New Pa. bills seek property-tax relief

WITH MAYOR Nutter's shift to a new property-tax system on the way, the Philadelphia state legislative delegation unveiled a package of bills Tuesday aimed at providing tax relief to homeowners, giving the city more authority over how it taxes properties and expanding its ability to collect from tax deadbeats.

City Finance Director Rob Dubow said that detailed information about the new system, which is based on market values and known as the Actual Value Initiative (AVI), may be available in two weeks. Reassessments will be mailed to property owners in February.

State Rep. Cherelle Parker, chairwoman of the Philadelphia delegation, said that the goal is to give Council the tools to "mitigate any negative consequences AVI can have on residents."

Here's a look at the bills:

* Tax delinquents: This bill will give the city the authority to target tax deadbeats by allowing it to put liens on properties that they own elsewhere in the state. Parker said that nearly 100,000 properties in the city are tax-delinquent. Bringing in revenue from those properties could lessen the impact on the rest of the city.

* Protecting longtime residents: Tax bills would be increased in areas that are under-assessed, and gentrifying neighborhoods such as Northern Liberties are sure to be hit hard. The city can already provide some gentrification relief, but this bill would allow the city to provide aid based on age and financial need.

* Burden shifts: Currently, the city has to tax all properties at the same rate, but this bill calls for a constitutional amendment that would allow the city to tax commercial properties at a higher rate than residential ones.

* Installments: This bill aims to decrease tax delinquency by allowing eligible residents to make property-tax payments in installments. Forty percent of homeowners do not have mortgages and get their tax bills once a year.

"I'm hopeful these measures will move through the legislative process and help us not only fix our property-assessment system, but also improve it, collect more revenues as a result and go forward," Nutter said.

Local state leaders hope that the bills will be approved by June 30, with the exception of the constitutional amendment, which may take years, but it's unclear if they can move the bills through a Republican-controlled legislature.