Assistance Programs Requirements
The Department of Revenue understand that circumstances can prevent residents from being able to pay their Real Estate and/or Water bills. Help is available through a variety of assistance programs for senior citizens, rental tenants, low-income households, owner-occupied residences and others.[-]
Longtime Owner Occupants Program (LOOP)
Homeowners with substantial changes in their property assessment may qualify for a discount of their Real Estate Tax bill with the Longtime Owner Occupants Program (LOOP). There are income and other requirements to participate in the program. Apply on-line at www.phila.gov/LOOP
by February 17, 2014 for this discount.
Tax Rate Changes
Effective January 1, 2014 the monthly interest rate is .416% and the penalty rate 1.25% for all taxes except Liquor and Real Estate.
The following tax rate changes became effective as of January 1, 2014:
Business Income & Receipts decreased to 6.43% and the Real Estate decreased to .6018% (City) + .7382 (School) = 1.34%
The following tax rate changes will become effective as of July 1, 2014:
Earnings decreases to 3.92% (resident); 3.4915 % (non-resident)
Net Profits decreases to 3.92% (resident); 3.4915 % (non-resident)
School Income decreases to 3.92%
Wage decreases to 3.92% (resident); 3.4915 % (non-resident)
Owner-Occupied Real Estate Payment Agreement
The Owner-Occupied Real Estate Payment Agreement allows homeowners to make monthly payment on their past due Real Estate taxes. Monthly payments are calculated using a four-tier system based on household income and family size.Owner-Occupied Real Estate Payment Agreement Application Packet
Using a family of four as an example:
Tier 1: Monthly income is $4,622 and up.
Tier 2: Monthly income is $3,301 - $4,621. These households must pay 10% of their monthly household income. They are entitled to a waiver of 100% of the penalties that have accrued.
Tier 3: Monthly income is $1,981 - $3,300. These must pay 8% of their monthly household income. They are entitled to a waiver of 50% of the interest and 100% of the penalties that have accrued.
Tier 4: Monthly income is $0 - $1,980. These households must pay 5% of their monthly income but no less than $25 per month. They are entitled to a waiver of 100% of the interest and 100% of the penalties that have accrued.
Real Estate Tax Deferral Program
The deadline for this program has been extended to February 17, 2014.
Real Estate Tax Deferral Program
Real Estate Tax Deferral Program Application
Use our Tax Deferral Calculator to see if you qualify.
Under the Real Estate Tax Deferral program, applicants can postpone payment of the tax increase that is above 15% of the tax due for any given year. Payment on the excess amount can be deferred until transfer or sale of the property. A minimum annual interest rate of 2% will apply to the deferred amount.
Eligibility is based on a four-tier system based on annual household income.
Tier 1: Annual household income is $55,441 or greater. Real estate tax must be more than 25% of income.
Example: A taxpayer income is $60,000. To be eligible for the program
their Real Estate Tax liability must be $15,001 or higher. ($60,000 x 255
Tier 2: Annual household income is $39, 601 - $55,440. Real estate tax must be more than 12% of income.
Tier 3: Annual household income is $23,761 - $39,600. Real estate tax must be more than 8% of income.
Tier 4: Annual household income is $23,760 or less. Real estate tax must be more than 5% of income.
Applicants must use the property as their primary residence. In addition, all Real Estate Taxes on the property must be current or under a payment agreement. Deadline to apply is January 31, 2014. Applicants will be notified by mail within 30 days of the Department of Revenue receiving a completed application.
Real Estate Tax Receivership
The Real Estate Tax Receivership Program is an enforcement tool that gives a Court-appointed Receiver the authority to collect rents from a property and manage a tax-delinquent building until the debt is repaid. The delinquent owner will be deprived of any income from the property until the delinquency is resolved. Debtors will be notified by mail of the pending court action.
The City will file a petition with the Court of Common Pleas for the appointment of a Receiver. Once appointed, the Receiver will meet with tenants and building employees, collect rents, make necessary repairs, and pay expenses for the building, including current and back taxes. The Receiver, who is under contract with the City, is paid a management fee out of the rents collected from the building. All back taxes and the Receiver’s management fee must be paid before the management of the building can be returned to the original owner.