City Council is terrified of what the new property values are going to look like in gentrifying areas like Northern Liberties and Fishtown, and if the early leakings are to be believed, many landowners in growing neighborhoods are going to be in for some sticker-shock.
It is worth pointing out though that while Council is certainly to blame for letting the values be so wrong for so long, some of the tax increase is self-inflicted. Tax rates could be lower if folks didn’t lose their minds every time somebody wants to build new housing in the neighborhood. The more properties there are on the tax rolls, the lower the rate can be.
People might wish there were some more buildings to tax when the new values come in the mail, like these 7 apartment buildings proposed for a 15,000 sqft vacant lot in Fishtown:
According to a story from Broad Street Media, the community response to the project was very split. At an FNA meeting two weeks ago, the neighborhood “supported” the project with a vote of 18-17, but the vast majority of near neighbors to the project came out in opposition. Reasons for opposition varied. Several neighbors opposed the height of the properties on Blair, which would admittedly dwarf the three two-story homes on the block, but would be comparable to two new homes that just got built on Hewson Street. Others opposed the contemporary look of the project, which people said was too boxy. Others still said the project would ruin the neighborhood’s character.
(via NakedPhilly)
Except that new construction gets a 10 year property tax abatement, so anything built since 2003 wouldn’t be on the rolls anyway.
True, but not sure what that changes about the situation. Still need to start adding more properties, even if there’s a lag between now and when they start contributing to the tax rolls. My preference would be to tax mostly land, with only a tiny millage rate for buildings/improvements. Could give buildings a 5-year abatement, and tax the land value the whole time.
What it changes is that there will be a larger need for services while those properties are not adding to the tax coffers. I’m for tax abatement that draws new building for homes in the city, but ten years is a burden on my tax bill, being in an older home. It will pay off eventually, though.
That’s one reason why I like the idea of a land tax, with a very small tax on improvements. There would still be an abatement on new construction and buildings. But you wouldn’t have to give up or wait for any revenue, because you’d still be collecting taxes on the land portion.
Two upsides to it is the more residents we have, the more Philadelphia wage taxes collected. And the more people here means more sales tax purchases, of which 2%(?) goes to the city.