Council sees ups, downs of new tax plan

MORE THAN 36,000 property owners will see their tax bills increase by at least $1,000 a year - including more than 600 that will spike by more than $5,000 - under a shift to a new property-tax system, according to a preliminary analysis presented Wednesday to City Council.

But more than 180,000 property owners will see their tax bill drop, including a few hundred by more than $5,000. In fact, more than 330,000 homeowners, or 71 percent, will see a change of less than $400, up or down.

A copy of the data obtained by the Daily News shows figures that are calculated under a 1.25 percent tax rate without any protections for long-term homeowners or other types of property-tax relief. Adding protections would necessitate a rate increase to as much as 1.4 percent of the new assessed value for the city's incoming Actual Value Initiative, city officials have said.

Council members expressed relief after the private briefing.

"I feel better than what we thought we were going to feel," said Councilman Bill Greenlee.

The data showed that a total of 281,163 property-owners will see their tax bills increase. The change would affect 2014 tax bills.

Some recently gentrified areas will see dramatic increases, and the administration is expected to provide data to Council on how AVI will affect those areas.

Assessments will start being mailed to property owners Feb. 15.

The value of properties citywide has reached $98.5 billion, and Mayor Nutter wants to collect $1.2 billion in property taxes, the same as this year.

Support for one measure that had been passed to mitigate tax hikes, a homestead exemption that would lower assessments by up to $30,000, may be waning.

Councilman Bill Green will introduce a bill Thursday to eliminate the homestead exemption.

"The homestead exemption really doesn't protect people from spikes in tax bills. It reduces the amount of taxes that will be paid," said Green, adding that he supports means-based gentrification relief, "so we're not giving people who can afford to pay taxes a tax break."

Council is hopeful that legislation recently introduced in the General Assembly will enable the city to institute means-based gentrification relief, which is currently not allowed but would help longtime residents who live in gentrified neighborhoods.

Green and Councilwoman Maria Quinones-Sanchez also will be moving forward on a measure that would allow the city to foreclose on nonowner-occupied, tax-delinquent properties within a year and on owner-occupied, tax-delinquent properties within three years.

The measure also will allow for a means-based payment plan to aid lower-income residents.