 2013 heralds something considered cataclysmic in
Philadelphia but is routine in the rest of the world: a new assessment for
property tax purposes. From Podunk to
Portland (Oregon or Maine), assessment officers and departments apply land and
building values to each property, the community figures out how much revenue it
needs and divides it by those values. Voilà, you get a property tax rate, and then
send out a bill. A very little history Nothing is ever quite that simple in the city that
UrbanTools loves. For one thing,
Philadelphia – nearly unique in United States – taxes wages on a local level at
a flat rate. For another thing,
Philadelphia – nearly unique in the United States – taxes businesses coming and
going i.e. on gross receipts and net receipts. Using the property
tax as an alternative to these outmoded and corrosive taxes ought to be a
strategic goal for Philadelphia.
In the past 75 years, the city of Philadelphia has seen fit
to adopt and then fiercely maintain bad tax policies that correlate directly to
sinking revenues, jobs, neighborhoods, and business. Like a giant oil tanker headed for the rocks,
it takes a long distance in a long time to turn the ship around. Yet, it has
been happening. Property and
Protection Philadelphia is introducing the new assessments under the
moniker Actual Value Initiative (AVI).
Neighborhoods that have been over-assessed for years will likely see
some form of tax relief, and the small bits of Philadelphia that have
gentrified will likely see their ossified values approach something close to
reality. Because of the lag between
valuations, there will be some sort of sticker shock to some residents. That's the price of decades of inaction. It's
not the fault of those residents. So,
the Philadelphia delegation in the Pennsylvania assembly is introducing
several bills to help alleviate that predicted shock. Some ideas in the bills are long-overdue. We're going to examine each of these bills,
and give our analysis on the various strengths and weaknesses of each. Lien on me, when
you're not strong… The ability of the city to put a lien on the owners of tax
delinquent parcels has been on reformers’ wish list for years. What would this bill do? If you were "1215 Associates LP"
and you owed tens of thousands of dollars on a couple of condo units at 1215
Spruce St., not only would the city put a lien on those units (and they have
put about 10
on them),
but the government would have the power to lien the owner's property (somewhere
in Brooklyn, specifically 1555 39th St.).
This is a powerful and appropriate tool in our city because
the only working business model for residential
property – aside from high-end tax abatements – has been to buy
residential property, slap some paint on it, collect rent or do a quick flip,
don't really renovate , and heaven forbid never
pay your taxes. In Philadelphia, these
operators have become used to ignoring the law, as the law was never used.
Going after them at home would put some real teeth in the tax collection
process.
We close with one caveat: for decades property tax scofflaws
have been able to befuddle the Philadelphia Sheriff's Department and other
agencies charged with collecting taxes. A new law is a great idea, but some
resources have to be devoted to tracking down the owners wherever they may
be. Some years ago, UrbanTools help
track down dozens of delinquent property owners to their front doors, and the
city did nothing.
Next: Proposed relief against gentrification: does means
testing work? |
 |
|||||
CategoriesAct 47Affordable Housing Africa Agricultural Policy Allegheny County ALTER Altoona Assessment Australia Australian Capital Territory Baltimore Berkshire California Canberra Clairton Connecticut Connecticut General Assembly Current News Item de Blasio Economic Development Economic Policy Economic Rent Economist Ed Vargas Education EPA Federal Tax Policy Fiscal Policy and Taxes Frederick Free Markets Gentrification George Osborne Global Taxation Harrisburg Hartford Healthy Communities Housing Housing Policy Hurricane Sandy India Ireland Jamaica Jeffrey Berger Jimmy Tayoun Justin Skariah Kenyatta Johnson Lancaster Land Policy Land Value Tax Lanesborough Larry Deutsch Law and the Constitution Legislation Len Fasano Liberal Democrats Local Government Los Angeles Maria Quinones-Sanchez Martin Looney Maryland Massachusetts Matt Ritter Matthew Ritter Mayor Rick Gray Michael Kinsley Michigan Millbourne Model Legislation Monroe County Montreal Moonachie Namibia National Tax Policy New Jersey New London New York City NY Oregon Parking and Transportation Patricia Dillon Pennsylvania Philadelphia Pittsburgh Portland Property Assessment Property Tax Reform Public Health Public Opinion Public Resources Public Works Regional Tax Base Sharing Regionalism Regressive Rhode Island Rochester Roland Lemar Sales Taxes Scranton Senator Jan Malik Sin Taxes Smart Growth Soda Tax Taiwan Tax Exemption and Abatment Thomas Piketty Titusville Tom Kramer Transportation Funding Transportation Policy Uncategorized United Kingdom Urban Blight Urban Rejuvenation Urban Tax Policy Vince Cable Wage and Income Taxes Wales Wealth Wilson Goode Jr. |
|
 |
|||
    |
|||||
