Nutter says city can’t afford resulting revenue loss
City Council let stand a mayoral veto of a proposed cut in the city’s parking tax, but the bill’s sponsor vowed to re-visit the issue next year.
Councilman Jim Kenney, who sponsored the bill that would have cut the tax from 20 percent to 17 percent, said he didn’t have enough votes to pass the measure over Mayor Michael Nutter’s veto, a move that would take 12 votes.
“Apparently the mayor has learned to lobby in the last couple of days,” Kenney said. “So, I will not be asking my colleagues to put up a vote, but I will tell now that the first day back in session, in January, this piece of legislation will be re-introduced.”
Council passed the bill three weeks ago with a 12-5 vote, seeming to guarantee that it could withstand a veto.
But, Kenney told reporters after the meeting that four members of Council — he declined to say who — had changed their minds, temporarily sinking his proposal.
Council members Bill Green, Maria Quiñones-Sanchez, Brian O’Neill, Blondell Reynolds-Brown and Darrell Clarke were the original five members to oppose the bill. O’Neill and Brown reiterated their opposition again on Thursday.
“This industry does not bring tears to my eyes at all,” O’Neill said, noting that the tax cut was only for the parking industry and not across the board. “They absolutely gouge people who come into the city.”
The proposal came at time when city revenue is again falling, added Brown, and parking officials said in public testimony that they would not pass the savings on to their customers.
“The parking industry has not made any real commitment to lower parking rates for customers,” she said, adding that with revenue projections lower than expected, the city could not afford to lose any more money. “Given … the city’s revenue loss we simply cannot provide this reduction for the parking industry.”
Nutter, in explaining his decision, said the cut, which would not have gone into affect until 2014, would have cost the city $24 million over four years.
“This is the wrong time to adopt new tax breaks, particularly for a single industry,” he said, in a letter to Council, noting that sales and wage tax revenues had fallen $10 million below projections so far this year. If that trend continued, he said, the city could lose $60 million over the next two years.
In other news, Council is expected to vote on whether or not to join a suit that would ban natural gas drilling with hydraulic fracturing until a full environmental impact study is completed.
And, the council designated Oct. 8 as Indigenous Peoples Day and approved a resolution that set the first Saturday of October as Indigenous Peoples Day.