KOP-BID Tax Policy Report Summary (teaser)

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DOING BUSINESS IN UPPER MERION TOWNSHIP A Tax Policy Study /// April 2015 /// King of Prussia District /// visitKOP.com/Tax Policy 234 Mall Boulevard, Suite 150, King of Prussia, PA 19406 | 484.681.9452 | eric@kopbid.com

Upper Merion Township/King of Prussia (UMT/KOP) is the largest employment, commercial office, industrial and flex space, retail and hospitality center in the suburban Philadelphia region (53,000+ employees, Census 2010), however, it suffers from lingering perceptions as a high-­‐tax business location. In order for the King of Prussia District (KOP-­‐BID) to get its arms around the actual data and determine whether or not these concerns are more perceptions or a harsh reality, KOP-­‐BID hired two well-­‐respected organizations from Philadelphia who have conducted numerous studies on the topic of business tax impacts: Econsult Solutions, Inc. and the Economy League of Greater Philadelphia. The first study by these two firms together and the second and third study by Econsult Solutions, Inc., can best be summarized as follows: • REPORT I: Evaluate the current tax structure of UMT/KOP and how it compares to other significant commercial office locations in the region • REPORT II: Analyze historical data on employment mix and commercial office markets of UMT/KOP and competing locations, devise a summary of market trends, provide a framework for developing strategies to improve UMT/KOP’s competitive position • REPORT III: Develop preliminary tax policy recommendations

The key findings of the reports are: • UMT/KOP’s reputation as a high tax business location is “overstated” • UMT/KOP ranks 5th out of the 10 largest business centers in the Philadelphia region in terms of total tax burden on business • Challenges with retaining and attracting office tenants is amplified for UMT/KOP because of its proximity to the lowest tax business location (Tredyffrin Township) • UMT/KOP job growth has been slow relative to its low tax neighbors since 2002 • Property values and tax revenues have been stagnant in UMT/KOP since 2002 This report provides specific data to support these findings and analyzes the ten largest business locations in the Philadelphia region dating back to 2002. Based on these findings, KOP-­‐BID believes that there are concrete steps that can be taken to improve UMT/KOP’s reputation and formal tax policies. KOP-­‐BID will seek to advocate tax policy revisions with the Commonwealth, the County and the Township in an effort to determine how best to use future tax policy strategies to enhance economic growth and development in UMT/KOP.

Eric T. Goldstein Executive Director


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