Statement Regarding Votes on Construction Tax and Changes to Abatements — December 1, 2020

We are currently facing some of the most dire economic circumstances in our city’s history, and Council needs to do everything possible to ensure that the most vulnerable among us remain supported and protected. With this in mind, I voted in support of both the Construction Impact Tax and the non-residential tax abatement reduction, and against the proposed extension of the residential tax abatement.

We have been down this road before. Last year, after years of pressure from residents and advocates, Council reached a relatively conservative agreement to phase out the abatement over the course of ten years. I see no reason to turn back on this now. Our schools are facing yet another drastic budget shortfall due to COVID-19. Why would we sign up for anything that continues to divert money from our schools, even for 12 months?

Philadelphia was a different place when the abatement first went into effect. We have been providing generous subsidies to the real estate industry for many years now, preventing schools from accessing much-needed funds. As Councilmember for the 3rd District, I see the negative impacts of the abatement in the neighborhoods I represent, and in schools across the district. I have a responsibility to my constituents not to support the continuation of this program.

While I didn’t vote to continue the abatement, I do believe the other two bills voted out of committee today will have a huge impact. It’s a significant achievement to have found a way to finance millions of dollars for affordable housing and investment in neighborhoods across our city. I’m grateful to Council President Clarke for his leadership and commitment to addressing the needs of our communities.