Philadelphia mayor's budget plan proposes new taxes on hotels, deliveries and ride shares

PHILADELPHIA (WPVI) -- Mayor Cherelle Parker administration's $6.79 billion budget proposal for fiscal year 2027 marks the start of a months-long process that runs through May 6.

Accompanied by a five-year plan, officials describe this as the largest capital program in city history.

"This recommended program is the city's largest capital program ever," said Octavia Howell, executive director of City Planning.

The proposal does not include increases to the city wage tax or property taxes.

It does call for several targeted tax hikes: a 2% increase to hotel taxes to fund housing for people experiencing homelessness; a .25 cent non-essential retail delivery tax to support a new pothole repair squad; and an additional $1 tax on rideshare trips.

That rideshare fee is estimated to generate $48 million annually for the School District of Philadelphia.

Councilmember Cindy Bass questioned how the added rideshare costs would affect residents.

"How do we make sure that this is not passed along to the consumer?" she asked.

RELATED: Rideshare tax proposed to close budget deficit for Philadelphia schools

As part of the mayor's HOME initiative, which aims to create 30,000 new affordable housing units, the city plans to borrow $800 million over the next five years.

Councilmember Jamie Gautier says the city must also prioritize preserving 925 affordable units that a private owner is preparing to sell.

"We went forward on HOME as partners, and now it's time to really make the affordable housing investments that matter," said Gautier.

If approved, the budget would direct $8 million to the school district in 2027 to expand extended-day and extended-year programming to 47 schools and add 100 free PreK seats.

Tiffany Thurman, Mayor Parker's chief of staff, said the administration's focus is on broad-based economic mobility.

"Moving up the socioeconomic ladder is too hard for too many Philadelphians, and we all know it," she said.

Public comment sessions begin Wednesday at City Hall, followed by four neighborhood budget town halls.

For more information about the town hall meetings, visit this page at PHLCouncil.com.