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September 6, 2013
To The President and Members of
The Council of the City of Philadelphia:
For the following reasons, I am returning to your Honorable Body without my signature Bill No. 130308-A, which was passed by Council at its session on June 13, 2013.
Under Bill No. 130308-A, taxpayers who timely appeal their property assessments for Tax Year 2014 would only be required pay an amount equal only to their prior year's property tax amount, subject to the outcome of the appeal. Should they lose the appeal, they would be liable for the increased amount of tax, but not for interest and penalties on that amount. The Bill would apply only to Tax Year 2014.
As my Administration has testified, I believe that every taxpayer who has a legitimate reason to appeal a property assessment must be able to appeal. I wholeheartedly acknowledge that this is only more so in a year when taxpayers are adjusting to new assessments under the Actual Value Initiative. And I believe that the current system is prepared to meet this challenge. Together with Council, we have made sure that these appeals are handled timely and appropriately by ensuring that BRT has the appropriate resources.
Nevertheless, in considering my position on this Bill, I have had to balance its intent, which is plainly good, with its likely effect.
I believe that this Bill will, unfortunately, do little to protect the interests of those taxpayers who wish to bring a well-founded appeal of their assessment. Instead, it may well accomplish little more than to bloat the appeals process with actions brought merely to take advantage of the Bill's tolling of interest and penalties, regardless of the merits of the underlying claim. This would ultimately work the opposite of the Bill's intent, by slowing down the process for everyone-especially taxpayers who have brought meritorious appeals.
Moreover, by inflating the appeal dockets with frivolous a...
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