Philadelphia AVI Update and Timeline
Philadelphia AVI Update and Timeline
As probably everyone in the Philadelphia Real Estate community knows by now the AVI tax assessment property values are out. The millage rate however is not. It is already clear that the southernmost, gentrifying or recently gentrified neighborhoods of Center City will be hit the hardest while many neighborhoods will see property taxes reduced. A predictable amount of chaos has ensued since the property values were released and thus I write this post to offer as much clarity as possible. Here’s a timeline of events pertaining to the AVI and information as to who can expect tax increases. It is important to keep in mind that very little is final and City Council has all of 2013 to make changes if it is determined that the AVI caused any unexpected or unintended results (which clearly it has).
February 15, 2013 – Individual property assessment values mailed and updated on OPA website. Included with the mailing is a form that allows the homeowner the opportunity to appeal the value if unsatisfied. If you return a completed first review form to the OPA you will subsequently be contacted and will have the opportunity to meet with OPA representatives and plead your case for a reduced value.
Mid 2013 (March-June) – Mayor Nutter will submit a budget and a millage rate will be determined using the aggregate value of Philadelphia property taxes. City Council members have already proposed several pieces of legislation aimed at relieving overly burdensome effects of the AVI implementation.
September 2013 – Receive 2014 Tax Bill
AVI Questions Left Unanswered
1) How will this be revenue neutral at the current millage rates being discussed?
2) How will tax abatements be affected? Land values under the AVI are coming in extremely low so many residents with tax abatements should see their property taxes DECREASE.
3) How will the City handle large commercial properties facing dramatic tax reductions?
Interesting AVI Links
AVI Calculator – http://avicalculator.phila.gov/
Analysis of AVI Tax Winners and Losers – http://articles.philly.com/2013-02-18/news/37146008_1_tax-bills-nutter-s-actual-value-initiative-property-tax
First Level Appeal Process – http://www.phila.gov/OPA/Assessments/Pages/Appeals.aspx
Blog post compliments of the CenterCityTeam Philadelphia Real Estate Blog
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Frank L. DeFazio, Esquire
Prudential Fox & Roach Realtors – Society Hill
530 Walnut Street, Suite 260
Philadelphia, PA 19106
215.521.1623 Direct
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