Op-Ed: Cap Philly's 10-Year-Tax Abatement

Qualifying developments are eligible for a ten-year tax abatement in Philadelphia. These op-ed authors say the abatement doesn't work as anything other than a government payout.

1 minute read

July 27, 2018, 7:00 AM PDT

By James Brasuell @CasualBrasuell


Ira Goldstein, president of Policy Solutions, and Emily Dowdall, chief of development and policy implementation at the Reinvestment Fund, write a guest opinion piece for the Philadelphia Inquirer:

Philadelphia’s 10-year tax abatement is fundamentally a tax expenditure:  not the benign concept of “money we never had” but more like writing a check from the city to the developers or buyers of new or substantially rehabilitated properties. Extreme cases such as abating $2 million townhouses prompt us to ask: Is this a wise expenditure for the city or school district?

The opinion piece was prompted by news of a luxury townhome development, each of the ten units expected to sell for $2 million, that would receive the tax abatement. "Assume an average price for these townhouses of $2 million per unit and that 20 percent of the $2 million is the value of the land for which tax will be owed; $1.6 million per unit will be exempt from the Philadelphia real-estate tax," explain Goldstein and Dowdall. "The city’s annual tax expenditure per unit will be $23,315 per unit (with the proposed 2019 tax rate of 1.4572)."

The writers present their argument against the abatements by refuting a series of arguments in favor of the abatements—i.e., the market requires stimulation, the abatement lowers the cost of construction, and it's an investment that eventually yields more revenue.

Tuesday, July 24, 2018 in The Philadelphia Inquirer

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Grandparents sitting on bench with young girl and boy, girl holding ball and boy holding ukelele.

New Mexico Aging Department Commits to Helping Seniors Age ‘In Place’ and ‘Autonomously’ in New Draft Plan

As New Mexico’s population of seniors continues to grow, the state’s aging department is proposing expanded initiatives to help seniors maintain their autonomy while also supporting family caregivers.

15 minutes ago - Source NM

White Waymo self-driving car with camera and sensors mounted to front driver's side mirror.

USDOT Waters Down Self-Driving Car Regulations

The agency is reducing reporting requirements for autonomous vehicles and cars with self-driving features, prompting concern among safety advocates who say transparency is essential to the safe deployment of AV technology.

1 hour ago - Wired

Bronze or metal Native American mask sculpture in park in Minnehaha County.

‘Minnesota Nice’ Isn’t so Nice When You Can’t Find a Place to Live

The Economic Development and Housing Challenge Program can help address the scourge of homelessness among Indigenous people.

2 hours ago - Minnesota Reformer