City Council voted this week to change the 10-year tax abatement that has helped spur development in West Philly and elsewhere.

The abatement, which has been in place since 2000, exempted property improvements from taxes for 10 years, making property value increases on big improvements, like ground-up rehab or construction, virtually tax free.

Under the bill passed on Thursday, the tax abatement on residential properties would start at 100 percent and decrease 10 percent per year. The modified abatement will go into effect on Dec. 31, 2020. 

Proponents of ending the tax abatement have said that taxes from the increased development in the city would help strengthen city services, particularly schools. Some 55 percent of the estimated $275 million in taxes generated as a result in the change will go toward schools.

Critics of the change argue that growth will slow down without the tax break.