Tax & Accounting Blog

How Do Philadelphia’s Recent Changes in Ratio Affect Your Property Value?

Commercial Real Estate, ONESOURCE Property Tax August 6, 2011

After years of using the common level ratio (CLR) of 32%, for tax year 2012 the State Equalization Board has proposed that the City of Philadelphia use the CLR of 18.1%. This will cause a dramatic 77% increase in the assessor’s market value of all properties within the City limits. 2011 saw an 11% increase in the tax rate, and the City Council recently voted for another increase of 3.85% for the 2012 tax year.

With two years of tax increases, and now a change in market value, we urge all who own real estate in the City to contact Peter Stork at (215) 606-6263, to discuss properties that may be overvalued in the City of Philadelphia.

 The deadline to file an appeal for 2012 is October 3rd.

A long awaited City wide revaluation for Tax year 2013 is proposed but it it is unclear if the city will enact the revaluation.