Philadelphia’s new mayor asked city council to hike property taxes by 4.1% to help fund city schools. The measure is not expected to face harsh opposition. New taxes in Philadelphia may be on the way soon.
Time For New Taxes?
No stranger to increased taxes, the property tax increase is proposed to erase a growing city school budget deficit. Over the next five years, Philadelphia schools are projected to face a $1 billion deficit. The proposed increase in property taxes would seek to eliminate that deficit over the next five years.
Originally, mayor Jim Kenney had asked the city council for a 6% property tax increase. However, that figure was later revised to 4.1%.
The mayor has argued that Philadelphia real estate values increased by 11% in the past year. Given that, the mayor believes the increased taxes can be collected with a minimal impact on homeowners.
Under the original proposal, a homeowner whose home was valued at $113,000 (the past median value) would pay $95 more a year. However, the median home value has risen to $128,100.
The current 4.1% increase would mean homeowners would pay an additional $73 a year, according to numbers provided by the city. Without strong opposition, it seems likely that the measure will pass. However, not everyone is convinced.
Opponents argue that this will have a disproportionately negative impact lower income homeowners. Those making less than $20,000 are paying a much greater share in taxes (at 12%) than those making more than $426,000 (4.2%), according to the Institute on Taxation and Economic Policy.
Will Your Property Taxes Go Up?
It seems like the measure will almost certainly pass. No serious opposition is expected. As a result, homeowners will certainly see an to their property taxes. If you plan on moving to the city of brotherly love, be forewarned that higher taxes await.
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