Close but no cigar

Fourth District Councilman Michael Nutter hoped to light a fire under City Council members still debating his smoking-ban bill.

But amendments designed to appease opponents only sparked more controversy, and Council last week delayed voting on the measure for the second time this year.

The bill was set aside after a few members voiced concerns about the smoking ban’s impact on the city. A majority vote from Council is needed to pass the bill.

Council is expected to vote on legislation next week during its last session before the summer recess. The latest version could include additional revisions aimed at reaching a compromise.

The original amendments, partly crafted by First District Councilman Frank DiCicco, exempted sidewalk cafés from becoming smoke-free zones.

Another change would allow dining establishments and bars where food accounts for less than 10 percent of gross sales to apply for a temporary waiver that would exempt them through January 2008. Private clubs can seek a permanent waiver for the ban.

Councilman-at-Large James Kenney said he supports the elimination of smoking in restaurants, many of which already have "gone out of their way" to install smoking-filtration systems.

But the councilman, a South Philadelphia resident, finds a potential problem in the bill’s 10-percent food income exemption. Bars must earn at least 30 percent of their revenue from food to sell alcohol on Sundays; the amendment means the establishments would have to choose between selling liquor or applying for the temporary waiver of the smoking ban.

Kenney also believes that smoking in taverns should be at the sole discretion of the owner. Nonsmokers who object have the option of going elsewhere, he added.

"I do believe there should be a place in the city for people to legally smoke, even if it is harmful to them," said Kenney, who does not plan to vote for the anti-smoking bill in its current form. "There still should be a place where they can smoke without going outside."

While Kenney initially supported the amendments during Council’s public session two weeks ago, Council President Anna Verna voted against them.

As of yesterday, Verna had not yet reviewed the newest revisions to the bill, said Kathleen Murray, special assistant to Verna.

Mayor John Street, who initially expressed disappointment at being left out of amendment discussions, renewed his promise to fight for the legislation after speaking with Nutter this week.

A taxing topic

The mayor might throw a monkey wrench into Council’s plan to eliminate the much-maligned business privilege tax.

Last Thursday, members approved a bill that would phase out the tax some label a citywide job killer.

But the mayor is expected to veto the legislation, maintaining that the city can’t afford the tax break.

"Barring something unusual, he would most likely veto the business privilege tax bill," said Deborah Bolling, the mayor’s spokesperson. "With the elimination of the tax and without the implementation of other taxes to offset that loss, it will strain the city’s budget."

Street agrees that the tax is too high, but believes that outright eliminating the revenue source would be fiscally irresponsible, Bolling added.

"The Tax Reform Commission and recent Philadelphia history demonstrate that by reducing these tax rates, we will increase tax relief in the long run," contended Brett Mandel, executive director of Philadelphia Forward, a grass-roots organization that fights for tax reform. "The city has been reducing tax rates for the past decade and every year, we have brought in more money."

The BPT deducts 19 cents of every $100 from a business’ gross receipts, whether or not it turns a profit. Profits are taxed an additional 6.5 percent.

Under Council’s new bill, the gross receipts and net income rates would decrease every year until they both hit zero by 2017.

"Businesses are mobile. They can move outside of the city and across the river," said Murray, of Verna’s office. "We have to be competitive."

Mandel estimates the cost of eliminating the tax to be "about one-tenth of 1 percent of city spending over the next five years."

Labeling the BPT an "insane tax," Kenney added that "the way this administration has spent over the past six years, they can do with a little less and still survive."

Back in the budget

With a plethora of library supporters supporting them, Council members passed a $3.5 billion city budget last Thursday.

The money will restore $3.5 million to the city’s library system and $3.4 million to the Fire Department.

Over the past several months, fiscal cuts had forced local libraries to cut staff and services, and two local fire departments to prepare for likely closure.

With a new budget in place, hours and staff should be restored at the Santore (formerly Southwark) Library, 932 S. Seventh St., and the Queen Memorial Library 1201 S. 23rd St.

Both Kenney and Murray credited DiCicco for his hard work in restoring funding to both departments.

Verna fought diligently against the proposed service cuts from the beginning, added Murray.