Originally Posted by riccardo426
Can't wait for some renders. I hope they look good.
Aside from this AVI stuff, which I'd love to hear about from the contributors here, I am feeling really good about the state of things in the short term. Keep building!
I support having market value assessments. It makes perfect sense to me that you pay taxes based on the actual value of the property that you own. The thing I have a problem with is the tax increase that is built into AVI.
Just adjusting a property to market value is already going to cause huge shocks to the market why are they adding another 85 million to that problem? I also think it is very irresponsible to increase taxes when the city is already owed $500 million in back taxes that it refuses to collect. There should be a law that no real estate tax increase can happen until tax collections hit a certain % and properties that do not pay go to auction within 12 months.
From a economic/business aspect the thing that scares me the most about the whole AVI thing is the Use and Occupancy Tax on commercial properties. It is currently at 4.62 per $100 of assessed value. For a commercial property under the current system properties are supposed to be assessed at 32% of market value. Since AVI is taking assessments from 32% of value to 100% of value the gross tax rate on the U & O tax should change from 4.62 per $100 of assessed value to 1.4784 per $100 of assessed value. To be tax neutral the rate change needs to happen. As I currently read the U & O tax law the 4.62 is a set rate and will not recalculate to 1.4784 meaning commercial tenants and property owners are about to get a massive tax increase.
To put this into perspective commcerical properties in South Jersey which historically has had real estate taxes was between 2-3 per $100 of assessed value. If they don't change the U & O tax rate commercial properties in Philly will be paying double what South Jersey commercial spaces pay just from the U & O tax which does not even bring the regular real estate tax into consideration. I am very worried about what will happen if the U & O rate is not changed. I think it will drive a lot of business out of the city and into the suburbs and kill commercial propert values all in one quick stroke.
I just really hope I am missing something here.