Philadelphia City Council approved a $5.6 billion budget for fiscal year 2023 in a preliminary vote late Wednesday, reaching a deal with Mayor Jim Kenney that includes cuts to both business and wage taxes, the Philadelphia Business Journal reported.
The deal also takes steps to mitigate the impact of increased property taxes following a recent reassessment that found a 21% aggregate jump in property values citywide since 2020.
The final budget, approved by unanimous vote, will have its first reading in a Council meeting on Thursday and is expected to be passed on June 23.
Kenney's call to reduce the city's wage tax was taken up by Council, with the rate for residents set to decline from 3.83% to 3.79%. Non-residents who work in the city will see their wage tax rate decline from 3.448% to 3.44% under the approved budget. Kenney had proposed reducing the tax for city residents to 3.7%.