Communication 030276

April 24, 2003 TO THE PRESIDENT AND MEMBERS OF THE CITY COUNCIL OF PHILADELPHIA: I am returning herewith as disapproved Bill No. 030014, passed by the Council on April 3, 2002. I continue to support coordinated, equitable and cost-effective tax reform. This bill however, constitutes flawed attempts to achieve the imperative goals of tax reform and tax reduction. I cannot support this bill. Bill No. 030014 is essentially a repeat of a bill I previously vetoed, Bill No. 020537-A, and I will not repeat here the reasoning I set forth in my veto letter of December 5, 2002. This bill would effectively impose a ten percent "cap" on real estate tax increases for fiscal year 2003. In addition to the issues raised above, I remind you the Solicitor has advised us that we are legally powerless to interfere with tax measures already enacted for the current fiscal year, once the fiscal year has already begun (indeed we are now nine months into the fiscal year). My administration estimates this bill would cost the City $7.98 million in the current fiscal year Given that an artificial "cap" on tax increases merely exacerbates any perceived inequities in the tax assessment system, given that the City can ill afford to forfeit almost $8 million in tax revenues, particularly in the inequitable manner imposed by this bill. I cannot support this measure. Respectfully submitted, John F. Street Mayor