PHILADELPHIA (WPVI) -- Philadelphia City Council advanced a major change to the city's Tax Abatement program.
Currently, new construction or improvement on existing property is exempt from most real estate taxes for 10 years.
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This new legislation would "phase down" that abatement for new residential construction over a decade, starting at 100%, then 90% the next year, 80% the following year, and so on.
Homeowners with a current abatement would not lose it.
The bill was passed by the committee of the whole but still needs final passage.
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Mayor Jim Kenney's office tells Action News it supports the abatement phase-down in concept but wants to delay when it would take effect.
A study conducted for City Council estimates the change would generate an additional $265 million in tax revenue for the city and the school district over a decade.