Mayor Michael Nutter announced Wednesday that the city has taken a huge leap toward making its Actual Value Initiative of property tax assessments a reality. Citywide assessments have put the approximate taxable value of all Philadelphia residential, commercial and industrial properties at $96.5 billion.
"For decades, our property assessment system was completely broken," Nutter said. "We had a fundamentally bad system that produced inaccurate data, resulting in an unfair system for Philadelphians. Under AVI, properties have been assessed accurately and fairly [and] the tax formula will be easier to understand."
Properties are currently taxed based on an estimated total value of $38 billion.
With the aggregate value pinned down, the projected tax rate for 2014 has been put at 1.3 percent - 1.4 percent if City Council passes the Homestead Exemption relief for longtime owner-occupants whose taxes will drastically increase.