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Minutes

Committee Hearing, November 10, 1999

Philadelphia City Council Committee HearingsNov 10, 1999

People mentioned

Names our system found in this transcript. Automatically extracted, so it can include anyone named in the record, not only officials or parties.

Organizations mentioned

Council President Verna

Decreasing the rate of tax beginning July 1, 1998.

Councilman Cohen

The bill states that the purpose is to decrease the tax.

Councilman Nutter

The Council has declined to do that. No one can have any detrimental reliance on a bill that proposes to do something and we've done less. We could not do more.

Councilman Cohen

But you are not decreasing the tax.

Councilman Nutter

No, we're not. As soon as some reads the final bill, they will see that we have not reduced the tax. We proposed to do something; we chose not to do it.

Council President Verna

I believe we have someone from the Law Department here, Councilman. Do you mind taking the table and testifying on this, sir? 64 PUBLIC MEETING

Mr. Paiva

Good afternoon, Madam Chair. My name is Frank Paiva. I'm from the City of Philadelphia Law Department. It is my understanding that the title must show all the possibilities that will be before the Council, but to the extent that less is done, to my knowledge, there's no problem with the notice requirement. That's what the title's for, it's to give notice to everyone that these are things that are before the Council. And one of the things before the bill was the rate reduction, but Council has now decided not to go forward with any rate reduction so that's not a problem because notice was given. And the other parts, the loophole closings, they were also noticed and everyone had notice that those parts were also part of this bill.

Councilman Kenney

Madam Chair.

Council President Verna

The Chair recognizes Councilman Kenney.

Councilman Kenney

Mr. Paiva, in effect is not the bill, the pink copy of the bill the working document of this counsel and that whatever it is we pass is codified in the Philadelphia Code; and therefore, the title of the bill doesn't appear 65 PUBLIC MEETING in the Philadelphia Code, just what action we've taken? So someone who reads the Philadelphia Code would not be misled that there's a decrease realty transfer tax because in fact it was never done. The pink copy on file in the Clerk's Office would be a record of what in fact was proposed and discussed but not finally passed and codified in Philadelphia Code.

The Witness

The importance of the title is just to give notice that these are things that Council is considering doing so that if anyone out there objects to it, they can come in and have an opportunity. That's the purpose. Usually the problem is we try to do changes that we haven't given people notice for. That's the problem we try to avoid.

Council President Verna

In the past, I think the City Solicitor has sent notification to us that we could never change the title of the bill.

Councilman Nutter

And we're not proposing to change the title. We're not changing the title.

Councilman Cohen

I would ask that 66 PUBLIC MEETING there been a written opinion on the subject. I will accept it if it's written so that there will be a clear record because it's not what my understanding is of the requirement. I will accept the City Solicitor's opinion on that, but I am concerned that if people are going to use as sophisticated a technique to try to avoid the tax structure of Philadelphia, I think they're going to be ready to go to court. I would just urge the City Solicitor to consider all the aspects of it. I will accept whatever opinion they render on that subject.

Councilman Nutter

Madam President.

Council President Verna

The Councilman Nutter.

Councilman Nutter

Thank you. Madam President I respect Councilman Cohen's comments. What I would be more than happy to do is to seek the opinion that the Councilman requests. I would not like for the lack of that opinion today, and at least the comments of a representative of the Law Department who has articulated on the issue, to not hold up getting the bill out of Committee.

Councilman Cohen

I would not ask for that. There's plenty of time to get the opinion. 67 PUBLIC MEETING

Councilman Nutter

This bill is not even going to get first reading until the 18th and won't be ready for a vote until the 2nd. So we will certainly have -- they have could probably have this opinion in about minutes. But in any event we'll 7 certainly have it before the bill is ready for 8 second reading and final passage to be distributed 9 to all Members. 10

Councilman Cohen

Very good. 11

Council President Verna

Are you 12 satisfied, Councilman? 13

Councilman Cohen

Yes, I agree with 14 that. 15

Councilman Nutter

Madam President, I would move the adoption of these amendments. (Duly seconded.)

Council President Verna

It has been moved and seconded that the amendments be adopted. All in favor will signify by saying aye. Those opposed? The ayes have it. The amendment is adopted. The Chair recognizes Councilman Nutter.

Councilman Nutter

Madam Chair, I move 68 PUBLIC MEETING that Bill 980303, as amended, be reported out of this Committee with a favorable recommendation and a further recommendation that the Rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.)

Council President Verna

It has been moved and seconded that Bill No. 980303 be reported out of the Committee with a favorable recommendation, as amended, also a recommendation that the Rules of Council be suspended so as to permit first reading at our next meeting. All in favor will signify by saying aye. Those opposed? I ayes have it. The motion is carried. This concludes the public meeting of the Committee of the Whole. Thank you all very much for your patience. (Council adjourned at 1:20 p.m.) - - - 69 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of November, 10, 1999, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE OF THE WHOLE ___________________________ Lisa C. Bradley, RPR and Notary Public