City Budget

"Actual Value" property assessment moves forward in Philadelphia

Philadelphia is one step closer to a overhauling its system of property tax assessment system. The Board of Revision of Taxes passed a resolution today approving a so-called "actual value" system for measuring property values. The new system's supporters say it will correct years of inequities, but it will also put homeowner protection in the hands of the mayor and City Council.

By Bill Hangley

WHYY News, July 17, 2008

Don't panic.

That's the message to homeowners from city tax officials today. They say the newly approved actual-value property assessment system won't immediately drive up property tax bills. Alan Silberstein sits on the Board of Revision of Taxes. He said today's vote is just the first step in a long process designed to fix an unfair system.

"What I see is that the system is broken and needs repair," said Silberstien, "That's just the simple truth of it. The taxes have to be uniform and fair for all the citizens of Philadephia. One citizen shouldn't be paying a higher percentage than another citizen. That's just not right."

Silberstein said that the city's current assessment system is antiquated and obsolete. It leaves many homes undervalued, and others overvalued. Today's vote formally launches a fresh round of assessments that will use new technology to determine the true market value of all the city's residential and commercial properties. Tax reform advocate Brett Mandel says the new assessments will allow City Council to take up the task of protecting homeowners.

"The good news on this is that the BRT has the easy job," said Mandel, "The BRT gets to go out, collect data, and set accurate values on properties. Council has the hard job to deliberate - who do we want to protect? How do we want to implement in a way that doesn't make too much craziness in the marketplace and protects vulnerable homeowners?"

Council is considering policies that would protect elderly and low-income homeowners from sudden tax hikes. The BRT has promised to deliver its new assessments by the fall.

More information

Comment on this story on the It's Our Money blog.