Center City District 2026 Report: Tax Reform Needed to Fuel Business Growth

The 2026 State of Center City report identifies Philadelphia's business tax climate, SEPTA's funding, and homelessness as primary barriers to post-pandemic recovery.

By: AXL Media

Published: Apr 30, 2026, 11:09 AM EDT

Source: Bisnow

The "Tax Reform" Mandate

CCD CEO Prema Katari Gupta emphasized that the marginal cuts made last year reducing the Business Income and Receipts Tax (BIRT) net income tax to 5.71% are insufficient to change Philadelphia’s reputation as an "unwelcoming" climate for corporations.

The Goal: Mayor Cherelle Parker has expressed a desire to bring the wage tax below 3%.

The Proposal: The Tax Reform Commission has recommended eliminating BIRT entirely. Current city plans aim to reach a 2.8% net income rate and zero out gross receipts by 2039, a timeline critics call too slow.

Competitive Pressure: Parkway Corp. CEO Robert Zuritsky pointed to Pennsylvania's state-level success (lowering corporate net income tax toward 5% by 2031) as a model Philadelphia must follow to stop losing deals to states like Tennessee and Texas.

The Office-to-Residential Shift