COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT - - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, February 24, 2005 1:10 p.m. - - - - BILL 050064 - An Ordinance amending Chapter 19-1500 of The Philadelphia Code... RESOLUTION 040827 - Resolution authorizing the Committee on Commerce and Economic Development to hold hearings to review the findings and recommendations of The Philadelphia 21st Century Economic Development Summit... PRESENT: COUNCILMAN W. WILSON GOOD, JR., Chair COUNCILWOMAN MARIAN B. TASCO COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN JUAN RAMOS COUNCILMAN DARRELL CLARKE - - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 I N D E X BILL 050064 NANCY KAMMERDEINER, Revenue......... 3 02/24/05 - COMMERCE - BILL 050064
Good afternoon. This hearing is called to order. This is a public hearing of the Commerce and Economic Development Committee on Bill No. 050064 and Resolution No. 040827. My name is W. Wilson Goode, Jr., Chair of this Committee. I note that a quorum is present. To my far left is Councilwoman Marian Tasco, also Councilwoman Blondell Reynolds Brown; to my right is Councilman Juan Ramos and Councilman Darrell Clarke. The Resolution No. 040827 is not being considered today, but will be recessed until next Thursday, March 3rd at 2:00 p.m. when the Commerce Director will present the Economic Development Blueprint summary that was released yesterday and take questions. The title of Bill No. 050064, an ordinance amending Chapter 19-1500 of the Philadelphia Code, entitled "Wage and Net Profits Tax," by providing for the calculation of the credit against net profits tax based upon net income tax liability, where a credit is received against net income tax for 4 02/24/05 - COMMERCE - BILL 050064 contributions to community development corporations undertaking economic development activities within the City of Philadelphia; all under certain terms and conditions. Our only witness today is the Revenue Commissioner. If she will come forward, approach the witness table. Commissioner, please state your name for the record. COMMISSIONER KAMMERDEINER: Good afternoon, Councilman and Members of the Committee on Commerce and Economic Development. My name is Nancy Kammerdeiner, the Revenue Commissioner. I'm pleased to be with you today to present testimony regarding Bill No. 050064. This bill would add a new provision to Section 19-1500 of the Philadelphia Code entitled "Wage and Net Profits Tax." This new provision is intended to permit a business partner that's been approved to participate in a community development corporation contribution tax credit program to continue to receive the full 60 percent business privilege 5 02/24/05 - COMMERCE - BILL 050064 tax credit without regard to any reduction in the business privilege tax actually paid to the City. You may recall that on January 27th, I came before this Committee to testify about Bill 041072 that place similar language in the BPT section of the Philadelphia Code. At that time, I described the CDC Credit Program and outlined the issue that had been raised about whether an unincorporated entity could continue to receive credit against the net profits tax in the amount of 60 percent of the net income portion of its BPT liability if that BPT liability had been offset by a CDC credit and not actually paid in cash. Bill 17 041072 was designed to verify that these businesses should indeed receive that full credit. At the conclusion of my testimony that day, I requested that, and I quote, "If you approve this bill, you should also approve a parallel provision for the NPT in Section 23 19-1506, 'Credit Against Tax.' It is this section of the Philadelphia Code that includes the phrase "and paid" amending the BPT and not 6 02/24/05 - COMMERCE - BILL 050064 the NPT could lead to more ambiguities instead of the clarification that is sought." Since then, Bill 041072 was approved by this Committee and by City Council and it's now pending approval by Mayor Street. The Bill before you today will address the concern I raised about having a parallel provision in the NPT section of the Code to ensure that there's no confusion about the acceptance of the full credit in the NPT filing. This concludes my testimony. And I'll be happy to answer any questions that you might have.
Thank you for your testimony, Commissioner. Any questions from members of the Committee? (No response.)
Seeing none, we will move from our public hearings into a 7 02/24/05 - COMMERCE - BILL 050064 public meeting to consider Bill No. 050064. - - - - 8 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT - - - - Thursday, February 24, 2005 - - - - Public meeting conducted by the Committee on Commerce and Economic Development, held in Room 400, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILL 050064. PRESENT: COUNCILMAN W. WILSON GOOD, JR., Chair COUNCILWOMAN MARIAN B. TASCO COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN JUAN RAMOS COUNCILMAN DARRELL CLARKE 9 02/24/05 - COMMERCE - PUBLIC MEETING
The Chair recognizes Councilwoman Tasco for a motion on Bill 050064.
Mr. Chairman, I move that Bill 050064 be reported out of Committee with a favorable recommendation and that the Rules of Council be suspended so this bill could have its first reading at the next Session of Council. (Duly seconded.)
Bill No. 050064 is reported out of this Committee with a favorable recommendation with suspension of the Rules to allow first reading at our next Council Session. The hearing on Resolution No. 040827 is being recessed to Thursday, March 3rd, at 2:00 p.m. This concludes our public meeting. Thank you, Commissioner and members 10 02/24/05 - COMMERCE - PUBLIC MEETING of the Committee. (Council adjourned at 1:20 p.m.) - - - - 11 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 Thursday, February 24, 2005, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT _________________________ Lisa C. Bradley, RPR