8/14/2019 Nutter Expected to Tax Sugary Drinks, Set Trash Fee http://slidepdf.com/reader/full/nutter-expected-to-tax-sugary-drinks-set-trash-fee 1/4 Inquirer Daily New s My Community phrequency Student Union 34 Mobile N ew sl ett er s R SS Feeds Subscriber Services HOME NEWS SPORTS BUSINESS WHAT'S HAPPENING RESTAURANTS & FOOD ENTERTAINMENT LIVING MARKETPLACE JOBS CARS HOMES South Jersey Complete Forecast Nation World Lottery Politics Traffic Religion Weird News Blogs Columnists Obituaries Site GO Web Search powered by YAHOO! SEARCH Thursday, Mar 4, 1:33 AM Nutter expected to tax sugary drinks, set trash fee By Jeff Shields and Patrick Kerkstra Inquirer Staff Writers Mayor Nutter, balking at cutting "core services" and running out of ways to raise money, is expected to balance next year's budget with a steep tax on sugary drinks and a $300 annual residential trash fee, sources familiar with the plan said yesterday. City Councilman W. Wilson Goode Jr. said he anticipated a 2-cent-per-ounce tax on sweet drinks as part of Nutter's 2010-2011 budget, to be presented tomorrow. That's $2.88 on a 12-pack of soda cans. In addition, the nearly $4 billion budget is expected to include a fee of about $300 annually for trash service. Lower-income residents could qualify for an annual fee of about $200. Though the administration could change its plan before tomorrow's budget address, the mayor is scheduled to brief City Council and the media on the budget today. Nutter would not comment on details of the budget yesterday, but did say: "The major tax sources are not really available." That's because the property tax still relies on notoriously inaccurate and inequitable assessments that are at least two years away from being fixed; the city raised the sales tax 1 percentage point last year; and Nutter and others remain opposed to increases in income or business taxes, whose receipts have plummeted in the slow economy. Combined, the trash fee and soda tax likely would raise enough revenue to wipe out the city's 2010-2011 deficit, which has been projected at $125 billion to $150 million. The garbage levy would generate a little more than $100 million annually, while the excise tax on sugary drinks would raise $30 million to $77 million a year, according to sources, who said they had seen widely varying estimates. It was not clear how quickly the soda tax could be enacted, meaning the city likely would not collect a full year's worth of revenue on the new levy in fiscal year 2010-2011. Neither the trash tax nor soda fee looks to be temporary. Both new revenue sources appear in all five years of the administration's tentative five-year spending plan, sources said. The city will directly bill property owners for the trash fee, and only households that are under the federal poverty line will be eligible for the reduced rate of about $200 a year, said a source familiar with Nutter's proposed budget. In return for that new fee, Nutter is proposing that the city slightly beef up its sanitation services by resuming leaf collection – a victim of earlier budget cuts – and expanding the Community Life Improvement Program (CLIP), whose staff cleans up empty lots. CLIP was most recently in the news when nine of its workers were charged with theft. They face trial in the fall. Both CLIP and leaf cleanup are popular programs in City Council. The soda tax will technically be part of the business privilege tax, a 2-cent-per-ounce levy on the distribution of sugary drinks, sources said. They likened it to an excise tax or the 10 percent liquor-by-the-drink tax. City Controller Alan Butkovitz, who earlier had worried that a soda tax might require preapproval from the state legislature, said the administration "appears to have resolved that problem" by including the levy in the business privilege tax. But the mechanism raises fresh questions about whether the new levy would pass state constitutional muster, Butkovitz said. "Can you set up a tax that applies only to merchants of sugary drinks? Or must it be all carbonated drinks? Or all drinks?" asked Butkovitz, citing the uniformity clause of the state Constitution. On the spending side, Nutter reportedly won't slash libraries, recreation, or public safety; last year, he proposed library, pool, and fire company closures. "We are at a stage where preserving core services is critical," Nutter said. READER FEEDBACK Post a commentPosted on Wed, Mar. 3, 2010 Advertise Here MOST POPULAR PHILL Y.COM PHOTOS Farewell, Brian Westbrook Bucks County estates Tiger's 'transgression Phils spring training WIP's Wing Bowl 18 Philly Naked Bike Ride PHILLY.COM NEWS BLOGS Ronald Reagan's funny money Washington, the dirty word Blue Route ramp meters delayed a week due to snow CHRIS BRENNAN AND CATHERINE LUCEY How Will Trash Fee Affect Your Bottom Line? AttytoodWill Bunch American DebateDick Polman Inquirer From the SourceFrom the Source Philly CloutChris Brennan and Catherine Lucey PHILLY.COM NEWS COLUMNISTS Police veteran: TSA needs training By Daniel Rubin, Inquirer Columnist Blinq: Mid-day mood elevator The Joey Vento you don't know By Monica Yant Kinney, Inquirer Columnist Plan to tax trash pickup is recycled garbage By Ronnie Polaneczky, Daily News Columnist Ronnie P olaneczky: Ironic Photo of the Day Illegal immigrant's still a lawbreaker SHARED share email print reprint font size VIEWED
Transcript
8/14/2019 Nutter Expected to Tax Sugary Drinks, Set Trash Fee
Inquirer Daily New s My Community phrequency Student Union 34 Mobile N ew sl ett er s R SS Feeds Subscriber Services
HOME NEWS SPORTS BUSINESS WHAT'S HAPPENING RESTAURANTS & FOOD ENTERTAINMENT LIVING MARKETPLACE JOBS CARS HOMES
South Jersey Complete Forecast Nation World Lottery Politics Traffic Religion Weird New s Blogs Columnists Obituaries
Site GO
Web Search powered by YAHOO! SEARCH
Thursday, Mar 4, 1:33 AM
Nutter expected to taxsugary drinks, set trash fee
By Jeff Shields and Patrick KerkstraInquirer Staff Writers
Mayor Nutter, balking at cutting "core services" and running out of ways to raise money, isexpected to balance next year's budget with a steep tax on sugary drinks and a $300 annual
residential trash fee, sources familiar with the plan said yesterday.
City Councilman W. Wilson Goode Jr. said he anticipated a 2-cent-per-ounce tax on sweet drinksas part of Nutter's 2010-2011 budget, to be presented tomorrow. That's $2.88 on a 12-pack of soda cans.
In addition, the nearly $4 billion budget is expected to include a fee of about $300 annually fortrash service. Lower-income residents could qualify for an annual fee of about $200.
Though the administration could change its plan before tomorrow's budget address, the mayor isscheduled to brief City Council and the media on the budget today.
Nutter would not comment on details of the budget yesterday, but did say: "The major taxsources are not really available."
That's because the property tax still relies on notoriously inaccurate and inequitable assessmentsthat are at least two years away from being fixed; the city raised the sales tax 1 percentage
point last year; and Nutter and others remain opposed to increases in income or business taxes,whose receipts have plummeted in the slow economy.
Combined, the trash fee and soda tax likely would raise enough revenue to wipe out the city's2010-2011 deficit, which has been projected at $125 billion to $150 million.
The garbage levy would generate a little more than $100 million annually, while the excise tax onsugary drinks would raise $30 million to $77 million a year, according to sources, who said theyhad seen widely varying estimates.
It was not clear how quickly the soda tax could be enacted, meaning the city likely would notcollect a full year's worth of revenue on the new levy in fiscal year 2010-2011.
Neither the trash tax nor soda fee looks to be temporary. Both new revenue sources appear in allfive years of the administration's tentative five-year spending plan, sources said.
The city will directly bill property owners for the trash fee, and only households that are under thefederal poverty line will be eligible for the reduced rate of about $200 a year, said a sourcefamiliar with Nutter's proposed budget.
In return for that new fee, Nutter is proposing that the city slightly beef up its sanitation servicesby resuming leaf collection – a victim of earlier budget cuts – and expanding the Community LifeImprovement Program (CLIP), whose staff cleans up empty lots. CLIP was most recently in thenews when nine of its workers were charged with theft. They face trial in the fall.
Both CLIP and leaf cleanup are popular programs in City Council.
The soda tax will technically be part of the business privilege tax, a 2-cent-per-ounce levy on thedistribution of sugary drinks, sources said. They likened it to an excise tax or the 10 percentliquor-by-the-drink tax.
City Controller Alan Butkovitz, who earlier had worried that a soda tax might require preapprovalfrom the state legislature, said the administration "appears to have resolved that problem" by
including the levy in the business privilege tax. But the mechanism raises fresh questions aboutwhether the new levy would pass state constitutional muster, Butkovitz said.
"Can you set up a tax that applies only to merchants of sugary drinks? Or must it be allcarbonated drinks? Or all drinks?" asked Butkovitz, citing the uniformity clause of the stateConstitution.
On the spending side, Nutter reportedly won't slash libraries, recreation, or public safety; lastyear, he proposed library, pool, and fire company closures.
"We are at a stage where preserving core services is critical," Nutter said.
READER FEEDBACK
Post a comment
Posted on Wed, Mar. 3, 2010
Advertise Here
MOST POPULAR PHILL Y.COM PHOTOS
Farewel l ,BrianWestbrook
BucksCountyestates
Tiger's'transgression
Phils springtraining
WIP's WingBowl 18
Phi l ly NakedBike Ride
PHILLY.COM NEWS BLOGS
Ro n a ld Re a ga n 's f un n y m o n e y
Wa s hi n gt o n , t he d i r t y w o r d
B lue Ro ut e r a m p m e t e r s d e la ye d a we e k
d u e t o s n o w
CHRIS BRENNAN AND CATHERINE LUCEY
H o w W i l l T r a s h F e e A f fe c t Yo ur B o t t o m
L i n e ?
Attytood Will Bunch
American Debate Dick Polman
Inquirer From the Source From the Source
Philly Clout Chris Brennan and Catherine Lucey
PHILLY.COM NEWS COLUMNISTS
Po l i ce v e t e r a n : T SA n e e d s t r a i n i n g By Daniel Rubin, Inquirer Columnist
Blinq: Mid-day mood elevator
T h e J o e y V e n t o y o u d o n ' t k n o w
By Monica Yant Kinney, Inquirer Columnist
Pla n t o t a x t r a s h p i ck up i s r e cyc le d
ga r ba ge
By Ronnie Polaneczky, Daily News Columnist
Ronnie P olaneczky: Ironic Photo of the Day
I l le ga l i m m i gr a n t ' s s t i ll a la wbr e a k e r
When I was a kid, a bottle of Pepsi or Coke made a summer afternoon bearable, and was affordable.Pepsi and Coke bottler's don't deserve this kick in the arse. I'll pay the trash tax, when every occupiedhouse in every neighborhood does. Can you answer me Mikey, or are their going to be minorityexceptions. In any case, your done next time.
And you Mr. Rich Boy Green, what neighborhoods will you go in, and ask that question on snow vsmore tax. Where were you all these years while we in Philly suffer from the economy. You just havetoo much to say, and your father wasn't any better. He was known for turning his back on a lot of people, including his own party. Go home to Chestnut Hill, and start your own City with Frank RizzoJunior.
2,000 state workers furloughes, post office stops deliveries on Saturday's, you guys finally managed toturn back time. Two cents an ounce on a soda is assinine. The poor won't be able to afford it, but whocares about those thirsty suckers.
Well if they stop letting the cops cause them thousands in law suit because of their illegal behavior.And stop allowing them so much over time, the city would have it's budget right. Why the hell do I payproperty taxes. I don't agree with tax trash. Hell they break up you trash cans throughing themaround. So now I have to keep buying new trash cans and pay for them to break the cans. Is Nutterserious? I am a democrat for life but Nutter don't have to worry about getting my vote or a lot others.
Maybe Mayor Nutter should just set a tax on people who leave offensive and hate ridden statements onthis blog. That way we not only balance the budget, but are left with a surplus. Yes, I am talking toYOU! Don't let it bother you. Just have a Coke and a smile.
Mayor Nutter, I suggest a flat tax on haters in the City of Brotherly Love. Yes, the Phileo Tax, what doyou think?
"I'm willing to support the soda tax, even if it is 2 cents," said Goode, a proponent of loweringbusiness taxes. It would boost the cost of the 23-ounce Arnold Palmer Half & Half Lemonade andIced Tea drink on his desk yesterday from 99 cents to $1.45, presuming merchants passed on thefull cost of the tax to consumers.
"I believe we have to stay competitive in terms of the economic environment, and there are taxeswe simply cannot target," Goode said.
Goode said he was opposed to the garbage fee because it was more regressive and hurtful thana property tax, especially to low-income taxpayers. It also is not deductible.
Councilman Bill Green would not confirm the details of Nutter's plan, but suggested that the taxon sweet drinks might fly with the public.
"If you were going to go out on the street and ask, 'Would you pay more per ounce of soda soyou can have your street plowed?', I think people would say, 'Yes,' " Green said.
Though otherwise mum about budget details yesterday, Nutter did indicate that he wouldincrease capital investment in the city's technology, and the $2.5 billion capital budget is expectedto stress improvements in information technology.
"The dire condition of many of our IT systems is, frankly, unbelievable," Nutter said.
Contact staff writer Jeff Shields at 215-854-4565 or [email protected].
Brian Tierney onthe anniversaryof bankruptcyfil ing
What if I get rid of my own trash, and do not rely on the city for such a service? Again, taxingsomeone to pay for others!
Comment removed.
This is insane. My trash has been picked up 3 times out of the first 8 weeks of this year and not evenall of it. My street wasn't plowed for 9 days after the first snowfall. I pay city wage tax, property tax,and an inflated sales tax every time I buy something in town. When is enough enough? Go after thepeople who OWE and stop going after the people who pay!!
The mayor is a a frigging idiot. A tax of trash and soda. I cannot wait to vote him out of office. Whydon't they collect the millions of dollars owed to the city by his own employees and scofflaws, insteadof dumping on the tax paying citizens once again. He needs to go.
What about those on welfare? Who pays for their "trash tax?" Is it taken out of their welfare check? Orwill their contributions be subsidized by some sort of "trash tax welfare stimulus" package? Sure, letthe people who cause most of the trash (and therefore the need to clean it up) contribute nothing. Andleave the bill with the hardworking taxpayer. Figures. Believe me, it will happen. Thank you,Democrats, for destroying this city.
Do you think Mikey will budget for snow for the next five years? Will Alan investigate why he didn'tbudget this year?
As usual, those who contribute nothing ( except the overwhelming trash) get it all handed to them.That's the main problem in Philly and why the tax base no longer exists. Philly committed suicide whenit took down the ghetto housing and dumped the freeloaders into stable neighborhoods. Don't infringe
on what few rights those who actually pay taxes have. It's bad enough that you work a 40 or morehour week and come home with half a paycheck while those who never even look for work get handedeverything.
Any councilmember who votes for this will be targeted by us especially the two-timers on the drop andrunning again GO AHEAD MAKE OUR DAY back the fraudelent reform mayor and i hope this paperprints this since they are so cozy with this administration
Maybe the mayor could help balance the budget by not patronizing businesses that have not paid theirtaxes and gas bill. It is one thing to publish a list and another to then dine in their new restaurant.
74 comments
Posted 07:15 AM, 03/03/2010andrew69
Posted 07:19 AM, 03/03/2010Sillimish
Posted 07:21 AM, 03/03/2010fozziebear
Posted 07:33 AM, 03/03/2010Refounder
Posted 07:36 AM, 03/03/2010 jzgirl
Posted 07:48 AM, 03/03/2010crystalrainbowspirit1
Posted 07:54 AM, 03/03/2010larlib
Posted 07:55 AM, 03/03/2010phlfoodie
| View All Comments | View All By Latest
CARS REAL ESTATE RENTALS
t o d a y ' s PHILLY.COM POLL
Do you think we're going tohave more major snows thiswinter?
Yes, we're in this pattern for a
couple more weeks.
No, we've seen the end of the big
storms.
It doesn't matter to me - I've
gotten used to it by now.
nmlk j
nmlk j
nmlk j
View resultsV o t e
TODAY'S PHILLY.COM VIDEOS
Raw video: Ramsey onWednesday's flash mob
Inquirer interview with Steve Wynngets confrontational
News | Sports | Busines s | What's Happening | Restaurants & Food | Entertainment | Living | Marketplace | JobsPhilly.com:
Advertise on Phi l ly.com | View prin t ads and special sections | Mobile Edition | The e-Inquirer | Join Our Team | News InEducation
Site Services:
New s | Fr ont Page | Sports | Busines s | Obituaries | Arts & Entertainment | Food, Home & Life | Health & Science | Education| Opinion | Blogs & Columns | Subscriber Services
The Inqui rer:
City & Local | Sport s | Yo! Features | Columnists | Daily News Opinion | Photos | Multimedia | National News | Obituaries |Subscriber Services
Dai ly New s:
Jobs | Cars | Real Estate | Rentals | Marketplace | Celebrations Classifieds:
Phrequency | The Trend | Active Adult Housing | Homes and Living | Communities Magazine | Employment Weekly | Taste of Philadelphia | Parade Magazine
