This month, the City of Philadelphia posted new property tax assessments, which will impact 2023 bills for more than 580,000 commercial, industrial, and residential property owners.
Here’s what you need to know:
- The average property tax assessment increased by 21% since Tax Year 2020. The City postponed Tax Year 2021 and 2022 reassessments due to operating and pandemic issues. Average assessments increased since Tax Year 2020 by 31% for residential properties and by 9% for commercial, industrial, and all other properties.
- Taxpayers can access new property assessment data at property.phila.gov. Property owners may estimate tax bills by multiplying the assessed, non-exempt value of taxable property by the property tax rate, currently 1.3998%, and if owners use property for certain business purposes, by the additional use and occupancy tax rate, currently 1.21%. Applicable tax rates and exemptions may change for Tax Year 2023.
- Abated property owners should pay close attention to new land value calculations. Philadelphia’s property tax abatement programs typically exempt improvement values but not land values from taxation. Starting in Tax Year 2023, the City is fixing land values as 20% of assessed market values for certain property types, including purely residential non-condominium properties with four or less units.
- Property owners can appeal property tax assessments and apply for tax relief. The City plans to mail Notices of Proposed Valuation to property owners by September 1, 2022, with information about how to apply for tax relief programs, how to submit a First Level Review, and how to file a formal appeal to the Board of Revision of Taxes. The deadline to file an appeal is currently set for October 3, 2022.
Kleinbard’s Real Estate and Finance attorneys help property owners and developers maximize tax and economic benefits related to current and future property ownership. For more information, please contact Julie Berson (jberson@kleinbard.com), James Yoakum (jyoakum@kleinbard.com), and Eric Bodzin (ebodzin@kleinbard.com).
