The Council of the City of Philadelphia has determined that:
(1) Numerous long-established residential areas and areas of deteriorated, vacant or abandoned homes and properties located throughout the City of Philadelphia have been targeted for redevelopment and, as a result, are particularly vulnerable to the process of neighborhood change known as gentrification.
(2) Longtime owner-occupants of principal residences throughout the City face the real threat of losing the financial ability to remain in their homes by virtue of the rising market values and consequent property tax assessments which are the hallmarks of a gentrifying neighborhood.
(3) Properties that experience a threefold increase or higher in certified market value, from one year to the next are deemed to have experienced an increase in market value as a consequence of the refurbishing or renovating of other residences or the construction of new residences in the area surrounding the property.
(4) Beginning with assessments performed in calendar year 2018 for tax year 2019, because of changes in market conditions, properties that experience a fifty percent (50%) or greater increase in certified market value, from one year to the next, or that experience a seventy-five percent (75%) increase within a five-year period, are deemed to have experienced an increase in market value as a consequence of the refurbishing or renovating of other residences or the construction of new residences in the area surrounding the property. 718
The Council of the City of Philadelphia therefore deems it to be a matter of sound public policy to provide a Real Property Tax exemption program to relieve the economic burden that gentrification brings to Longtime home owners, thereby enabling them to remain in their homes and neighborhoods.
Notes
| 718 |
(1) Longtime owner-occupant. Any person who, as of July 1 of the year immediately preceding the tax year has owned and occupied the same dwelling as a principal residence and domicile within the City of Philadelphia for at least ten continuous years, or any person who, as of July 1 of the year immediately preceding the tax year has owned and occupied the same dwelling as a principal residence and domicile within the City of Philadelphia for at least five years if that person received assistance in the acquisition of the property as part of a government or nonprofit housing program.
(2) Principal residence. The dwelling place of a person, including the principal house and lot, and such lots as are used in connection therewith which contribute to its enjoyment, comfort and convenience. For purposes of this Chapter, the term may also include a building with a maximum of one commercial establishment and a maximum of three residential units of which one residential unit must be the principal residence of the longtime owner-occupant.
(a) The owner of record, as recorded with the Department of Records; or
(b) An equitable owner, defined as a person, other than the owner of record, who has inherited an interest in the property from the deceased owner of record; a person who has entered into an installment land contract to purchase the property from the owner of record; a person who was the owner of record before a fraudulent conveyance of the property occurred; or a person who can demonstrate some other ownership interest in the property; or
(c) Where the owner of record either is deceased or cannot be located, a person who has registered his or her name with the Department as the person to whom tax bills should be sent and who has been paying such bills for at least the preceding ten years.
(d) Where the owner of record or equitable owner acquired the property from a spouse, due to death or divorce, or from a life partner, due to death or termination of the life partnership, that owner shall be deemed to have been the owner throughout the period of ownership of the transferring spouse or life partner.
(e) Where the owner of record or equitable owner (i) acquired the property from a spouse, life partner, parent, stepparent, child, brother, sister, aunt, uncle, grandparent or step-grandparent, (ii) as of July 1 of the year immediately preceding the tax year, has been resident in the property for at least ten years, and (iii) has paid the majority of the expenses – including property taxes, maintenance and utilities bills – for the property during those ten years, that owner shall be deemed to have been the owner throughout the period of his or her residence in the property.
(4) Eligible property. The principal residence and domicile of an eligible taxpayer under Section 19-3903.
(5) OPA. Office of Property Assessment.
(6) Income. As defined at 24 Code of Federal Regulations (C.F.R.) Section 5.609 (referred to as "Part 5 annual income").
Notes
| 719 | |
| 720 | Amended, Bill No. 140717 (approved December 3, 2014). |
(1) Real property shall be eligible for the exemptions provided for under this Chapter if it meets all of the following conditions:
(a) The property is owned and occupied by a longtime owner-occupant on January 1 of the tax year.
(b) The property is the principal residence and domicile of the longtime owner-occupant.
(c) The property is located in an eligible long-established residential area or area of deteriorated, vacant or abandoned homes and properties as defined by Section 19-3904.
(d) All real estate taxes on the property are current or subject to a payment agreement that is not in default, except in the following circumstances:
(.1) A taxpayer shall not be found ineligible pursuant to this subsection (d) while the taxpayer has an application for a payment agreement pending determination by the Department of Revenue.
(e) (.1) For applications filed in or before calendar year 2018: The property has not previously received an abatement of taxes under Section 19-1303.2, 19-1303.3, 19-1303.4 or 19-1303.5. For applications filed in or after calendar year 2019: The property has not received an abatement of taxes under Section 19-1303.2, 19-1303.3, 19-1303.4 or 19-1303.5 during the time in which the property was owned by the current owner or, where the owner qualifies as an owner under subsection 19-3903(3)(d) or (e), during the time in which the property was owned by the spouse, life partner, parent, stepparent, child, brother, sister, aunt, uncle, grandparent or step-grandparent from whom the current owner acquired the property. 721
(.2) This condition of eligibility shall not apply to a property the owner of which received or benefitted from assistance provided in connection with the acquisition of the property as part of a government or nonprofit subsidized low or moderate income housing program. 722
(f) For each year, the total household income is less than or equal to one hundred twenty percent (120%) of the Area Median Income, adjusted for household size, as established by the U.S. Department of Housing and Urban Development in its most recent publication for Philadelphia County. Notwithstanding this condition, any otherwise eligible household that began receiving the exemptions in this Chapter prior to the 2023 tax year may continue to receive them so long as total household income is, for each year, less than or equal to one hundred fifty percent (150%) of the Area Median Income. 723
(g) Where the owner is not the owner of record, the owner makes a good faith effort to obtain record title within three years of applying for the exemption provided for by this Chapter 19-3900. Upon a determination that the owner has not made the required good faith effort, the OPA may notify the owner in writing that the exemption is being revoked; provided that, the OPA shall not revoke an exemption unless the OPA had previously notified the owner in writing of this obligation at the time of the owner's application or thereafter, and at least three years prior to the revocation. 724
Notes
| 721 | |
| 722 | Amended, Bill No. 181103 (became law March 7, 2019). |
| 723 | Section 2 of Bill No. 120340-AAAA provides: "Subsection 19-3903(f) of The Philadelphia Code, as added by Section 1 of this ordinance, shall take effect upon authorization of the General Assembly, and shall apply to all applications filed before or after such date. All other provisions of this ordinance shall take effect immediately." That authorization was provided by Act of November 27, 2013, P.L. 1077, No. 94. Amended, Bill No. 160012 (approved March 29, 2016); amended, Bill No. 170901 (approved April 18, 2018); amended, Bill No. 220497 (approved July 27, 2022). |
| 724 | Added, Bill No. 181103 (became law March 7, 2019). |
Loading...