Legal Blog
Philadelphia’s City Council Passes Construction Tax Bill
A bill known as the Construction Tax Bill imposing a one percent tax on most new constructions and major renovations narrowly passed Philadelphia’s City Council last week, in a 9-8 vote. The bill levies the tax on new construction and major renovation projects for properties outside the city’s Keystone Opportunity Zones and applies the proceeds towards affordable and mixed-income housing projects. A companion bill allowing the Housing Trust Fund to establish a sub-fund to regulate how the tax funds are spent, and can be accessed by both non-profit and for-profit developers to build for households whose income does not exceed $105,000 per year, also passed with a 13-4 vote.
The Construction Tax bill was unsuccessfully opposed by Republicans and Democrats Bobby Henon, Derek Green, Jannie Blackwell, Cindy Bass, and Allan Domb. After the vote, Mayor Jim Kenney, whose administration had criticized the bill in past weeks is reported to have said, “I’m committed to increasing Philadelphia’s affordable-housing stock and to promoting equitable growth, but I have concerns about this particular piece of legislation. Philadelphia is already considered by many to have a pretty onerous tax system and it is certainly not clear that adding another tax is the best way to address our housing crisis.” Some speculate that Mayor Kenney may use his veto power for the first time to strike the legislation, although spokesman Mike Dunn says the legislation is still being reviewed.
For more information on this topic or other legal matters please contact Karin Corbett, Esquire at kcorbett@offitkurman.com or 484-531-1702.
ABOUT KARIN CORBETT
Karin Corbett is a business attorney and litigator who effectively prevents, resolves and litigates legal disputes for businesses and individuals alike in a variety of industries; but her focus is primarily in the construction & real estate and equine industries.
As a construction and real estate attorney, Ms. Corbett negotiates contracts, analyzes and advises clients on all types of business matters, and litigates contract claims.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 170 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our eleven offices serve individual and corporate clients in the Virginia, Washington, DC, Maryland, Delaware, Pennsylvania, New Jersey, and New York City regions. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
You can connect with Offit Kurman via our Blog, Facebook, Twitter, Google+, YouTube, and LinkedIn pages. You can also sign up to receive Law Matters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.
MARYLAND | PENNSYLVANIA | VIRGINIA| NEW JERSEY | NEW YORK | DELAWARE | WASHINGTON, DC
