So how is full/fair market valuation playing out in the neighborhoods? (The Next Mayor)

Answer: not so good.

In South Philadelphia, residents are looking forward to the Board of Revision of Taxes new plan to set assessments at 100% of market value with the same anxious anticipation for a visit to the proctologist. The article is a little disappointing, though, in that it fails to mention a lot of crucial facts about the revaluation. It focuses instead on the fears of residents who really seem to be in the dark about the process.

Though full-market valuation, which uses 100 percent of market value instead of a percentage — now 32 percent — to obtain a home’s assessed value, is on hold, it’s still on the table and this is the second time in as many years residents have come closer than they would have liked to it. Full-market valuation, if and when it is implemented, would most likely spike property taxes by forgoing the use of the percentage. (emphasis mine)

The way I understand it, it's not totally clear that all properties would see their tax bills increase and it's certainly not clear that they "would most like spike." Some, whose assessed values are ridiculously low now, may see an increase. Others, not so much. The article also fails to take into consideration the role that City Council will have when it comes time to set the actual property tax rate.

If City Council remains committed to making this a "revenue neutral" change, then they'll set the rates low enough to avoid a windfall tax increase.

This a very complicated issue that's going to require diligence on the part of elected officials to educate people about why it needs to happen and what can be done to ease the pain. That's the hard road and it includes enacting a lot of complex legislation to bring down tax rates, put buffers in place and get changes at the state level. With a city government that's used to taking the easy way out, it seems pretty clear that the full/fair (whatever you want to call it) value assessment will probably sit on a shelf for a while.

More info about the Full/Fair Valuation project can be found at Philadelphia Forward and the BRT's website.

Comments (8)

Mark Chalupa:

I know my property tax is way too low. I believe the 100% valuation is the fairest, but I am wondering if the city council has the guts to take the heat for setting the tax rate. My biggest concern is for the people with fixed incomes. It is my belief that the increase should be incremental in order to avoid sticker shock.

Posted by Mark Chalupa | August 18, 2007 9:04 AM

Well, got my tax property tax notice. It went up $6. Guess I will have to get a second job to pay that increase.

Posted by Mark Chalupa | August 23, 2007 7:56 AM

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