Before you 52 06/10/04 - WHOLE - PUBLIC MEETING speak, I think we should have a second on the amendment. (Duly seconded.)
I just wanted to say that the two amendments that will be offered, one on the business privilege tax and the another on the wage tax reflect a proposal that was put forth a couple of days ago when members were briefed. It is a proposal that would be reflected in the Operating Budget amendment that was introduced and defeated. It is a proposal that personally I thought made some sense in that it gave additional tax reduction beyond what we're doing. It is a balanced budget in all five years. It also required a substantial amount of restorations above and beyond what the Administration was willing to do. So I just wanted to clarify what these amendments and what the Operating Budget amendment represented that was introduced. And these two amendments will, in fact, represent a plan that will add an 53 06/10/04 - WHOLE - PUBLIC MEETING additional $105 million above and beyond what is currently in place, understanding that the single factor apportionment -- because I know someone is going to bring it up -- is a part of that 105 plan, but there is an additional $50 million on a table as a result of that. And as I earlier mentioned, it does, in fact, have a balanced budget throughout the Five-Year Plan.
Thank you. A motion has been made. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. Either Councilman Clarke or Councilman Mariano, I just want to make sure I'm reading this proposed amendment correctly. Am I reading this right that the rates in this particular bill are only established through -- or the cuts are only established through January 1, 2008, and then there are no 23 reductions after that?
You mean for 54 06/10/04 - WHOLE - PUBLIC MEETING '09?
But the only set rate is -- what is that 4.25? And it goes to that rate January 1, 2008, and stays at that rate for every year thereafter?
In this particular plan we did not -- correct, correct.
But we will adjust. The anticipation is that there will be an adjusted rate as we moved in the out years, but there was a substantial amount of uncertainty both with respect to where we would be with the budget and with respect to where we would be with other tax bills, and particularly the tax bill that our good friend Councilman Cohen was successful in so that had to be factored in the out years.
I understand. So this gives you set rates for '05, '06, '07 and '08, and then there are no proposed cuts at least in the bill after FY '08. 55 06/10/04 - WHOLE - PUBLIC MEETING
And, Councilman, if I may. By '09 the wage taxes will be cut by 5.9 percent. If that helps.
What is the recommendation of Councilman Nutter? I wasn't sure.
I'm sorry. This a question for me? Councilman, I appreciate the question. I understand what Councilman Clarke is seeking to accomplish. Given our last action, I will not be voting in favor of this particular amendment.
Councilwoman Reynolds Brown. 57 06/10/04 - WHOLE - PUBLIC MEETING
Thank you. The Chair recognizes Councilman Nutter.
Madam Chair, I move that Bill 040607, as amended, be reported out of this Committee with a favorable recommendation, a further recommendation that the Rules of Council be suspend so as to permit first reading at our next Session. (Duly seconded.)
It has been moved and seconded that Bill No. 040607 be reported out of Committee with a favorable 58 06/10/04 - WHOLE - PUBLIC MEETING recommendation, as amended, further that a recommendation that the Rules of Council be suspended so as to permit first reading at our next Council session. All in favor will say aye. (Aye.)
The ayes have it. The motion carries. The Chair now recognizes Councilman Nutter concerning Bill No. 040608.
Thank you, Madam Chair. If I could have the Sergeant-at-Arms distribute another set of proposed amendments for Bill 040608. (Pause.)
Thank you, Madam Chair. Madam Chair, again, I would like to point out I know that there are other 59 06/10/04 - WHOLE - PUBLIC MEETING amendments on Members' desks. This amendment can be distinguished in two ways. First, this amendment does not have the seal of the City or the words "City of Philadelphia" across the top. Second, the rates for the receipts rate in mils as it says on the front, the bill 8 provides for a zero rate for the receipts portion of the BPT in 2017 as well as a zero rate for the net income tax of the business tax at zero as well. This is, again, at a minimum in concert with and in the spirit of the proposal from the Tax Reform Commission to fully eliminate the business privilege tax in what now will be approximately 12 years. Having said that, unless there are any questions, Madam President, I would move the adoption of this amendment to Bill 040608.
It has been moved and seconded that the amendment be adopted. Roll call.
I'd like to propose an amendment to Bill No. 040608, and it would delete the previous amendment and this would be an amendment. Do I hear a second. (Duly seconded.)
It has been moved and seconded that the amendment be adopted. I assume we want another roll call. Councilman Nutter.
Thank you, Madam Chair. Madam Chair, I, again, more out of consistency than anything else, I would at least like the record to reflect that this bill appears to take the receipts rate to 1.35 in 2008 and there are no further cuts in the receipts rate or in the net income rate after 2008. I would assume that's in concert with 63 06/10/04 - WHOLE - PUBLIC MEETING the previous statement on the previous bill by Councilman Clarke, but I would at least like the record to reflect that information. There is a cut also in the net income rate but that stops at 2008 as well. Thank you.
No, it's really more of a statement similar to what -- or it can be a question. Is that the case?
The answer is no 19 that they're not in the out years beyond five years.
I'm sorry. Councilmen, you are having a conversation between the two of you and we can't hear on this side of the room.
I understand. 64 06/10/04 - WHOLE - PUBLIC MEETING Am I reading the bill correctly that the rate reductions, according to the bill, which stop at Fiscal Year '08 for both the receipts and net.
Councilman Kelly. 65 06/10/04 - WHOLE - PUBLIC MEETING
Councilwoman Reynolds Brown. 66 06/10/04 - WHOLE - PUBLIC MEETING
The Chair again recognizes Councilman Nutter regarding Bill No. 040608.
Madam Chair, I move that Bill NO. 040608, as amended, be reported out of this Committee with a favorable recommendation, a further recommendation that the Rules of Council be suspended so as to permit first reading at our next Session. (Duly seconded.)
It has been moved and seconded that Bill No. 040608 67 06/10/04 - WHOLE - PUBLIC MEETING be reported out of the Committee with a favorable recommendation, as amended; further that the Rules of Council be suspended so as to permit first reading at our next Session of Council. Councilwoman Blackwell.
Councilman Kenney. 68 06/10/04 - WHOLE - PUBLIC MEETING
Councilman Rizzo. 69 06/10/04 - WHOLE - PUBLIC MEETING
Thank you. The Chair recognizes Councilman Goode regarding Bill No. 040640.
Thank you, Madam President. The Administration presented technical amendments to Bill No. 040640. I move for the adoption of the amendment. (Duly seconded.)
It has been moved and seconded that the amendments be adopted. All in favor of the adoption of the amendment as proposed by Councilman Goode 70 06/10/04 - WHOLE - PUBLIC MEETING please say aye. (Aye.)
The ayes have it, and the amendment is adopted. Again, the Chair recognizes Councilman Goode.
Madam Chair, I move that Bill No. 040640, as amended, be reported out of Committee with favorable recommendation. (Duly seconded.)
It has been moved and seconded that Bill No. 040640 be reported out of Committee with a favorable recommendation, as amended, with no 20 suspension. All in favor will say aye. (Aye.)
Those opposed? (No response.) 71 06/10/04 - WHOLE - PUBLIC MEETING
The ayes have it, and Bill No. 040640 will be reported out of Committee with a favorable recommendation, as amended. Do we have any other business? The Chair recognizes Councilman Nutter.
Madam Chair, there's obviously been a significant amount of discussion during the course of the budget hearings and specifically with regard to the tax reform bills related to additional revenue sources. It would seem to me that in light of the movement of additional tax reform bills, and we tried -- there was action taken at the last Committee of the Whole meeting to report out a variety of bills. One bill that did not get reported out of Committee was the parking tax bill, 040256. And in all of the various schedules that we've seen, the parking tax has been included as a part of plans to help pay for the tax reductions and that was also on one of the recommendations of the Tax Reform Commission. It would seem that we would want 72 06/10/04 - WHOLE - PUBLIC MEETING to report that bill out in an effort to, again, assist in the some of the financing of the tax reform. So I would at least like to ask that the bill be brought up, but I also in the context of if we're proposing to have a parking tax solely for the purpose of paying for tax reform that there should be some connection made between the parking tax and the tax cut bills such that if somehow the tax cut bills don't survive, I don't know about any other member, I don't think we will be talking about increasing the parking tax but for the fact one of the recommendations of the Tax Reform Commission was to finance tax cuts by the passage of the parking tax.
Are you suggesting we insert an amendment or some language in that bill to indicate that?
I do have an amendment, Madam Chair, because I think the linkage between all these bills should be made very clear in terms of this record and the legislative intent of the body. Not speaking for the body, certainly I would not be voting 73 06/10/04 - WHOLE - PUBLIC MEETING the parking tax bill but for the passage and ultimate implementation of the two tax bills, now Bill 040607 and 040608. So I would like to ask if we could have the Sergeant-at-Arms circulate a proposed amendment that would seek to accomplish that purpose with regard to a linkage between the parking tax and the ultimate implementation of the two tax bills that we reported out of Committee today.
Does everyone have a copy of Councilman Nutter's amendment? Councilman Nutter.
Thank you, Madam Chair. Are there any questions regarding the amendment? (No response.)
Thank you, Madam Chair. Madam Chair, I move the adoption of the proposed amendment to Bill 040256 and draw particular attention to Section 2 which makes the linkage, I believe, clear between passage 74 06/10/04 - WHOLE - PUBLIC MEETING of the two tax bills 040607 and 040608 and the parking tax bill such that if either or both of the tax bills do not become law then the parking tax bill would not go into effect. (Duly seconded.)