Any Final Pa. Budget Deal May Include Making Less Severe Whopping Sales Tax Increase In Phila.
PHILADELPHIA (CBS) -- The framework is there for a new Pennsylvania budget, months after it should have been passed in mid-summer, but the devil is in the details, especially as it relates to the final increase in the sales tax in Philadelphia. If approved as is, Pennsylvania would have the second highest state sales tax, after California, jumping from 6% to 7.25%.
It is still subject to negotiations, but the options include giving Philadelphia the ability to use some of the new revenue raised by a statewide sales tax increase intended for property tax reductions, and swap them to mitigate the city sales tax hike.
The current 8% sales tax in Philadelphia would hit 9.25%, tied for third highest of any US city.
Mayor-Elect Jim Kenney acknowledges the "process is still in motion," and they can only deal with it when they see the numbers.
"We're not driving the drain. it's Harrisburg's train and we have to adjust and adapt to it."
Chicago set to impose the highest combined sales tax rate of any major city as of January 2016, moving to 10.25% from 9.25%.
According to the Tax Foundation, Seattle has the highest at 9.6%, followed by Oakland at 9.5%. Three cities, Chicago, Memphis and Nashville are currently at 9.25%.
Los Angeles is at 9%. New York is at 8.88%.