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Incentive Taxation Blog

Pennsylvania

Philadelphia faces a true Rubicon: the time for reassessment is now.

Philadelphia Pennsylvania like most cities, counties and states have had to deal with tight budgets for nearly half a decade.  For many reasons, not least of which are legacy expenses, revenue requirements will be increasing even as economies at the local and regional level still  react sluggishly as the great recession of 2008 begins its ebb tide.
 
 
A complicating factor in Philadelphia's fiscal struggle is the reality that it's tax system is nearly unique in United States as the

Eliminating the property tax? It must not happen, but we’ll see what happens.








Independence? Perhaps, but not likely

Recently, an active and conservative member of the Republican Party in central Pennsylvania sent UrbanTools a copy of something called the"Property Tax Independence Act"  (PTIA) with the interesting subtitle of "Liberty Equality and Prosperity".  The legislation – more accurately a proposal for a constitutional amendment in the state of Pennsylvania – Is given a seemingly official sobriquet of “House Bill 1776.” 

As yet, this is not an actual bill however.

Land Value Tax on the Radio Friday March 30



Dr. Herbert Barry of Pittsburgh, an UrbanTools Director has shown his adeptness in outreach to all forms of media, including print and now radio.  Please call in to the radio show on Friday March 30, to participate in this broadcast.




I will be  interviewed on a radio show, on Friday 30 March 2012, 10:00 to 10:30 AM (Eastern time). Listeners can access it at the phone number 1-424-220-1873. The title I chose for the program is"How to remedy our maladaptive sources of government revenue.

Dr. Herbert Barry's Proposal to Really Reassess Allegheny County




UrbanTools got underway as the Henry George Foundation of America in Pittsburgh in 1926.  Through the years, some of the most respected elected officials in Western Pennsylvania such as Pennsylvania Gov. David Lawrence, and mayors Scully and McNair served on our Board of Directors.

During those 85+ years, Pittsburgh and other Allegheny County cities and school districts have utilized land value taxation as a tool to discourage private land banking and to encourage all levels of investment and labor inside municipal boundaries.

Altoona, PA: City tax wholly on land values = normality











Three Cities, One Tax: Altoona, Sydney, Copenhagen

The beginning of 2011 saw the introduction of a city property tax that fell on land values only, unique in the history of US cities.  Altoona joined Sydney, Copenhagen and hundreds of other cities that have found land value taxation a simple, effective and reliable source of revenue without causing the distortionary effects of other taxes such as sales, wage or building taxes.

The budget for 2012 has just passed, with the Altoona Mirror reporting the rationale for the land value tax, as well as challenges that lie ahead for the city.  It looks as if land value tax may be here to stay, if adjustments are made each year for changing revenue needs and real estate values.  Altoona may now be ready to start replacing such taxes as the local income tax or business taxes with LVT, to better position itself for a devoutly desired economic recovery.

Good Assessments and Tax Policy can Help Cities in Struggle Against Speculative Block Busters















1506 Dagmar, Pittsburgh. Owner? RDF, LLC 44 Wall Street, NY NY

Anarticlein last month's Pittsburgh Post-Gazette on the woes of just one area in Pittsburgh affected by an absentee landlord led UrbanTools to write a letter to the editor after some basic research.  Turns out this house is one of hundreds or even thousands owned by an LLC named "Res Distressed Fund."  
Incorporated under as many as9 names in Delaware, Res has a litany of unpaid fines, taxes and generally help drag down ever more distressed neighborhoods.

Reading Pennsylvania: America's poorest city faces up to the future



Last week, thedistressed city of Reading, Pennsylvania elected city Council President Vaughn Spencer as mayor.  Mr. Spencer is a longtime supporter of innovative ways to finance city government and encourage development and capital investment as a means to reverse nearly 5 decades of decline.  

 For years, Mr. Spencer has asked that the land value tax be part of a comprehensive package of fiscal reforms that will keep revenue stable will not repelling the growth of private-sector commerce and the middle-class workers needed to stabilize neighborhoods and the tax base.