Green’s Tool Helps Calculate AVI; Farnese Withdraws Roadblock In Senate

Councilman Bill Green believes imposing an Actual Value Initiative tax rate on properties in this city smells.

“It is clear the move to actual value without knowing the assessed values in advanced is putting the manure before the horse. It stinks,” he said.

In an attempt to clear the fumes, he has published a spread sheet which allows residents and businesses to estimate their potential tax bills should City Council implement the Actual Value Initiative.

On the state level, State Sen. Larry Farnese (D-S. Phila.), who had gathered General Assembly members from the Philadelphia caucus for support for an amendment he introduced to SB 1303, has withdrawn the amendment. It would have changed the way AVI was to be administered. Farnese said it was the caucus’ effort to draw a “line in the sand protecting Philadelphia tax payers from suffering unfairly.”

He did so he said because, after lengthy discussions with Council President Darrell Clarke and the Administration, “I believe the City is now back on a better course in its pursuit of fair property assessments, a course I began advocating for more than three months ago.”

Green’s spreadsheet shows potential tax liability under various scenarios tied to two different revenue proposals: (a) the administration’s proposal to raise $94M in additional revenue for the School District from the real-estate tax; and (b) an alternative proposal to raise $40M in additional revenue for the School District from the real-estate tax and $45M for the District from the “use and occupancy tax,” which is paid on occupied commercial/industrial real estate. The scenarios are presented with and without a $30,000 homestead exemption and gentrification relief. Additionally, the spreadsheet shows the average impact of the proposals for 46 neighborhoods previously chosen for analysis by the administration.

“The average neighborhood results provide the big picture, but for your own tax estimate you can enter data on the first tab,” Councilman Green explained. The spread sheet can be had by logging in to www.greenforphiladelphia.com/AVI.

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