Philadelphia City Council approved changes to the real estate transfer laws that will mean higher taxes for businesses purchasing property in the city. The change closes a loophole that allowed real estate buyers and sellers to pay tax against sums far less than the actual purchase prices or avoid paying it entirely.
A Philadelphia Inquirer analysis found that of the nine commercial real estate deals valued at more than $100 million between January 2015 and August 2016, taxes were paid on the full purchase price only twice. On the seven other properties, it was not paid on the full purchase price and amounted to as much as $28.4 million in city and transfer taxes.
According to Revenue Department Commissioner Frank Breslin, just one additional commercial real estate deal could have a multi-million dollar impact of the city’s finances.
A Philadelphia Inquirer analysis found that of the nine commercial real estate deals valued at more than $100 million between January 2015 and August 2016, taxes were paid on the full purchase price only twice. On the seven other properties, it was not paid on the full purchase price and amounted to as much as $28.4 million in city and transfer taxes.
According to Revenue Department Commissioner Frank Breslin, just one additional commercial real estate deal could have a multi-million dollar impact of the city’s finances.
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