COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE ON COMMERCE and ECONOMIC DEVELOPMENT - - - Room 400, City Hall Philadelphia, Pennsylvania5 Wednesday, December 8, 2010, 10:09 a.m. - - - Bill No. 100787: An ordinance amending9 Chapter 19-2600 of the Philadelphia Code, entitled "Business Privilege Taxes," by10 extending the "Special Tax Credit Opportunity for Job Creation," under certain terms and11 conditions. COMMITTEE MEMBERS PRESENT: W. Wilson Goode, Jr. Chair Blondell Reynolds Brown, Vice Chair16 Darrell L. Clarke Frank DiCicco17 Curtis Jones, Jr. - - -20 2 12/8/10 - COMMERCE/EC. DEV. - Bill 1007871
Good2 morning. This hearing is called to3 order. This is the public hearing of the4 Commerce and Economic Development5 Committee meeting on Bill No. 100787.6 The Rules Committee hearing will follow.7 My name is W. Wilson Goode,8 Jr., the chair of this committee. I note9 that a quorum present: To my left, far10 left, is Councilwoman Blondell Reynolds-11 Brown, vice chair of the committee; to my12 immediate left is Councilman Darrell13 Clarke; to my immediate right is14 Councilman Curtis Jones.15 The title of Bill No. 10078716 is: An ordinance amending Chapter17 19-2600 of the Philadelphia Code,18 entitled "Business Privilege Taxes," by19 extending the "Special Tax Credit20 Opportunity for Job Creation," under21 certain terms and conditions.22 Our first and only witness is23 Mr. Afessa from the Revenue Department.24 Please come forward.25 3 12/8/10 - COMMERCE/EC. DEV. - Bill 1007871 (Witness comes forward.)2
Good4 morning. Please state your name for the5 record and proceed with your testimony.6
Good morning,11 Councilman Goode and members of the12 Committee on Commerce and Economic13 Development. My name is Tilahun Afessa,14 and I'm the Director of Policy Planning15 and Outreach for the Department of16 Revenue.17 I'm here today to testify in18 support of Bill 100787. This bill19 proposes to amend the Business Privilege20 Tax Job Creation Tax Credit Program by21 extending the special tax credit22 opportunity for the job creation to23 calendar year 2012 and 2013.24 The proposed amendment provides25 4 12/8/10 - COMMERCE/EC. DEV. - Bill 1007871 the tax credits in the amount of $3,0002 for each new job created in calendar year3 2012 or 2017. This special opportunity4 established by Bill No. 090012 is already5 available for jobs that would be created6 in calendar year 2010 or 2011 in7 connection with applications filed after8 June 24, 2009.9 In its report issued in October10 of 2009, the Mayor's Task Force on Tax11 Policy and Economic Competitiveness12 stated that employment grows is the only13 option to prevent further deterioration14 to the quality of life for15 Philadelphians. We agree with this16 assessment. We believe that the job17 creation tax credit program established18 in 2002 to encourage businesses to expand19 employment within the City of20 Philadelphia helped us to achieve this21 purpose.22 The annual amount of credit23 available under this program is limited24 to percent of the prior-year business25 5 12/8/10 - COMMERCE/EC. DEV. - Bill 1007871 privilege tax collection. So far, the2 total credits that have been awarded each3 year have been far less than the limit.4 It is with this understanding5 that we support the extension of the6 increase in the tax credit from $1,000 to7 $3,000 for each new job created in 20128 or 2013.9 We also agree in limiting the10 extension to a given number of years.11 Establishing a sunset to the extension12 will allow us to assess the effectiveness13 of this amendment.14 We recommend a change to the15 provision of the bill to make it clear16 that this bill provides a special credit17 only for applications filed after the18 approval date of this bill. This change19 would make it clear that those who have20 already applied to take advantage of the21 special tax credit opportunity for job22 creation in 2010 or 2011 have to submit23 another application if they want to take24 advantage of the extension.25 6 12/8/10 - COMMERCE/EC. DEV. - Bill 1007871 We have prepared and have2 submitted a draft of the clarifying3 amendment that we would like to see in4 this bill for your consideration.5 Thank you again for giving me6 the opportunity to testify today. I'm7 ready to answer any questions you may8 have regarding this bill and regarding9 our recommendation to make a clarifying10 amendment to the bill.11
Thank you12 for your testimony, Mr. Afessa.13 Let me note for the record that14 Councilman DiCicco, a member of the15 committee, is also present; and16 Councilwoman Miller is joining us as17 well.18 Are there questions for this19 witness?20 (No questions.)21
Seeing none,22 is there anyone else here to testify on23 this bill?24 (No response.)25 7 12/8/10 - COMMERCE/EC. DEV. - Bill 1007871
Seeing none,2 we will move from our public hearing into3 our public meeting to consider Bill No.4 100787. The amendment Mr. Afessa5 referred to is our in committee packet.6 The Chair recognizes7 Reynolds-Brown for a motion on the8 amendment to Bill No. 100787.9 COUNCILWOMAN BROWN:10 Mr. Chairman, I make a motion that Bill11 No. 100787 be amended.12
Those in16 favor?17 Those opposed?18 The amendment passes.19 The Chair recognizes Blondell20 Reynolds-Brown for a motion on Bill No.21 100787, as amended.22 COUNCILWOMAN BROWN:23 Mr. Chairman, I move that Bill24 No. 100787, as amended, be reported out25 8 12/8/10 - COMMERCE/EC. DEV. - Bill 1007871 of committee with a favorable2 recommendation and further move that the3 rules of Council be suspended so as to4 permit first reading of this bill at our5 next session of Council.6 (Motion duly seconded.)7
All in8 favor?9 Those opposed?10 Bill No. 100787, as amended, is11 reported out of committee with a12 favorable recommendation and a request13 for a suspension of the rules to allow14 for first reading at our next Council15 session.16 This concludes our public17 meeting.18 The Rules Committee will start19 shortly.20 (Proceedings end at 10:15 a.m.)21 * * *22 23 24 25 9 C E R T I F I C A T E2 I HEREBY CERTIFY that the4 proceedings of the City of Philadelphia5 Council Committee Commerce and Economic6 Development are contained fully and accurately7 in the stenographic notes taken by me on8 Wednesday, December 8, 2010, and that this is9 a true and correct statement of same.10 11 12 13 __________________________________ 14 JOSEPHINE CARDILLO Registered Professional Reporter15 16 17 18 19 20 (The foregoing certification of21 this transcript does not apply to any22 reproduction of the same by any means, unless23 under the direct control and/or supervision of24 the certifying reporter.)25