Actual Value Initiative
Sources tell KYW Newsradio that at the meeting, the total value of all city properties was put at just under $100-billion.
Mayor Nutter and City Council intend to implement a new and controversial property assessment system next year, but making it happen isn’t enough, according to a study from the Pew Charitable Trusts.
Despite misgivings voiced by some state lawmakers, the state House has approved the Actual Value Initiative legislation and Governor Tom Corbett is expected to sign it.
Governor Corbett is expected to sign legislation headed to his desk that would authorize a key element of Mayor Nutter’s property tax reform initiative.
The new assessment system dubbed the Actual Value Initiative (“AVI”) will result in higher assessments, and that means the mayor and City Council will have to lower the millage rate significantly.
A new study released by the Pew Charitable Trusts finds that Philadelphia is becoming more competitive in terms of local taxes when compared to the suburbs.
“We found that constitutionally we can have a two-tiered tax system, so we believe that the more you owe, the higher the penalties should be,” Darrell Clarke said.
The school district’s five-year financial plan includes a huge loan, says chief recovery officer Tom Knudsen.
Mayor Nutter is warning of possible confusion over property taxes next winter, stemming from City Council’s decision to delay new assessments by one year.
The budget season is over at Philadelphia City Hall. City Council has passed a $3.6 billion budget, ending a tumultuous three-month stretch during which tough decisions were made on how to make ends meet.
With Philadelphia’s property tax overhaul apparently on hold for a year, the state House has advanced legislation that would protect tax revenues for the city and school district in the interim.
The School Reform Commission publicly has no “plan B” now that Philadelphia City Council has decided to cut by more than half the amount of new money going to the school district.
Working late into the evening Thursday, City Council members reluctantly gave initial approval to an overhaul of Philadelphia’s property tax system.
City Council president Darrell Clarke says Council will hold two separate votes: one on the mayor’s proposed property tax overhaul, the other on the mayor’s proposed increase in School District funding.
Starting Friday, Philadelphia homeowners can apply for a homestead exemption — even though the program has not yet even been approved by the state legislature.