Nutter talks property-tax overhaul with Council, provides some data
Mayor Nutter met with some City Council members behind closed doors Tuesday to share preliminary data related to his planned shift to a property-tax system based on market values, also known as the Actual Value Initiative (AVI).
Nutter talks property-tax overhaul with Council, provides some data
Is the city inching closer toward fixing its broken property tax system?
Mayor Nutter met with some City Council members behind closed doors Tuesday to share preliminary data related to his planned shift to a property-tax system based on market values, also known as the Actual Value Initiative (AVI) –which showed that the total value of the city’s properties is at least roughly $96 billion, according to sources.
That’s more than the $80 billion a Council consultant estimated and much higher than the current total value for taxable properties which is $38 billion.
“The important issue is that we are very, very close to fixing the property assessment system for the city of Philadelphia and we will be able to give property owners a fair accurate and equitable and understandable assessment notice,” Nutter told reporters after the meeting.
Sources said the administration is looking at a 1.3 percent tax rate without a homestead exemption or a 1.4 percent tax rate with a $30,000 homestead exemption. But that rate could change if Council tacks on additional protections.
“I’m not going to 1.4 percent,” said Councilman Jim Kenney. “This was intended to be revenue neutral.”
In June Council decided to delay AVI for a year because members were concerned about approving it before assessments were done and without actual data. If the city moves to AVI, some property owners will see their tax bills drop, while others especially in gentrifying neighborhoods will see huge increases.
Detailed information on how the changes will impact neighborhoods, residential versus commercial properties and more is expected in the coming weeks. Reassessments will be mailed out to property owners in February.
Kevin Gillen, research consultant with the University of Pennsylvania Fels Institute said getting “assessments correct and uniform is noteworthy,” but the city should also examine broader tax reforms including shifting more of the tax burden toward property taxes and less on wages and businesses.
Mister Mayor, please collect some of the $500 million dollars in back taxes owed to the city. Half of that $$$ is owed by people who are actually living in the homes and just not paying. The other normal tax paying citizens deserve it and you dont have to worry about offending anyone or losing votes anymore. Thank you sir.— Retired guy22- You people in Philly keep voting Democrat...what did you expect?!? Taxes and spending to decline??? HA!!!
Now you reap what you sowed.— Professor1982 - I agree with Retired Guy. Let's collect delinquent taxes before we go reinventing the wheel. My neighbors are delinquent. Both next door neighbors owe - two years and three years. The immigrants across the street are five years behind plus their other rental property that they own is similarly delinquent. Both the husband and wife drive new cars and just remodeled their kitchen and bath across the street. Plus they send their kids to public school. It's all in the public record. If we collect from just those three neighbors, we could afford the salary of one new teacher. The school district could really use each and every dollar now Mister Mayor.
— DarnelX - Go ahead chase every middle class family to the suburbs. Drive around the NE Mr. Mayor before you pass this tax change.— eastfalls
Merry freaking Christmas! Either way (1.3% or 1.4%) we're all getting hammered by this City Council and lousy Mayor who seem absolutely bent on driving out the tax base. My home value under Nutter has fallen by about $20,000. Coincidentally, and it is NO coincidence, my real estate taxes have risen under Nutter by about 17%. What don't these people get about what a bad idea it is to raise taxes during a recession... or that real estate tax increases drive DOWN home values.— The Monk- All the slum landlords still owe millions in back taxes....why is that Mr. Nutter????? Friends???— dogman5
- Is it possible to have the currently up-to-date homeowners "protest" the uncollected millions by refraining from paying their taxes in the next few months? Perhaps this will encourage them to begin collecting the back taxes, starting with those longest overdue. I'd be more than happy to pay my (ever-increasing) taxes once I know that others are held to the same standard.— amd804
- That would work in a pure capitalize society, however in our socialists society, all those people that would stop paying would have their properties and assets seized and hit will massive legal fees.
See the Democrats in Philly know the "cost of doing biz" in Philly is some will use the "machine" to avoid paying taxes while a % will continue to pay taxes.
The machine will not tolerate the % that can pay taxes refusing to pay taxes as that would break down the cycle of the political/banking elite remaining in control.— Professor1982 - Merry freaking Christmas Mayor Nutter! Real estate tax increases drive DOWN home values. My house has lost $20,000 in value under your Adminstration. Thanks for nuttin' pal.— The Monk
- Why not go after Universal Properties and all the money they owe.— roguefiftyone
- amd804- wow, great post and idea!!— Retired guy22
- No mention at all of trying to collect the over $500 million owed to the city. Just keep sticking it to the people who pay. Typical of Mayor Nutless.— The_Unknown-Poster
- they say 1.3 or 1.4 % but with AVI look at your real estate tax form now, say your house is access @ fifty thousand, the avi will LEAST DOUBLE to 100, 00 then a add the 1.3 or 1.4 tax on to that. well my friends i lived in Phila all my 61 yrs, not any more if this happens. remember Mayor nutnut can't run again for Mayor but city council can run all the time please call your councilperson to oppose the AVI— bigguy1
- I've been getting rid of anything I don't need in my house for the past few months, and putting it out on trash day. If my property taxes go too high, Nutless will lose yet another middle class taxpayer in 2013.— The_Unknown-Poster
- hey eastfalls,please don't come to the suburbs.we have enough transplant democrats.the city voted for these democrats and thier hero in the white house,now pay the piper.the northeast is a ghetto.— seanmike
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David Gambacorta spent a small eternity writing about cops, drug dealers and serial killers. Now he’s writing about power and politics – which sometimes reminds him of the old crime beat. He joined the Daily News in 2005. And yes, he knows you’re not quite sure how to pronounce his last name. E-mail tips to gambacd@phillynews.com
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Jan Ransom, a native New Yorker, joined the Daily News in 2010 after graduating from Howard University. She has since written about the difficulty of filing police complaints, tax deadbeats and life after violent home invasions. She joined the Daily News City Hall Bureau in 2011 and has plunged headfirst into reporting on administration budget battles and City Council shenanigans. E-mail tips to ransomj@phillynews.com
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Sean Collins Walsh is from Bucks County and went to Northwestern University. He joined the Daily News copy desk in 2012 and now covers the Nutter administration. Before that, he interned at papers including The New York Times, The Dallas Morning News and The Seattle Times. E-mail tips to walshSE@phillynews.com
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