Nutter talks property-tax overhaul with Council, provides some data
Mayor Nutter met with some City Council members behind closed doors Tuesday to share preliminary data related to his planned shift to a property-tax system based on market values, also known as the Actual Value Initiative (AVI).
Nutter talks property-tax overhaul with Council, provides some data
Jan Ransom
Is the city inching closer toward fixing its broken property tax system?
Mayor Nutter met with some City Council members behind closed doors Tuesday to share preliminary data related to his planned shift to a property-tax system based on market values, also known as the Actual Value Initiative (AVI) –which showed that the total value of the city’s properties is at least roughly $96 billion, according to sources.
That’s more than the $80 billion a Council consultant estimated and much higher than the current total value for taxable properties which is $38 billion.
“The important issue is that we are very, very close to fixing the property assessment system for the city of Philadelphia and we will be able to give property owners a fair accurate and equitable and understandable assessment notice,” Nutter told reporters after the meeting.
Sources said the administration is looking at a 1.3 percent tax rate without a homestead exemption or a 1.4 percent tax rate with a $30,000 homestead exemption. But that rate could change if Council tacks on additional protections.
“I’m not going to 1.4 percent,” said Councilman Jim Kenney. “This was intended to be revenue neutral.”
In June Council decided to delay AVI for a year because members were concerned about approving it before assessments were done and without actual data. If the city moves to AVI, some property owners will see their tax bills drop, while others especially in gentrifying neighborhoods will see huge increases.
Detailed information on how the changes will impact neighborhoods, residential versus commercial properties and more is expected in the coming weeks. Reassessments will be mailed out to property owners in February.
Kevin Gillen, research consultant with the University of Pennsylvania Fels Institute said getting “assessments correct and uniform is noteworthy,” but the city should also examine broader tax reforms including shifting more of the tax burden toward property taxes and less on wages and businesses.
as a real estate broker i see properties all the time that havent paid their real estate taxes in 20 years in phila!!!! any other county those properties would have been acutioned off after 1 year. instead of raising taxes why not collect and or sell off the properties where the taxes are 20 years behind? instead the brothas and sistas who run the city will further hammer the people who actually pay their taxes. they have it completly backward on how to run this city— coolbreeze- I think it'd be wise to phase in AVI. Assess, project 5 years, and adjust incrementally. Allow people time to adjust. My property taxes project to go from $700 to $5700 in 1 year. That'd crush me.— T
- That's beyond unreasonable. Did you have a new construction tax abatement?
If my calculations are correct, mine will go from $2400 to $3250. Unless, of course, they value my place way too high. I live in a condo, no kids, they don't pick up my trash and they don't do much in my neighborhood. I never thought I'd ever think of moving out of this City, but I am. I'm tired of living around shelters that are filled with poorly behaved people who litter, drug dealers who are audacious enough to deal in open air and broad day light and a lot of welfare folks who think that I should carry them. Another money grab by Nutless and I'll go somewhere I don't have to worry about all of the above.— PotteryPete 
Great idea from amd804. Can you legally withold payment if the money is held in escrow?— The Monk- Since the city is still trying to collect the unpaid (500MIL), and the AVI is going to show a decline in home values, and a increase of property taxes!! That uncollected figure is now going to increase, cause a new number of residents will join the ranks of not paying their taxes!! Because the city has shown their reluctance to collect that unpaid balance!!
The other issue is that residents, and business's will be taxed the same amount!! Since Pa law doesn't require a tiered tax collection, one for residents, and another for business's!!— Dadair1 - Property taxes need overhaul in Philly. You want good schools, good facilities, and good city service? Raise those taxes, and get real. I pay about three times the amount of property taxes in the burbs than what I paid in Philly. Just raise them rates and phase out abatements. Go after the dead beats and the back taxes, and you got yourself a more sustainable city.— gtown_teach
- Mayor nutter does not care what you think.. Mayor nutter is gonna push whatever issue to oppress the people.. Mayor nutter must have one of his "friends" appointed to running to new AVI.. mayor get out of town now and take all your supporters with you!
The people should not pay a dime until you collect back taxes— noncents 
I think that property taxes need to be much higher in the neighborhoods that are going through Gentrification. The young and wealthy are moving in and the local population is being pushed out. The new trendy people are still paying the same rates as the now displaced local residents. The real estate taxes need to be much higher for these new folks. It is only fair that they do not get any tax abatements. We will support this in Fishtown,Fairmount and Point Breeze.— jbetty01- Keep voting Democrat!!— LouDiamondPhillipsheadScrewdriver
- Once property taxes in Philly are the same as the suburbs nobody will bother buying in the city anymore.
Nutter's going to drive people who actually earn money out of town when they realize there's no reason to pay the same taxes for crappier schools— Peter Fontana - Council is going to look at this as a cash grab.— Vote for Dickie
- Hello mr nutter when u going to do the right thing.... I live in a twin home and pay 10% more than the house I'm attached to. How do you figure that is right— RichH
- Back taxes Nutter! Collect them first, make cuts in spending, trim your adminsitration, then come to me about tax increases.
- Some people will see their taxes go up by 500 percent in one year! Name another city where this has ever happened? Why PUNISH the citizens of Philadelphia because of the city's shortcomings all these years? It would be completely IRRESPONSIBLE!— Philly54321
- Property values wont be right, they will just take the highest sale value in the last 5 years pre recession and apply that to anything close in the neighborhood with small tweaks for AC or nice windows or some other nebulous 'GOOD EXTERIOR CONDITION' broad paint brush. Meanwhile the homes that sell for top dollars have extensive interior renovations- new kitchens, baths, furnished basements.
They left questionaires on peoples doors to fill in for those interior renovations. Lets see if homes with older interiors are valued the same as the top level homes with renovation. If they ask those questions, then it has to figure in the re-assessment and if not done properly opens the door to massive appeals of property value. Dont bother fixing anything outside your house until you are ready to sell, OOOPS too late the exterior police are already going to nail you on those new windows or painted drain pipes— Steelmanpa
