Now that data is available for the Nutter administration’s Actual Value Initiative (AVI), it’s time to take a look at how the city’s new property tax assessments will impact the tiny Unit Block of W Rockland Street, home to forty-six century-old row homes on W Rockland St. The estimates below are based on AxisPhilly’s property tax map, which shows how taxes would change for most properties if Philadelphia City Council passes a tax rate of 1.34% and a $30,000 Homestead Exemption.

W ROCKLAND STREET IN A NUTSHELL

• Property types include homeowners, full house market rate rentals, row homes converted into full apartments, rooming houses, and full house subsidized rentals, which breaks down to twenty-eight owner-occupied households and fifteen rental properties (all types). Three properties are currently vacant, a new and unfortunate development.
• The rentals are divided into: nine full house rentals (three market rate; five Section 8 – PHA/Housing Choice Voucher subsidies); two rooming house apartments (full house, not converted); and four houses converted into apartments.
• There are six vacant lots – all maintained by block residents. St. Francis of Assisi Parish (now closed) and The DePaul Catholic School are also part of the block, at the corner of W Rockland and Greene Streets. The two properties are owned by the Archdiocese of Philadelphia.

WHAT AVI LOOKS LIKE ON W ROCKLAND

2013 property tax bills for W Rockland St were listed at $600 for just about every house. In 2014, every property on the block will see an increase under the new AVI.  It’s appears that property assessments are still considerably off, both on the low and high end, as property conditions vary dramatically throughout the block. I am less interested in the “actual value” per se, and most curious about tax percentages and dollar increases.

Thirty-one W Rockland St households will see property taxes increase by 91 – 112%, while fifteen households will see taxes rise by 40 – 55%, according to 2013 to 2014 estimates.

Of the forty-six total units, sixteen households were approved for Homestead Exemption, which is only available for owner-occupied properties. Those approved for exemption will see tax increases of 40 – 120%, up from 2013 with an average increase ranging from $239 – 650.

As of Feb. 21, there are thirteen households on the block that did not receive Homestead Exemption (that are not rental properties), either because the property owners were ineligible or didn’t apply. Rental and owner-occupied households not eligible for Homestead will see tax increases of 91 – 122%, up from 2013 with an average increase of $544 – 724. (You can still apply for Homestead Exemption through July 31, 2013 online or by calling 215-686-9200.)

It is important to note that W Rockland St, located in SW Germantown, is a low-income block with many residents living below poverty level, a high number of retirees and senior homeowners, and nonworking families. Based on our knowledge of the block, it is easy to see the divide in the chart. The W Rockland St households approved for Homestead Exemption as of now are nearly all long-term residents of 20+ years, working or middle-class, and consistently engaged in block-wide civic activities. These residents would by nature and opportunity be more aware of major city initiatives, like AVI and tax relief efforts.

For neighborhood perspective, according to U.S. Census data, the median household income in Germantown is $29,849 and 28.2 % of citizens live below poverty level (zipcode: 19144).

Since they are ineligible for Homestead, the block’s rental properties will see the highest property tax increases. It is very unclear how the rise in tax will affect rental rates, particularly among privately-owned rentals subsidized by the Philadelphia Housing Authority’s Housing Choice Voucher program. Will rents rise on W Rockland St to accommodate changes? Will the price be absorbed by the property owner or the tenant? Will PHA adjust the dollar amount of voucher assistance to accommodate rent increases? We are left with many questions on this front.

Having been woefully under-accessed for years, we agree with the reasoning behind the Actual Value Initiative, and do not think the figures above are outrageous. Still, the estimated adjustments give pause for concern considering the demographics of our community.

BY THE NUMBERS

address	property type	estimated property tax % increase	estimated 2014 tax rate	dollar increase from 2013 rate	homestead exemption (as of 2/21)
12	homeowner	55%	$929	+ $329	Yes
14	homeowner	55%	$929	+ $329	Yes
15	vacant lot
16	homeowner	40%	$839	+ $239	Yes
17	homeowner	121%	$1,324	+ $724	No
18	homeowner	46%	$874	+ $274	Yes
19	homeowner	122%	$922	+ $506	Yes
20	homeowner	113%	$1,276	+ $676	No
21	rental: full house	121%	$1,324	+ $724	No
22	vacant house	113%	$1,276	+ $676	No
23	homeowner	122%	$922	+ $506	Yes
24	rental: full house	112%	$1,273	+ $673	No
25	homeowner	121%	$1,324	+ $724	No
26	homeowner	45%	$871	+ $271	Yes
27	homeowner	54%	$922	+ $322	Yes
28	rental: full house	112%	$1,273	+ $673	No
29	homeowner	54%	$922	+ $322	Yes
30	homeowner	112%	$1,273	+ $673	No
31	homeowner	121%	$1,324	+ $724	No
32	homeowner	45%	$871	+ $271	Yes
33	homeowner	54%	$922	+ $322	Yes
34	homeowner	112%	$1,273	+ $673	No
35	homeowner	121%	$1,324	+ $724	No
36	rental: full house	112%	$,1273	+ $673	No
37	rental: rooming house	121%	$1,324	+ $724	No
38	homeowner	46%	$874	+ $274	Yes
39	homeowner	121%	$1,323	+ $723	No
40	homeowner	46%	$874	+ $274	Yes
41	rental: rooming house	121%	$1,323	+ $723	No
42	rental: full house	113%	$1,276	+ $676	No
43	rental: full house	121%	$1,323	+ $723	No
44	homeowner	55%	$929	+ $629	Yes
45	vacant house	115%	$1,288	+ $688	No
46	rental: full house	113%	$1,276	+ $676	No
47	homeowner	54%	$921	+ $321	Yes
48	homeowner	113%	$1,276	+ $676	No
49	homeowner	108%	$1,250	+ $650	Yes
50	rental: converted apartments	113%	$1,276	+ $676	No
52	homeowner	46%	$874	+ $274	Yes
54	vacant lot
56	vacant lot
58	rental: full house	113%	$1,276	+ $676	No
60	lot (owned by 58)
62	homeowner	113%	$1,276	+ $676	No
64	rental: full house	113%	$1,276	+ $676	No
66	rental: converted apartments	91%	$1,144	+ $544	No
68	vacant house	113%	$1,276	+ $676	No
70	homeowner	113%	$1,276	+ $676	No
72	rental: converted apartments	91%	$1,144	+ $544	No
74	rental: converted apartments	93%	$1,158	+ $558	No

ACTUAL VALUE INITIATIVE READING LIST. OMG!

• *NEW* For thousands, homestead exemption a big secret by Jan Ransom | Philadelphia Daily News
• *NEW* Mapping where homestead exemption applications lag | AxisPhilly
• The Tipping Point by Isaiah Thompson | AxisPhilly
• Philadelphia real estate agents nervously await the effect of new property assessments | Philadelphia Inquirer
• Taxipedia by Holly Otterbein | NewsWorks WHYY
• Inquirer Editorial: Don’t jump the gun with AVI adjustments
• A Shaken Tax Landscape by Troy Graham and Dylan Purcell | Philadelphia Inquirer
• Some neighborhoods struggling with likely huge tax increases by Aubrey Whelan | Philadelphia Inquirer
• In some neighborhoods, relief at the new assessment plan by Aubrey Whelan | Philadelphia Inquirer
• Philadelphia Daily News – AVI coverage

TOOLS

• The City of Philadelphia’s AVI Calculator
• Office of Property Assessments
• AxisPhilly’s property tax map
• Apply for Homestead Exemption: Applications will continue to be accepted until July 31, 2013
• Appeal your assessment