PHILADELPHIA (KYW Newsradio) — Philadelphia’s city controller says the city and school district are losing millions of dollars in revenue from people who improperly claim a homestead exemption on their taxes.
The homestead exemption allows homeowners to deduct the first $100,000 of value from the tax bill for their primary residence, which reduces property taxes by about $1,400.
However, Controller Christy Brady said her office’s investigation found people taking the exemption on multiple properties, including businesses with rental properties and people who don’t even live in the city.
She estimates it’s costing the city and school district about $30 million a year.
Brady began investigating abuse of the homestead exemption two years ago.
The Philadelphia Revenue Department is now auditing all of the tax relief programs. Last week, the department announced that it had removed more than 13,000 property owners from various programs, resulting in $33 million in additional revenue.
Brady recommends strengthening the verification process for tax relief and considering penalties and back payments for those taking the exemptions improperly.
Officials estimate it’s costing city and school district $30 million a year
Officials estimate it’s costing city and school district $30 million a year
