New construction is pretty easy to tax, the cost is a matter of public record, especially in the NIZ. Reilly's City Center Real Estate is allowed to harness state taxes to pay its debt service. When PA's largest tax incentive program was being hawked, J Q Public was told that the local property taxes generated would be his reward. As it turned out, Reilly's attorney found a loose end, putting less money into the local tax coffers.
The assessment on commercial buildings can be challenged based on income generated. Because Reilly charges less rent in his taxpayer subsidized buildings, his attorney has successfully challenged the assessments based on construction cost. Although there is some logic to that argument, it ignores the reality of the public subsidy, and the original rational for the program. His attorney claims that the public is still getting more than they were before the revitalization, and omits the fact that it's almost a $million less annually than expected.
Because the Allentown School District is experiencing a huge shortfall, this tax reduction for Reilly has real consequences to the public. Mayor for Life Ed Pawlowski thinks that the tax break for Reilly is fair.
photocredit: The Morning Call
spot on, Michael!
ReplyDeleteWho didn't see this coming? Who is surprised by this? Only those still foolish enough to believe their local media and politicians. By the way, does anyone ever consider the tax losses other local communities suffer because self serving politicians used tax break legislation to lure them here? Is there really any net increase in tax revenue for the state because of this?
ReplyDeleteNothing is ever as simple as it is presented when being sold.
ReplyDeleteCan anyone find an example of where tax dollars applied to an urban project such as this actually worked as intended and promised?
ReplyDeleteDon't forget the Pawlowski gang on School Board are there to make sure ASD doesn't appeal the reductions. Let's see if election year politics breaks their gang.
ReplyDeleteSteven, Steven, that is a great point. I know two running as Pawlowski candidates; I hope that's it.
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