Sunday, September 14, 2014
Inquirer Daily News

Study examines the impact of AVI

A Pew Charitable Trusts Philadelphia Research Initiative report released today affirmed much of what is known about the impact of the city's new property-tax system, the Actual Value Initiative including that the tax burden will shift from commercial to residential properties.

Study examines the impact of AVI

A Pew Charitable Trusts Philadelphia Research Initiative report released today affirmed much of what is known about the impact of the city's new property-tax system, the Actual Value Initiative including that the tax burden will shift from commercial to residential properties.

The report notes that a number of proposals by Mayor Nutter and City Council could change that, like the homestead exemption which would knock off $30,000 from a homeowner's assessment. Council is also looking at other aid, including relief for longtime homeowners.

Small businesses will also likely see large increases to their tax bills under AVI, the report notes. Nutter has proposed setting aside $10 million in aid for small commercial properties and Councilwoman Maria Quinones-Sanchez has proposed changes to the use-and-occupancy tax on businesses that would exempt the first $2,000 from that tax for all commercial and industrial properties.

Additionally the report showed that large commercial and tax abated properties will see tax breaks under AVI. Councilman Wilson Goode Jr. has proposed scaling back the 10 year tax abatement. 

According to the report Philadelphia homeowners pay on average lower property taxes compared to other cities like Baltimore, Washington, Pittsburgh and Boston, but the city relies heavily on wage and business taxes. 

For more check out the report here.

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Chris Brennan, a native Philadelphian and graduate of Temple University, joined the Daily News in 1999. He has written about SEPTA, the Philadelphia School District, the legalization of casino gambling, state government, the mayor, the governor, City Council and political campaigns. E-mail tips to brennac@phillynews.com
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Jenny DeHuff is a 2005 graduate of the University of Rhode Island, where she cut her teeth in journalism. A South Philly transplant from New England, she joined the Daily News City Hall Bureau in 2013. For the past several years, she has worked as an investigative reporter exposing corruption in suburban politics, covering sometimes ghastly criminal court cases and following the people’s money and how its spent. In addition to being a dogged news hound, she enjoys reading and writing about travel, animals, Irish whiskey and aviation. E-mail tips to dehuffj@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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