In May, Philadelphia released the results of its first citywide re-assessment of property values since 2019. These are the values the City uses to calculate annual property tax bills. When the valuations were conducted this year, local homeowners on average saw an increase of 31 percent in the value of their homes. However, in rapidly gentrifying neighborhoods, like Norris Square, West Philadelphia, and Brewerytown, homeowners’ property values may have increased much more than 30 percent.
An analysis performed by the Philadelphia Inquirer found that working class, Black and Latino homeowners are seeing the largest hike in property value assessments, putting longtime homeowners at risk of displacement in these rapidly gentrifying neighborhoods.
While the property value assessments have been available on the Office of Property Assessment’s website since May, the paper forms were not mailed to homeowners until September, and now the deadlines to appeal the new assessments have arrived. The deadline for an appeal to the Board of Revision of Taxes was October 3rd, and the deadline to complete the “First Level Review” informal appeal is October 14th. Advocates are advising homeowners wishing to challenge their 2023 assessments to file both types of appeals, even if the deadline for the appeal has already passed.
The paper assessment form mailed to homeowners (Notice of Valuation) includes information about the new assessed value of the property for the upcoming tax year. But the notices do not include an estimate of the homeowner’s new property tax bill. The city has listed information online to help homeowners understand the assessment form. Homeowners can view an estimate of their 2023 tax bills online.
If you believe the city has assessed the value of your property incorrectly, there are a few options to try to lower your assessment. The first is to fill out a formal appeal to the Board of Revision of Taxes. On the appeal form, homeowners must select one of the following reasons for the appeal:
a) Overvaluation (the assessed value is too high)
b) Non-uniformity (your assessed value is higher than similar houses in your neighborhood), or
c) Other (e.g., the city based its assessment on incorrect information, like the condition of your home)
After selecting the primary reason for the appeal, the homeowner should write what they believe is the correct market value for their house (i.e., what they believe their house is worth). This form can be mailed or emailed to the Board of Revision of Taxes. The mailing address and email address are included on the appeal form.
Another option is to submit an informal appeal, called a “First Level Review.” This form was mailed with the Notice of Valuation. If you misplaced this form or never received it, you can call (215) 686-9200 for a replacement. This form also requires you to select the reason for the appeal and provide a description as to why you believe the property assessment is incorrect. This form needs to be mailed to the Office of Property Assessment, P.O. Box 51498
Philadelphia, PA 19115.
In addition to filing an appeal if you think your assessment is too high, there are several property tax relief programs that may reduce your annual tax bill. The easiest program to apply for is the Homestead Exemption, because there are no income or age restrictions. Generally, if you own your home and live in it, you will qualify for this exemption. The Homestead exemption will take $80,000 off the assessed value of your home (so if your house was assessed at $120,000 and you qualify for the Homestead Exemption, your tax bill will be calculated based on a value of $40,000). This program reduces a homeowner’s annual tax bill by approximately $1,120/year. The deadline to sign up for the Homestead Exemption is December 1st. Homeowners can apply for the Homestead Exemption online.
Senior homeowners should check to see if they are eligible for the Low-income Senior Citizen Real Estate Tax Freeze. This program will freeze a senior homeowner’s tax bill at the prior year’s amount (no future increases). Due to a recent change, senior homeowners can now enroll retroactively to when they first became eligible (back to 2018). The Senior Freeze has age and income restrictions. Applicants must be 65 or older or 50 or older for widows of a spouse who was 65 years or older. The maximum annual income for a single applicant is $33,500 and $41,500 for married couples. More information about this program is available online.
Finally, homeowners in rapidly gentrifying neighborhoods who have lived in their homes for at least 10 years should see if they are eligible for the Longtime Owner Occupants Program (LOOP). This program can limit the increased assessment to 150% or 175% and lock-in that assessed value for as long as the homeowner remains eligible. There are eligibility restrictions for this program as well. Importantly, some homeowners may save more initially with the Homestead Exemption, but LOOP could keep their costs lower in the long run. The best way to learn about which program to choose would be to speak a representative at organizations like Community Legal Services (CLS) and Esperanza.
For low-income homeowners in need of assistance:
Call Save Your Home Hotline: 215-334-4663
Call CLS intake: 215-981-3700 (Tuesday, Thursday, and Friday 9 am-12 pm)
CLS walk-in intake: 1410 W. Erie Avenue, Philadelphia, PA 19140 (Monday and Wednesday 8:30 am -12 pm)
For assistance applying to tax relief programs, homeowners can also call Esperanza to request an appointment with a Benephilly counselor at (267) 289-1067.
Esperanza is located on 4261 N. 5th St. Philadelphia, PA 19140 and is open Monday through Friday, 8:30 am to 5 pm.
This article is part of the Esperanza Community Anti-Poverty Project, which informs and engages Latinos on key policies and programs impacting their social and economic well-being. The Anti-Poverty Project thanks Philly First for their article. You can contact Philly First at PhillyFirstTL@gmail.com.
