10Year Tax Abatement Debate- Could Going Green be the Common Ground?
If you have been following Philadelphia’s budget crisis and/or the local real estate market, I am sure you are aware of the tax abatement argument. Those in favor argue that the abatement (which is applies to both majorly rehabbed properties and new construction and the purchasers of those properties are either taxed on the unimproved land or previous unimproved structure- paying those lower taxes for 10 years and can transfer this abatement once to another buyer) spurs development and improvement in this city where there would otherwise be none. Those against argue that it’s unfair to the rest of the homeowners in the city who have to pay their existing taxes and those benefiting all fall in the higher economic brackets of wealth.
Neither side has shown any evidence of a desire to meet somewhere in the middle, but recently a few bills have been proposed by Councilman Darrell Clarke to keep the abatement, but increase the purchasers taxes annually by 10%, and some variations on that idea. I have read the bills. I guess there is common ground in there, but still just more of the same. Councilman Curtis Jones Jr, though, has stolen my hear with his answer to the tax debate! In order to stay on track, in these tough economic times, to be the greenest city (Michael Nutter), Jones says, why not keep the full 10 year tax abatement but apply it only to structures that meet strict sustainable guidelines such as those set forth by the US Green Building Council for LEED Certification. This way, the onus is on the developers to step up their game and start building more eco-friendly buildings. In the end we all benefit. Attention to our city. Cheaper bills for the residents of these homes. More “green” homes on the market will most likely result in lower price tags. The list goes on!
Anyway, I would like to applaud this proposal and urge you all to write letters is support of such legislation to your local councilman. Frank Decicco can expect a letter from me!
Feel free to contact me if you have questions about green building, LEED certification, or anything else that exists in the real where real estate meets environmentalism!
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