PHILADELPHIA (KYW Newsradio) — Philadelphia Mayor Jim Kenney signed $500 million in tax relief into law on Wednesday. Now, property owners just have to apply for it.
Kenney signed bills expanding the Homestead Exemption for people who live in homes they own. The city says that with the exemption, the assessed property value drops by $80,000, meaning a reduction of about $1,119 in estimated property tax payments in 2023.
He also signed an expansion of the Longtime Owner Occupants Program (LOOP) for those with steep assessment increases and moderate incomes, and the Senior Citizen Real Estate Tax Freeze for homeowners over 65 years old who meet certain income requirements.
These moves were part of budget agreements Kenney made with City Council in June.
All this is meant to prevent the new property tax assessments from forcing anyone from their homes. The new assessments, announced in May, raise residential property taxes by an average of 31% citywide.
Johnathan Sgro, supervising attorney with Community Legal Services, forecasted at the time that certain neighborhoods with low-income residents would be impacted dramatically and disproportionately by the new assessments.
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Community Legal Services senior attorney Monty Wilson said Wednesday his clients had seen assessment increases of up to 275%.
“Without these programs, they would lose their homes. With these programs, they will be fine,” said Wilson. “That is all the difference in the world.”
The relief is not automatic, though. Homeowners have to sign up.
Councilmember Kenyatta Johnson said that is why Council appropriated $4 million for outreach.
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“We’re going to have a very, very robust community engagement process to make sure that people are informed about what’s best for them as it relates to tax relief,” said Johnson.
The relief measures will cost the city $270 million over five years. The School District of Philadelphia will lose $325 million in funding.
The new assessments should start arriving in the mail September 1.
Click the following for information and sign-up links:
- Homestead Exemption
- Longtime Owner Occupants Program (LOOP)
- Senior Citizen Real Estate Tax Freeze