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Tuesday, January 26, 2010

Mayor Nutter’s pick to run the embattled Board of Revision of Taxes said today that he could not “in good conscience” continue to value properties in Philadelphia using the “bad data” the department relies on.

He said there would be an immediate moratorium on all reassessments until each and every parcel of land in the city can be assessed anew.

“It became obvious that we could not continue to do assessments in the way we’ve done them in the past,” said BRT Executive Director Richard Negrin, who has been on the job for just over a month. “I was seeing more than enough to give me pause about continuing business as usual at the BRT.”

Negrin’s conclusions were seconded by Mayor Nutter at a City Hall press conference early this afternoon.

"It is the only fair thing to do," Nutter said.

The moratorium, which will not apply to new buildings and rehab properties, will have the effect of freezing property taxes at their current levels through at least the 2011 tax year, unless City Council takes the unanticipated step of raising property tax rates.

The 18,000 city properties that received reassessment notices in 2009 are not covered by the moratorium. When pressed to explain why it was acceptable to let those property owners cope with new assessments and unacceptable for new assessments to be issued in 2010, Negrin replied, “you’ve got to draw a line somewhere, and I’m drawing a line where I walked in the door.”

Over the next two years — and possibly longer — Negrin said the city’s assessors would clean up the inaccurate data that forms the basis for determining property values.

Negrin said the city was too frequently wrong about essentials such as lot size and how many stories a home might have. On some occasions, he said, the agency was incorrectly incoporating unusual sales — such as a father selling a home to his son for $1 — into their assessment models, which would throw off values for similar homes in the area. In another instance, Negrin said, a home was miscoded into the wrong neighborhood, again skewing values.

Similar errors have been chronicled in Inquirer reports over the past two years that documented widespread flaws in the BRT’s assessment system as well as mismanagement and possibly cronyism at the patronage-laden agency.

Last fall, the Nutter administration assumed day-to-day control of the assessment function of the formerly indepedent BRT through an agreement with the agency’s BRT. This spring, voters will be asked during the primary election to abolish the BRT altogether, replacing the agency permanently with two new entities.

Contact Inquirer staff writer Patrick Kerkstra at 215-854-2827 or pkerkstra@phillynews.com

Posted by Patrick Kerkstra @ 1:30 PM  Permalink | 3 comments
Comments   
  • 0 like this / 0 don't   •   Posted 12:01 PM, 01/27/2010
    There is no need to stop reassessments. The city is going to have to do this, and you can't violate state law, the state constitution in fact, for TWO YEARS while you try to fix this in one fell swoop.
    CleanupPhilly
  • 0 like this / 0 don't   •   Posted 12:07 PM, 01/27/2010
    Imagine the paper just putting a "moratorium" on fixing the bills it bills its customers. No. If there was a problem in the raw billing data that meant 20% or so of the bills were based on bad data, and the rest of the bills then had to be adjusted to real prices, what would the paper do? Freeze fixing for two years? The paper would progressively fix it every day, and send out as many correct bills every day as it could until the problem was fixed. This is a bogus delay tactic and it violates Nutter's mandate, and it hurts his credibility.
    CleanupPhilly
  • 0 like this / 0 don't   •   Posted 7:26 AM, 01/28/2010
    Here Clean Up is exactly right. This delay has more to do with Nutter's fear about his political future, and less to do with what is strategically and fiscally appropriate and critical to this city. So he failed to appeal the FOP, and the costs are in excess of 25 million a year, and he fails to aggressively fix this system and places this moratorium for two years, assuring he won't incur the anger of some irrational folks who get ticked off when the adjustment has them paying more, but which also ensures no additional revenue during that period. It's obscene, and Cleanup, do you really think this clown has any credibility left to be hurt?
    btruth


3 comments
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The Philadelphia Inquirer's Miriam Hill, Troy Graham, and Bob Warner take you inside Philadelphia's City Hall.