STACK ANNOUNCES TAX RELIEF FOR PHILADELPHIA

PHILADELPHIA, May 2 - Gaming-generated property and wage tax relief estimates were disclosed according to Sen. Mike Stack (D-Philadelphia).

“Philadelphia has one of the highest wage tax rates in the nation,” Stack said. “This tax discourages businesses from locating and expanding in our city.  People will finally receive relief from the burden of property and wage taxes and I believe this will help our city.”

Under the 2006 law, the City of Philadelphia must use state revenues collected from gaming to reduce its wage tax on residents and nonresidents. Stack said Philadelphia is slated to receive a total of $86.5 million for wage tax relief.  Philadelphia residents will receive $55.9 million for wage tax relief. Currently, the Philadelphia wage tax is 4.219 percent.  Combined with the city’s own tax reduction and gaming revenues, the wage tax will be reduced 5.7 percent to 3.93 percent effective in 2009. Non-resident wage taxes will be reduced by $30.6 million dollars, lowering the wage tax rate from 3.72 percent to 3.5 percent.  Stack said this year’s distribution marks the first-ever provided under this law.

He added that Philadelphia senior citizen homeowners would receive additional funding through the Property Tax Rent Rebate Program (PTRR). To ensure that property owning seniors in Philadelphia receive significant property tax relief, the law was written to give each senior citizen household with an income of $30,000 or less, a property tax rebate increase by an additional 50 percent.  Only half of a household’s social security income is counted towards the income threshold.  Rebates will range from $375-$975.

 “Seniors face a very difficult financial situation because most live on fixed incomes and are faced with rising property taxes,” Stack said.  “The Taxpayer Relief Act will help seniors make ends meet.”