In November 2002, Philadelphia voters approved a ballot measure allowing for the creation of an independent commission, the Philadelphia Tax Reform Commission, to recommend ways to reduce taxes in an equitable manner to make Philadelphia more competitive with other jurisdictions in attracting and retaining residents, businesses and jobs.

The Commission will conduct a comprehensive analysis of the current tax system and will make specific recommendations for reducing taxes in a final report that will be submitted to the Mayor and City Council on November 15, 2003.

The TRC will examine and evaluate local taxes that include:

• Wage Tax
• Business Privilege Tax
• Net Profits Tax
• Gross Receipts Tax
• Amusement Tax
• Use and Occupancy Tax
• Real Property Tax
• School Income Tax
• Real Estate Transfer Tax
• Liquor-by-the Drink Tax
• Parking Tax
• Philadelphia Sales Tax
• Hotel Bed Tax
• Other Taxes imposed by City and School District.

• why it is imposed;
• how much revenue the tax generates;
• the impact of the tax on business or residents and the Philadelphia economy;
• what tax may be eliminated or consolidated with another tax or simplified; and
• whether and to what extent the rate of a tax may be reduced in a fiscally and socially responsible manner.

The Tax Reform Commission is composed of 15 members:

• Four members are appointed by the Mayor
• Four members are appointed by the City Council President
• One member is appointed by the City Controller
• One member is appointed by each of the following:
  • President of the African American Chamber of Commerce
  • President of the Hispanic Chamber of Commerce
  • President of the Greater Philadelphia Chamber of Commerce
  • President of the Greater Northeast Chamber of Commerce
  • Chief Executive Officer of Greater Philadelphia First
  • Executive Director of the North Philadelphia Chamber of Commerce

• Director of Action Alliance of Senior Citizens of Greater Philadelphia
• Director of Asian-Americans United
• Director of Community Legal Services
• President of the Board of the Consumer Education & Protective Association
• Director of the Keystone Research Center
• President of the National Congress of Puerto Rican Rights
• Executive Director of Philadelphia Citizens for Children and Youth
• Director of Philadelphia NOW
• Director of the Philadelphia Unemployment Project
• Director of Tenant Action Group
• President of the Federal Reserve Bank of Philadelphia
• Dean of the Fox School of Business and Management of Temple University
• President of Greater Philadelphia Association of Realtors
• President of the Institute of the Study of Civic Values
• President of the NAACP Philadelphia Chapter
• Executive Director of the Pennsylvania Economy League Eastern Division
• President of Pennsylvania Institute of Certified Public Accounts Greater Philadelphia Chapter
• President of the Philadelphia Bar Association
• Business Manager of the Philadelphia Building and Construction Trades Council
• President of the Philadelphia Council AFL-CIO
• President of the Urban League of Philadelphia
• Executive Director of the West Philadelphia Partnership
• Dean of the Wharton School of the University of Pennsylvania.