Controller: Philly property tax up 23% since 2008
PA school property tax cut could reduce Philly levy by more than half
Controller: Philly property tax up 23% since 2008
Joseph N. DiStefano
"Year-to-date real estate tax collections have increased 23 percent over the last four years," to $881 million in the first eight months of fiscal 2012 (which started last July), up from $716 milllion in the same period in 2008, says city controller Alan Butkovitz in a statement today.
"Of the total $880.8 million in real estate tax collections, $384.1 million went into the City’s General Fund and $496.7 million went to the School District." Which means Philadelphia city property taxes could fall by more than half, if a proposal in Harrisburg to kill the school property tax and replace it with higher sales and income taxes passes. For more on this bipartisan attempt, read my column in the Sunday Inquirer here.
This doesn't mean the property markets have recovered, adds Butkovitz: "The increase in real estate taxes is mainly due to the tax rate increases over the last two years. "From 2008 through 2010, the total tax rate was 8.264%, a split between the City (3.305%) and School District (4.959%). The total tax rate in 2011 was 9.082% and for 2012 it’s 9.432%. The current 2012 portion split is 4.123% for the City and 5.309% for the School District."
Tax rate increases are only a part of the overall collection increase. "Assessment creep" probably plays a larger role, as assessments have continued to increase (mostly by illegal spot assessments) even though property values have been stagnant or have decreased since 2008. Of course, the connected get their assessments fixed before they even become public. The patronage nature of the assessment process is probably the biggest factor in favor of the current proposal to outlaw property taxes, and a major reason why it will never pass.— Palestra Jon- The proposal to switch public school funding from mainly property to income and sales taxes is a huge handout to PA's old at the expense of its young. At a time when state programs that assist the young are coming under increased threat or extinction-children's health insurance, early childhood programs, massive public school and university cuts, this proposed tax overhaul would remove any financial responsibility from retired Pennsylvanians (other than a 1% increase in sales tax) to support public education, increasing the tax burden primarily on those who are still young and working. This is a terribly unfair tax bill that will only widen the generational gap in PA.— CoolZanna
- If public education is the responsibility of the community, then it should be funded by all, and not just property owners. Removing the property tax as a primary funding mechanism of the school system is long overdue.— Only in Philly...
With billions of dollars in construction within the city, much of it high end, expensive condos and many new single family homes in around Center City, University City, Northern Liberties, etc, the 10 years property tax abatement should be passing the 10 year mark. Especially for the next years, the increase in home values and the falling away of the discount property tax should flood the city's coffers with new revenues? Right, wasn't that the big story, empty nesters returning to the exciting city and now and every year through 2017 more and more of the completed housing will start to pay a higher real estate tax? What are the projections for that Mr Butkovitz? Crunch and publish the numbers, pretty please?
23% and with the new valuation system, better get greased up for another huge increase now that Michael can't run again. The sky's the limit. If we see a large drift from Catholic schools into public, we could see real estate soar 30% more.— The Monk
