A Shaken Tax Landscape

Philadelphia Inquirer ^ | 02/05/2013 | Troy Graham and Dylan Purcell

[Kid Shelleen]

The politicians and analysts have been talking for more than a year about the potential winners and losers from Mayor Nutter's property tax reform, and now the lines have been drawn.

The results of a citywide reassessment key to Nutter's Actual Value Initiative (AVI) were released Friday, and the data confirm some long-held expectations - wealthier, fast-changing neighborhoods are facing stiff increases, and many large commercial properties will see big drops in their bills.

Some hikes are jaw-dropping. --snip-- It amounts to a massive redistribution of the city's property tax burden, and the stakes for both homeowners and politicians could be enormous. Scrutiny of the data will be intense.

[Paladin2]

Property tax is a wealth tax, but still theft.

[Kid Shelleen]

*** PA Ping ***

[2banana]

Hey - somebody has to pay for the insane public union pension plans of Philadelphia. It is not as though the democrats are going to touch them.

[vette6387]

At least we have Prop 13 to protect us from this stuff (at least for the present) here in California.

[econjack]

Property taxes generally suck because they don't fit squarely into either of the two theories of taxation (i.e., Ability to Pay or Benefits Received). Several years ago, the State of Indiana and Indianapolis went through a reassessment much like Philly just went through. My property tax went from $1785/yr to $4108/yr and it was pretty much the same for the entire city. Adjustments were done at the local level even though the change was statewide.

There was open revolt.

Residents told the politicians that the increase was unacceptable and unrealistic and if the politicians didn't back off, they would be out of a job. As I recall, 17 of 23 City Council members got voted and Mayor Peterson, who was an entrenched Democrat, lost as well. In short order, a deal was struck where they would roll back property taxes and limit annual increases to no more than 2% per year. In return, voters agreed to grant a 1% increase in the sales tax.

It took politicians 22 days to raise the sales tax and almost three years to adjust the property taxes. Philly: Beware of politicians bearing gifts unless they state precisely what the time table for change it.

[P.O.E.]

PA Ping!

If you see posts of interest to Pennsylvanians, please ping me.

Thanks!

Thanks Kid Shelleen for the heads up

[E. Pluribus Unum]

This is just like Obamacare... if you have no money in the bank, it's free. If you have money in the bank, you pay through the nose until you have no money in the bank.

The only thing the crypto-Marxists want is for everyone to be smashed down to the same level of feral government welfare misery.

[Myrddin]

The RATS have a super majority in both houses of the legislature and a sitting hard leftist in the governor. Don't get too comfortable. That Prop 13 protection can be overturned without a vote of the people. I inherited half of my mom's house in San Diego. I promptly sold my interest to my sister. I have no desire to own property in CA. I think my sister is having second thoughts about holding the property now as well. The half she purchased from me lost the Prop 13 protection and was re-evaluated to current market value. The rental market value vs the re-evaluated tax base may well make it impossible to keep the property in a cash flow positive state.

[NittanyLion]

I support this type of reassessment. My personal theory is, since PA reassessments are so infrequent, new properties are taxed at such a high level that it artificially suppresses new housing starts. When we lived in Virginia they reassessed every year, and all properties were generally on a level playing field.

[The Working Man]

Name me any other tax in America that allows the Governments to confiscate aka “steal” more than what the “tax” owed is worth to pay off arrears for not paying that “tax” in the first place.