Kenney proposes city payroll tax cut as rising Philadelphia home values increase property tax burden – NBC10 Philadelphia
The city of Philadelphia conducted property reassessments for the first time since before the COVID-19 pandemic, as rising home values are expected to drive up property taxes. To offset the added burden on residents, city officials said Tuesday they were seeking to soften the blow by reducing other taxes, particularly the payroll tax, Philadelphia Business Journal reports.
For the 580,000 residential, commercial, industrial and institutional properties that were recently reassessed in Philadelphia, the city saw a 21% increase in overall value since the properties were last assessed in the past year. 2020 taxation. This includes a 31% increase for residential properties. The city estimates the spike in property values will bring an additional $92 million in tax revenue to the city’s general fund in fiscal year 2023 and $460 million over five years.
In response, the mayor Jim Kenney proposes a cut in the city’s oft-criticized payroll tax. For city residents, the payroll tax would drop from 3.84% to 3.7% under Kenney’s proposal. For non-residents, the rate would drop from 3.4481% to 3.44%. City officials said these would be the lowest payroll tax rates since 1976 and estimate the cuts would provide total relief of $260 million.