Nutter proposes tax on cigarettes, liquor-by-the-drink to help schools

Mayor Michael Nutter said 91 percent of property taxes are paid in the dame year they are due.
Mayor Michael Nutter said 91 percent of property taxes are paid in the same year they are due.

Mayor Michael Nutter on Wednesday proposed tax increases on cigarettes and on liquor by the drink to raise money for the city’s school district.

Nutter’s proposal includes a $2 tax hike on cigarettes, and an increase on the liquor-by-the-drink tax from 10 percent to 15 percent. Along with plans for improved tax collections, the city expects to raise an estimated $95 million for the school district, which faces a $300 million deficit.

The liquor tax, which is expected to raise an estimated $22 million, would go into effect July 1.

The cigarette tax, which would begin Jan. 1, 2014, is expected to generate $45 million. Cigarettes are not included in the city’s current tobacco tax.

Tougher collections on delinquent real estate, liquor by the drink, lease and occupancy, and school income taxes would result in an additional $28 million, Nutter said.

“I propose these two use taxes, because we have raised general, broad-based taxes twice in the last two years on our residents and business owners and we cannot, and should not, keep asking them for more,” Nutter said.

Superintendent William Hite originally asked for $60 million from the city, $120 from the state and $133 million in union and non-union contract concessions to close the deficit. Hite said this announcement would not change the district’s request from the state.

Hite said he was “thrilled” the city “identified a path” to fixing the budget hole.

Nutter said the city would need a “shared sacrifice” to help fund the schools. “We have to look at this in a comprehensive fashion. Everyone has to be all-in on this one.”

Nutter said there are approximately 280,000 smokers in the city, and 2,100 smoking-related deaths each year, making it the leading cause of death in the city.

The new taxes will require approval from the State Assembly and Philadelphia City Council.



News
Entertainment
Sports
Lifestyle
Local

Man dies trapped in elevator shaft at Bronx…

A man in his twenties died after being trapped in an elevator shaft of a Bronx building early Monday, police said.

International

Sierra Leone Ebola patient, recovered from family, dies…

An Ebola patient whose family sparked a nationwide hunt when they forcefully removed her from a treatment center and took her to a traditional healer has died.

Local

VIDEO: Cop reassigned as NYPD investigates alleged head…

An officer alleged to have stomped on a Brooklyn man's head last week had his gun taken away and placed on modified duty.

National

New York Times calls for legalization of pot

The New York Times editorial board on Saturday endorsed a repeal of the federal ban on marijuana, becoming the largest paper in the nation to back the idea.

Music

Newport Folk Festival: Photo gallery of 35 moments…

As has been the tradition since Bob Dylan plugged in a bajillion years ago, the Newport Folk Festival embraces more musical genres than its name implies.

Music

MKTO: Behind the bromance

MKTO's Malcolm Kelley and Tony Oller talk about the American Dream tour, Demi Lovato and getting turned down by girls.

Arts

James Earl Jones and Rose Byrne head to…

Two-time Tony winner James Earl Jones returns to the New York stage next month as an eccentric grandfather in a revival of the 1930s comedy…

Movies

Box office: Scarlett Johansson wins battle of brains…

Scarlett Johansson's "Lucy" handily dispatched with Dwayne Johnson's "Hercules" over the weekend.

MLB

Yankees looking to trade for Josh Willingham: Report

CBS Sports’ Jon Heyman reported Sunday the Yankees are interested in Twins outfielder Josh Willingham.

MLB

Joe Torre: I'm in Hall of Fame because…

Joe Torre spent 18 years putting together a near Hall of Fame career as a player. But it was the 12 years he spent as…

MLB

Yankees GM Brian Cashman breaks down art of…

The action frequently accelerates as the non-waiver trade deadline approaches, as it will on Thursday.

Auto racing

Jeff Gordon captures fifth title at Brickyard 400

Jeff Gordon captures fifth title at Brickyard 400

Wellbeing

This Week In Health: Friends share similar DNA,…

Friends share similar DNA, study finds Location: U.S. Study subjects: Nearly 2,000 people Results: When it comes to our social networks, it seems that birds of…

Education

Are liberal arts colleges turning away from the…

Bryn Mawr College, a small women's college located just outside of Philadelphia, announced last week that it would be making standardized tests like the SAT…

Education

Recent grads discover school superintendent plagiarized parts of…

  Two recent high school graduates made a surprising discovery about the commencement speech their school superintendent delivered at their graduation: portions of it was copied…

Career

Feeling stuck? Get out of the entry-level job…

Television and movies may be littered with 20-something characters who seem directionless when it comes to their careers, but author Mary Traina says she finds…