Property-tax debate gets even muddier
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Property-tax debate gets even muddier
Philadelphia City Council members have long complained that Mayor Nutter hasn’t given them enough information about the ramifications of his proposed Actual Value Initiative, or AVI. Under AVI, Nutter wants to fix Philadelphia's broken property-tax system by reassessing all homes and businesses in the city, and raise an extra $94 million for the school district in the process.
Now Council members say the administration has drastically changed the little information it did provide, and this makes some more skeptical about passing AVI.
Earlier this year, the Nutter administration gave Council a taste of how AVI could affect specific neighborhoods. The analysis used an estimated tax rate of 1.25 percent for when AVI would fully go into effect.
But finance director Rob Dubow is now estimating that the tax rate could be about 1.6 to 1.8 percent. That could change which neighborhoods are winners and losers under AVI. Council members also say that the administration’s estimate of the total value of all properties decreased, to about $80 billion.
At a Tuesday hearing, Councilman Curtis Jones Jr. asked Dubow if those numbers could be trusted.
“Just for the record, how did we go from $112 billion to $80 billion?” said Jones, adding, "You feel that’s a reasonable figure that we should lay our, hang our hats on?”
“Yeah, I think it’s a reasonable figure that we should work with," Dubow said.
Others, like Councilman Mark Squilla, questioned how this would affect property-tax relief bills that Council has been debating. These bills would lower taxes for some people, like longtime homeowners whose neighborhoods have been gentrified.
But Dubow said in an exchange with Councilman Bill Green that he was always clear that his previous estimates came with many caveats.
“What you told PICA was that there was a three to four times increase in the aggregate value of real estate in the city," said Green.
“Well, that wasn’t testimony," responded Dubow. "It was discussion at a meeting. And I think in testimony the following week I said we’re really not sure whether that’s right. We’ve said that pretty consistently.”
Dubow also said the neighborhood analysis was never meant to predict how AVI would impact the whole city.
Council’s deadline to pass a budget is June 30.
Is this even about the schools anymore? Seriously, this is a joke and will need to raise taxes agan and again. Nothing can fix this disease of a school district so let it vanish.— Deaweeave- How can they speculate on a AVI, without the assessments being completed, and the true numbers available to be crunched?? This is more, and more, becoming a "smoke and mirrors" side show!!! Is Council pushing this through so they won't have to spend their summer long recess, to do the job right!!!— Dadair1
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- Does anybody know if a lawsuit will be filed against the city when the AVI passes? If not, I would like to be the first one who does.— flyers2thecup
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The Mayor should do this realignment on property tax by square footage. That's the only truely fair way to do it, otherwise this will be more redistribution of resources.- Speaking of property tax debate in Philadelphia, why is Signe Wilkenson pinning the property tax increase on the GOP, in her cartoon, when Philadelphia is run by the democrats?
I know why! Because she is a left wing mindless robot who has been bequeathed to carry the progressive liberal holy water upon tony auth's retiring.
signe, I hope you are reading this, assuming you know how to read objectively.
Is my posting intelligent? YOU BETHCA!!— YankeeFan#25 - Signe, if you post an inaccurate portrayal in your cartoon, you will be alienating the many of the readers of this once fine newspaper. These are tax paying citizens of the City of Philadelphia. You must be accountable for your actions, so if there is an influx of disgruntled posters, you need to accept that. I know accountability is not a left wing democrat virtue. YOU BETCHA!!— YankeeFan#25
- Hey Signe, looking at your cartoon, those houses look like the sinking houses in Logan. I know I know, the sinking homes in Logan are George Bush's fault. Right? Or is it Sarah Palin's fault? No, it is the GOP's fault! Right? YOU BETCHA!! LOL LOL LOL— YankeeFan#25
- It boggles the mind to think nutter would send rob over to discuss/testify to different numbers. The voters expect to hear a clear discussion of what AVI will do to their tax bills, not this muddy thinking. Put AVI off until next year and maybe they will have a clear idea of the numbers. Go with Squilla— wiredalot
