Philly is set to create a new construction tax and delay changes to its big real estate tax break under a tentative deal

Philadelphia is poised to enact a new tax on residential construction and to make major changes to the city’s controversial property tax abatement program under a tentative deal struck by City Council President Darrell L. Clarke and Mayor Jim Kenney’s administration.



Darrell L. Clarke wearing a suit and tie: City Council President Darrell L. Clarke is hoping to use new tax revenue from construction to fund a $400 million anti-poverty and affordable housing program.


© HEATHER KHALIFA/The Philadelphia Inquirer/TNS
City Council President Darrell L. Clarke is hoping to use new tax revenue from construction to fund a $400 million anti-poverty and affordable housing program.

The deal, which could be approved by a Council committee as early as Tuesday evening, would be a major victory for Clarke, who has proposed using the revenue from the new construction tax and future reductions in the real estate tax break to finance $400 million in bonds for an ambitious antipoverty and affordable housing plan he is calling the Neighborhood Preservation Initiative.

Kenney and his political backers in the building trades unions were initially skeptical of the

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