The state House of Representatives tonight approved legislation that will allow Mayor Nutter to move ahead with a controversial property tax reform plan.
According to mayoral spokesman Mark McDonald, the House tonight overwhelmingly approved legislation that will allow the city to adjust down the millage rate when the city moves to a property tax system based on market values, known as the Actual Value Initiative (AVI).
The legislation is key because when the city implements AVI, many property assessment will go up. And under state law, the city can't lower millage rates because of rules that are designed to preserve schools funding. So the city needs the ability to bring the tax rate down and still collect similar revenues.
The bill now goes to Governor Corbett for final approval.