Tax Reform Commission 4.0? City Hall takes another stab at reforming Philly’s tax structure | Council roundup

Stop me if you’ve heard this one before: City Hall is establishing a blue-ribbon panel to reform Philadelphia’s tax structure.

Tax commissions have come and gone so many times, it’s become a bit of a joke. The last one, announced during former Mayor Jim Kenney’s second term, faded away without producing so much as a report.

City Council on Thursday approved a resolution to create a new Tax Reform Commission, which technically is a reconstitution of the original panel from 2002. The new measure was authored by Council President Kenyatta Johnson and is supported by Mayor Cherelle L. Parker.

The commission will have 15 members who will be named within 30 days. Parker and Johnson will each nominate four members, City Controller Christy Brady will name one member, and the rest will be selected by local chambers of commerce. That lineup appears favorable for business interests that have long called for dramatically lowering city wage and business taxes.

Brady has already decided who she will appoint, a spokesperson said: real estate magnate and former Councilmember Allan Domb, who lost to Parker in last year’s Democratic primary for mayor.

While it’s easy to be pessimistic about the creation of the fourth tax policy panel in 22 years, there is some reason for hope. Parker and Johnson both took office last month, and tying themselves to policy recommendations so early in their tenures may be a sign they actually hope to follow through on some of them.

“We need a tax structure that encourages businesses to move into Philadelphia and, most importantly, stay in Philadelphia,” Johnson said. “I believe we can find a healthy and fair balance between providing tax relief for businesses, while also significantly investing in small businesses, which are the bedrock of our economy and our neighborhoods.”

» READ MORE: Mayor Parker calls on Philadelphia businesses to return to in-person work

There is a lot at stake. Will the panel find a way to lower Philly’s 3.75% wage tax, the city’s largest revenue source and the highest of its kind in the nation? Will they reform the business income and receipts tax, which is often described as being unnecessarily complicated by taxing both gross revenue and net profits? What will they recommend on property taxes, which are relatively low in Philadelphia but have been criticized for relying on inaccurate assessments?

In a speech Wednesday, Parker praised the city’s practice of incrementally lowering the wage tax and reducing the number of companies subject to the business tax. Parker also reiterated her support for amending the state constitution to allow Philly to tax commercial properties at higher rates than homeowners, which would make major tax reform more politically viable.

“Thank you, Mr. President, for taking that important step,” Parker said, “and we want you to know that we look forward to a lively discussion on these issues this year.”

Message from the mayor: Councilmember Rue Landau, a freshman Democrat who represents the city at-large, introduced legislation on behalf of Parker that would empower the city’s Law Department to investigate complaints of consumer fraud.

Currently, consumer protection law is enforced by both the state attorney general and the Philadelphia district attorney. Under the new legislation, the city’s Law Department could bring cases in the city’s Court of Common Pleas and seek civil penalties.

The bill specifically says the city can target bad actors engaging in false product advertising, bogus financing plans, pyramid schemes, and misleading telemarketing. Those practices are already against state law.

Another crack at ‘streeteries’: Council is poised to hold hearings examining city regulations for so-called “streeteries,” the outdoor dining structures that proliferated during the pandemic. But many closed over the last year after the city implemented a licensing process that requires restaurants comply with specific building requirements and secure a $1 million insurance plan.

Landau introduced legislation to hold hearings on the matter, saying in a statement that Council wants to “revisit and consider improvements to our current policies, ensuring fair access to streeteries and sidewalk cafés for all restaurateurs.”

A hearing has not yet been scheduled.

A representative from the Pennsylvania Restaurant and Lodging Association said Thursday the trade group supports the city taking another look at its system.

”There is urgency to this conversation, not only due to spring and summer on the horizon, but especially given all the visitors we intend to host as a region in 2026,” said Zak Pyzik, a spokesperson for PRLA. “We commend this step and hopefully it signals a commitment to providing certainty, predictability, and guidance to the hospitality industry.” The city will celebrate the 250th anniversary of the nation’s founding in 2026.

A new clerk: Council was canceled last week due to the death of longtime Chief Clerk Michael A. Decker, whose job entailed overseeing Council procedures and recording legislation.

» READ MORE: Longtime Philadelphia City Council Chief Clerk Michael A. Decker has died

Council reconvened Thursday under the guidance of Interim Chief Clerk Elizabeth McCollum-Nazario, who worked in Decker’s office until recently.

Johnson led lawmakers in a moment of silence to honor Decker at the start of the meeting. Decker was to be laid to rest after a funeral mass Friday morning at Holy Innocents Parish.

A big name in politics and journalism: Female members of Council on Thursday honored Renée Chenault-Fattah on Thursday, an attorney and former NBC10 coanchor who worked in broadcast journalism for three decades.

“Her impact transcends boundaries and inspires us all,” Councilmember Cindy Bass said. “In recognizing her accomplishments, we not only pay tribute to her individual journey, but also acknowledge the countless narratives of strength, leadership, and excellence within the community of Black women.”

Chenault-Fattah is a well-known name in city politics. She’s married to former U.S. Rep. Chaka Fattah, a Democrat who was sentenced to 10 years in prison in 2016 on federal corruption charges but was released early in 2020.

And she was implicated in that case, with federal prosecutors alleging she was involved in a bribery scheme and fraudulently sold a Porsche to a Florida-based lobbyist. But Chenault-Fattah wasn’t charged, and accused prosecutors of personally attacking her and misleading the court.

She delivered remarks in Council’s chambers Thursday, saying the honor left her “speechless.”

“I really feel like I owe this city so very much,” she said. “Philadelphia gave me my career.”

Council on Thursday recognized Northwest Philadelphia’s Hill-Freedman World Academy, which has gained national acclaim — and an HBO documentary — for creating a record label in which every song is written, performed, and produced by students.

» READ MORE: The Philly songwriting teens who caught John Legend’s attention with their original album

Music technology teacher Ezechial Thurman leads that program and accepted the honor on behalf of the school. In his remarks, he thanked the donors who backed the program and urged others to do more. Thurman is the husband of Tiffany W. Thurman, Parker’s chief of staff.