Relevant Commentary, all information Philly (real estate and otherwise), Open Houses, Listings, Happenings, and More — by Jeff “City” Block
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Philly Tax Assessment Update
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Ok, while still far from certain, City Council is working on a framework for how it will handle the 2023 property tax assessments that average a 31% increase for Philadelphia property owners. There were calls to reduce the tax rate or even forego the reassessment altogether, but those never had legs.
What did garner support was expanding two of the city’s three main exemption programs– the Homestead Exemption and the Longtime Owner Occupant Program (LOOP). Originally, the city had talked about increasing the annual Homestead Exemption from $45,000 to $65,000, and in fact, the city already updated its website so you can calculate your 2023 taxes using the $65,000 figure. However, the newest proposal, which seems to have broad councilmanic support at this time, is to double the 2023 Homestead Exemption to $90,000.
Let’s get into the details. As mentioned above, the city has three primary programs that lower property tax assessments. You can only have one exemption at a time (though LOOP takes Homestead into account), so you would obviously go with the one that provides the largest benefit.
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The greatest savings can be achieved from the oft-discussed 10-year tax abatement for new construction and substantial rehabs. This program abates the taxes that would otherwise be based on the improvements made to a property. In other words, if a parcel is assessed at $500,000 and an owner makes improvements of $500,000 the market value would then theoretically be $1,000,000. Under the 10-year tax abatement, the taxes would still be based on the original $500,000, and the $500,000 in improvements would be totally exempt (i.e., $0 taxes on the improvements).
- For building permits pulled prior to 12/31/2021, the abatement is for a full 10 years. Starting this year, Council modified the tax abatement program such that it is a 100% abatement in the first year, 90% in the second year, and so on. The 10th and final year is a 10% abatement. The result is that the abatements starting 1/1/2022 offer 55% of the value of the pre-2022 abatements. The tax abatement remains a very lucrative benefit for new construction developers and owners (and research shows it benefits the city as well).
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The second Philly exemption is LOOP, which protects longtime owner occupants (10 years +) below a certain income cap from a tax increase of greater than 50% (after accounting for the Homestead Exemption). It is a complicated formula, which Council may also change to make it easier to qualify for in 2023. If interested, you can read more about LOOP here.
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The third exemption and the one that applies to all Philly homeowners who don’t have a tax abatement is the Homestead Exemption. If your Philadelphia property is your primary residence and you do not have the Homestead Exemption, then you have missed out on a $630 tax reduction for 2022 and could miss out on a $1,260 property tax reduction for 2023. To confirm, click here, type in your address, and make sure you have it (i.e., the exempt improvement should be $45,000. If it is $0, then you don’t have it). Remember this program is for owner occupants only. If you do not have the exemption (or if you just purchased your home this year), then apply for the 2023 Homestead Exemption here.
- The Homestead Exemption is a progressive program specifically geared to provide a higher percentage of relief to lower-valued properties. If your home is assessed at $200,000, the proposed 2023 exemption of $90,000 would reduce your annual tax from $2,780 to $1,540. A 45% reduction. If your home is assessed at $1,000,000, it will reduce your annual tax from $13,998 to $12,738. A 9% reduction. Everyone saves the same $1,260/year, however.
So, at this time, it appears the 2023 assessments will remain in place and the Homestead Exemption may be doubled. This could change, so stay tuned to Around the Block.
In the meantime, if anyone has any questions about the 2023 assessments, accuracy, appeals, etc., please reach out. I would be pleased to discuss your individual circumstance, and I can recommend attorneys who can help you handle an appeal.
And if you want to read my previous newsletters in this series on the 2023 tax assessments, click here.
I hope you have a great weekend.
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6:00 pm – 7:00 pm
1324 Locust Street #1114
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7 Units Remain Available
7111 Germantown Avenue
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705-11 Pemberton Street #711
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4623 Larchwood Avenue
New Price
Open House Sunday, 12:00 pm – 1:30 pm
5 BD | Family Room | Sun Room | 2 BA | 2,768 SF | Covered Front Porch | Rear Deck and Patio | 2 Car Parking | $1,000,000
Rarely available, beautiful Garden Court twin with original character, on one of the loveliest blocks in the City. In the Penn Alexander Catchment.
This south-facing home offers 5 bedrooms plus a sunny family room, sun room, and 2 full baths. Ideal space, light, and location. Front and side yards, covered front porch, rear deck and patio. 2 car Parking (Garage plus driveway), spectacular light from a multitude of windows on 3 exposures, and wonderful, original 1920’s character throughout, including beautiful leaded glass, original hardwood floors, moldings, trim, doors. Ample closets and storage throughout.
This is one of the city’s absolute best locations. The alley behind these homes is perfect as a place to play, hang-out, and ride bikes, and for neighbor, family, and friend gatherings.
Within blocks of Clark Park and its superb Farmers’ Market, ReAnimator Coffee, Knockbox Cafe, Vagrant Coffee, Local 44, Bottle Shop, Green Line Cafe, Dottie’s Donuts, TacoTaco Mexican, Tampopo, Pop Shop, Renata’s, Clarkville, Baltimore Avenue Restaurant Row, CVS, and much more. Walk to HUP, Penn, CHOP, Penn Vet, Drexel, University of the Sciences. 10 minutes to Center City by car and plenty of convenient SEPTA options. 94 WalkScore. 99 BikeScore.
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This Friday, a block of American Street will be shut down by Old Kensington’s Punch Buggy Brewing for the Big Gay Ice Cream Social First Friday Festival. This event includes LGBTQ performers, local bands, ice cream vendors, makers and artists, food from Escafe, and drinks from Punch Buggy and New Liberty.
- Head to Cavanaugh’s River Deck this Saturday for SWEAT’s massive Pride dance party that features food and drink specials, giveaways, and DJs from Washington, D.C., Atlanta, and Philly.
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This Saturday at Concourse, BOS Philly presents Cyberpunk 2069: The Future is Queer. This underground rave includes performances from renowned DJ Guy Scheiman, a ball pit, and an ice room.
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This year PHL Pride Collective commemorates the 50th anniversary of Philly’s first Gay Pride Day with a weekend celebration that focuses on community events. On Sunday beginning at 11 am there will be a community march that starts at Independence Mall. The march is followed by the PHL Pride Festival in the Gayborhood which features tons of food and drink options, live performances, special youth and family programming, and a relaxation zone for those who need a low-sensory environment.
Photograph & content courtesy of uwishunu.
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Head out of the city to Linvilla Orchards’ for the return of its annual Strawberry Festival. The festival will include strawberry picking and snacking and the creation of Delaware County’s largest strawberry shortcake. There is also the option to purchase tickets for the Pick-Your-Own experience which includes a hayride to and from the strawberry field and an empty pint container to put your berries in.
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Test out samples from more than 100+ flavors of hard seltzer during the day-long Seltzerland event at The Navy Yard. Timed tickets are required.
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Visit West Philly for Porchfest, a daylong music festival with porch performances taking place all over the neighborhood. Check out the full map of performances and pick which ones you’d like to see.
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Head to the American Street Corridor in Kensington for Art for the Cash Poor, an affordable art fair organized by local nonprofit group InLiquid. The fair features art priced at less than $200 and funds go directly to the creators.
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This weekend at Penn’s Landing is the Philadelphia Irish Festival. The festival is a part of the PECO Multicultural Series in which the Delaware River waterfront hosts a bunch of cultural celebrations.
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Visit Elfreth’s Alley for its annual Fete Day which is a traditional 1930s-style celebration with 18th-century flair. This ticketed event includes live music, craft activities, access to the Elfreth’s Alley Museum, colonial games, and a chance for visitors to walk into Elfreth’s Alley homes.
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Head to Cherry Street Pier for the second-annual Logjammin’ Lager Fest hosted by Human Robot. The fest includes a brewer meet-and-greet, live music, food from the Pier Garden, and lagers from over 50 local breweries, including:
Photograph & content courtesy of uwishunu.
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Festivals, Shows, and Beer Week
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This week is the Philadelphia Tango Festival which celebrates the music, history, and movements behind the dance. The festival includes musical performances, dance instruction, panel discussions, and more. And for the first time ever the instructor lineup will be all-female.
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Visit Rittenhouse Square Park this weekend for its twice-a-year Fine Art Show which features works from more than 140 professional artists. This show is also the oldest one in the country.
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Starting this Friday is the start of Philly Beer Week which is the oldest and largest beer week in the country. This 10-day-long event includes tastings, beer-pairing dinners, lectures, and more from bars and restaurants across the city. This Friday, the event begins with a citywide toast. Check out the official Philly Beer Week website for a full list of participating breweries, bars, and restaurants.
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This weekend is the annual The Roots Picnic which is a music festival created by and named after Philly hip-hop band, The Roots. This year’s lineup includes Mary J. Blige (with The Roots), Jazmine Sullivan, Summer Walker, Kamasi Washington, Wizkid, and more. There will also be a podcast stage that features Philly’s Love + Grit.
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This Sunday for the first time since 2019, Alt 104.5’s free summer block party is back. This weekend’s performers include Vance Joy, The Maine, Wilderado, and Jack Kays.
Photograph & content courtesy of uwishunu.
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403 S 42nd Street
NEW PRICE
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7111 Germantown Avenue
OPEN HOUSE SATURDAY
Mount Airy
New Construction
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3 Bed | 3 Bath
$1,029,000
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4623 Larchwood Avenue
NEW PRICE
5 Bed | 2 Bath
$1,000,000
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1629 North Street
NEW LISTING
OPEN HOUSE SUNDAY
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705-11 Pemberton Street #711
OPEN HOUSE SUNDAY
3 Bed | 2.5 Bath
$745,000
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722 S Bancroft Street
OPEN HOUSE SATURDAY
3 Bed | 2.5 Bath
$725,000
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4921 Catharine Street
BRAND NEW LISTING
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2 Bed | 1.5 Bath
$335,000
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1324 Locust Street #1114
OPEN HOUSE FRIDAY & SATURDAY
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As always, please know that I’m humbled by and appreciative of your introductions and referrals. If you have a friend, colleague, or family member that is in need of Expert Real Estate Representation, please have them contact me.
Be assured, I will do my best to exceed their expectations! Thanks for taking the time to read this issue of Around the Block.
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Some imagery in this e-newsletter was sourced via UWISHUNU and Canva.
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