Talk about a corporate tax break.
Via Philly Com
Defending their decision to abandon steps to collect $22 million in taxes from SEPTA, city officials have told City Council and the Philadelphia school district that a 2003 state Supreme Court opinion left them in a weak position to collect the money.
“The City determined that it was unlikely to prevail in a lawsuit to collect these taxes and was willing to negotiate a resolution to its claims as part of a long-term lease agreement with SEPTA,” wrote Rina Cutler, the Deputy Mayor for Transportation and Utilities in a letter to Council President Darrell Clarke and School Reform Commission Chairman Bill Green.
Since at least 1978, year after year, the city has dunned SEPTA for back taxes owed on properties it leased to commercial businesses at sites throughout Philadelphia. The transit authority built up a total bill of $22 million in delinquencies, interest and penalties through June 2014, according to the city’s own records.
The complete tab will be wiped clean when the city’s new 30-year lease-leaseback agreement with SEPTA goes into effect tomorrow on July 1.