Title
Authorizing Philadelphia City Council's Committee of the Whole to hold public hearings on the Board of Revision of Taxes's proposed change in property tax assessment, known as "full valuation," the policy's need and fairness, its effect on taxpayers, and possibilities of mitigating large tax increases.
Body
WHEREAS, The Board of Revision of Taxes (BRT) intends to implement "full valuation" in Fiscal Year 2007, appraising all 568,000 residential and commercial properties in Philadelphia at 100% of fair market value; and,
WHEREAS, "Full valuation" will result in more than a four-fold increase in the assessed value of every property, requiring that property tax rates be similarly reduced to avoid an unintended quadrupling or more of the property tax burden imposed on every taxable property in the City; and
WHEREAS,The intent of "full valuation" is to have the BRT responsible only for decisions regarding property values, while the Mayor and City Council would be responsible for determining tax rates and the amount of revenue sought from the property tax; and
WHEREAS, The expressed intent of the BRT is to move to "full valuation" while maintaining "revenue neutrality" to the City's general fund, which can be achieved by lowering the tax rate. However, because the BRT has undervalued property throughout the City for decades, the average property in Philadelphia is currently valued far less than its actual value. Therefore, even if tax rates are lowered to compensate for "full valuation," some taxpayers may still see significant increases in their property tax bills as a result of property value reassessments, which neither the Council nor the Mayor have the ability to control. It is not yet clear how many taxpayers will be affected in this manner, or to what extent; and,
WHEREAS, Forty-two percent (42%) of property tax collections is dedicated to the City's general fund, and f...
Click here for full text