Philadelphia Homestead Exemption
Much has been said about the Board of Revision of Taxes (now Office of Property Assessment) implementation of the “Actual Value Initiative” (AVI) which hopes to accurately value properties for real estate tax purposes and finally put an end to the well documented inconsistency and unfairness that has plagued Philadelphia. Philly.com had a nice piece this weekend which brought attention to the Philadelphia Homestead Exemption. Philadelphia Homeowners can apply for a Homestead exemption that will provide some relief to those hit hardest by the new AVI. How the Philadelphia Homestead Exemption will work or how much relief will be granted is not entirely clear but some Philly.com reports that sources are saying new property assessments could be reduced by $15,000 – $40,000. Here are some of the key points of the Philadelphia Homestead Exemption:
1 Homeowners can apply for the Philadelphia Homestead Exemption until July 31, 2012
2 Primary residences of all homeowners are eligible regardless of age or income.
A copy of the application for the Philadelphia Homestead Exemption Application is here.
After completing the above form, Philadelphia Homestead Exemptions will be included with property tax assessment change notices which will be mailed to homeowners in the fall of this year.
Heres are some bullet points from Mayor Nutters letter regarding the Philadelphia Homestead Exemption:
1 The Philadelphia Homestead Exemption means that if you own your home, you can qualify for a reduction of your homes reassessment, and therefore reduce your tax bill.
2 There are no age or income restrictions and all homeowners in the city are encouraged to apply for Philadelphia Homestead Exemption.
3 To be eligible for Philadelphia Homestead Exemption, you must own your own home and live in it.Qualification is simply based on whether the home is your primary residence-that is, if you own your home and live in it, too.
4 After the Philadelphia Homestead Exemption application has been approved, you do not need to reapply each year unless the deed to the home changes.
5 If your home is assessed at a value of $100,000 and there is a $15,000 Philadelphia Homestead Exemption, you would only pay taxes based on $85,000 compared with the actual value of $100,000-providing you with a savings.
6 The process to apply for a Philadelphia Homestead Exemption is easy, just fill out the Homestead Exemption form, and mail it in. You can also go online to www.phila.gov to apply. All applications must be received by July 31, 2012. The deadline for applications is July 31, 2012. Visit www.phila.gov or call 215-686-9200 for more information.
I guess well just all have to wait and see how things play out with the Philadelphia Homestead Exemption!
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Blog post compliments of CenterCityTeams Philadelphia Real Estate Blog