News & Insights

Philadelphia Realizes $7 Million Gain in 2022 Real Estate Taxes by Denying Discount Period

Tax Development Dec 09, 2021

Philadelphia Realizes $7 Million Gain in 2022 Real Estate Taxes by Denying Discount Period

The city of Philadelphia recently mailed its 2022 tax bills, which are payable in March. Historically, a 1% discount had been offered to taxpayers if the bill was paid by February 28. For tax year 2021, the city removed the early-pay discount option, citing a significant budget shortfall related to the pandemic with projections of increasing revenue by approximately $6 million. The city has again decided to not reinstate the discount option in 2022, resulting in another tax revenue increase of approximately $6.9 million.

With efforts to resume the annual reassessment plan, which has been on hold since 2020 because of the pandemic, the city will begin reassessing properties for the 2023 tax year. The last annual reassessment in 2019 increased median values by more than 10%, and the 2020 reassessment boosted values another 3.1%. 

The local Ryan property tax team anticipates taxpayers will see another increase in values. New values to take effect for the pay-2023 tax year should be available in January 2022, with an informal appeal deadline in March 2022. We encourage clients and owners of commercial properties in the city to contact us with questions and to discuss a customized strategy and approach for tax minimization relative to the underlying property type.

TECHNICAL INFORMATION CONTACTS:

Kurt Lieberman
Principal
Ryan
215.405.0410
kurt.lieberman@ryan.com

Renée Bell
Director
Ryan
215.900.1148
renee.bell@ryan.com

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.