On Philly’s 31% property assessment spike - What do you need to know?

For the first time in 3 years, Philadelphia residents will be reassessed on their property value which could result in an increase in property taxes here is an article from Inquirer that breaks down everything you need to know.

Here are the essential points from the article:

1. You may visit the city government's website, to check the new values. Type in your property address and look for the “assessed value” number on the left side. The 2023 value is the new assessment. You can also see your property’s previous assessment values here for comparison. These new values are the new assessments that represent the estimated value of your property, which the city uses to calculate your annual tax bill.

2. To estimate your annual property tax bill, you can use a regular calculator to determine 1.3998% (the city’s current real estate tax rate) of your current assessed value. The tax rate — and the value of tax-relief programs such as the homestead exemption for owner-occupied homes — could change before City Council finalizes a new budget in June. But to know what your bill would be if those stayed the same, multiply your assessed value by .013998. (If you have a tax abatement or homestead exemption, you’ll want to subtract the amount you see under “exempt improvement” in your property data from the assessed value before multiplying.)

3. The new taxes will be effective next year. All new assessments will apply to tax bills on March 31, 2023.

4. There are ways where you can lower your taxes, you have to look for existing relief options. If your property is your primary residence, the homestead exemption is the best place to start. This tax break for owner-occupied properties reduces the taxable assessment by $45,000 — or about $629 a year. Note: December 1 is the deadline to apply for the upcoming tax year. Not sure if you have the homestead exemption? Look up your property address on the city’s website. Look at the “exempt improvement” column for 2023. If you see $45,000 listed here, you’re already enrolled in the exemption.

5. If you think the values do not match what you have calculated, you can always make a dispute. There are both informal and formal appeal processes. The Office of Property Assessment offers informal reviews of assessments, known as a “first-level review.” A form to request that review, in which assessors will take a second look at your assigned value, will be included in a mailing from the city notifying property owners of their new assessments. To file a formal appeal, go to this website and follow the steps to submit a review to the Board of Revision and Taxes before the first Monday in October. Do some homework first. You’ll have to explain why your property’s 2023 assessed value is unfair relative to comparable homes. Simply arguing “it went up too much” won’t get you very far.

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