City of Philadelphia

Impact of the Mayor’s Property Tax Proposal for Schools on Different

Properties in Philadelphia

WHY DO OUR SCHOOLS NEED FUNDING?

Philadelphia public schools need additional revenues to help improve educational outcomes for our young people. These funds would provide more teachers, reduce class sizes, provide advanced programming for students to thrive, and help make sure that, when needed, students would receive social, emotional, and behavioral health supports.

The Mayor has proposed a property tax increase that will provide recurring, stable funding for schools beginning next year, that will not impact City services.

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WHAT IS THE IMPACT ON HOMEOWNERS?

The median or middle home value in Philadelphia is over $113,000. Half of all properties are valued below the median while the other half have home values above this middle point.

The Mayor’s proposal would increase the median property tax bill by $104 dollars annually – less than $9 per month.

Over 42% of Philadelphia’s residential properties are valued below $100,000. For these properties, the additional tax would be under $88 annually – less than $7.50 per month.

82% of homeowners will pay less than $213 per year in additional taxes – less than $18 per month.

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199,807 188,948

52,209

15,543 7,802 8,611

0

50,000

100,000

150,000

200,000

250,000

$0-$99,999 $100,000 to $199,999

$200,000 to $299,999

$300,000 to $399,999

$400,000 to $499,999

Greater Than $500,000

Nu

mbe

r of

Hom

es

THE MEDIAN PHILADELPHIA HOME VALUE IS $113,100

Median Home Value: $113,100

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The median or middle home value in Philadelphia is over

$113,000: 50% of homes values fall below the median 50% of homes fall above the median

ALL CITY PROPERTIES

Property taxes are paid not only by homeowners, but also on commercial and industrial properties, stores with dwellings, hotels and apartments, and vacant land

Among all city properties, 44% are valued below $100,000.

Only 4% are valued at $500,000 or above.

However, the majority of the city’s taxable assessed value is attributable to higher value properties.

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All City Properties – Count by Market Value

All City Properties – Taxable Assessed Value

$11

$26

$12

$6 $4

$33

$0

$5

$10

$15

$20

$25

$30

$35

Less Than $99,999

$100,000 to $199,999

$200,000 to $299,999

$300,000 to $399,999

$400,000 to $499,999

Greater than $500,000

Bil

lion

s

44%

36%

10%

4% 2% 4%

0.0% 5.0%

10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

Less Than $99,999

$100,000 to $199,999

$200,000 to $299,999

$300,000 to $399,999

$400,000 to $499,999

Greater than $500,000

Per

cen

tage

of

All

Cit

y P

rop

erti

es

Residential Residential

Vacant Land

Vacant Land

Hotels & Apts.

Hotels & Apts.

Commercial

Commercial

Store/Dwelling

Store/Dwelling

Industrial Industrial

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Types of City Properties Share of Tax Increase

82%

8%

5%

3%

1% 3%

3%

18%

14%

2%

60%

3%

WHO WOULD PAY THE TAX? Impact by Type of City Property

The impact of the proposed tax increase will be heavier on commercial properties and higher priced homes: • Residential properties make up more

than 80% of all properties in the city. However, only 60% of the additional tax revenue would come from residents.

• Commercial properties account for less than 3% of all properties but would generate 18% of additional property tax revenues.

• Hotels and apartments make up 5% of all city properties but would pay 14% of additional tax revenue

• Industrial properties, stores with dwellings, and vacant land make up the remaining properties within the city that pay property tax

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WHO WOULD PAY THE TAX? Impact on All City Properties

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44%

36%

10%

4% 2% 4%

12%

28%

13%

6% 4%

36%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Less than $100,000

$100,000 to $200,000

$200,000 to $300,000

$300,000 to $400,000

$400,000 to $500,000

Greater than $500,000

All City Properties - Distribution by Value and Share of Proposed Tax Burden

% of All Properties Share of Increased Tax Revenue

All City Properties: • Properties with values over $200,000 make up less than 20% of all properties

but almost 60% of the total additional property tax revenue. • Properties worth more than $500,000 make up only 4% of all properties but will

provide 36% of the total additional tax revenue.