Note to Gentrifiers, Rich People, and Pretty Much Everyone: Your Taxes Are Going Up Under AVI

According to City Controller Alan Butkovitz, 343,191 properties will experience tax increases under the city’s proposed Actual Value Initiative (AVI) overhaul, compared to 107,603 which will owe less. Here are the five ZIP codes he estimates will experience the highest average annual tax hikes, assuming (optimistically) a 1.25% tax rate. Listed are the annual amounts average properties in each ZIP would owe.

19102: $1,634 (39.8% increase)

19148: $819 (78.4% increase)

19146: $768 (44.6% increase)

19130: $815 (27.3% increase)

19103: $946 (17.5% increase)

I expect not a few of you loyal readers live in these ZIPs, which comprise Rittenhouse, Fitler, Grad Hospital, parts of South Philly and Fairmount, among other neighborhoods. More surprisingly several neighborhoods that would experience big tax hikes aren’t quite so tony as these ones. The highest tax increase–191%–would occur in 19133, a North Philly area not quite known for its rapid gentrification. [Daily News]

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  • http://www.facebook.com/people/Adam-Lang/636581327 Adam Lang

    So you don’t think the 100K households that have been overpaying for years to decades are important?

  • Donny Z

    The folks who bought the $100,000 homes bought those homes under the current tax system. Unless those homes were purchases long, long ago, the buyers were fully aware of what they were getting into when they made those purchases. For instance, you look like a young and smart man. If you purchased one of those $100,000 homes, those higher taxes were factored into your purchase price, weren’t they? Likewise, all of those middle class young people and families who recently purchased homes in neighborhoods like Fishtown, NoLibs and the Grad Hospital (you know, the types of people we are trying to attract to live in the city so that we can get their wage tax revenue) had those low tax payments factored into the purchase price their homes. And the problem is that anyone who purchased in the past few years hasn’t exactly benefited from the broken system. Their homes haven’t appreciated and now they are going to get royally screwed by drastically higher tax payments and underwater mortgages because those higher taxes will decrease their home values. And when those people start heading back to the burbs, we’re all screwed.