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Philadelphia Construction Tax Rejected
New Housing Fund to Be Financed Through Other Means

Philadelphia Construction Tax Rejected

The Philadelphia City Council rejected plans for a 1% construction impact tax that would have provided $115 million in funding for affordable housing. The council instead has agreed to a smaller, $71 million plan.


On September 13, the Philadelphia City Council and Mayor Jim Kenney proposed to commit nearly $71 million over the next five years to finance a legislative package, called the Housing Trust Fund, that was introduces earlier this year. The package aims to encourage first-time home ownership, keep longtime residents in their homes and increase options for affordable housing.

The City Council originally expected to raise approximately $115 million for the fund, which would primarily be paid for by a one percent construction impact tax. However, the construction tax was rejected, as contesters claimed that it was an untested revenue source that would require significant resources to audit and collect. The Housing Trust Fund will instead rely on money raised through the city's general fund and new fees on developers in the city.

Council president Darrell Clarke stated that the City Council would continue to search for new initiatives to raise at least $100 million in new funding to support equitable development in Philadelphia.



Filed Under: TAX, ECONOMIC, CONSTRUCTION, LASN
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November 21, 2018, 12:57 pm PST

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