by Pete Mazzaccaro
City Council passed a budget this afternoon that does not include Mayor Michael Nutter’s proposal to raise an additional $94 million in a broad change in city property tax assessment called Actual Value Initiative. That initiative would have changed the way property taxes are assessed by moving from the current system, which is based on a formula, to a system based on real market values.
According to the Philadelphia Inquirer, Council did, however, increase property taxes 3.6 percent to raise $20 million and increased the Use and Occupancy taxes for businesses to raise another $20 million. The total additional revenue amounts to $40 million, much less than the $94 million Nutter was looking for.
The bill must be signed by Nutter to take effect. There was no word yet whether he planned to veto or pass the bill.