New Brt-related Tax Outrage Unpaid Biz Taxes The Latest Black Mark

THE BROKEN system that determines the value of Philadelphia real estate and collects its property taxes took another hit this week with the news that a business housed at the home address of the acting chief assessor of the Board of Revision of Taxes has not paid business taxes on nearly $1 million in SEPTA contracts.

The city's inspecter general found that Trans-lectric Supply, a firm at the home address of BRT assessor Barry Mescolotto, does not have a business-privilege license and has not filed city tax returns since it was formed more than 10 years ago. Mescolotto says he is not involved in the business, although his signature is on a number of SEPTA documents. The IG's report, subject of a story in the Inquirer, says Mescolotto should not get the chief assessor's job until the company gets a license and pays what it owes. We'll go even further: It's time to step up the efforts to get all the city's business- tax deadbeats to pay.

In March, Mayor Nutter publicized new efforts to collect on taxes by appearing at the offices of three attorneys who owe back taxes. They were outraged that the mayor made them a public example. But this public shaming can be effective. So we propose that the city review the list of the biggest tax scofflaws and require that businesses that owe taxes must display in a prominent place a decal like the one at left until they settle their bills. That way, customers will know which businesses in the city are helping to contribute to the city's fiscal crisis, and which are carrying their weight. Of course, this wouldn't catch those companies that aren't even licensed as businesses. For that, more serious enforcement will be necessary. Meanwhile, is it too much to ask that city, state and quasi-governmental agencies require from their contractors proof that they've paid their business taxes? That may require streamlining the databases of the Revenue Department so the information is accessible; that's an investment worth making. *