

[Angus215]

Originally Posted by ElijahAstin

And nearly all of the suburban boroughs and townships have 1% earned income taxes (with a handful of notable exceptions), so if you work outside the suburb in which you live, that’s also “taxation without representation.”

In every other municipality, you pay tax where you live, not where you work. If you work in Philly, that tax is credited against the 1% tax you would have otherwise paid to your home municipality. But if you live in one suburb and work in another, you would pay tax to the town in which you live.

[ElijahAstin]

Originally Posted by Angus215

In every other municipality, you pay tax where you live, not where you work. If you work in Philly, that tax is credited against the 1% tax you would have otherwise paid to your home municipality. But if you live in one suburb and work in another, you would pay tax to the town in which you live.

That’s because there’s reciprocity for the most part. But I’m pretty sure if, for example, you lived in Lower Merion, which has no EIT, but worked in Whitemarsh, which has the usual 1% EIT, you would pay the 1% to Whitemarsh.

[Angus215]

Originally Posted by ElijahAstin

That’s because there’s reciprocity for the most part. But I’m pretty sure if, for example, you lived in Lower Merion, which has no EIT, but worked in Whitemarsh, which has the usual 1% EIT, you would pay the 1% to Whitemarsh.

I don't think that's true, but I could be wrong.