Sunday, August 2, 2015

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

0 comments
The opening of the new Iroko Pharmaceuticals building in the Navy Yard Wednesday afternoon December 12th. Here, Mayor Nutter awaits his introduction.( ED HILLE / Staff Photographer )
The opening of the new Iroko Pharmaceuticals building in the Navy Yard Wednesday afternoon December 12th. Here, Mayor Nutter awaits his introduction.( ED HILLE / Staff Photographer )

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.

0 comments
We encourage respectful comments but reserve the right to delete anything that doesn't contribute to an engaging dialogue.
Help us moderate this thread by flagging comments that violate our guidelines.

Comment policy:

Philly.com comments are intended to be civil, friendly conversations. Please treat other participants with respect and in a way that you would want to be treated. You are responsible for what you say. And please, stay on topic. If you see an objectionable post, please report it to us using the "Report Abuse" option.

Please note that comments are monitored by Philly.com staff. We reserve the right at all times to remove any information or materials that are unlawful, threatening, abusive, libelous, defamatory, obscene, vulgar, pornographic, profane, indecent or otherwise objectionable. Personal attacks, especially on other participants, are not permitted. We reserve the right to permanently block any user who violates these terms and conditions.

Additionally comments that are long, have multiple paragraph breaks, include code, or include hyperlinks may not be posted.

Read 0 comments
 
comments powered by Disqus
About this blog
William Bender, a Drexel graduate who landed at the Daily News in 2007, has covered everything from South Philly mobsters to doomsday hucksters. He occasionally writes about local food trucks and always eats everything on his plate, whether it be a bloody rib eye or a corrupt politician. E-mail tips to benderw@phillynews.com
 Follow William on Twitter

David Gambacorta, has been a reporter with the Daily News since 2005, covering crime, police corruption and all of the other bizarre things that happen in Philadelphia. Now he’s covering the 2015 mayor’s race, because he enjoys a good circus just as much as the next guy. He’s always looking to get a cup of coffee. Send news tips and other musings on life to gambacd@phillynews.com
 Follow David on Twitter

PhillyClout Team
Also on Philly.com
letter icon Newsletter