2019 Property Tax Assessments Increased
Philadelphia has increased property values for the 2019 year, with a home value spike of 10.5% across the city. The median market value for single-family homes increased from $112,800 to $124,600. 48 out of 57 neighborhoods saw their home values increase. Up-and-coming neighborhoods were hit the hardest. Brewerytown and Strawberry Mansion saw home value increases of 47.1% between 2018 and 2019.
How Properties are Assessed
The Office of Property Assessment (OPA) has recently changed the way they reassess properties. In 2014, the Actual Value Initiative (AVI) was implemented, meaning land and buildings were now assessed at their current market value, or what they would go for in the current marketplace. On their website, the OPA explains that they consider a number of factors when determining the assessed value of a certain property, including:
- size and age of property
- location and condition
- property’s use (home or business)
To help determine market value, the OPA also uses recent sales of similar properties as well as field inspections, aerial photography, and data they collect from other city departments, including permits and deeds.
Many homeowners are finding these large increases in property values alarming and unfair, and instead feel that their property values shoudl increase gradually, so they aren’t hit with enormous tax increases in the course of just one year. One tax relief program that property owners in Philadelphia can take advantage of is the homestead exemption. The homestead exemption offers some real estate tax savings for Philadelphia homeowners by reducing their property assessment by $30,000. You can even apply online. Mayor Kenney has proposed increasing the homestead exemption from $30,000 to $45,000 to help relieve lower income families of their increasing tax bill.
The Future of your Real Estate Taxes
Most residents were not prepared for such a significant increase in their property value which will directly affect their real estate taxes. On top of that, Mayor Kenney has proposed an additional 4.1% property tax increase to help further support Philadelphia schools. The future of your real estate taxes will be a topic of discussion in the months to come, and be on the lookout for more information on property assessments in your neighborhood.
To check your own property value assessment, you can visit the city’s site here.