Philadelphia Lawmakers Push For State Tax Reform That Would Allow Higher Tax Rates on Wealthier Households, Commercial Buildings

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Street shot of buildings in Philadelphia
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Philadelphia lawmakers are pushing for a state tax reform that would allow the city to levy higher tax rates on wealthier households and commercial buildings.

Philadelphia lawmakers are pushing for a state tax reform that would allow the city to levy higher tax rates on wealthier households and commercial buildings, writes Kristen Mosbrucker-Garza for WHYY.

The uniformity clause, which is an obscure sentence in the Pennsylvania Constitution written more than 150 years ago, mandates that all state and local taxes must have the same percentage for all properties and taxpayers.

As a result, the property tax rates for a residential home and a commercial building in Philadelphia are the same — 1.3998 percent. This is split between the city and the School District of Philadelphia.

South Philadelphia state Rep. Elizabeth Fiedler introduced a bill earlier this year that would repeal the state uniformity clause.

“Our tax system is unfair,” she said. “One of the biggest challenges that we face in making our tax system more fair is what’s called the uniformity clause. It really shields the super rich from paying their fair share of taxes.”

The chances of the law passing are currently slim, as it would require a major political lift and bipartisan support in both the state House and Senate. Also, a change to the state’s constitution would have to be approved by voters through a referendum.

Read more about the efforts to reform a longstanding state tax rule in WHYY.

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