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.
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.
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.
Philadelphia City Council advances major change to Tax Abatement program