Under Philadelphia’s tax reform plan, taxes would be paid based on the property’s actual value instead of the outdated figures currently used by the city. This is good news for the 10 largest commercial taxpayers in the metropolis, which include Franklin Mills Mall, Center City office Towers and the shipyard in South Philadelphia. Their owners could end up paying 45 per cent ($17.5 million) less in property taxes next year.
For a number of years, commercial properties in the area have been assessed on real market values. Most residential properties were not assessed in the same way. As a result, commercial property owners ended up paying more than their fair share of property taxes.
Reaves C. “Trip” Lukens III, a private real estate appraiser in the city, stated, “It’s been a great week for the office-building owners. They’ve been getting the shaft for about 20 years, so it’s about time.”
Depending on where City Council sets the tax rate, commercial property owners could see their property tax bills drop by 26 per cent ($56 million). The exact rate will also depend on whether Council adopts a homestead exemption for residential properties. (These figures are based on a 1.25 per cent rate.)
Lukens went on to say that in his opinion, some commercial properties in the City of Brotherly Love are overvalued. He named Two Penn Center as an example. The property, which is located at 1500 John F. Kennedy Blvd., was assessed at $66 million last fall but the City’s Office of Property Assessment valued it at approximately $81 million. The difference in values between the two assessments is 23 per cent.
Under the tax reform plan, the tax bill for the property would be reduced by an estimated $241,598 or 19 per cent, to approximately $1 million. It currently stands at $1.25 million.
Previous Post
Rural GP Surgeries Facing Closure
